Papers - - Production - Foreign - Russian Oil Industry in 1935

The developments in the Russian oil industry during 1935 marked a very definite turning point from the time when the industry was being educated to the modern methods of oil-field finding and development, refining, transportation and marketing, to the time when the industry has thoroughly assimilated the modern technique and is now firmly standing on its own feet, as is shown by the remarkable qualitative, if not quantitative, progress in 1935. The oil industry promises that 1936 will be a record year in every respect with both quantity and quality approaching the desired high levels and standards. More particularly the Soviet Government is beginning to be successful in the development of new fields and such new production in geographically strategical points of the country will be in the coming years a factor of great importance in the industrial life of the country. The most notable achievements of the last year have been: the very successful development of the Ishimbaevo oil field in the Lower Oural-Permian Basin; the discovery and development of several promising oil fields in the Puta district of Azerbaijan, while large flush production of Baku area was extended 50 miles due southwest into the Saliani-Aliat district, where a 3000-bbl. well was completed early in 1936 at Pirsagat. Also, an apparently important discovery was made at Zikh, on the Apsheron Peninsula proper. These discoveries, as well as several important strikes in the deeper producing sands in the older fields of the Apsheron Peninsula, have greatly augmented the proven reserves of Russia and made them available either at the points where transportation facilities were already present or at points not too far distant from major industrial centers of the country. Of course, not all objectives were achieved during the past year, and several major difficulties remain to be solved in the coming years, the more important of which are: (1) supply of equipment and of parts; (2) the unavailability of competent technical men in sufficient numbers, which more particularly affects the distant fields; and (3) the problem of distribution of oil products throughout the country, especially the question of handling the needs of small consuming areas, which, while individually unimportant, in the aggregate require huge distribution.