<PAGE>
                 U.S. SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.  2049

                               FORM 10-QSB

OMB Approval
OMB Number:  xxxx-xxxx
Expires:  Approval Pending
Estimated Average Burden Hours per Response:  1.0

(Mark One)

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

For the quarterly period ended:    June 30, 2002

__ 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     (IRS Employer Identification Number)
 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

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<TABLE>

                     PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

                 PETROL INDUSTRIES, INC. & SUBSIDIARIES
                       Consolidated Balance Sheets

                                                June 30,          December 31,
                                                  2002                2001
                                                --------          ------------


                                         <c>                   <c>
                    ASSETS
                    ------
Current assets:
  Cash and cash equivalents                 $     54,421              55,986
  Accounts receivable:
    Trade                                         33,250              25,950
    Other                                          9,498               9,498
                                              ----------          ----------
                                                  42,748              35,448

Inventory                                         32,355              21,228
Prepaid expenses                                  11,462               4,247
                                              ----------          ----------
          Total current assets                   140,986             116,909
                                              ----------          ----------
Property and equipment, at cost:
  Land                                             7,000               7,000
  Developed and undeveloped oil and gas
    properties-successful efforts method       3,730,449           4,131,447
  Trucks and other operating equipment           344,002             357,773
  Furniture and fixtures                          33,986              33,722
                                              ----------          ----------
                                               4,115,437           4,529,942
  Less accumulated depreciation, depletion
    and amortization                           4,019,062           4,450,985
                                              ----------          ----------
                                                  96,375              78,957
                                              ----------          ----------

Other assets                                       1,107               1,107
                                              ----------          ----------
                                            $    238,468             196,973
                                              ==========          ==========
      LIABILITIES AND STOCKHOLDERS' DEFICIT
      -------------------------------------

Current liabilities:
  Accounts payable                          $     56,373              39,143
  Payable to interest owners                     335,047             335,427
  Payable to officer, net                        914,524             886,898
  Notes payable                                  216,193             106,856
  Accrued expenses                                91,129              89,335
                                              ----------          ----------
          Total current liabilities            1,613,266           1,457,659
                                              ----------          ----------
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 2002 and 2001            159,720             159,720
  Accumulated deficit                         (1,534,518)         (1,420,406)
                                              ----------          ----------
          Total stockholders' deficit         (1,374,798)         (1,260,686)
                                              ----------          ----------

                                            $    238,468             196,973
                                              ==========          ==========
</TABLE>



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<TABLE>


                         PETROL INDUSTRIES, INC.

                  Consolidated Statements of Operations
                               (unaudited)




                                   Quarter Ended            Year Ended
                                      June 30,                June 30,
                                --------------------    --------------------
                                  2002        2001        2002        2001
                                --------------------    --------------------

                           <c>          <c>         <c>         <c>
Revenues:
  Oil and gas sales           $  107,228     147,986     194,208     287,560
  Other operating income           4,231       7,722       8,959      16,480
                               ---------   ---------   ---------   ---------
                                 111,459     155,708     203,167     304,040
                               ---------   ---------   ---------   ---------
Expenses:
  Lease operating expense        111,091     130,089     242,627     259,601
  General and administrative      45,180      47,046      77,545      91,386
  Depreciation, depletion
    and amortization               2,775       2,775       5,550       5,550
                               ---------   ---------   ---------   ---------
                                 159,046     179,910     325,722     356,537
                               ---------   ---------   ---------   ---------

          Operating loss      $  (47,587)    (24,202)   (122,555)    (52,497)
                               ---------   ---------   ---------   ---------

Other income and (expense):
  Gain on sale of assets          38,057       4,000      38,057       4,040
  Interest income                     50         168          54         435
  Interest expense               (15,473)    (10,327)    (29,668)    (20,933)
                               ---------   ---------   ---------   ---------
                                  22,634      (6,159)      8,443     (16,458)
                               ---------   ---------   ---------   ---------

          Net loss            $  (24,953)    (30,361)   (114,112)    (68,955)
                               =========   =========   =========   =========

Net loss per share            $    (0.02)      (0.02)      (0.08)       (.04)
                               =========   =========   =========   =========

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.

                  Consolidated Statements of Cash Flows

                 Six months ended June 30, 2002 and 2001
                               (unaudited)





                                                         2002        2001
                                                         ----        ----

                                                  <c>           <c>
Operating activities:
  Net loss                                           $ (114,112)   (68,955)
  Adjustments to reconcile net loss to net cash
    provided (used) by operating activities:
      Depreciation, depletion and amortization            5,550       5,550
      Gain on sale of assets                            (38,057)     (4,040)
      Losses on retirements of property and equipment
        included in lease operating expenses                ---         ---
     Changes in assets and liabilities:
       Decrease (increase) in accounts receivable        (7,300)      3,029
       Decrease (increase) in inventory                 (11,127)     12,297
       Increase in prepaid expenses                      (7,215)    (10,058)
       Increase in accounts payable and accrued
         expenses                                        19,024       4,575
       Increase in payable to officer, net               27,626      26,826
       Increase (decrease) in payable to interest
         owners                                            (380)      4,740
                                                       --------     -------
         Net cash (used) provided by operating
           activities                                  (125,991)    (26,036)

Investing activities:
  Capital expenditures                                  (25,229)     (5,908)
  Proceeds from sale of property and equipment           40,318       4,040
                                                       --------     -------
         Net cash provided (used) by investing
           activities                                    15,089      (1,868)

Financing activities:
  Proceeds from gross borrowings                        128,900         ---
  Repayments of gross borrowings                        (19,563)        ---
                                                       --------     -------
         Net cash provided by financing activities      109,337         ---


Increase (decrease) in cash and cash equivalents         (1,565)    (27,904)
Cash and cash equivalents at beginning of period         55,986      50,725
                                                       --------     -------

Cash and cash equivalents at end of period           $   54,421      22,821
                                                       ========     =======

</TABLE>




<PAGE>



                         PETROL INDUSTRIES, INC.

       Consolidated Statements of Changes in Stockholders' Deficit

                 Six months ended June 30, 2002 and 2001
                               (unaudited)



                                                  2002          2001


Stockholder's deficit at January 1           $ (1,260,686)   (1,055,014)

   Net loss for the six-month period             (114,112)      (68,955)
                                               ----------    ----------

Stockholder's deficit at June 30             $ (1,374,798)   (1,123,969)
                                               ==========    ==========








<PAGE>


                         PETROL INDUSTRIES, INC.

               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 2001 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 2002 or 2001.

  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.
     Totaling the number of shares outstanding at the end of each month and
     dividing that total by the number of months determined the weighted
     average number of shares outstanding.

                                             Total Number of
                                            Shares Outstanding
                                            ------------------
                                            2002         2001
                                            ----         ----

         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 2002 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, 2002.


<PAGE>

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

       Oil and gas sales revenues decreased approximately 27.6% in the
  second quarter of 2002, compared to the second quarter of 2001, the
  result being an approximate 23.3% decrease in production.  The
  Company's net loss for the period decreased to $24,953, or ($.02) per
  share compared to $30,361 in the 2001 period, or ($.02) per share.

     The Company sustained an operating loss of $47,587 in the second
  quarter of 2002, compared to an operating loss of $24,202 in the prior
  year's second quarter.  For the six-month period ending June 30, 2002,
  the Company's net loss increased approximately 65.5% to $114,112 from
  the $68,956 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.  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 $22.14 per barrel during the second quarter of
  2002, compared to an average of $23.94 per barrel in the 2001 period.
  For the six-month period, oil prices averaged $20.23 per barrel in
  2001 compared to $24.87 in 2001.

     The Company obtained a note payable from an individual in the
  amount of $24,000, currently $17,000 as of June 30, 2002.  The note
  bears interest at 0.00% and is repayable in 48 monthly installments of
  $500, beginning June 1, 2002 and on the first day of each month
  thereafter until paid.  The note is secured by oil, gas and mineral
  interest leases.

     The Company had cash and cash equivalents at June 30, 2002, of
  $54,421, compared to $55,986 at the end of the 2001 fiscal year.
  Management estimates that it owes $335,047 from the settlement of the
  Horne Lease dispute with Oryx to owners of other interests in the
  Horne Lease.


                       PART II - OTHER INFORMATION

  Item 1.  Legal Proceedings.

           None.

  Item 2.  Changes in Securities.

           None.

  Item 3.  Defaults Upon Senior Securities.

           None.

  Item 4.  Submission of Matters to a Vote of Security Holders.

           None.









<PAGE>


                                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.



  Date:  August 14, 2002

                                       PETROL INDUSTRIES, INC.




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