Papers - - Produciton - Foreign - Russian Oil Industry in 1934 - Union of Soviet Socialist Republics

After showing continued and very satisfactory progress until the close of 1931, the oil industry of the Soviet, Union experienced very great difficulties, and since 1932 has not only failed to complete its assigned quotas but has fallen farther and farther behind them, and in fact during 1932 and 1933 Russian production has been below production in 1931. In 1934 the total crude oil production of 169,200,000 bbl. exceeded that of the former peak year, 1931, when 156,100,000 bbl. were produced. The production during 1934 amounted to 78.65 per cent of the plan. The failure to complete the plan has been due to the inability of the oil trusts to develop new fields; the fields that have been producing since 1917 still account for between 75 to 80 per cent of total production. The failure of the Soviet Government to develop new fields has been due to unsatisfactory organization of the geological work, to the extremely slow drilling of wells and their exploitation, and to the very much delayed development of the few areas that have been discovered. The official overestimation of the proven reserves of the country has undoubtedly been an important factor in giving the Soviet industry too much confidence when actually such reserves have been small. The official Soviet estimate of proven reserves of Russia is now placed at 21,000,000,000, bbl., while in fact such reserves, if estimated on a conservative basis, do not exceed 4,200,000,000 bbl., as will be shown later in this review. The refinery branch of the industry also showed unsatisfactory results with a recovery of gasoline, both straight-run and cracked, of only some 16 per cent of the total runs to stills. In fact, the showing of the refineries has been so unsatisfactory that the exports of gasoline have been greatly curtailed from 1933 to 1934, dropping to 10,000,000 bbl. in 1934 from 12,230,000 bbl. in 1933. With the indicated increase in domestic demand, together with but slightly increased refining capacity, the volume of available gasoline for export probably will be reduced to about 6,000,000 bbl. during 1935. The geographic distribution of constructed refineries has been unsatisfactory and the crude oils from Baku had to be transported by tankers