“HonsO-Kamoku” published in or about the year 1578 contains a fairly detailed description of all the oil seepages found in the province of Shensi. As this book which treats of medicine has been very popular in Japan and China, knowledge about seepages of Shensi and oil in general seems to have been widely spread about the time of its publication. It is of special interest to note that “Sekiyu”the Japanese word for “petroleum” now in common use is found in this book and it is also very interesting that “Sekiyu” is made of two words “Seki” stone and “yu” oil, having a similar etymological construction as in word “petroleum”.As stated above oil was known in China long ago and its character was fairly well recognized, but as to its industrial utilization, it remained unknown until the beginning of the present century.Towards the end of the 19th century foreigners who travelled in the interior of China increased and those who saw the actual spots of the seepages in Shensi were highly interested in them and thought of their industrial utilization. This interest in the mind of foreigners was reflected on the Chineses who came to recognize in their turn the value of these seepages.The first endeavour to exploit these seepages was made by a German capitalist who had applied in 1901 to the men of Shensi province. But as China as a whole did not like to allow exploration of natural resources to foreigners at that time, she declined this application as well as all subsequent ones and decided to work them by the hands of her own people. -Under such circumstances the authorities of Shensi province attempted to drill holes themselves, importing the necessary drilling machines drillers from Japan. This Attempt succeeded and the oil was hit at the depth of 230 feet, yielding 60 barrels a day. But the work was soon given up, owing to the lack of money.But as the result of the revolution of 1912, the Chinese Government and her people suffered a severe financial pressure and was obliged to grant the mining exploration right for loans. And this Shensi oil-field was offered to a Japanese capitalist as a security for the loan, but while this negotiation was going on, the Standard Oil Company (present Socony-Vacuum Oil Company) suddenly made a provisional contract with the Chinese Government, signing in February, 1914. Based on this contract, the Standard despatched six geological and five topographical surveying parties which more engaged in survey during the period from May of that year to February next. These parties surveyed Shensi as the centre of their study, but also neighbouring Shansi, Kansu, Honan and even Ordos in order to examine the geological structure of the region throughly. They also surveyed the area now called Nekka province where seepages were said to exist.Besides the above, the Standard, after the rough survey, attempted the test drillings in Yichang and other three spots as from December, 1914.But the Standard did not sign the final contract in March, 1915, as previously arranged and withdrew completely the staffs for survey and exploration in February, 1916.Though the reason why the Standard has withdrawn is not clearly known, it seems probable that the results obtained by the geological survey were not very promising.