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scheme consists of (1) the modification of customs duties with a view to encouraging the French refining industry, and encouraging the use of home produced crude oil, and (2) the control of the import trade of the large companies.
The object is not restriction of imports in the ordinary sense, since France possesses no source of petroleum of any great commercial importance; the scheme is rather the result of French nervousness at having no adequate supply of oil on French territory or under control of a French company in foreign territory (except for their minority interest in the Turkish Petroleum Company in Iraq).
GERMANY.-According to recent reports in the technical press, German oil imports are estimated for 1927 at 1 million tons against 170,000 tons in 1913. Great interest is now being taken in Germany in the question of the production of oil from coal with a view to rendering the country independent of foreign sources of supply. Special attention has been devoted to new processes for the hydrogenation of coal by the I.G. Farbenindustrie which is planning gradually to bring synthetic oil on to the market. It appears that the experimental stage of coal hydrogenation has been practically concluded, but it remains to find a method of making it commercially profitable.
RUSSIA. Reliable information regarding the situation in the petroleum industry in Russia is difficult to obtain, and such figures as are published from time to time are invariably contradictory. It is, therefore, only possible to give an approximate idea of what is going on. It is estimated that the production for the year 1st October, 1926, to 30th September, 1927, has amounted to some 10,000,000 tons of which by far the biggest proportion is contributed by the Baku fields. The chief Russian oilfields before the Revolution were, and still are, those of Baku and Grozny, and a series of small producing fields of Emba, Kuban, Maikop, Cheleken, etc.
The following information taken from what appears to be a well informed article on the Soviet Oil Industry, which appeared in the technical Press quite recently, may be of interest as indicating the trend of events since the war.
Conditions on the oilfields were very bad during the post-war period 1918-1920 owing to Civil War and Revolution. During this time the oilfields were cut off from their home markets and, as a result, much oil accumulated in the field storage tanks. It is stated that in 1920, when the Soviet Army entered Baku, 5,000,000 tons of oil were found in the storage tanks. On account of the political situation the output of some 8,000,000 tons in 1917 fell to 3,625,000 tons in 1918. Since that time the industry has steadily recovered, and better plant and equip- ment is now being employed. The Soviet authorities are believed to be aiming at attaining an output of 16,000,000 tons in five years' time, and as transport facilities are at present insufficient for the production, a pipe-line is now being built from Grozny to Tuapse, as well as a new 10 in. line from Baku to Batoum.
RUMANIA. Although the Rumanian oil industry has made con- siderable progress during the past few years, it is now passing through a critical period due to a variety of causes including (a) insufficient and disorganised transport facilities, (b) falling prices for oil in the world's markets, (c) heavy internal taxes, and (d) the general check given to
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industrial activity as a result of a relatively prolonged period of deflation. Out of 160 companies engaged in the industry only 27 paid a dividend for 1926. The petroleum industry, of which a large part is controlled by foreign capital, is vitally affected by the Mining Law promulgated on 1st July, 1924, which provides for the nationalisation of the mineral rights and the distribution of concessions on State oil lands to companies with Rumanian capital or foreign companies which have accepted without reservation the principles of the Mining Law. The distribution of State oil lands under this Law has stimulated local production, but on account of lack of working capital many of the local companies which have benefited by acquiring new areas from the State have been compelled to conclude participation contracts with foreign contractors in order to fulfil their drilling programmes.
The export of crude oil from Rumania is prohibited. Consequently all oil produced is treated in local refineries of which there are some 60 in number,
Up to the end of November, 1927, production amounted to 3,345,005 metric tons. This compares with a total of 3,240,789 metric tons for the whole of 1926 so that production is showing a considerable increase.
SPAIN. On 30th June, 1927, a Royal Decree was published in the Madrid Gazette laying down the form of the new petroleum Monopoly, and inviting tenders for the Monopoly.
The Monopoly was eventually granted to a Consortium of Spanish banks, and by a Royal Order dated 27th December last, it is decreed that the Monopoly shall operate on 1st January, 1928, in Spain and the Balearic Islands. The Monopoly will undertake the importation, refining, storing, distribution and sale of petroleum oils, and their derivatives. It is stated in the Madrid Gazette of 29th December that the Monopoly will likewise undertake the purchase, distribution and sale of benzol, and oils from the distillation of coal, shale lignites and peats employed in combustion engines and furnaces of all kinds.
ASIA.
IRAQ.-Turkish Petroleum Company's Concession (Vilayets of Mosul and Baghdad). Good progress has been made by the company with its drilling programme during the latter half of 1927, and following the extensive geological survey which was carried out in the previous year nine sites have now been selected for drilling operations. These tests cover a wide extent of country, and as Iraq is practically without roads, a great deal of road construction has been necessary. This has been carried through in spite of innumerable difficulties. Drilling has actually been commenced at the following localities: Kashm-al-Ahmar, Injanah, Palkhanah (two wells) Jambur Tang, Tarjil, Baba Gurgur, and Jabal Qaiyarah. Oil was struck in quantity at Baba Gurgur on 14th October at a depth of 1,521 feet, a much shallower depth than had been anticipated, and flowed until the afternoon of 22nd October. All available staff from other areas were transferred to assist in closing in the well pending the erection of storage accommodation and the completion of transport facilities. Oil has also been struck at Qaiyarah. Six of the other wells have reached depths exceeding 1,000 feet, and the company are now seriously considering the laying of a pipeline to the Mediterranean coast.
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