The Wilmington morning star., 1940-10-30
Oil Of War
BY PETER EDISON
Editor, NEA Service

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Editor, NEA Service
PALEMBANG, Sumatra, Meth
erlands East Indies-Oil plays just
as important a part in the life of
the South Pacific as it does in the
rest of the world, and with some
curious complications. New Zea-
land and Australia have no oil. The
Dutch East Indies have an abun-
dance.
The hunt for oil in Australia,
rich in other natural resources,
has gone on for years and is still
going on. The commonwealth it.
self has backed one test well, near
Seacombe, which has reached a
deepth of over 5000 feet, and two
other test holes are down over
1000 fetal without a trace of oil
thus far.
The Australian government has
also put $1,500,0 600 into a shale oil
venture at Glen Davis, boom town
of 600 just west of Sydney. But
the quality of gas that can be
made from this shale oil has yet
to be learned, and, at best, it can
supply only 35,000,000 gallons a
year, or 10 per cent of the national
demand.
A new company is being formed
to explore New Zealand for oil. It
is backed by British, Dutch,
American, Australian and New
Zealand capital, but it has not yet
begun operations. 1t may not do
so until after the war.
NO OIL
so GAS HIGH
Thus these two British domin-
ions are forced to import all petro-
leum products. New Zealand i'm
ports from the U. S. about 81, 225,-
600 worth a year and Australia
buys to the tune Of $40, 900, 600.
Both figures represent about a
half of the total consumption and
YOU can be sure the expenditures
are absolutely necessary, for the
greatest conservation effort In
these countries today is to save
dollars.
What oil and gas cannot be Sc
cured from the U. S. comes from
the Dutch East Indies. Roya!
Duth Shell is the principal pro
ducer. Close behind are the Stand
ard Vacuum subsidiaries, t h e
Koliale producing and Standard
Vacuum sales organizations which
market these products from South
Africa to New Zealand and from
Tasmania to China and Japan.
YANKS INSTALL
COMFORTS OF HOME
Principal producing + i l d OF
Koloniale company is in Palem
bang, Sumatra. Here a six-foo'
giant from Tulsa, Okla, Lloyd w
(Shorty) Elliott, with staff Of II
Americans, runs the nearby fiele
and the refinery which has ca
pacity of $4,000 barrels day. Il
| is one of the biggest and most
modern plants in the Far East
It's quite an American outpost
these Yanks have built. They have
their club, golf courses and ten
mis- courts, and all the comforts o1
home that can be transplanted te
this edge of the jungle. .
Tankers from practically all
over the world come 60 miles ur
the Moesi river to Palembang te
load crude oil, fuel oil, motor fuels
kerosene for the lamps Of China
100 octane aviation gas. coke tol
Japanese blast furnaces, wax, ane
all the other byproducts OF a blf
modern refinery.
Koloniale also has fields II
Borneo, and smaller refinery II
Java. Two hundred Dutch execu
tives and 5000 native v-orkmen are
on it's payroll.
Biggest of the Dutch Shell sub
sidiaryf refineries is at Balik Pa
pan, on the east coast of Borneo
slightly larger equivalent Of the
Batavia Petroleum company plan
in Sumatra. Balik Papan, how
ever, is right on the seacoast, ane
it's huge plant and tar farm:
spread out over the sand hill
surrounding the immense natura
harbor, big enough to shelter
war fleet. Four other refinerie:
and fields are operated by thi:
company.
OIL FIELDS
WELL DEFENDED
Combined production Of al
Dutch East Indies fields amount
to about 6 per cent of world pro
duction. OF this production, Z pc
cent takes care of the Indies ant
the remainder is available for ex
port.
A nice thing it is for the Indies
government, too. Under the Law
of the Indies, all land is reserved
to the natives. Oil lands canno
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