Papers - Production - Foreign - Russian Oil Industry in 1940

Production of crude oil in the U.S.S.R. during 1940 is estimated at 222,600,000 bbl., as compared with the revised figure for the preceding year of 220,866,000 bbl., an increase of 0.79 per cent, and at least 20 per cent under the planned output. Baku district (Transcaucasus) remained the outstanding producing area, accounting for 72.33 per cent of the country's production, and this relative importance of the Apsheron Peninsula oil fields will probably continue lor many years to come. In the North Caucasus the Grozny-Dagestan area further extended its decline and the current production in this district amounts to only 6.06 Per cent Of the total U.S.S.R. output, as compared with 35.76 Per cent in 1931 The production of the Kuban-Maikop district remained virtually ullchanged from the preceding year, amounting to 7.64 per cent of the country's total. The Caucasian Province, therefore, in I940 produced 86.03 Per cent of the total production of the U.S.S.R. The promising new Permian Basin district, called Ural-Volga, and referred to sometimes as the "Second Baku," increased its production appreciably during 1940 and the output of that area amounted to 8.31 per cent of the country's total, as compared with 6.35 per cent during 1939. Production in the secondary districts of Russia continued unchanged though some new discoveries in the Emba salt-dome basin suggest that the output of that district may show some increase during the coming years. The drilling operations in Russia during 1940 reached a stage of virtual breakdown and the original footage plans were fulfilled only to the extent of around 50 per cent, while exploration drilling schedules were fulfilled only to the extent of about 25 to 35 per cent. This condition was due to the obvious lack of modern drilling rigs, of good drill pipe and of strong casing. Extended breakdowns occurred with deeper drilling, particularly because with few good drilling rigs available speed was being attempted with rotation rates that the inferior drill pipe and bits could not stand. Twistoffs and endless fishing jobs resulted. The difficulties became so serious a handicap to the Soviet oil industry that it was found imperative to order American drilling equipment and pipe in quantity, a policy that was never favored in the U.S.S.R because it requires expenditure of gold or exchange in major volume, and such exchange usually is reserved only to less bulky key items or to orders directly connected with armaments; also, oil-field machinery is very bulky and the prevailing lack of bottoms makes the transport of the indicated equipment a major problem. But little progress was similarly made in other branches of the Soviet oil industry. NO new major pipe-line construction work was undertaken, consequently the railroads continued to be overburdened with traffic that could be much more effectively handled by pipe lines. No new refinery construction of any magnitude was initiated, though several plants that had been in course of construction for several years were completed during 1940 and operation 554