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

                                 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:     March 31, 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              (IRS Employer Identification No.)
 Incorporation or 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

                                                   March 31,      December 31,
         ASSETS                                      1998             1997
         ------                                    ---------      ------------
                                                  (unaudited)
<S>                                                <C>             <C>
Current assets:
  Cash and cash equivalents                       $  133,185         174,809
  Accounts receivable:
    Trade                                             54,598          56,499
    Other                                              9,497           9,497
                                                   ---------       ---------
                                                      64,095          66,316

  Inventory                                           36,449          43,643
  Prepaid expenses                                     7,957           2,468
                                                   ---------       ---------
          Total current assets                       241,686         287,236
                                                   ---------       ---------
Property and equipment, at cost:
  Land                                                 7,000           7,000
  Developed and undeveloped oil and gas
    properties-successful efforts method           4,187,958       4,180,055
  Trucks and other operating equipment               341,074         349,911
  Furniture and fixtures                              44,015          44,015
                                                   ---------       ---------
                                                   4,580,047       4,580,981
  Less accumulated depreciation, depletion and
        amortization                               4,519,009       4,521,200
                                                   ---------       ---------
                                                      61,038          59,781
                                                   ---------       ---------
Cash surrender value of life insurance, net           59,521          56,746
Other assets                                           1,107           1,107
                                                   ---------       ---------
                                                  $  363,352         404,870
                                                   =========       =========
        LIABILITIES AND STOCKHOLDERS' DEFICIT
        -------------------------------------
Current liabilities:
  Accounts payable                                $   42,359          47,611
  Payable to interest owners                         306,844         303,692
  Payable to officer, net                            440,080         391,701
  Accrued expenses                                   125,855         112,991
                                                   ---------       ---------
          Total current liabilities                  915,138         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                               (711,506)       (610,845)
                                                   ---------       ---------
          Total stockholders' deficit               (551,786)       (451,125)
                                                   ---------       ---------
                                                  $  363,352         404,870
                                                   =========       =========
</TABLE>

















































<PAGE>  3
<TABLE>
                    PETROL INDUSTRIES, INC. & SUBSIDIARIES

                    Consolidated Statements of Operations

                  Three months ended March 31, 1998 and 1997
                                 (unaudited)


                                                       1998            1997
                                                       ----            ----
<S>                                                 <C>             <C>
Revenues:
  Oil and gas sales                                $  137,024         207,555
  Other operating income                                6,630           4,161
                                                    ---------       ---------
                                                      143,654         211,716
                                                    ---------       ---------
Expenses:
  Lease operating expense                             148,616         175,330
  General and administrative                           86,787          86,014
  Depreciation, depletion and amortization              1,800           1,515
                                                    ---------       ---------
                                                      237,203         262,859
                                                    ---------       ---------

           Operating loss                             (93,549)        (51,143)

Other income and (expense):
  Loss-sale of assets                                    (408)            ---
  Interest income                                       2,194           2,737
  Interest expense                                     (8,898)         (6,894)
                                                    ---------       ---------
                                                       (7,112)         (4,157)
                                                    ---------       ---------
           Net loss                                $ (100,661)        (55,300)
                                                    =========       =========

Net loss per share                                       (.06)           (.04)
                                                    =========       =========

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

</TABLE>













<PAGE>  4
<TABLE>
                    PETROL INDUSTRIES, INC. & SUBSIDIARIES

                    Consolidated Statements of Cash Flows

                  Three months ended March 31, 1998 and 1997
                                     (unaudited)



                                                         1998          1997
                                                         ----          ----
<S>                                                   <C>           <C>
Operating activities:
  Net loss                                           $ (100,661)      (55,300)
  Adjustments to reconcile net loss to net cash
    used by operating activities:
      Depreciation, depletion and amortization            1,800         1,515
      Loss on sale of assets                                408           ---
      Losses on retirements of property and
        equipment included in lease operating expenses     (616)       (1,850)
      Changes in assets and liabilities:
        Cash surrender value of life insurance           (2,775)       (2,775)
        Accounts receivable                               2,221         8,150
        Inventory                                         7,194        (4,813)
        Prepaid expenses                                 (5,489)       (7,077)
        Accounts payable and accrued expenses             7,612         6,529
        Payable to officer, net                          48,379        46,836
        Payable to interest owners                        3,152         8,049
          Net cash (used) provided by operating       ---------     ---------   

           activities                                   (38,775)         (736)

Investing activities:
  Capital expenditures                                   (2,849)         (244)
                                                      ---------     ---------
          Net cash used by investing activities          (2,849)         (244)


Increase (decrease) in cash and cash equivalents        (41,624)         (980)
Cash and cash equivalents at beginning of period        174,809       218,355
                                                      ---------     ---------
Cash and cash equivalents at end of period           $  133,213       217,375
                                                      =========     =========

</TABLE>












<PAGE>  5
<TABLE>

                    PETROL INDUSTRIES, INC. & SUBSIDIARIES

         Consolidated Statements of Changes in Stockholders' Deficit

                  Three months ended March 31, 1998 and 1997
                                 (unaudited)



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

  Net loss for the three-month period                (100,661)        (55,300)
                                                    ---------       ---------
Stockholders' deficit at March 31                    (551,786)       (270,229)
                                                    =========       =========


</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 1997 or 1996.

3.   Net income per share of common stock is computed on the weighted average 
number of shares outstanding during the three months ended March 31.  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

4.   The expected tax benefit resulting from operating losses for the first 
three 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 March 31, 1998.















<PAGE>  7


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


     Even with an increase of 8.9% in production, oil and gas sales revenues 
were significantly lower during the first quarter of 1998, caused by a 34.7% 
decline in oil prices as compared to the 1997 period.  The Company's net loss 
increased to $100,661, or ($.06) per share, compared to a net loss of $55,300, 
or ($.04) per share in the 1997 period.

     The Company sustained an operating loss of $93,549 in the first quarter 
of 1998, compared to an operating loss of $51,143 in the first quarter of
1997.  Oil prices averaged $13.66 per barrel during the first quarter of 1998, 
compared to an average of $20.91 per barrel in the 1997 period.

     The Company had cash and cash equivalents at March 31, 1998, of $133,185, 
compared to $174,809 at the end of the 1997 fiscal year.

     Management estimates that it owes $306,844 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> 8


                                  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:   May 13, 1998


                                      PETROL INDUSTRIES, INC.

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


                                   
































                                                                                

  


<PAGE>  9


                                EXHIBIT INDEX


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