<PAGE>     1
                   U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, DC  20549

                                 FORM 10-QSB
OMB Approval
OMB Number: xxxx-xxxx
Expires:  Approval Pending
Estimated Average Burden Hours Per Response:  1.0

     (Mark One)

     [X]  Quarterly report under Section 13 or 15(d) of the Securities          
          Exchange Act of 1934

     For the quarterly period ended:            June 30, 1998

     [ ]  Transition report under Section 13 or 15(d) of the Exchange Act

     For the transition period from __________ to __________

     Commission File Number:         0-3912

                           PETROL INDUSTRIES, INC.
      (Exact Name of Small Business Issuer as Specified in its Charter)

                  NEVADA                              75-1282449
     (State or Other Jurisdiction of      (I.R.S. Employer Identification No.)
      Incorporation of Organization)

          202 N. THOMAS, SUITE 4          SHREVEPORT, LA  71107-6539
                   (Address of Principal Executive Offices)

                                (318) 424-6396
               (Issuer's Telephone Number, Including Area Code)

                                     N/A
             (Former Name, Former Address and Former Fiscal Year,
                        if Changed Since Last Report)

     Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

           YES [XX]         NO [  ]

              APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                 PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by a court.

           YES [  ]        NO [  ]

                     APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:   1,597,196


























































<PAGE>     2
<TABLE>
                        PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

                    PETROL INDUSTRIES, INC. & SUBSIDIARIES
                         Consolidated Balance Sheets

                                                     June 30,     December 31,
                                                       1998          1997
                 ASSETS                             -----------   ------------
                 ------                             (unaudited)
<S>                                                 <C>            <C>
Current assets:
  Cash and cash equivalents                        $   94,672        174,809
  Accounts receivable:
    Trade                                              39,590         56,499
    Other                                               9,497          9,817
                                                    ---------      ---------
                                                       49,087         66,316
                                                                                
  Inventory                                            23,388         43,643
  Prepaid expenses                                      9,441          2,468
                                                    ---------      ---------
          Total current assets                        176,588        287,236
                                                    ---------      ---------
Property and equipment, at cost:
  Land                                                  7,000          7,000
  Developed and undeveloped oil and gas
    properties-successful efforts method            4,189,540      4,180,055
  Trucks and other operating equipment                360,074        349,911
  Furniture and fixtures                               44,015         44,015
                                                    ---------      ---------
                                                    4,600,629      4,580,981
  Less accumulated depreciation, depletion and
        amortization                                4,521,409      4,521,200
                                                    ---------      ---------
                                                       79,220         59,781
                                                    ---------      ---------
Cash surrender value of life insurance, net            62,296         56,746
Other assets                                            1,107          1,107
                                                    ---------      ---------
                                                   $  319,211        404,870
                                                    =========      =========
          LIABILITIES AND STOCKHOLDERS' DEFICIT
          -------------------------------------
Current liabilities:
  Accounts payable                                 $   37,929         47,611
  Payable to interest owners                          309,240        303,692
  Payable to officer, net                             485,165        391,701
  Accrued expenses                                    136,430        112,991
                                                    ---------      ---------
          Total current liabilities                   968,764        855,995

Stockholders' deficit:
  Preferred stock-no par value. Authorized 1,000,000
    shares; no shares issued or outstanding               ---            ---
  Common stock-$.10 par value. Authorized 10,000,000
    shares; issued and outstanding 1,597,196
      shares in 1998 and 1997                         159,720        159,720
  Accumulated deficit                                (809,273)      (610,845)
                                                    ---------      ---------
          Total stockholders' deficit                (649,553)      (451,125)
                                                    ---------      ---------
                                                   $  319,211        404,870
                                                    =========      =========
</TABLE>


















































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<TABLE>

                    PETROL INDUSTRIES, INC. & SUBSIDIARIES

                    Consolidated Statements of Operations
                                 (unaudited)


                                     Quarter Ended         Six Months Ended
                                       June 30,                June 30,
                                     -------------         ----------------
                                   1998        1997        1998        1997
                                   ----        ----        ----        ----
<S>                             <C>         <C>         <C>         <C>
Revenues:
  Oil and gas sales            $  114,398     186,169     251,422     393,725
  Other operating income            7,863       3,858      14,493       8,019
                                ---------   ---------   ---------   ---------
                                  122,261     190,027     265,915     401,744
                                ---------   ---------   ---------   ---------
Expenses:
  Lease operating expense         132,295     167,535     280,911     342,863
  General and administrative       77,680      80,529     164,466     166,543
  Depreciation, depletion and
    amortization                    2,400         915       4,200       2,430
                                ---------   ---------   ---------   ---------
                                  212,375     248,979     449,577     511,836
                                ---------   ---------   ---------   ---------
           Operating loss      $  (90,114)    (58,952)   (183,662)   (110,092)
                                ---------   ---------   ---------   ---------

Other income and (expense):
  Loss on sale of assets              ---         ---        (408)        ---
  Interest income                   1,849       2,932       4,043       5,669
  Interest expense                 (9,503)     (7,478)    (18,401)    (14,373)
                                ---------   ---------   ---------   ---------
                                   (7,654)     (4,546)    (14,766)     (8,704)
                                ---------   ---------   ---------   ---------

           Net loss            $  (97,768)    (63,498)   (198,428)   (118,796)
                                =========   =========   =========   =========

Net loss per share             $     (.06)       (.04)       (.12)       (.07)
                                =========   =========   =========   =========

Average common shares
  outstanding                   1,597,196   1,597,196   1,597,196   1,597,196
                                =========   =========   =========   =========

</TABLE>








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<TABLE>

                    PETROL INDUSTRIES, INC. & SUBSIDIARIES

                    Consolidated Statements of Cash Flows

                   Six months ended June 30, 1998 and 1997
                                 (unaudited)


                                                           1998        1997
                                                           ----        ----
<S>                                                     <C>         <C>
Operating activities:
  Net loss                                             $ (198,428)   (118,796)
  Adjustments to reconcile net loss to net cash
    provided by operating activities:
      Depreciation, depletion and amortization              4,200       2,430
      Loss on sale of assets                                  408         ---
      Losses on retirements of property and
        equipment included in lease operating expenses       (857)      3,132
      Changes in assets and liabilities:
        Cash surrender value of life insurance             (5,550)     (5,550)
        Accounts receivable                                17,229      10,412
        Inventory                                          20,255       8,262
        Prepaid expenses                                   (6,973)     (3,752)
        Accounts payable and accrued expenses              13,757      17,535
        Payable to officer, net                            93,464      78,392
        Payable to interest owners                          5,548      15,666
                                                        ---------   ---------
          Net cash (used) provided by operating
            activities                                    (56,947)      7,731


Investing activities:
  Capital expenditures                                    (23,190)    (12,289)
                                                        ---------   ---------
          Net cash used by investing activities           (23,190)    (12,289)


Decrease in cash and cash equivalents                     (80,137)     (4,558)
Cash and cash equivalents at beginning of period          174,809     218,355
                                                        ---------   ---------
Cash and cash equivalents at end of period             $   94,672     213,797
                                                        =========   =========

</TABLE>











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<TABLE>
                    PETROL INDUSTRIES, INC. & SUBSIDIARIES

         Consolidated Statements of Changes in Stockholders' Deficit

                   Six months ended June 30, 1998 and 1997
                                 (unaudited)



                                                       1998           1997
                                                       ----           ----
<S>                                                <C>              <C>
Stockholders' deficit at January 1                $  (451,125)       (214,929)

  Net loss for the six-month period                  (198,428)       (118,796)
                                                    ---------       ---------
Stockholders' deficit at June 30                  $  (649,553)       (333,725)
                                                    =========       =========


</TABLE>




































<PAGE>     6

                    PETROL INDUSTRIES, INC. & SUBSIDIARIES
                  Notes to Consolidated Financial Statements
                                 (unaudited)

1.   The accompanying unaudited consolidated financial statements have been 
prepared by the Registrant in accordance with generally accepted accounting 
principles, pursuant to the rules and regulations of the Securities and 
Exchange Commission.  Certain information and footnote disclosures normally 
included in financial statements have been condensed or omitted pursuant to 
such rules and regulations, although management believes that the disclosures 
are adequate to make the information presented not misleading.  In the opinion 
of management, the accompanying financial statements contain all adjustments 
necessary for a fair statement of the results for the interim periods 
presented.  It is suggested that these consolidated financial statements be 
used in conjunction with the consolidated financial statements and the notes 
thereto included in the Registrant's 1997 Annual Report on Form 10-KSB.
      
2.   The consolidated financial statements included herein are consolidated 
with the accounts of Petrolind Drilling Funds, Inc. and Realco, Inc., both 
wholly owned subsidiaries of the Registrant, neither of which was active 
during 1998 or 1997.

3.   Net income per share of common stock is computed on the weighted average 
number of shares outstanding during the six months ended June 30.  The 
weighted average number of shares outstanding was determined by totaling the 
number of shares outstanding at the end of each month and dividing that total 
by the number of months.

                                                    Total Number of
                                                   Shares Outstanding
                                                   1998          1997
                                                   ----          ----
       January 31                               1,597,196     1,597,196
       February 28                              1,597,196     1,597,196
       March 31                                 1,597,196     1,597,196
       April 30                                 1,597,196     1,597,196
       May 31                                   1,597,196     1,597,196
       June 30                                  1,597,196     1,597,196

4.   The expected tax benefit resulting from operating losses for the first 
six months of 1998 has not been recorded because it is not expected to be 
realizable.  Additionally, there were no significant changes in the temporary 
differences that give rise to significant portions of the deferred tax assets 
and deferred tax liabilities at June 30, 1998.











<PAGE>     7

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND        
         RESULTS OF OPERATIONS

     Oil and gas sales revenues decreased approximately 38.6% in the second 
quarter of 1998, compared to the second quarter of 1997, the result being an 
31.9% decrease in average oil prices of approximately $5.72 per barrel.  The 
Company's net loss for the period increased to $97,768, or ($.06) per share, 
compared to $63,498 in the 1997 period, or ($.04) per share.

     The Company sustained an operating loss of $90,114 in the second quarter 
of 1998, compared to an operating loss of $58,952 in the prior year's second 
quarter.  For the six month period ended June 30, 1998, the Company's net loss 
increased approximately 67.0% to $198,428 from the $118,796 net loss in the 
prior year's period.

     Management has attempted to reduce operating costs over the past several 
years in an effort to restore profitability in the face of current oil prices.  
Profitability is contingent essentially upon two factors: increasing 
production from the Company's mineral leases and increases in world oil 
prices.  Management continues to explore possible approaches to increasing oil 
production, including technological developments or pursuing drilling 
operations.

     Oil prices averaged $12.21 per barrel during the second quarter of 1998, 
compared to an average of $17.93 per barrel in the 1997 period.  For the six 
month period, oil prices averaged $12.94 per barrel in 1998 compared to $19.30 
in 1997.

     The Company had cash and cash equivalents at June 30, 1998, of $94,672, 
compared to $174,809 at the end of the 1997 fiscal year.  Management estimates 
that it owes $309,240 from the settlement of the Horne Lease dispute with Oryx 
to owners of other interests in the Horne Lease.

     In May, 1998, Joseph M. Rodano, President and Treasurer of Petrol 
Industries, Inc., as well as a member of its Board of Directors, purchased a 
total of 5,000 Shares Common Stock, $.10 par value per share, of Petrol 
Industries, Inc.  The purchase was made in an open-market transaction, and all 
of the shares purchased by Mr. Rodano were purchased with his personal funds.  
As of June 30, 1998, Mr. Rodano owns an aggregate of 534,325 Shares, 
comprising approximately 34% of the outstanding shares.

     The Company is working to resolve the potential impact of the year 2000 
on the ability of the Company's computerized information systems to accurately 
process information that may be date-sensitive.  Any of the Company's programs 
that recognize a date using "00" as the year 1900 rather than the year 2000 
could result in errors or system failures.  The Company utilizes a limited 
number of computer programs across its entire operation.  The Company has not 
completed its assessment, but currently believes that costs of addressing this 
issue will not have a material adverse impact on the Company's financial 
position, as its computer programs will be updated by third party vendors.  
However, if the Company and third parties upon which it relies are unable to 
address this issue in a timely manner, it could result in a material financial 
risk to the Company.  In order to assure that this does not occur, the Company 
plans to devote all resources required to resolve any significant year 2000 
issues in a timely manner.


<PAGE>     8


                         PART II - OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS.

         None.

Item 1.  CHANGES IN SECURITIES.

         None.

Item 3.  DEFAULTS UPON SENIOR SECURITIES.

         None.

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         None.








































<PAGE>     9


                                  SIGNATURE
                                  ---------


     Pursuant to the requirements of the Securities and Exchange Act of 1934, 
the Registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.


Dated:   August 11, 1998


                                      PETROL INDUSTRIES, INC.


                                      By: Joseph M. Rodano
                                         -----------------------
                                         Joseph M. Rodano
                                         President and Treasurer






































<PAGE>    10


                                EXHIBIT INDEX


           Exhibit                                  Description
             No.                                    -----------
           -------
             27                                 Financial Data Schedule