taiwan petroleum facilities (1945)

8/8/2019 Taiwan Petroleum Facilities (1945)

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DECLASSIlPETROLEUM FACILITIES OF

FORMOSA

Instrujct eading this Document

CE~ft" T

"1Y= 'r 1


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PETROLEUM FACILITIES OF

FORMOSA

OECLASSIFI[

Prepared byThe Enemy Oil Committee

for theFuels and Lubricants Division

Office of The Quartermaster General

February, 1945

OECLy SSEEDCopy No. .

-1-


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REVISION

Arrangements for the preparation and distribution of supplementaryinformation pertinent to this report are contemplated. Request ismade that advices concerning corrections and useful addenda for thereport be sent to:Director, Fuels and Lubricants DivisionOffice of The Quartermaster GeneralWashington, D. C.

-2-


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CON T ENT

1.0 INTRODUCTION (page 5').1 Scope (p. 5).2 Geography (p. 5)

Location (p.5)Climate (p. 5)Topography (p.5)Population (p. 7)Agriculture and Forestry (p.Industry (p. 7)Rai l roads (p. 7)Roads (p. 9)Motor Vehicles (p. 9)Rivers (p. 10)Harbors (p. 10)

.3 Petroleum (p. 10)Geology (p. 10)Character of Formosa crudesCrude oil production (p.. 12)Imports and Exports (p. 13)Refining (p. 14)Distributing (p. 14)Consumption (p. 14)

.4 Operating companies (p. 15)2.0.1.2.3.4

3.0.1.2.3.4.5.6:.7.8.9

PRODUCING (page 17)History and development (p. 17Strategic considerations (p. JGeneral geology (p. 19)Formosa oil fields (p. 19)

Chikuto oil field (p. 19)Gyunikuzaki (Gyunikuki) oilKinsui oil and gas field (p..oko oil field (p. 24 )Kosensho (Kosenpo) oil fieldKoshun oil field (p. 25)Kyursorin (Koshirin) (KashiShukkoko oil field (p. 25)

S

7)

(p. 11 )

18)

field (p. 19)20)(p. 24)

'in ?) oil field (p. 25)

REFINING (page 29)Introduction (p. 29)Strategic considerations (p. 29)Byoritsu oil refinery (p. 30 )Chikuto gasoline plant (p. 30)Kinsui gasoline plant (p. 30)Shukkoko gasoline plant (p.32)Takao oil refinery (p. 33)Toshien oil refinery (p. 33 )Carbon black (p. 34)

4.0 DISTRIBUTING (page 53).1 Introduction (p. 53)

General (p. 53)Strategic consideration (p. 53)Consumption (p. 53)

.2 Ocean terminals (p. 54)Keelung (p. 55)Takao (p. 59)Tansui installation (p. 67).3 Inland storage facilities (p. 67)

.4 Retail marketing (x.."69)Gasoline (p. 69)Kerosene (p. 69)Heavy oil (p. 70)Lubricating oil (p. 70 )Light oil (p. 70)

.5 Substitutes for gasoline (p. 70)Alcohol (p. 70)Charcoal (p. 73)Bottled gas (p. 73)

.6 Summary of oil storage in Formosa (p. 73)

-3-

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:I"i- ,aFi ;i7~ I .Ii ~ C' ij r7i


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5.0 APPENDICESAppendix 1 - Conversion factors used in this report (p. 78)Appendix 2 - Location of place names referred to in the Formosa report (p.79)Appendix 3 - Sources for port and harbor maps fo r Formosa (p. 82)INDEX (Page 83)

LIST OF ILLUSTRATIONS

Maps and ChartsPage

6 Areas of vegetation8 Transportation and oil facilities25 Oil fields near Byoritsu, Formosa26 Cross section of Shukkoko oil field, Byoritsu, Formosa31 Kinsui gasoline plant56 Port of Keelung (Kiirun) and Nippon Oil Company's plant60 Takao port and oil storage at present (includes Toshien)64 Takao (1927) and Mitsubishi Oil Company's plant68 Tansui and Rising Sun Petroleum Company's plant

Tables9 Road Mileage9 Motor Vehicles in Formosa, 193710 Principal anticlinal folds11 Stratigraphic column fo r Formosa11 Analyses of Shukkoko crudes13 Crude oil and casinghead gas production14 Estimated civilian demand, 193722 Status of gas wells at Kinsui, 193923 Distribution of principal gas sands, Kinsui oil and gas field23 Known production of natural gas and gasoline at Kinsui24 Analyses of gases from Kinsui oil and gas field26 Well data, Shukkoko oil field

28 Production of Shukkoko oil field29 Estimated capacity of Formosa refinery and gasoline plants54 Petroleum products sales quotas, Formosa55 Details of tankage, Keelung63 Estimated Tankage, Takao71 Production of ethyl alcohol in Formosa71 Commercial ethyl alcohol plants, Formosa72 Additional plants which may produce ethyl alcohol, Formosa73 Butyl alcohol plants, Formosa77 Estimated bulk storage capacity in FormosaPhotographs

16 Kinsui oil wells27 Shukkoko oil and gas field35 Various views of Byoritsu and Kinsui37 Kinsui Gasoline Plant before 193039 Close up view of the Kinsui Gasoline Plant, constructed 193041 Distant view of the Kinsui Gasoline Plant and oil field43 Chikuto Gasoline Plant in process of construction45 Shukkoko Gasoline Plant47 Kinsui Carbon Black Plant49 Aerial view of New Refinery n co c at Takao51 Aerial View of Toshien en;57 Aerial photograph of Por61 Aerial photograph of Por65 Mitsubishi plant at Takao s constructed 192775 Aerial photograph of underground oil storage Ansan Naval Base, Pescadores

Islands-4-


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6 - INTRODUJCTIONareas CIONetation

JAPAN E S E EM PI REISLAND OF FORMOSA'VEGETATION

20 0 20 40 60MILES

20 0 20 40 60KILOMETERS

TA KAOLE G EN D

CultivatedForested

Lowlands

lower and middlemountain slopesForested high mountains

1190

CHINAKEELUNG

0

LI

jDEG"1ASSJF ?r. _


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* " . . . INTRODUCTION - 7Populat ion

of 11,000 feet. From thesra ely gradual descent to thwestern coastal plain. This plain, which is 100 miles long N/S and 20 miles wideE/W, is the principal agricultural region of Formosa.

1,2.4 Population

The population as of 1938 was 5,747,000 of which just over 300,000 were Japaese. The remainder are native and Chinese, the latter being largely descendantsof Kwangtung and Fukien Chinese. The density of population for Formosa is 372.1compared to 474.3 per square mile for Japan proper, both being much higher thanelsewhere in the Orient. The native aborigines, of which there are one hundred afifty thousand, are of two classes, th e "wild" and the "tame". They have now larly been subdued although occasionally the "wild" break loose and revert to theirhead-hunting habits. Even the "tame", however, are not sufficiently advanced tomuch use as industr ial labor. Key positions in social, political and economic lifare dominated by the Japanese. Rural conditions are characterized by a high degrof tenancy and low living standards.

1.2.5 Agriculture and Forestry

Formosa has always been more important agriculturally than industrially, a l-though since 1938 great emphasis has been placed on industrial development. Themain crops are rice, sweet potatoes, pineapples, sugar and tea. The forest resourare enormous though largely inaccessible. 67% of the island is forested but muchof the forested areas lie at elevations of 7,000 to 12,000 feet. Perhaps the mostextensive growth and the best known to the world is th e camphor tree. The map onpage 6 shows the areas of vegetation. The Japanese in Formosa maintain a monopolyon the collection and sale of natural camphor, and also on the production and distribution of alcohol from sugar cane.

1.2.6 Industry

Mining, fishing and the production of petroleum, in that order,are the most imtant industrial pursuits in Formosa. Coal production in 1938 amounted to 2,145,00tons; oil 110,000 barrels. Natural gas and carbon black are important adjuncts othe oil fields. Fishing is a part-time occupation and many fishermen are also famers. The production of alumina, aluminum and alcohol recently has become of considerable importance. Industrial development, taking advantage of short-haul rawmaterials, includes production of special steel, nickel, ferro-magnesium and phos-phates. There is an abundance of water power and hydro-electric power plants arebeing constructed, but minerals such as iron and bauxite are in.deficient supply.

1.2.7 Railroads

Railroads, map on page 8, in Formosa are of three types:(1) Government railroad of which the main line between Keelung and Takao repsents major portion, totals 253 miles; east coast lines from Hatto to Suo and froKarenko to Taito total some 168 miles; branch l ines such as Taihoku to Tansui, ettotal about 112 miles. The main line has a coastal and an inland division betweeChikunan and Shoka 56 miles long. With double tracking, such as between Keelungand Chikunan in th e north and in an e uth, total mileage is jus

under 1,000. The gauge i e l ~ Light weight rails, sharpcurves and short crossing s i1 d f trains. The capacity ofreight cars is 10 to 12 Sn stock at the end of 1941 was reported toconsist of 220 locomotives, 600 passenger and baggage cars and 8,000 freight carsFreight carried during the fiscal year ending March 21, 1939 was 7,861,000 metrictons; passengers were estimated at 25,000,000.


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8 - INTROIDJCTIONTransiportation and oil facilities

5

U

A

LEGENDOil FieldNavy Reserve AreaCrude Oil RefineryCasing Head Gasoline PlatCarbon Black PlantOcean Bulk TerminalBulk. and Package StoragePackage Storage Point RANSPORTATION AND OIL FACILITIES

30 40-Main HighwaysGOVERNMENT RAILROADS

-e-- 3'6" Gauge,DoubleTrack-'--3'6" Gauge, Single Track

-'--26" Gauge, SIngle Track

10 0 10 20 30 40 50 60KILOMETERS

Mako Anl "

y4.

tq


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:1 .. A i r'W^*^i-X^ ^ ^ i f- ^ i INTRODUCTION -Roads(2) Private lines to refinery centers and railway junctions were constructedby sugar, lumber or mining companies chiefly for their own use. Out of approximaly 1,600 miles existing in 1939 just over 300 miles were open to public use. Thegauge was generally 2 feet 6 inches, although some were 3 feet 6 inches. In 1931equipment consisted of 251 locomotives, 273 passenger cars, and 15,273 freight cThe l ines usually spread out from th e main west coast government l ine, but differ

ence in gauge generally prevents joint operation.(3) Pushcar l ines consisting of small flat cars pushed by coolies along tracof 18-inch or 20-inch gauge totaled 645 miles in 1937. Points in the interior an

lowlands as well as cane fields are served by this means. Activity is indicatedby a report that in 1937 pushcar lines carried 3,302,125 passengers and 457,149metric tons of freight . No attempt has been made to show these lines on the map.

1.2.8 Roads

The main highway runs north and south along th e western agricultural plain.The north-south chain of mountain peaks limits transportation across th e island ecept at th e extreme northern and southern ends. A narrow, single lane road runsfrom Suo to Karenko along th e east coast but it is frequently blocked by landslidOther cross-country traffic is confined to trails or footpaths. Estimated roadmileage as of 1938 was as follows:

Road Mileage - 1938Character of Road Miles

Unimproved earth and non-surfaced 1,000Improved earth, sand, clay, gravel, etc. 9,905Macadam 11Concrete and asphalt 70Cement construction 14Tota l 11,000

1.2.9 Motor Vehicles

Before the war trucks and busses operating upon some 800 to 1,000 miles ofroads constituted an important auxiliary means of transport , A concrete highwayran between Keelung and Taihoku. The north-south prewar highway was interruptedlack-of bridges a t certain points. In 1937 motor vehicles on the island were esti-mated to be as follows:

Motor Vehicles in Formosa, 1937

Kind of Vehicle Private Government TotalTrucks 1,179 121 1,300Passenger cars 243 245 488Taxicabs 973 973Buses 944 495 1,439Motorcycles 58 750

.1u\6s K 4,950


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Stratigraphi Colimn for Formosa

INTODUCTION - 1Stratigraphy

A g 8 Division Desoription Thickness

p 1 Shokkosan Loose sand and gravel 750-1,900 m.__ (2,460-6,215 ft.)

en Byoritsu Upper Sandstone and sandy shale 2,000-4,100 m.e Lower Sandstone and sandy shale, oil (6,250-13,450 ft.)bearingTertiary

Miocene Upper Sandstone and shale, oil bearing 1,500-5,000 m.Arisan Middle Sandstone and shale, oil bearing (4,920-16,400 ft.)Lower Sandstone. and shale

Eocene Karisan Sandstone and shale 1,000-2,000 m.(3,280-6,560 ft.)

The Arisan beds have been divided into lower,.middle and upper, all three ofwhich are fossiliferous while the middle and upper contain thin seams of coal andare oil bearing. The lower beds of th e Arisan have been classified as Eocene; thag e of th e middle beds is in doubt; while th e upper beds are Miocene. The Byori tbeds of Pliocene age have been subdivided into upper an d lower with the-latterbeingoil bearing. The stratigraphic section on Formosa, therefore, includes sedments of Tertiary age including'Eocene, Miocene and Pliocene.

1.3.2 Character of Formosa Crudes

Formosan crude ('Shukkoko field) is a wax-bearing naphthen e-interm ediate-baseoil containing almos t no sulphur and asphalt but much gasoline an d kerosene. Compared to the usual Japanese crudes Formosa oil is rich in paraffin wax. The oilsalso appear closely related, irrespective of locality or depth, in contrast withJapanese crudes from adjacent areas. The gasoline an d naphtha fractions containrelatively large proport ion of the aromatic and naphthenic constituents. The re-mainder of th e crude probably would be satisfactory for th e manufacture of gasoliby cracking though prewar the' Japanese had no cracking equipment in Formosa.

Analyses of Shukkoko Crudes

Depth

Specific GravityBeaume GravityRefractive IndexDispersionPour Point 0 CExternal Appearance

Color (Lovibond Tintomtr.)Resin Content (per cent)Sulphur (per cent)Paraffin Wax (per cent)

412 m.(1,350 ft.) 55 0 m.(l,805 ft.)0.828

39-.401.473038.6/ 1.9

Orange Semi-transparentY

3.822.670*1412.877

R0.8

0.87430.40

1 .480538 5710.3

Orange Semi-transparent

9.1 26.000.1505.474

2.0

825 m.(2,700 ft0.840

37.001.480538.4

L 6.0Light Yellowis

Orange. S emitransparentY R2.5 1 0.6

13.330.1354.436

l K \\ L--


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12 - INTRODUCTIONCrude oil production

BE a es of Shukkoko Crudes(Cont inued)

412.m.(1,350 ft) 550 m.(1,805 ft). 825 m.(2,?00 ft)Viscosity (R

Viscosity (S

DistillationFirst Drop-50

50-75 )75-100 )100-125 )125-150 )150-175 ) Al175-200)200-225 )225-250 )250-275 )

-170 )170-195 ) 1(195-220 ) p:220-245 )Residuum

edwood seconds)10002000300C5000

aybo t Seconds)50oF700 F'

1000 FTemp. CO

per cent

tmosphericpressure

) mm, Hg.ressure

31.429.228.227.6

33,230.2-.28.8

57 .20.051.20S16.85

37,0050,3058.0265.2272.8280.6786.8-790,2393.8696.9199.93

45.428,230,028.658,033.0.30,246, 00

0.050.406.60

22.5536.7046.8255.4064.8074,0081,7587.0991.2895,4499.99

32.829,829.027.636.031,029,435.800

0.101,50

10.6528,3040,0047 .6555.0563.7073.4081.8387.1092 .1596,3399,86

Yield of Distillate an d Spec. Gray, % Sp. Gr. % Sp. Gr. % Sp. OrGasoline Distillate (to 17500) 50.30 0 .7911 36.70 0,8039 40.00 0.7993Kerosene Distillate (175-275oC 30.37 0.8483 37.30 0 .8521 33.40 0.8536.Gas-Oil Dlistillate

(to 1700C/10 mm, Hg.) 6.20 0.8931 7.75 0.8886 8.43 0.8938Light Lubricating Oil-Distillate 6.99 0.8683 9.53 0 .8649 10 .32 0 .8672(170-220 0 C/l0 mm, Hg.)M iddle Lube Oil' Distillate 3.05 0.8246 4.16 0.8294 4.18 0.8257

(220-270oC/ l0 mm., Hg,)Heavy Lube Oil Distillate 3.02 0 .8351 4.55 0.8367 3.53 0.8214(Residuum at vacuum)

1.3..3 Crude Oil Product ion .

Production data from official Japanese sources, as shown in the table following and on pages 26 and 28 , are apparently unreliable. Attention is invited to apparent discrepancies. The production from the Shukkoko field is greater than theproduction from all Formosan fields in 1931 and 1933.

The construction of gasoline plants of capacity well above the production, shoindicates that the production of casinghead gasoline is in error or that the wellswere shut in part of the time. Designated Navy reserves remained unexploited upuntil about 1937. The important fields of Shukkoko and Kinsui, brought in around1924, showed early promise of productior. quantities greater than a hundred thou-sand barrels annually, b i statistics remained below fifty thou-sand barrels F? a n a nor ne production below one hundred thou-sand barrels, a ogn p It wa of ten t imes that quantity have beenreported as ccJ1li\u for th e production of oil an d casinghead gasolin


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*r2i~- \N~I\ j !INTRODUCOTIONL~i{~~vnK\K~LL~~JL7LL 2 Imports and Exports - 13

in Formosa, either est imated or as given by official sources , for the years from1927 through 1941 are. given below.

Crude Oil and Casingead Gasoline Production(In Barrels)a)]Year Crude Casinghead Total1927 143,800 5,030 148,8301928 137,647 137,647(b)1929 91,924 - 91,9241930 85,792" 37,716 123,5081931 38,262 86,408 124,6701932 34,594 50,596 85,1901933 35,413 41, 370 76,7831934 40,603 33,891 74,4941935 50,145 51,903 102,0481936 37,099 51,311 88,4101937 36,166 56,566 -92,7321938 37 ,437 71,997, 109,4341939 36,912 93,667 130,5791940 50,000 110,000 160,000(c)1941 50,000 110,000 160,000(c)Totals 905,794 800,455 1,706,249

1.3.4 Im rts and Exports

Statistics on imports of petroleum products into Formosa from th e East IndiesUnited States and from Japan Proper were not published after July 1937. Under nor-mal conditions. both th e Rising Sun Petroleum Company and the Standard-Vacuum OilCompany imported directly but for several years prewar, due to shipping difficultieand other circumstances, SvOC transferred most of its prodicts distributed in For-mosa from stocks in Japan. The RSP, however, continued to ship all products withthe exception of lubricating oils from the East Indies. The domestic companiesshipped stocks by 500 or 1,000 ton coastwise tankers, or in tins and drums by cargvessels, from Japanese ports to the Formosa ports of Keelung and Takao.

Exports of petroleum products from Formosa are normally small and in 1936amounted to only. 33,770 barrels. As an indication of impor ts into Formosa in a normayear the following figures published by the Department of Finance,Government ofTaiwan and for the year 1936 may be noted:

Petroleum Imports , Formosa, 1936ProductsHeavy OilGasolineKeroseneAxle OilMachine OilOther machine oilAll other mineral oilsGrease

Barrels179,230

69,492114,9706,189

22,89621,553

228,10623 500665'=

CountrJapanNetherlands IndiesUnited States"From all threecountries (grease)

Barrels (361,478121,387159,571

23 50066597M8

(a) Unless otherwise specified, wh ere 'te' .e r tN Pi's in th e reporta barrel of 42 U..gallons is mea~ ,F\iI L1~~(b) Shukkoko only. (c.) Estimated.(d) Gallons converted to barrels except in case of grease where converted from

"kin" to pounds to barrels.


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14 - INTRODUCTIONRfini

Prior t a~wr there was only one crude oil refinery in Formosa, This re -finery, with a reported capacity varying between 100 and 250 barrels daily, is lo-cated at Byoritsu, and was owned and operated by the Nippon Oil Company who pro-duced from the neighboring oil and gas fields of Shukkoko and Kinsui. At Kinsuithere was an old gasoline plant. Commencing in 1930 three modern absorption plantwere constructed, one at Shukkoko, a second at Kinsui replacing the old one and athird at Chikuto. The combined capacity is reported in excess of 1,000,000 barrelsof gasoline annually. Aerial coverage shows a refinery of uncertain size in pro-cess of construction at Takao and another at the new Naval base of Toshien. TheToshien refinery is in an advanced stage of construction and may have a capacity of5,000 barrels per day,

1.3.6 DistributingThe Nippon Oil Co. and the Mitsubishi Oil Co. had import and storage points aKeelung and Takao, respectively. Nippon also had several interior bulk storage andistributing points for gasoline such as at Shiodome and Kagi. Nippon dealt in alproducts whereas Mitsubishi imported and distributed largely fuel or diesel andlight oil fo r bunkers or fishing boats. Ogura and Hayama did some kerosene andmachine oil business in packages. The two foreign companies were the Rising SunPetroleum Company (RSP), a subsidiary of the Asiatic Petroleum Company (Royal DutcShell) and the Standard-Vacuum Oil Company (SVOC). The RSP had an import point fo

bulk kerosene and heavy oil at Tansui, gasoline being imported in 78-gallon drums.Latterly gasoline, rather than kerosene, was imported in bulk at Tansui. RSP hadstorage fo r packaged goods and drums at Takao and one inland bulk point. The SVOCdistributed their products both in packages and in drums with storehouses at Kee-lung and Takao, ports of import. All companies sold through agencies.1.3.7 Consumption

The use of quotas to control consumption in Japan and her colonies was insti-tuted by the Government with the Oil Control Law of 1934. The Government author-ized permits specifying the quantities of any single product a specific oil companmight sell. Quota quantities were not always inclusive of consumption increasesand in some instances arbitrary cuts in quotas were made at the expense of the foreign companies. The last normal consuming year was 1937, after which restrictionsin quotas became progressively heavier, except fo r a slight relaxation of quotasin 1939 fo r the purpose of promoting local industries.Estimated Civilian Demand, 1937(in Barrels)

(a) FuelorGasoline Kerosene Light Oils Diesel Oil Lubricants TotalAutomotive 241,000 - - - 15,000 256,000Fishing Boat and - - 30,,000 252,000 18,000 300,000Inland MarineRailway 4,000 - - - 5,000 9,000Utilities and 2,000 - -30,000 28,000 60,000IndustrialAgriculture -- 25,000 4,000 - 1,000 30,000and FarmHousehold andLighting 100,000 - - 100,000

Totals 247,000 125,000 fat0 67,000 755,000(a) For definition of light oe ga ... , .


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IfTROIUCTION - 151 )r4 [J r Operating companies

Estimated civilian demand in Formosa, based on authorized quotas fo r 193', isgiven in the table on page 14, and consumption figures, also based on quotas, willbe found in the Distributing section, page 54.1.4 OPERATING COMPANIES

Producing companies operating in Formosa prewar were the Nippon Oil Company(Nippon Sekiyu) and the Formosa Mining Company (Taiwan Kogyo K.K.). After the warcommenced in 1941, all producing companies in Tapan and elsewhere in the apaneseEmpire were amalgamated into one Government controlled company, the Imperial oilCompany. Mitsubishi, Ogura, and Hayama oil companies shared distribution withNippon although Nippon had by far the lion's share of the Formosa market.

The foreign marketing companies were Standard-Vcuum Oil Company and the Ris-ing Sun Petroleum Company, a subsidiary of the Asiatic Petroleum Company (RoyalDutch Shell). Neither of these companies had any American or British staff in For-mosa immediately prewar. SVOC's District Sales Manager was H.T. Dew, Chinese, andat the time war broke out he was in Taihoku where the company maintained a districtsales office. The RSP had a sales office in Taihoku managed latterly by a Japanese,and an installation and office at'Tansui, also latterly in charge of a Japanese.


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VIEW OF. KINSUI OIL WELLS


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PRODUCING - 17* +,1 , History and Development

2.1 HISTORY OF DEVELOPMENT

Very little is known concerning the history and development of the oil fieldsin Formosa. They are located in the western part of the island, between the allu-vial plains and the foot hills of the mountains, embracing an area 350 kilometers(220 miles) in length, but narrow in.width. The Japanese.Navy has 30 milliontsubo, equalling 24,768 acres (tsubo equals 36 square feet) of possible oil landbut prewar exploration did not develop any large reserves, or, if so, they werekept secret. Known oil fields are specifically mentioned by name in this reportbut Navy reserve areas are covered specifically only where there appears to havebeen some development. Several reports have referred vaguely to such places asChuwa (Sho), Hozan (Takarayama), Hakkaryoku, Tsuho, Shobai, Ensuitsubo, Shinsui,Senshuryo and Toshikyaku as being the location of exploratory wells, but with theexception of Ensuitsubo and Shinsui, which appear in parenthesis on map on page 8,these places are not located. One source of information reports that in 1939 only21 out of 82 petroleum "fields" in Formosa, covering an area approximately equal tothe territory reserved by the Navy, were in operation. This unquestionably is anexaggeration and may refer to pools of one or two wells each. Proved reserves arenot large.

Designated Navy reserve areas are as follows: (1) around Shushu, Taichu Prov-ince (Shushu is on the Nisui-Gaishotei branch railway line). A British report mentions a possible field by the name Tsusho with variants as "? Tsuyo, Tangsian,Tongsian" and "probably in th e neighborhood-of Shinchiku". It seems more likelythis is Shushu as shown on map on page 8. (2) Northeast of Kagi, around the vil-lages of Sokei, Shishito, and Takezaki; (3) in southern Tainan Province around thevillages of Rokujukei, Gyunikuzaki, Suiryuto, Sairyo (Nairyo ?) and Chikutoki;(4) in the vicinity of Kosenpo and Takao Province north of Rokki; and (5) near thesouth tip of the island of Koshun. Specific areas are unknown and even all thevillages cannot be located on any map but an attempt has been made to indicate ap-proximate areas on the map on page 8.

Prior to 1942, the oil fields in Japan and Formosa were exploited largely bythe Nippon Oil Company with the aid of subsidies granted by the Government-GeneralIn accordance with the provisions of Law No. 73 enacted in 1941, the Imperial OilCompany was established in March 1942, with a capitalization of Yen 250,000,000 tocontrol the nation's oil wells and to take over the interests of Nippon, Asahi, ansuch other industrial and small private companies as existed prewar.

Exploration and development of petroleum prospects and reserves have alwayslagged in Japan. This probably is for several reasons: desire to conserve oil inthe ground, cheapness of crude and products obtainable from abroad, importance anddevelopment of electricity as a source of power. In any case, production has rarely exceeded ten per cent of requirements and despite numerous reports of new areasdiscovered and new wells, which gush large quantities of oil.and gas, official figures of production have not exceeded 2,500,'000 barrels in Japan in recent years,and 130,000 barrels in Formosa.

In Formosa drilling and development commenced in 1904 but with the antiquatedmethods used and the wildness of the territory, production by 1912 had reached afigure of only 473 tons (3,450 barrels). In early years, and even up to relativelrecently th e Japanese drilled by hand, th e so-called "Kadzusa" system. This is amodification of the cable system in which the cable is replaced by strips of bambowound on a wheel some 17 feet in diameter. The motor power is supplied by a manrunning within the wheel, thus turning it over and raising the bit and bailer. Throtary system and the cable system are both used at present, the former apparentlynow being given preference especially for deep drilling.

Shukkoko (sometimes Shikku)i n t neig ohoo oByoritsu, Shinchiku Province was th e first commerciali ik (l .


19/85

18 - PRODUCING IStrategic ConsideratDevelopment in the n in 1904 by the NambokuSekiyu Kaisha (North-South Petroleum Compahy), later absorbed by th e Hoden Oil Company. Production th e first few years was less than 1,000 tons annually and by 192appreciable production had just begun. Production from Shukkoko alone in 1927 was136,647 barrels but immediately official production figures began dropping off anddespite discovery and exploitation of other fields, production of crude in Formosahas never exceeded 50,000 barrels since 1930.About 1914 the Kinsui oil and gas field was discovered 10 miles north of Shukkoko. Gas prospects, particularly, were so good that the Nippon Oil Company imme-diately constructed a Japanese type of compression plant and in 1930 engaged anAmerican company-to construct a modern absorption plant at th e field. In 1931,gasoline production from Kinsui officially reached 117,276 barrels but publisheddata show a marked decrease in production immediately thereafter.Development and further exploitation in Formosa seemed to la g from 1930 until1937 when Koko and Chikuto oil fields were drilled by the Taiwan Mining Companynorth of the Kinsui field. In the south, at Gyunikuzaki and Kyusorin districts(Navy reserve areas in Tainan Province), drilling was carried out also in 1937 andoil found. The Japanese had a representative from Schlumberger (electrical welllogging company) on th e spot in that year, indicating that they were informed asto modern technical developments in the search for oil. Recent air coverage revealthat there are many oil wells northeast of Kagi and in th e hills east of Tainan an

Shinei.Subsidies granted by the Government for oil well drilling in Formosa increasefrom Y1,005,000 for th e fiscal year 1937 to Y1,280,000 for 1938 and Y1,742,500 for1939.(a) Exact figures are unknown fo r later years but th e amounts are known to haveincreased. After th e war began and upon the occupation of the East Indies withtheir rich petroleum deposits, development in Japan was retarded. There have beennumerous recent indications, however, of increasing exploration, development andproduction in Formosa. Kinsui specifically has been in th e radio news as havingincreased production 30 per cent in the fiscal year 1943/1944, which ends in Marchwith the drilling of a new well to a depth of 3,800 meters (11,590 feet)(latestrecord depth), and the continuous flowing of other wells since 1938.The new structures appear important and with deeper drilling and more.inten-sive exploitation th e chances are that production in Formosa may have increasedsince the war began.

2.2 STRATEGIC CONSIDERATIONS

Value to enemy.- Formosa is strategically located and well developed as a permanent base-o apan. It has spear-headed Japan's military moves and served as aspringboard for economic and political penetration into the southern regions. ItsGovernor General has generally been. a naval or m ilitary man. The current value ofthe producing facilities may only be determined when actual present day productionand development are known. The quantity of crude oil in th e country, prewar, ap-peared to be small but how much production was deliberately restricted is quite unknown. The production of natural gasoline is a part icularly important adjunct to -day in the manufacture of aviation gasoline.Considerable material and equipment would be necessary in any case to trans-port the oil or refined products to ports or places where needed if produced inappreciable quantity of, even 1,000 barrels a day. Prior to the war reliance wason tank cars., but the production then of both crude and casinghead gasoline wasless than half this quantity. Flans were once projected to transport crude bytankers to Japan from some port in the vicinity of Byoritsu but, as far as ascer-tained, they were never carried out.

(a) In the years 1937-1939 the a e t t e U.S. dollars,fluctuated between 28-29 I


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20 - PRODUCING .Kinsui oil and gas field UE I .Development.. - Although a report of an Amer c owho was there statesthat his is a new oil prospect, the development of which started with the drillingof the first well in March, 1937, a brief note in the Journal of the Fuel Societyof Japan shows that on April 10, 1932, the third well in this field commenced toemit 5,660,000 cubic feet of gas per day from a depth of 1,300 meters (3,900 feet),about twice the amount of gas given off in the Kins-ui field. The latter does notcheck with Kinsdi data. The article further advises that the Nippon Oil Companyimmediately decided to install a gasoline recovery plant with a daily capacity of90 kiloliters (567 barrels), the residue gas to be supplied to the sugar refineries

in the neighborhood.The same British report mentioned above gives the following information con-cerning this field, "About 10 miles south of Kagi; not exactly located. Abundantgas was struck about 1930 at 1,036 meters (3,400 feet) but there were unmanageablequantities of water."In th'e Journal of the Fuel Society of Japan, Vol. XIX, August 1940, appears anitem stating that, "In the southern part of Taiwan the exploitation of petroleumhas been relatively neglected bu t recently the #4 Chikutozaki well in the Taiwan?(Tainan) Province gushed out oil from shallow stratum and quantity is remarkablyincreased. This success gives much promise for the future of the o il fields onthe south Taiwan."There is no information on further development nor any record of production,nor is it known definitely that the foregoing refers to the indicated Navy reservearea.

2.4.3 Kinsui Oil and Gas FieldLocation.- Kinsui is six miles NE of Byoritsu, latitude 240 37' N, longitude120 55 ' E. It is east of the inner and main railway which branches at Chikunanand runs through Byoritsu to the south. A small push-car railroad connects thefield with the main line. Byoritsu is the unloading and storage point for oilfield equipment for Kinsui. See map on page 8 and photographs on pages 16 and 35to 41.Geology.- Outcropping strata consisting of sandstone and sandy shale belongingto the ByorItsu beds, form an anticline extending northeast and southwest about 20

kilometers (12-1/2 miles). The beds on both limbs dip 100 to 400. Gas and oil arefound in eight sandstones belonging to the Arisan beds at depths between 500 and3,000 meters (1,640 and 9,850 ft.).Development. Discovered around 1914, this field was, in 1937, consideredto beby fa r the most important gas and oil field in Formosa with the limits notknown in any direction. Gas output ranges from 30,000,000 to 300,000,000 cubicfeet daily but little actual production of oil is reported. The best oil wells inKinsui contain a large quantity of water. The water problem has been overcome bythe use of gun perforators. Very little specifically is known concerning thecourse of development. Pertinent information as determined is reported chronologi-cally in the following paragraphs:1914 - Wells Nos. 1,2,3, and 4 were drilled to 1,150 feet. No. 1 well wasdestroyed by a heavy flow, of gas and water. The others were abandoned because ofwater trouble. More than ten million cubic meters (350 million cubic feet) of gasflowed out of well No. 7 from a depth of 518 meters (1,700 feet). This may havebeen the initial production but it is not, certain.1923 - The fifth well to the south of No. 1 was drilled to 818 meters (2,690feet) and yielded 1.7 million cubic meters (60 million cubic feet) of gas daily. Agasoline and carbon black plant were installed later-near the site of this well.1929 - September 21, 1929 a gush of natural gas at No. 8 well amounted to20,000,000 cubic feet per day from which a daily production 00 koku (one koku =

1i10


22/85

,i;i , . ;PRODUCING - 21*, ;i .i~ii fIfil insui Oil and Gas Field47.7 U.S. gallons ) pe ay ga i a 4xp September 1930, natural gaproduction had risen to 150 million cubic febt per day,

Another report written by K. Ueno in 1939 states that No . 8 well flowed abou4,000,000 cubic meters of gas per day (140,000,000 cubic feet) from a depth of1,176 meters (3,860 feet). This corresponds with th e figure for September 1930.In this connection, production figures as published or announced by the Japaneseoften were intentionally misleading.1930 - In 1930 there were reported to be twelve wells (four gas) producing.about 300 barrels of oil daily. This report was made by an American engineer constructing th e gas plant a t Kinsui, and would indicate a production of approximate100,000 barrels annually. No. 10 gas well was drilled in 1930 to 3,479 feet toproduce 100,000,000 cubic feet daily.1931 - July 1931 daily production as given as 100,000,000 cubic feet of gasfrom w~Tch 5.4 kiloliter (a) (33 barrels) of gasoline was recovered. Capacity ofplant was then 90 kiloliters per day. No . 14 gas well was drilled to 3,498 feet.1932 - September 27, 1932: from No . 12 well natural gas flowed around 300,000,000 cubic feet per day. Nippon Oil Company considering (reported before) ex-tension of gasoline and carbon black plants.1933 - According to M. fizuta the Kinsui casinghead gasoline is an excellent

aviation-gasoline as judged from its composition. Wells Nos. 19 and 21 abandoned1934 - Deep test to be conducted. Well No. 12 to be drilled as deep as 4,00meters. Wells Nos. 20, 22, and 24 to 30 were drilled from 1932 to 1935 and pro-duced gas varying in quantit ies from 15,000,000 cubic feet to as high as 150,000,000 cubic feet per day.

On July 10th, some 42,500 cubic meters of natural gas flowed from welNo. 27 from a depth of 1,182 meters (3,880 feet).1935 - On April 11th, natural gas flowed from well No . 32 when drilled to1,750 meters (5,750 feet). The amount was estimated at 50,000,000 cubic feet perday.1936 - The most important oil news in Japan in 1936 was th e completion of weK No.j3, producing daily about 20 barrels of 40 Be., crude, and about 1,000,000cubic feet of gas at a very high pressure through a 5/8 inch choke at the bottom3-inch tubing. The gas contained 0.75 gallons of gasoline per 1,000 cubic feet.The depth was 3,500 meters (11,500 feet). This well was started September 29, 19and was brought in August 5, 1936. At th e time it was th e deepest well in the Fa

East. The oil company selected the location for the next deep test (well No. 38)and drilling was to start in March 1938. Deeper, richer oil sands were anticipat1937 - According to a report by an American oil man engaged in making teststh e ScETumberger machine in Formosa during 1937, there were at that time 32 high.pressure gas and oil wells and, from a geological point of view, excellent pros-pects. It was considered the most important gas and oil field of the period inFormosa. Well No. 33 was being drilled and th e depth was then 3,390 feet.1939 - A report by K. Ueno, appearing in the Journal of the Fuel Society ofJapan for June, 1939, has th e following to say, "The gas seam in Kinsui is unusuain the oil fields of the island, and enormous resources of oil are believed toexist in a layer at a great depth. A rich gas seam was actually found at a depthof 3,500 meters (11,500 feet) and after suitable measures for restricting the gaspressure were carried out, about 27,000 cubic meters of gas and 3.-6 kiloliters (23barrels) of crude oil gushed out daily for eight months. It is thus promising thlarge oil resources will be found in the seam 200 to 300.meters (656 to 985 feet)deeper, and the No. 38 well has been newly exploited aiming at a depth of 3,700 t4,000 meters (12,130 to 13,105 feet).

(a) One kiloliter = approximately 6.3 barrels.I' 'l


23/85

22 - PRODUCINGKinsui oil and gas field"The author believes that ,rI ters of gas will beproduced from the Kinsui oil field even though new seams are not discovered in th efuturb. There are many gas seams in the Kinsui oil field, the thickness as well asthe content of water varying with the seam, and the gun-perforator will be appliedto each well."The gas pressure (in pounds per square inch) is almost equal to half th ewater column (in feet) from the gas seam to the surface of the earth. Therefore,gas gushing from a depth of 1,000 meters (3,280 feet) has a pressure of a littlehigher than 1,000 pounds per square inch".1944 - A radio broadcast emanating from Tokyo July 12, 1944, states that pro-duction of oil by Kinsui during 1943-44 fiscal year (April to March) exceeded esti-mated production by 30 per cent. The report continues with the statement that,considering the present rate of production and the fact that other wells have beenflowing steadily since 1938, it is believed that a new well drilled in March, whichreached the oil strata at 2,500 meters (8,200 feet), will continue to produce greatquantities of oil for a long time. Drilling continued to a depth of 3,800 meters(12,464 feet) which set a new record in Japan and fo r the world (the latter is notcorrect as several wells have been drilled recently in the U.S. to over 15,000feet.).According to K. Ueno in his 1938 report, the present status of gas wells andthe distribution of gas sands in the Kinsui oil field are as follows:

Status of Gas Wells at Kinsui, 1939Well Depth Daily Gas Quantity Water QuantityNo. Feet Meters Cubic Meters (a) Kiloliters10 4,7-45 1,438 21,000 34.315 Under repair 161,000 --20 6,468 1,960 21,300 10.824 4,679 1,418 21,300 --25 4,858 1,472 7,800 17.126 5,230 1,585 17,800 2.327 4,986 1,511 7,800 35.028 4,455 1,350 4,400 95.530 4,815 1,459 4,400 1.131 '4,695 1,423 21,300 34.332 11,550 3,500 5,850 0.933 3,845 1,165 2,700 --34 3,845 1,165 7,500 12.635 4,676 1,417 350 6.636 3,858 1,169 -- --37 6,353 1,925 --39 5,082 1,540 -- -

Total 305,000The following isand gas field: the distribution of the principal gas sands in the Kinsui oil

(a) One cubic meter equals 35.3 cub


24/85

PRODUC.ING - 23Knsui oi and gas field

ad inui: Oil and Gas Fi ld

Total Production ApproximateD e8' t h Presence of,. of Gas.' ThicknessSeam Meters Feet Water. Sands Cubic Meters Meters Fee1st 500- 550 1,650-1,815 Present 670,000,000 15 -'492nd 800- 850 2,640-2-,805 Present 400,000,000 15 493rd 880- 920 2,904-3,036 Present No production 15 494th 950- 980 3,135-3,'234 Present No production 10 335th 1,050-1,100 3,465-3,630 Present .300,000,000 15 496th 1,150-1.,200 3 , 95-3', 960 Not, present: 730,000, 000 5 161,400m 1,400-1,500 4,620-4,950 Little water, .600,000,000 Thin sands1,500m 1,500-1,690 4,950-5,577 Little water Not collected Thin sandsl,800m 1,850-1,, 20 68,105-6, 336 Present:::': Reoently collecting 10 332,300m 2,200-2,270 7,260-7,491.. Present Not collected 40 1313,500m 3,480 below 11,484 Little water Recently collecting Not known

Production.- K. Ueno also advises that the total-amount of natural gas whichhas been produced up to the present (1939) from the.Kinsui fields.. is estiated at3, 00 million cubic meters, one-half of which was treated by gasoline plants, yielding 7,200 kiloliters (45,360 barrels) of gasoline. He also advises that about 10per cent of the, total amount was.used in the manufacture of carbon. lack, and .6,3tons of carbon black have been produced. The amount of "gasoline stated as producepoints to an extraordinarily low recovery if the figure is. nywhere, near correct.The known production of natural gas in cubic meters and of :gasoline in barrelat Kinsui. p to 1931 obtained from- another source is shown below. Quantities ofgasoline produced bear little relationship -to volumes of gas, and the chances arethat it includes gasoline distilled from crude also produced at this field.

Known Production of Natural Gas and Gasoline at Kinsui

No. of Natural Gas (In GasolineYear Wells Thousands Cubic Meters,) (In .Bbs. of 42 U.S. Gals)- 1927 1 2,465,517 '2,9831928 1 3,635,350 3,098:1929 1 3,9:429,484:1930 2 3,687,42 43,899.1931 2 322,641,329 (a) 117,276

Quality of as-The gases 'from the deeper beds (Kohryuke i Series) containlarger quantiftes of heavy hydrocarbons than those from the Kinsui Series atshallower depths. Gases from upper beds contain larger quantities of oxygen com-pounds than gases from lower beds, showing the oxidation of _the. natural :gases inthe upper- beds. The following table, showing quality of gases from Kinsui, is notas informative as it might be, but is the only test that can be found.' Based on aproduction of 15,000 gallons of gasoline per: throughput of 50,000,000. cubic feetdaily as per refinery output specifications obtained from the contractor, the gasefrom Kinsui are classified as "wet" (i.e. productive of 0.3 'gal, per 1,000 cubicfeet). This is not indicated by the 'volume assigned1 to heavy hydrocarbons whichmay include butanes but are probably pentanes and heavier., The gas belongs to thepure hydrocarbon type with little nitrogen. In comparison, the natural gas fromShukkoko belongs to the carbon dioxide type containing more than 30 per cent of(a) New Southwestern Engineering Corporat l


25/85

24 - PRODUCINGKoko 0o field

AnalysisDE i as Field

Kinsui Series Kohryukei SeriesConsti tuents (Depth 520 in. or 1,705 ft.) (Depth 81 8 in. or 2,683 ft.)002 and H2S 0.91 0.59Heavy hydrocarbons 0.15 0.4902 0.22 0.14Co 0.13 0.08CH4 96.83 90.2502 H 4 (02 H 6 ?) 4.16N2Inert Gases 1.76 4.31He 0.004 0.006

Gathering system.- A gas pipe line oarries the gas to th e neighboring townsof Chikunan an d Shinchiku. It is used also by sugar refineries in th e locality,and by th e refinery at Byori tsu. There was also an oil pipe line connecting th efield with Byoritsu where .the crude oil refinery was located. This refinery. lsotook care of th e oil from Shukkoko. Products from th e refinery were transported bytank car to Keelung for storage or shipment to Japan an d also were distributed elsewhere in Formosa by this. means. Gasoline storage capacity in 1930 consisted offive cylindrical tanks with a total capacity of 100,000 gallons.

2.4.4 Koko O il Field

Location.- This field is some ten miles north of Chikuto, approximately 24055' N, 12l 5' E. Se e nap on page 8.

Development.-A wildcat well was drilled in 1937 to a depth of 1,450 meters(4,756 feet on the anticline trending-in the usual NNE direction but somewhat tothe west of the Chikuto anticline. Gas was found at 1,250 meters (4,125 feet) andgas and oil at 1,400 meters (4,590 feet). There is no record of further develop-ment but, as machine shops an d offices were built in 1937 near th e village of, th esame name, the probabilities are that additional drilling has taken place. Thisfield, was under exploitation by th e Formosa Mining Company.

According to another source, th e field-at Koko was discovered in 1934 an d inearly 19.36 th e wells drilled were producing 29,000,000 cubic feet of 'gas daily. Itis an enterprise of the Nippon Kogyo Co. (Japan MLining Company) a subsidiary of theNippon Sangyo K.K. (a Yasuda interest in Japan) with a capital of Y200000,00Q an dsome eleven subsidiaries such as Kyodo Gyogyo (United Fishery), Nippon Hogei (JapanWhaling Co. ),Hitachi Engineering, Hitachi Power, Nissan Jidosha (automobile) ,Com-pany, etc.

2.4.5 Kosensho (Kosenpo) O il -Field

Location,- Latitude 230 05' N, longitude 1200 401 , about 1-1/4 miles NE ofKosen. This field may also be known by th e name of Sint ikushu which l ikewise maybe spelled Sintikusyu and Shokushu. There is, however, nothing definite that thisis one and the same field. The field is not commonly known nor has it been possi-ble to associate th e name with any particular. village or locality appearing on anymap except Kosensho or Kosenpo which is one of the designated Naval reserve areas.A British report mentions this field under th e name of Kosen (which merely leavesoff th e "sho", the designation for village or station) an d as being "about 22 milesM1E of Tainan." See map on page 8. !

Development,- The following it m ;a d eS'n:l 4h Chemical Industry, Japan, for December 1932, "N at th'eNo. 25 well at


26/85

. ' ~ / PRODUCING. - 2~ osh~T t.fieldSintikusyu when drilled down to 1,883 meters (6;175' eet01 gas is reported or gooquality and in the amount of 10,863 cubic feet per hour". There is brief mentionin the British report that "boring. began before 1935 when a second bore hole wa sbegun.." Nothing more is known concerning this field.

2.4.6 Koshun Oil. FieldLocation.- This 'field is located on the southern tip of Formosa at a placecalled Koshun, latitude 220 0', longitude 1200 48' E. See map on page .8.Development.- No mention has been found of anydevelopment taking place in

this area.2.4.7 Kyusorin (Koshirin) (Kashirin ?) Oil Field

Location.- Located in the southern part of Formosa in Shinkagun, somewhat eaand slightly north of Tainan. Approximately 230 5' N and 1200 10' E~ . See map onpage 8 Kyusorin is not found- on any map but- has been located as Koshirin, Sachsho. A British report states, "Said to be 19 miles NE of Tainan." It probably e*braces Chikutozaki in Kanka-sho.* Development.- This is. ew development which in 1937 had only one small oilwell in production at a total depth of~ 750 meters (2,450 feet) . The area is not exacdefined but isrelatively large. A second well completed in February 1937 was dry.Further information is not available but more drilling was 'contemplated and prob-ably carried out as the Government was making available liberal subsidies coverincost of prospecting. Drilling equipment in use was of the rotary type and 'very

-modern.

.2.1.'8 Shukkoko Oil Fielda Location.- Located some ten miles

o KISsouth oX hsui gas field in the provinceFIELD~sU of Shinchiku, six miles southeast ofF-EL Byoritsu,, a town on; he inner main north-

south railway line/that ,branches at Chikunao"See map on page 8'and accompanying topo~graphical sketch of the- area.V ) Development. - This is the oldest of

'~ BORITU~2othe Formosan oil fields, development havin~ begun. in 1904. It occupies an area of- 497 acres lying along bot~h banks of. the_N Koro River. Very little information has~?~ been found concerning its development.

) K the field produced 137 647 barrels in 1927Production declined rapidly from thisS4field in later, years.. The TY1itsui Company,!Km office; N~ovember 20, 19,36,. makes the fol-

lowing comments concerning. the ShukkokoTaihoKu oil field, "Each one of the oil derricksyotsis on a steep mountainside. Oil is ob-

-. OILILDtained from two or, three wells. One of theis self-gushing. It does not seemi that moTakao can be expected in the future because thisfield is already old. The earthquake here

of last May (4 35) ,seems to have inflictedrw e u tey were bent by i

OIL FIELDS NEAR BYORITSU, FORMOSA ,1 inflicted was.


27/85

26 - PRDUCINGShc~coko _oil field {;

actually greater than wash e ime." An American oil man in Formosain 1937 reports small activity and production in the field at that time. It seemspossible that in line with deeper drilling practiced elsewhere that this would betried at Shukkoko and oil production increased..1 Upper Tertiary

KAENZAN SERIES BYORITSU SERIESWest

A

0 0U OO_ n

c 0 500 1,000 2,000 924)U,,$ METERS

ARISAN (GORO) SERIE -

V o 4 V' D$c C - c=r- c ~ 9

r E ' i nU) - 0 0o- IQ=

CROSS SECTION OF SHUKKOKO OIL FIELD, BYORITSU, FORMOSA

Geoloy,- The producing formations in the Shukkoko field are alternating cal-careous sandstone and shale -of the Arisan (Tertiary) series. The strata form ananticline about 27 kilometers (17 miles) in length dipping 40 to 70 degrees on theeast limb and 35 to 60 degrees on the west limb. Six oil sands have been found atdepths between 223 and 955 meters (732 and 3,132 feet), the most productive beingthe 750 meter (2,460 root) zone. Accompanying geologic cross section preparedoriginally in Japanese may be tied with sketch of the topography of the area.Wells.- Many shallow wells appear to have been drilled prior to 1912. Well

No. 18 drilled about 1912 and later deepened is said to be one of the best wellsin the field and to have produced 53,205 koku (60,300 barrels) from 1918 to 1925.In 1929 the output of the field was reported to be at a rate of 300 to 400 barrelsper day. Some of the better wells have had an initial production of more than 1,00barrels daily. Well data for the Shukkoko field are given in the table below:Well Data, Shukkoko Oil Field

WellNo. Depth in Feet Date Re m a r k s

1905-1912 Many shallow wells "drilled.18 720 1912 Drilled by Hoden Oil Company and said to be onLater deepened of the best wells in the field.35 2,343 1924 Pumping 110 barrels pet day.36 - 1924 Initial production 1,000 barrels per day.38 2,482 1926 390 barrels per day.40 2,554 1927 Initial production 1,600 barrels per day, fell

off to 180 barrels pumper.41 - 1928 Pumping 130 barrels per day.44 - 1927 Pumping 147 barrels per day.45 3,280. 1927 . 300 barrels per day.48 2,650 . 1928 Initial production 1,000 barrels per day, felloff to 58 barrels per day in January 1929.49 2,805 1929 . Pumping 74 barrels per day..50 - 1929 Pumping 62 barrels per day.57 - 1929 Pumping 120 barrels per day.67 - 1930 Pumping 50 barrels per day.75. 2,640 1935 Initial production 200 barrels per day, later.

6.5 barrels e. day77 2,772. 1935 Initial produlction $0 barrels per day, later60 bar "eIs pe r day; l82 3, 15 1938 P 41ce


28/85

00-J0000


29/85

28 - P'RODUCINGrhucoico oil field C LAProduct ion .- Production figures for th e Shukkoko oil field published by theDepartment of Commerce :and Industry, Tokyo, are ' as follows (a):

Production of Shukkoko Oil FieldNo. of No. of_

Year Barrels Wells Year Barrels Wells1927 137 , 647 22 193. 42,840 291928 113,535 29 1932 32,846. ?1929 79,845 33 1933 36,2821930 55,838 37 1934 35,079 ?

Quality of crude.- See data under heading of Character of Formosa Crudes in.Introduction Tpage 1L)

(a) These figures cannot be correlated with individual well production data onpage 26.


30/85

REFINING - 29Introduct ion

3.0 REFINING

3.1 INTRODUCTION

Prewar status.- There was but one small orude refinery at Byoritsu _in Formosaprewar, an o .ldgasolinelant and possibly three fairly modern absorption gasolineplants which were constructed in 1930 or later (one,definitely in 1930 at Kinsui).Production of crude oil which. in 1927 was equivalent to 143,800 barrels (largelyfrom the one field at Shukkoko) declined rapidly and in 1939, the last year of re-cord, was only 36,912 barrels. It is not known, however, how much the Tapanese hacapped production at 'Shukkoko, nor what production had been developed in otherareas. Production of gasoline made from natural gas on the other hand, even fromofficial figures issued prior to the war, showed evidences of increase and the twogasoline plants known to have been constructed to produce 15.,000 gallons. daily mayhave been enlarged to turn out three times that quantity. A third plant is said thave been sold through Mitsubishi by the Southwestern Engineering Corporation forerection in Formosa but no trace can be found of it. There is evidence, however,of one plant having been built at Shukkoko. The Petroleum Register, 1938, creditsNippon with having in operation in Formosa one gas absorption plant of 500,000cubic feet daily capacity (estimated 150 gallons of gasoline per day) and threeeach of 30,000,000 cubic feet capacity (estimated 9,000 gallons of gasoline perday).

Present situation. - A refinery-of-large dimension is in an advanced stage ofconst o on a te Naval base of Toshien (near Takao) and another smaller one in aless completed state at Takao itself. The probability is that they were plannedto operate on crude oil brought from the East Indies but it may be that crudefrom oil fields in southern Formosa is now being produced in considerable volume.The following statistics show estimated capacity of the one crude refinery anthe three gasoline plants believed to have been constructed in Formosa:

Estimated Capacity of Formosa RefinerX and Gasoline Plants- - -TnBaMrel-s -

Byoritsu Chiktrto Kinsui Shukkoko TotalPer YearCrude capacity per day 250Gasoline " n 350 1,050 1,050Estimated " " Year 82,500 115,000 345,000 345,000 887,500

3.2 STRATEGIC ,CONSIDERATICNS

importance in normal times. - Consumption of petroleum products under normalcondi ons exceeeded FbysomWTve times prewar production of crude and natural gasoline. It is uncertain, however, how much production was purposely curtailed orexploitation delayed waiting for the time when Tapan would be iable to obtain oilfrom abroad. Certainly the one small oil. refinery at Byoritsu and the gasolineplant at Kinsui was justified by consumption. There is no information whatsoeverconcerning the amount of gas that may have been developed from Chikuto where a se-cond plant is known to have been erected,

Wartime use. - The indicated d t pie o u,.ie'o e u oil and gas pro-duction since T37 would greatly in r'e c the ?lants in Formosa,and account for the construction of e r to, although thelatter wr more likely intended to e chiOd 2ohtLn From the East IndieWith the tremendous development of Takao as an industrial and Naval base, of Toshi


31/85

30 - REFININGByoritsu oil refinery

close by as a harbor and storage of arenko industr ial ly, of a newharbor at Gosei, and with the presence of Bako and Keelung as Naval ports, Formosamust have been rated high by th e Japanese as a strategical area and an impedimentin the approach to Japan proper. Much stress has been placed by the Japanese onth e production of butanol (butyl alcohol) from sugar produced in Formosa. Butanol,when dehydrated to butylene, may be alkylated with the iso-butane obtainable fromthe natural gas which is produced in large volume in Formosa. Thus a component formaking aviation gasoline could be prepared in limited quantities for airplanesbased on the island.

3.3 BYORITSU OIL REFINERY

Location.- Town of Byoritsu, latitude 24o 30' N., longitude 1200 45' E.Description.- There is no concrete information relative to the refinery atByoritsu constructed by th e Japan Oil Company to process th e Shukkoko oil, but ap-parently it was small and th e usual Japanese type consisting of round pipes set

horizontally. Its capacity is reported as varying between 100 barrels (100 koku -4,770 gallons) and 250 barrels, the latter figure having been accepted for the purpose of this report. Photograph on page 35 indicates th e primitiveness of th e setup . Besides making gasoline, kerosene, light oil and fuel oil, it was possible fothem to separate the wax contained in th e heavy oil by their so-called "perspira-tion process" or "wet method" and thereby turn out a machine or lubricating oil offair quality. Nippon Sekiyu or th e Nippon Oil Company (same as Japan Oil Company)had a patent in Japan on the process, but it probably was nothing more than th eordinary "sweating" method in which pressed wax was first chilled and then frac-tionated by controlled melting in "sweating ovens".

In 1937, large and modern factories fo r making carbon black and artificialrubber were under construction at Byoritsu according to report.

3.4 CHIKUTO GASOLINE PLANTLocation.- Latitude 24 43' N., longitude 1210 5' E.Description - Information concerning this plant is that it is an exact dupli-cate of the Kinsui Gasoline Plant erected. in 1930. Photograph on page 43, obtainedfrom "A Record of Taiwan's Progress", .edition 1936-37, which is about the time thata more intensive development of th e oil fields in Formosa was in progress, substan-tiates this report. Another report of an oil man who was in Formosa in 1937, statethat a modern type refinery with cracking unit was in construction at Chikuto atthat time. No confirmation has ever been found, and it seems possible that the re-finery may have been the gasoline plant which, according to the picture was stillunder construction.

3.5 KINSUI GASOLINE PLANT

Location.- 24 35' N. lat i tude, 1200 55' E. longitude, some seven miles in th ehills to th e northeast of the town of Byoritsu and away from the maih railway run-ning from Keelung to Takao, 13 miles south of the town of Shinchiku. The elevationof th e plant is 2,400 feet. A temporary railway coming from the east, starting froa small town the name of which may be Nansho, some 12 miles inland from Byoritsu,appears to have been]aid at th e time of construction but the information is somewhaobscure., A reporter who was at Kinsui in 1937, mentions only the push car lightrailway. The somewhat winding push car l ight railway in question, .onst.ctedthrough a gap in the hills, connected th e oil camp a K nsK~ B i . Thereappears, also, according to a report pertaite 8~tt 1 was con-structed, to have been a road entering thro h sm e i ohi pa in 1930.Any approach to the plant from the north or s cueoT th e mountains, would bmost obscure but the plant is easily visible approaching either from the south or


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32 - REFININGShukkoko gasoline planb .4 -Sml

the east. Between Byoritsu and the plant there is a r iver over which the l ightrailway crosses on a crude bridge. The river at that point is 400 feet wide. Likemost of th e Formosan rivers, or mountain streams, it is practical ly dry in the dryseason and a torrent in the wet. See sketch of location with respect to Byoritsu,map on page 31.Description.- Prior to the erection of the modern plant in 1930, the NipponO il Company had their own compression and absorption system plant at the field,

which was probably erected about 1926. See phbtograph on page 37. The modernplant, see photograph on page 39, was constructed by the Southwest Engineering CorSporation under the supervision of their own engineer who was on the spot from Juneto-December 1930. Immediately afterwards th e annual production jumped to 117,276barrels (according to Chitani in a paper entitled "Petroleum Resources of Japan"read before the American Association of Petroleum Geologists and printed in Vol.18, No. 7, July 1934) though this figure is not substantiated by official statisticsSee page 13.The plant, shipped from the United States (one of three such ref ineries saidto have been sold to Mitsubishi for use in Formosa), consisted of a complete dis-tillation unit, three absorbers together with pumps and turbines, heat exchangers,and condensers, and a complete stabilizer unit with a normal capacity of 30,000 galons of gasoline per day... The capacityof the plant, according to report, was50,000,000 cubic feet of ga s per 24 hours.A succeeding report states that the plant, as originally instal led, could produce only 15,000 gallons daily, bu t that subsequently sufficient maintenance andreplacement equipment was bought by M itsubishi from companies other than Southwest-ern to make it possible to increase each plant's production to 45,000 gallons ofgasoline per day. This would be equivalent, approximately, to 1,000 barrels dailyalthough even one such plant of 15,000 gallons (approximately 350 barrels daily)would be sufficient to care fo r the total quantity of casinghead gasoline creditedto Formosa in 1941, i.e., 110,000 barrels annually.At the time of erection, the ref ineries were not equipped to produce high-octane gasoline but what the Japanese have done in th e meantime is unknown. Iso-butane used in making aviation gasoline is an important fraction in natural gas.Much stress in broadcasts has been laid on the production of butanol or butyl alcohol in Formosa from sugar for the preparation of aviation gasoline. The Japanesecould, by dehydrating butanol to butylene and subsequently alkylating with the iso-butane available from th e natural gas, make a desirable component fo r use in th epreparation of aviation gasoline.Gas fo r this plant, in 1930, came frdm four of twelve wells drilled in its ap-proximate vicinity. The plant was equipped to bottle butane gas. It was locatedon th e side of a hill and in its construction a cut and a fill had to be made. Thewere five cyl indrical tanks with a total capacity of 100,000 gallons for gasolinestorage. The boiler and electric plant was located 400 yards south of the. main

plant.In 1938, the Navy considered the establishment of a Fischer-Tropsch plant atthe Kinsui field to make l iquid fuels from the natural gas in that territory butthere is no evidence that construction was ever carried out.

3.6 SHUKKOKO GASOLINE PLANT U -'

Location.- 240 25' N. latitude, 1200 51 1 X .'..."Description.- There is reported .to be a casinghead plant a t Shukkoko. From thphotograph on page 45 it might well be a plant of 45,000 gallons daily capacity,which ties up with a report from another source that a new refinery of Nippon OilCompany with annual crude capacity of 350,000 barrels was projected at Taiko, asmall village just SE of Shukkoko. There has never been any confirmation. It is,however, support for the theory that production from this field is larger than showby official figures.


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___ - 33TC1AOIL IF akao oil refinery

3.7 TAKAO OIL REFINERY

Location.- Aerial reconnaissance late in 1944 disclosed that a refinery andtank farm is being constructed on the edge. of th e lagoon at Takao, four miles SEof the harbor mouth. The land on which the installation is being erected has beenformed by dredging the lagoon which, at this end and for over two miles from deepwater, is only three feet deep. Latitude 220 37' N., longitude 1200 16' E.

Description.- There is little yet to go.on but the aerial coverage as perphotograph on page 49 showed the following construction:1 pipe distillation furnace,1 fractionating tower,1 cooling tower,7 large oil storage tanks,10 small rerun tanks.

There were also a number of small miscellaneous buildings, considerable material and supplies and signs of considerable activity. In October 1944, there was noevidence of pipe lines between installations, the storage tanks were not roofed, andin general, there was no appearance of the refinery being ready for use in the nearfuture.

3.8 TOSHIEN OIL REFINERY

Location.- This plant is under construction at the NE end of small hill, threemiles NE of Toshien Harbor, latitude 220 42' N., longitude 120 o 18' E. It coversan area of about 5,300 x 2,250 feet. Approximate position has been indicated on thmap margin, page 60. This map was completed before aerial photograph of the refinerto be found on page 51 was made available.

Description.- Facilities appear to include boiler and power house; controlhouse, pipe furnace, thermal cracking unit , probable lubricating oil vacuum unitand filter house, probably pumphouses, and control equipment houses, cascade-typecooling tower. There are several groups, one of 10 and the other 20 rerun tanksaverage 30 feet in diameter. There are 5 earth-revetted tanks of 120 feet diameterat the base of th e hill on the East side of th e area already completed and bases fo13 similar tanks are under construction in the same area. These tanks are probablyfor crude and refined oil storage. There is a coal pile 600 feet x 450 feet, whichwould indicate an intention of operating the refinery on coal. There are numerousmiscellaneous buildings and piles of material visible and two H-shaped buildingsof large dimension at ei ther end of the plant assuming it is all one unit . Sevenstructures ranging from 105 feet x 90 feet to 90 feet x 65 feet, may house smallstorage tanks. A railroad line runs adjacent to north end of plant area and aspurenters the area from the southwest.

Capacity is uncertain but might be estimated at between 3,000 and 5,000 barreldaily. Storage when complete might easily have a capacity of 1,500,000 barrels.

There are uncertain indications of pipe lines approaching the plant along therailway coming from the direction of Tainan, which might indicate that it is planneto operate the refinery on oil from fields such as Gyunikuzaki, or the closer onesof Kyusorin and Kosensho. Oil from these fields may also be transported by railtank cars to the storage tanks located in close proximity to th e railway. It seemsprobable that the intention is to supply the Navy based at Toshien with productsfrom this refinery. On map, pag 60, aeshownloca tanks nearth e harbor, and there is a rail siu Mos ,i tanks


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34 - REFININGCarbon black

Location.- Kinsui, Chikuto, Gyusan and Bochirin.Kinsui plant.- The plant is installed at Taihei near the Kinsui oil and gas

f ields, and is situated on a plain surrounded by three hills, therefore, compara-tively free from winds. After the raw gas has passed through the gasoline plant,there remains 98% of CH4 (methane) which is used in making the carbon black. Amodern plant utilizing the American channel type machine system and capable ofburning 2,500,000 cubic feet of gas per day was constructed here in 1930 by th eNippon Oil Company. This plant is reported to make some 25 per cent of the carbonblack required by Japan for making rubber tires. In 1932, the production was 4,00pounds daily or some 750 tons annually while in 1939 reported output had attaineda figure of 2,250 tons pe r year. The plant is s ignificant by its rows of low, sawtooth roofs, marked by constant smoke. See photograph on page 47. A second carboblack plant has also been reported in this district but never confirmed.Chikuto plant.- The Taiwan Mining Company had a plant at Chikuto which accordin g to report had an output of only 400 tons in 1939, although it had been 2,000tons in 1937.. Output is dependent upon gas available but also upon demand. Asecond plant is reported to have been constructed at Chikuto by the Nippon or JapaOil Company with a capacity of 330 tons annually or only one ton per day.Gyuzan and Bochirin plants.- The Japan O il Company is reported also to haveconstructed small plants at these two unlocated points with a capacity of 150 and

670 tons annually respectively.Value to enemy.- For many years Japan imported carbon black from the UnitedStates but with th e discovery of natural gas began to make her own. However, th e

supply from this source is reported to be only about one-third of her needs. Ace-tylene gas is a substitute raw material from which an inferior grade is made thatmay also be used for compounding with rubber in automobile tires to increase dura-bility. Japan has a sufficiency of soft carbon black. It is th e hard carbon blactype, more ideally suitable for tire manufacture, of which she may still be defi-cient.

Due to the relatively simple equipment required, carbon black plants, ifdamaged by enemy action, may easily be restored.


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REFININGByoritsu and Kinsui

VARIOUS VIEWS OF BYORITSU AND KINSUITOP: VIEW OF BYORITSU OIL REFINERYIN CIRCLE: GASOLINE PLANT AT KINSUIBOTTOM: SCENE AT KINSUI SHOWING

NATURAL GA S SPURTING FROM WELL

-


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I

~

cc)00

L0


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DISTANT VIEW OF THE KINSUI GASOLINE PLANT AND OIL FIELD


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VIEW OF CHIKUTO GASOLINE PLANT IN PROCESS OF CONSTRUCTION


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r

VIEW OF SHUKKOKO GASOLINE PLANT


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VIEW OF KINSUI CARBON BLACK PLANT


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AERIAL VIEW OF NEW REFINERY UNDER CONSTRUCTION LATE 1944 AT TAKAO


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OECLtASSFE RE FflINNTos en refinery

AERIAL VIEW OF OIL REFINERY UNDER CONSTRUCTION AT TOSHIEN

4]s

-


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Amok M= A ftk A nV s DISTRIBUTING - 53Introduction4.0 D IS T R IB U T IN G

4.1 INTRODUCTION

41.1 GeneralThe domestic companies consisting of Nippon, Mitsubishi, Ogura and Hayama hadthe larger part of the market for petroleum products in Formosa, and of these theNippon O il Company did the biggest share. The Standard-Vacuum Oil Company and theRising Sun Petroleum Company were the only other distributors of oil in this area

.and, with the exception of lubricating oil, the RSP had the major share of the re-mainder of the business.

Nippon Oil Company had an installation at Keelung, stocks for which came fromthe oil and gas fields and the refineries in the neighborhood of Byoritsu, and alsfrom Japan; Mitsubishi had fuel oil storage at Takao and transshipped from Tsurumithe RSP had an installation at Tansui (Tamsui) to which point products were shippedirectly from the East Indies by tanker; while Standard normally imported its pro-ducts in packages either from Hongkong or Japan.

4.1.2 Strategic Consideration

With Japan's lack of any substantial indigenous production, either in Japanproper or Formosa, and with no synthetic production in Formosa at all, the matterof storage is particularly important to the military and civil operations of theenemy. Civil consumption in Formosa today is probably extremely small and limitedto the lube oil needs of essential industries, and perhaps to agricultural or fishing purposes, assuming there is some leeway in the availability of locally producestocks not required by th e military.

Any damage to stocks in storage or to storage facilities, because of the growin g difficulties of replenishment and distances from source, can have a serious effect on the enemy's operations. The priority of oil storage in Formosa to bombingtherefore, is exceptionally high.

Some attempt has been made to conceal new storage being erected at Toshien,either underground or above ground, but the effort at camouflaging surface tanks arelatively small and easily detected places like Keelung, Takao and Tansui shouldnot make them difficult targets.

4.1.3 Consumption

Consumption of petroleum products in Formosa, never very high, commenced todecline under quotas and a rationing system starting soon after the outbreak of -wwith China in 1937. Restrictions became progressively greater as time passed. Goline was largely used for taxis, buses and trucks; kerosene fo r illuminating andsmall engines needed in agriculture; heavy oil or fuel and diesel, and also l ightoil, by fishing boats; while lube oils were required for automotive purposes, th epowered boats, sugar centrals, railways, and the few industries of which Formosaboasted. Sales figures are not available for all the companies but sales quotasgranted by the Taiwan Government General to the oil companies are representative oconsumption and are shown in the following table for the years 1937, 1938 and 1939Quotas which were cut too sharply in 1938 were increased in 1939 in line with gov-ernment policy to try to devepo a sop~I n0 fl


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54 - DISTRIBUTINGean terminals E .Petroleum Products Sales Quotas -RFormosa

1937 1938

Kilo-liters Barrels Percent5,056 12.898,302 21.1825 855 65.93

39,21 247,042

2,9853,909

15.0819..75

12.898 65.1719,792 124,690

G asolineKilo-iters Barrels Percent4,1306,78821.102

3,020 201,726

K e r o s e n e1,9812,5589.691

14,230, 89,649

12.9021.2065.90

13.9217.9868.10

Kilo-liters Barrels Percent4,5067,384

25 7303762 237,008

2,6043,364

14 03290-900 126,9000

11.9819.6368.39

13.0216.8270.16

Fuel or Diesel Oil11,264 25.14

33,549 74.8644,813 282,322

768346

7.223.25

9 528 89,5310642 67,045

9,601 26.9026.093 73.1035,694 224,872

Lube Oil652310

6.923.29

8,468 89.,799,430 59,409

Light Oil s(b)

9,01629 5188,54 242,764

700336

23.4076.60

6.212.98

10 232 90.8111,268 70,988

5}400 34,020 100 4,860 30,618 100 5,000 31,500 100TOTAL 1937: 755,119 barrels 1938 606,274 barrels 1939: 708,258 barrels

4.2 OCEAN TERMINALS

The seaboard petroleum facilities of Formosa, located at Keelung, Takao andTansui , are of limited size and importance. Nothing of a definite and specificnature is known regarding the'Nippon's installation at Keelung.. Mitsubishi's planat Takao, originally constructed in, 1927, is shown by air coverage photographs tohave been enlarged, or more likely there has been new construction by other oilcompanies.

1939

Sv0CRSPNippon

SVOCRSPDomesticCos.

RSPDomesticCos.

SVOCRSPDomesticCos.

DomesticCos.

(a) Kilolitres converted to barrels of 42 'U.S.'gallons. on basis of conversionfactor of 6.3 barrels.(b) For definition of "l ight oil" see page 70 , section 4.4.5.


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DISTRIBUTING - 55L Ke e lung4.2.1 Keelung

General..- This is an important port and likewise a Naval base on the northernend of Formosa, lati tude 25 .9' N., longitude 121 44' E. See map on page 56, andaerial photograph on page 57. The inner harbor is narrow but has been well de-veloped and the docks near the railway yards on the side opposite the town properwill accommodate at least six 10,000 ton vessels. There are large, well constrmutedwarehouses or custom sheds erected on these particular concrete docks. There arealso docks on the opposite side of this arm of the harbor and adjacent to the townitself which are not so well developed, but probably are used by naval vessels forloading supplies. A "dangerous-goods" storage warehouse area for package goods waslocated on the western side of Gyuoho, adjoining a dock and coal yard area.

Nippon.- 'The Nippon O il Company's plant (map page 56) is located halfway upthe south slope of Kyushi-Zan hill overlooking the railway yards alongside Gyucho-Ko basin or arm in.the Inner Harbor. At the plant north of Gyucho-Ko there are sixoil tanks with capacity estimated approximately as follows:

Details of Tankage, Keelung

Capacity Each Total CapacityNumber Metric Tons Tons Barrels1 8,000 8,000 56,0002 4,000 8,000 56,0001 3,000 3,000 21,0002 2,000 4,000 28,0006 23,000 161,000

This checks somewhat with the files of one of the foreign oil companies whichgives total commercial storage in 1938 of the native companies operating in Formosinclusive of Takao and elsewhere, as 38,500 tons or roughly 250,000 barrels.

A 1935 report places four small fuel oil tanks near wharf just south of GyuchoKo, and credits underground tanks with having been constructed in the side of thehill south of Nippon's plant mentioned on some maps as Hil l No. 246, as well as onKyushi-Zan to the northeast and far back of Gyucho-Ko. In addition, the report saythere may be submarine storage tanks. It has been suspected by one source thatthere may be 250,000 barrels capacity in such hidden storage in the Keelung area.In support of there being such hidden storage in the neighborhood of Gyucho-Ko itis quoted that Keelung harbor regulations provide that "the firing of salutes mustbe carried out some place outside Gyucho-Ko". The same source reports storagetanks near the main wharves, as indicated on map on page 56, but another source ad-vises not having seen any tanks in this locality.

A further report, emanating from a source who visited Formosa in 1930, advisesthat the Japanese Navy had 12 storage tanks with a total capacity of approximately20,000 to 25,000 barrels of gasoline at a point situated SSE of the harbor andshielded from sight of town by a low hill though plainly visible from a point fourmiles south of the city. It is possible that about that time (1930), either Nipponor Mitsui Bussan Kaisha (the latter at one time distributed diesel oil in Formosaas agents for the General Petroleum Company, subsidiary of Socony-Vacuum Oil Com-pany) may have had storage on this side of the harbor and the city of Keelung andthat the authorities, for strategic reasons, may have made them evacuate. There habeen no late report of storage in this local i ty;

The above is given as evideq f ci c ,f ion concerning Nip-pon's and Naval storage at Keel jd 1i it is to evaluate itproperly. Very recent aerial cov 1cl'icalyshows no visible tankage anywhere except that of Nippon as originally constructed at the hillside plant


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56 -DISTRIBUTINGPort oif Keelung (Kiirun)I

1214'

JAPANESE EMPIRE25

ISLAND OF FORMOSAPORT OF KEELUNG (KIIRUN)

200,0 - 0 2000 4000FEET

0 1000METERS

East C h n a S e

OU/TER HARBOR

KYUSHI ZAN

(Kiiru

I 20

CH I

2000

121 5


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D STRIBJT INGPort of Keelung -

I[AL


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r S , TakaoL| t F DISTR IJTING - 5above Gyucho-Ko and possible underground storage at th e southwest end of the InnerHarbor. The map of the port of Keelung on page 56 shows the location of three re-ported oil tanks between the northwest wharves and the hillside, but there is nothin th e picture that in any way indicates presence of oil storage ei ther above orbelow ground at this point.

There is no clear explanation of how fuel oil or other products were dischargand stored in the tanks in question, particularly on account of the strict harborregulations the Japanese had for the mooring and discharging of tankers. It seemdoubtful if a tanker would have been permitted to go alongside and discharge bypipe line at any point in the inner harbor, and whether a satisfactory shoresidemooring point was available in the outer harbor is unknown. It is ,possible, ofcourse, that oil was transferred to barges from a tanker moored at a buoy in th eouter harbor but there has never been any indication or report of the use of bargfor this purpose.

Railway sidings were available on the level space between the hillside plantof Nippon's and Gyucho-Ko and it seems probable that oil from th e oil refinery atByoritsu and the gasoline plants at Kinsui, Shukkoko and Chikuto would be unloadefrom tank cars and stored a t the plant. On th e other hand, production was not velarge and distribution may have been direct ly to the market or via the bulk plantat Shiodome, halfway between Keelung and Taihoku.

There are no buildings at the hill plant and its lofty position and inaccessbility by road makes it improbable that Nippon had a can factory and filling housfor kerosene and gasoline there. It has always been understood that distributionfor the local market was almost entirely from the Shiodome bulk plant.

Foreign companies.- Of the foreign companies only th e Standard-Vacuum O il Copany had any appreciable leased storage fo r package goods at Keelung. This storaarea had been reduced greatly in recent years.

4.2.2 TakaoGeneral.- Takao, latitude 22 37' N., longitude 120 16' E., during the pastfew years has been developed into a major industrial city and military port cover

in area half a dozen times again the size of the original city, which at one timewas confined mostly to the space between the Takao River and South China Sea. ThNaval headquarters for Formosa, formerly at Bako (Mako) in the Pescadores Islandshas been transferred to Takao and a new Naval base with petroleum storage tanks iunder construction at Toshien near Takao. Aluminum, cement, brick, chemical plansugar refineries and alcohol plants, and many warehouses have been constructedthere. Air coverage in December 1943 and later, as shown by the photographs onpages 49 and 61, shows what has been considered to be a small oil refinery, and tstorage of 250,000 barrels capacity, under construction. This plant is furthermentioned under storage on page 74.

Nippon.- Nippon did not have large bulk storage at Takao, but it seems quitecertain that they would have small tankage near one of th e railway s tat ions to whtank cars from th e north would be routed and unloaded and products stored fo r locdistribution in this important market; or else they may have constructed one of tplants described under the heading of "Other", page 63. There is reported to havbeen small bulk storage in the dangerous-goods warehouse area used by th e oil companies on the east side of th e railway in the northern outskirts of Takao, as indcated later under "Foreign Companies".

M itsubishi.- In 1927 Mitsubishi Shoji Kaisha constructed four fuel oil tanksat Takao with a total capacity of 9,070 tons (approximately 57,000 barrels) designto supply both heavy and l ight oil. See map on page 60, plan on 'age 64, and prewphotograph on page 65.Recent aerial photograph show t A g, | a there now mightone more tank at this site, possib o , 0 c t T fourth tank ofton capacity in the original instali s a ed on the pier, but eveidentlyhas been moved as it can no longer be found on the recent aerial photograph. The


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60 - DISTRIBUTINGPort of Talco NEW REFINERY000*O*000 sOg

JAPANESE EMPIREISLAND OF FORMOSAPORT OF TAKAO, INCL.TOSHIEN

LOCATION OF OIL INSTALLATIONS

(H IL L)N

(I)*

DECLASSIFIEIJ


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:\ ~I t y. DISTRIBJTINGPoto"aa


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DISTRIBUTING - 63Takao

are, however, two tanks ay aAi and somewhat East of th ecustoms compound; their size is perhaps 100 tons each (630 barrels).An eight-inch pipe line, submerged at the Takao River basin crossing, carriedoil from the tanks to railway loading stand and originally, at least, appears tohave served as means of unloading tankers from piers by means of a floating pipel ine. Later, certain berths along the east side of the basin are understood to

have been especially equipped for tankers while fueling facilities were also available on the main wharf. The Takao River basin, formerlymuch shallower, now appearsto be capable of handling vessels of most sizes. The pipe line was four inches indiameter beyond th e pier to the 60 ton tank at the railway yards.Other.- Near M itsubishi 's plant to the East there are now two separate storag

sites, shown as (a) and (b) on map on page 60, which may or may not belong to Mit-subishi but probably are plants which were constructed by other oil companies sometime about or after 1939. There is no information concerning this storage otherthan aerial coverage and interpretation. This credits Mitsubishi with now having14 storage tanks at Takao in an area the size of 2,300 x 1,200 feet. The tankshave diameters ranging from ten to 120 feet, mostly well camouflaged. There arealso 14 buildings ranging in size from 50 x 20 feet to 200 x 60 feet, as well ascertain miscellaneous buildings.The plant marked (a) is separated from Mitsubishi's by an industrial plantwhich is reported as a carbonic acid plant. There are at least two large tanks ofthe size (in app

taiwan petroleum facilities (1945)

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