Evening star., 1921-06-19
BY BEN McKELWAY.

III
M ton. and the disturbing re-
ports that producing wells are
nearly exhausted-with the
possible exception Of those held by for-
eign interests-are two recently de-
! veloped factors which point to-a merry
right to exploit the petroleum re-
sources of Central and South America.
American, British and European oil
operators already are jockeying Tor ad-
vantage in the southern field. but the
immediate future probably will see tre-
| mendous activities. and the results will
be comparable only with the magnitude
of the undertakings and the prestige OF
the companies already operating in the
new territory.
There are now strong Indications tnat
the production of Venezuela and Co
lombia, with possibilities in Brazil. Peru
and Central America, may be greater IN
quantity and superior in quality 10 tnat
of Mexico. according to recent state
ment prepared for the bureau OF mines
by ]. W. Thompson, law examiner OF the
bureau The oil markets of the west
ern coast Of South America are con-
veniently situated to benent by tne
Panama Canal, which brings them INTO
direct ocean shipment with the Alta antic
coast of the United States ana WIN
European countries.
A study of the oil situation in South
and Central America reveals a gen.
crous attitude on tine part of the ma
jority of the republics toward foreign
exploitation of the petroleum resources.
| 1t also shows that American concerns
have steadily increasing European com
petition to secure land. II is an open
free-for-all race, with the best man 10
, win.
Petroleum has been known to exist IN
| Argentine since 1886. and there are now
| four distinct petroleum zones IN tnat
country. The estimated production IS
about 1000, 600 barrels per year. though
| 600 tons per week. While the gov
ernnlent seems to own the oil. 1t is dis
posed to grant private interests the
right to participate in the development
| Of the fields. British and American IN
terests are active in Argentina.
The first company for the exploita-
/ ton of petroleum deposits was form
ed in Bolivia in 1910. where oil was
! discovered twenty-five years ago Con-
cessions Of more than 100000 acres
have been granted to American and
British interests. the power to con-
the president American geologists
and engineers are now in the interior
| making studies in the geological
structures.
Brazil has thirty-five oil fields in
operation now with an estimated pro-
| ducing power in the last ten years of
from 500.000.000 to 600.000.000 barrels.
Residents or foreigners living in
Brazil or any legally constituted cor
poration may operate in Brazil under
| license granted on application from
| the government.
While there are no known petroleum
deposits in Chile. there have been in
dications of oil, and a British en-
gineer this year has been negotiating
| for the purchase of certain lands
which bear these Indications. All per-
! sons are free to prospect and open
lands in Chile under a license obtain
| ed from the owner.
| Although petroleum has been known
to exist for more than 100 years in
Colombia. prospecting has been re-
! tarded through the governments s
jealous attitude toward foreign de-
| law was passed. however. intended to
/ encourage foreign capital.
| Ecuador's geological structures are
considered favorable for cheap oil
production. and an English syndicate
now has concession for testing three
/ separate IOCalltIeS. ne tOIdi annual
production of oil in Ecuador now Is
| approximately 10000 barrels. The
petroleum laws are considered un-
| favorable for foreign investment.
\
! Peru's estimated production of oil in
1920 was 100000 barrels. British
capitalists have obtained concessions
covering 100000 acres. There have
been 1900 known claims located and
| oil-bearing territory in addition has
been granted. Peru has no specially
adapted petroleum mining code. al
| though a new bill has been passed
by the senate and may become a Law
| at the next congress.
! Venezuela encourages foreign CAPT.
| tai to acquire petroleum concessions
| and desires contracts with responsible
companies. Both English and Amer
/! lean companies are active. The last
estimated yearly production was 425,-
900 barrels. The principal difficulty in
| obtaining Venezuelan oil is tranSpor-