Production - Foreign - Russian Oil Industry in 1939

Production of crude oil in the U. S. S. R. during 1939 is estimated at, 226,111,000 bbl., as compared with 219,778,000 bbl. in 1938, an irlcreasc of 2.88 per cent but some 6.00 per cent under the planned output. During the past year a major readjustment took place in Russian oil fields, with the Grozny district falling into the third place, its former place having been taken by the fields of the Maikop-Kuban area of northwestern Caucasus. Production continued to grow in the Ural-Volg:t district and further large increases in this province in the coming years are certain. The drilling operations continued to be most unsatisfactory, falling far behind the plan, possibly as much as 25 per cent undvr the set objectives, and thereby interfering with the production plans, mora particularly since the Soviet oil industry is still based primarily upon the production from the naturally flowing wells without any proration whatsoever rather than upon stabilized production from either prorated oil wells or those operated with various mechanical lifts. The year 1939 started with the fulfillment of the drilling programs to the extent of about 90 per cent, but the situation rapidly deteriorated arid by the second half drilling programs were being fulfilled only to the extent of 60 per cent or less. Such breakdown in drilling operations was possibly due to poor equipment, which has not been able to stand increasing demands upon it, and this is substantiated by the rccent orders plaeed in the United States by the Soviet Government for some 60 drilling rigs of the latest design. Production Baku District.—-The fields of the Apshcbron Peninsula (Baku district) made a notable progrress during the past year and were able slightly to increase their production, to 166,000,000 bbt. as compared with 164,692,-000 bbl. during 1938. The c.rnphasis of production in the Baku district remained on the flowing wells, about 20 per cent of the total number of wells flowing about 70 per cent of production. During 1939 some 550 wells were complr.tcd in the Baku district with active rigs averaging