Petroleum (Production) Act 1918

The Petroleum (Production) Act 1918 (8 & 9 Geo. 5. c. 52) is an Act of the Parliament of the United Kingdom which regulates the exploration and production of petroleum from underground strata.

Background
In the early the twentieth century, Britain imported most of its petroleum from the Middle East and America. The First World War reduced access to some of these sources and increased the demand and use of petroleum. The government wanted to develop indigenous (UK) sources of petroleum but wished to avoid ‘wildcat’ development which had taken place in the USA. Legislation was therefore required to control the petroleum industry. The regulatory regime allowed only agents of the Crown or those licensed by the Crown to search for, or produce, petroleum.

Petroleum (Production) Act 1918
The Petroleum (Production) Act 1918 received royal assent on 21 November 1918. Its long title is 'An Act to make provision with respect to the searching and boring for and getting Petroleum, and for purposes connected therewith'.

Provisions
The Act comprises seven sections


 * Section 1 – Prohibition on persons other than the Crown getting etc. petroleum
 * Section 2 – Powers of Minister of Munitions
 * Section 3 – Powers to inspect plans of mines
 * Section 4 – Records of petroleum gotten
 * Section 5 – Interpretation
 * Section 6 – Savings
 * Section 7 – Short Title

Consequences
Between the enactment of the 1918 act and 1934 only seven licences were issued and by 1934 only three were in force.

The 1918 act was repealed by the Petroleum (Production) Act 1934 (24 & 25 Geo. 5. c. 36) which vested in the Crown the property in petroleum and natural gas within Great Britain.