USSR: SEASONALITY IN ENERGY PRODUCTION AND FOREIGN TRADE

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Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 National Foreign W Assessment Center USSR: Seasonality in Energy Production and Foreign Trade ER 81-10004 February 1981 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 This publication is prepared for the use of US Government officials, and the format, coverage, and content are designed to meet their specific requirements. US Government officials may obtain additional copies of this document directly or through liaison channels from the Central Intelligence Agency. Requesters outside the US Government may obtain subscriptions to CIA publications similar to this one by addressing inquiries to: Document Expediting (DOCEX) Project Exchange and Gift Division Library of Congress Washington, D.C. 20540 or: National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 Requesters outside the US Government not interested in subscription service may purchase specific publications either in paper copy or microform from: Photoduplication Service Library of Congress Washington, D.C. 20540 or: National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 (To expedite service call the NTIS Order Desk (703) 487-4650) Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 National Assessment Center USSR: Seasonality in Energy Production and Foreign Trade Research for this report was completed on 28 October 1980. Comments and queries on this paper are welcome and may be directed to: Director of Public Affairs Central Intelligence Agency Washington, D.C. 20505 (703) 351-7676 For information on obtaining additional copies, see the inside of front cover. ER 81-10004 February 1981 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08S01350R000200360002-5 USSR: Seasonality in Energy Production and Foreign Trade Summary Soviet economic activity exhibits a seasonal pattern that reflects a number of separate influences, the most important being weather and the end-of- year rush'(storming) to plan fulfillment. These seasonal forces complicate interpretation of monthly, quarterly, and semiannual data because longer term trends are confounded with seasonal variations. Most interest focuses on production trends-how fast is growth? has output fallen? Reliable inferences about trends often cannot be drawn based directly on the raw data, however, especially if one is looking for turning points, such as a major decline in oil production. Although the breakdown of economic series into trend and seasonal compo- nents is standard practice in short-term analysis of Western economies, it is little noted and even less frequently carried out in Soviet literature- probably because Communist economic theory associates short-term fluc- tuations with capitalism. The Soviet practice of basing year-to-year comparisons on the same period within the year does tend to eliminate some of the seasonal distortion. Not only is this misleading on occasion, it also uses the available data inefficiently. This paper focuses on seasonality in several key statistical series for the Soviet economy during 1960-80, using the Bureau of Census's X-11 seasonal adjustment method. The series selected for analysis include quarterly data (1960-80) on the production of electricity, oil and gas condensate, coal, natural gas, and export and import values. Our analysis suggests that seasonal influences are a significant determinant of quarterly fluctuations in Soviet economic activity, explaining between 35 percent and 95 percent of quarterly changes in activity in the areas exam- ined. The importance of seasonality, however, varies considerably. Elec- tricity and foreign trade are most sensitive to seasonal influences; oil production is relatively unaffected. Because of storage limitations, output of electricity and natural gas is particularly responsive to short-term fluctuations in demand. Demand peaks in the first quarter when energy requirements for heating and lighting are high and again in the fourth quarter when energy needs rise to accommodate the high level of economic activity associated with yearend storming. Storage is much less a problem for oil and coal, which can be stockpiled as a Declassified and Approved For Release 2012/03/16: CIA-RDP08S01350R000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08S01350R000200360002-5 buffer against demand fluctuations. Short-term production changes, there- fore, primarily reflect supply factors. In the case of coal and oil, offsetting seasonal factors tend to dampen production fluctuations. Seasonal volatility in foreign trade exceeds that in most forms of energy. Exports are high in the second quarter and peak in the fourth quarter. The second-quarter surge probably represents a drawdown of stocks that accu- mulated and could not be delivered during the harsh weather of the first quarter. Storming and a desire to fulfill calendar year export commitments may explain the fourth-quarter peak. In contrast, the first two quarters are most important for imports-a relatively new phenomenon perhaps caused by the growing reliance on grain imports to sustain livestock herds until the summer-fall harvest. As long-term growth slowed in most sectors, seasonal factors assumed a somewhat larger role in determining quarterly changes in economic activity. But the volatility of seasonal forces seems to show no general trend. Fluctuations became less marked in most of the sectors in the early 1960s. The volatility of natural gas production diminished throughout the period before leveling off in the last few years. Oil output, which had become more stable, increased in volatility in the latter 1970s as Siberian oil began to dominate national output. Fluctuations in coal output have been increasing rapidly through most of the period as strip mining became more important. While seasonal fluctuations have become less pronounced for exports, the seasonality of imports has increased-in part because of the growing impor- tance of grain purchases. Studies that deseasonalize basic Soviet data and also that examine this seasonal pattern are important to understanding the workings of the Soviet economy. For instance, seasonally adjusted data reveal an unusual decline in oil production in the winter of 1979 that the unadjusted data are unable to reveal. Besides locating turning points more accurately and rapidly, season- ally adjusted data permit identification of the underlying growth rate by isolating the rebound effect that occurs when a seemingly good year follows a poor year. This is feasible because seasonal adjustments validate the comparison of different quarters within the same year; without seasonal adjustment this would be a hazardous procedure. Declassified and Approved For Release 2012/03/16: CIA-RDP08S01350R000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Summary iii Introduction 1 The Literature on Soviet Seasonality Techniques of Seasonal Adjustment 3 Analysis of Seasonal Influences in Energy Production and Foreign Trade 3 The Data 3 Components of Change in Activity Levels 4 Annual Activity Profiles 5 Seasonality Patterns 5 Trends in Seasonal Influences 9 The Deseasonalized Results 12 USSR: Quarterly Statistics on Energy Production and Foreign Trade 16 1. Relative Importance of Three Components in Explaining Variations in Energy and Foreign Trade 5 Relative Importance of Seasonal Factors in Explaining Variation in Activity Over Selected Periods 10 A-1. Electricity Production 17 A-4. Oil and Gas Condensate Production Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 1. Activity Profile for Energy Production, 1960-79 2. Activity Profile for Foreign Trade, 1960-79 3. Seasonal Indexes for Energy Production, 1979 4. Seasonal Indexes for Foreign Trade, 1979 5. Annual Standard Deviations of Indexes of Seasonality 10 for Energy Production 6. Annual Standard Deviations of Indexes of Seasonality for Foreign Trade 7. USSR: Electricity Generation 8. USSR: Natural Gas Production 9. USSR: Oil and Gas Condensate Production Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08S01350R000200360002-5 USSR: Seasonality in Energy Production and Foreign Trade Much economic analysis relies on monthly or quarterly data to draw conclusions about economic trends. Empirical research on short-term movements in West- ern economies generally uses data that have been adjusted to remove seasonal patterns in order to isolate the underlying economic trends and cyclical compo- nents. Yet relatively little effort has been devoted to doing the same for socialist economies. Since the Sovi- ets report quarterly data only on a cumulative basis for that calendar year, Western and Soviet analysts usu- ally compare the cumulative performance through a given quarter of one year only with the corresponding figure in another year. This is an inefficient and some- times misleading procedure for removing seasonal in- fluences. It also fails to isolate the seasonal pattern, which itself could be a source of useful information about the economy. Removing seasonal influences from quarterly eco- nomic statistics should be an important step in the analysis of Soviet economic activity. The adjusted data provide a more reliable basis for making short-term forecasts and assessing the timing of a turning point in a certain indicator. Conversely, raw quarterly data could give a distorted picture because of seasonal fac- tors. Annual data will not confirm the existence of a turning point until the end of the year, or even later. In addition, the seasonal pattern isolated in the adjust- ment process yields insights on the production rhythm within a year and shows the impact of such variables as weather and the planning cycle on economic performance. This paper discusses case studies in which the deseasonalization of time series data is used to deter- mine both the underlying trend and the role of seasonal influences in several key areas of Soviet economic activity-the various energy-producing sectors and foreign trade. The first part of the paper briefly surveys the literature on seasonal influences in the USSR and summarizes the theory and techniques of seasonal adjustment. Then, we analyze seasonality in energy production and foreign trade. In each area, we examine the importance of seasonal influences in explaining changes in levels of activity, explore the causes behind changes over the course of a year, and determine if those forces have become more or less significant over time. Finally, the deseasonalized activity series are presented, and examples are given to show how they can be used to improve short-term analysis. The Literature on Soviet Seasonality Relatively little research has focused on seasonality in Soviet economic activity. Raymond Hutchings pio- neered Western analysis of seasonal influences on Soviet industry, although his work has been primarily qualitative.' He devoted much attention to cataloging production patterns in terms of such measures as the relative activity of each quarter and the frequency with which certain annual patterns occur. His chief quantitative contribution is the development of a measure of seasonal variability-the degree to which economic activity over the year deviates from a steady path. Hutchings's index is computed for a given year by first expressing each quarter's activity as a ratio of the previous quarter. These ratios are then adjusted by the average quarterly variation over the year to eliminate long-run trends. The sum of the logarithms of the four adjusted ratios is used as a measure of seasonal variation independent of both trend and scale effects. He uses this index to perform both cross-sectional comparisons of the volatility of different economic aggregates and intertemporal comparisons of trends in the relative importance of seasonality. ' See his Seasonal Influences in Soviet Industry, Oxford University Press, 1971, and "Recent Trends of Seasonality in Soviet Industry and Foreign Trade," in Jahrbuch der Wirtschaft Osteuropas, Vol- ume 8, 1979, pp. 247-285. Declassified and Approved For Release 2012/03/16: CIA-RDP08S01350R000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDPO8SO135OR000200360002-5 Hutchings's indexes are a useful step in isolating sea- sonal factors in Soviet economic data but have some inherent conceptual problems: ? Extracting trends based on a single year's growth rate leaves the procedure unnecessarily susceptible to distortions from an atypical quarter. ? Irregularities that develop within the course of a year because of extraneous nonseasonal variables are not considered; rather such aperiodic events are counted as seasonal fluctuations in his indexes. ? The procedure, moreover, does not extract the pat- tern of variability over the year; because it merely measures the average degree of deviation from smooth growth, insights into the ebb and flow of yearly economic activity are quite limited. Soviet research in this area has been sparse. A theoreti- cal article published a few years ago, typical of Soviet technical discussions on seasonality, simply reviewed the statistical properties of several alternative mea- sures of seasonal volatility.' The article indicated that at least one research institute used a simple index based on the coefficient of variation to analyze short- term activity. The lack of more sophisticated ap- proaches undoubtedly lies in the very severe constraint on computer access at most research facilities and on the low priority given to seasonality studies. Soviet references to seasonality are usually political rhetoric calling for a smoother rhythm of production. This theme has been expressed at the highest levels, for example, President Brezhnev declared at the 25th Par- ty Congress that "such shortcomings as losses of work- ing time, idling, and lack of regularity in work are especially intolerable."' What Brezhnev and others have foremost in mind are the losses in efficiency and production caused by the rush (storming) at the end of planning periods to earn bonuses or escape penalties. 3 A. I. Tarasov, "Indicators of Seasonal Unevenness," Ekonomika i matematicheskiye melody, No. 4, 1975 (translated in JPRS 1820/72, April 1975). ' N. Fontalin, "Smoothness-A Condition of Efficiency," Promyshlennost' Belorussii, No. 12, 1977 (translated in JPRS 70809, March 1978). Soviet literature generally does not distinguish be- tween this storming and seasonal phenomena, which are natural and not necessarily counterproductive. Soviet empirical work on the rhythm of production has generally concentrated on patterns within a month.' These articles usually divide the month into halves or thirds and compare output in the different periods. While this research on very short-term variations in economic activity could be useful, only average break- downs of the rhythm within a month are usually given, limiting the usefulness of the data for examining vari- ations in seasonality over the full year. Soviet research on seasonality that is useful to Western scholars for the most part is found in occasional arti- cles in technical journals that report on industry case studies in sectors such as electricity generation and meat production.' But even these analyses are gen- erally confined to questions of the average share of annual output accounted for by a given month or quarter. The best Soviet study of seasonality seems to be Zorkal'tsev's.6 He computed average monthly de- viations of production from trend for a large number of industrial products for the period 1965-72 and stressed the need for more research on seasonal phenomena, Examples are: P. Galkin, "Rhythm in Production," Ekonomicheskaya gazeta, No. 1, 1976; R. Gareyev, "In the Strug- gle for Rhythm of Production," Ekonomicheskaya gazeta, No. 39, 1976; V. Virkunen, "A Clear Rhythm Through Tens of Days and Days," Ekonomicheskaya gazeta, No. 4, 1978; Ya. Arloff, "Heavy Industry and Consumer Goods," Ekonomika i organizatsiya promyshlennogo proizvodstvo, No. 5, 1978; Fontalin, op. cit., and Ya. Kvasha, "Methods of Cost Computation in Setting Up Produc- tion," Voprosy ekonomiki, No. 1, 1976 (translated in Problems of Economics, August 1977). 'S. P. Gladkova, "Seasonal and Annual Fluctuations in Electric Power Output Analyzed," Gidrotekhnicheskoye stroitel'stvo, No. 11, 1975, pp. 18-21 (translated in JPRS 66544, January 1976), and L. B. Dekel'man, R. G. Tumanova, and V. D. Filippov, "Methods of Studying the Seasonal Nature of Production," Myasnaya industriya SSSR, No. 1, 1978, pp. 5-9 (translated in JPRS 70828, March 1978). 6 V. I. Zorkal'tsev, "Seasonal Impact on Industrial Production," Izvestiya sibirskogo otdeleniya akademii nauk SSSR, seriya obshchestvennykh nauk, No. 6, 1978 (translated in JPRS 72434, December 1978). Declassified and Approved For Release 2012/03/16: CIA-RDPO8SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 arguing that they are significant determinants of short-term output variations and must be considered in designing policies for reserve capacity, inventory con- trol, and product interchangeability.' Techniques of Seasonal Adjustment The seasonal adjustment techniques now in use include the calculation of quarterly means, link relatives, and ratios-to-moving averages. With many issues of deseasonalization still unresolved, spectral analysis and regression techniques are also being employed to deseasonalize data.' Almost all of these techniques assume that economic activity in any period is the combined result of random events, seasonal influences, cyclical fluctuations, and secular trends. Statistical series are deseasonalized by filtering out seasonal influences to derive a time series that reflects primarily cyclical and trend components.' The various techniques differ in how they accomplish the filtration. In particular, before any technique can be applied, a critical assumption must be made. Do the seasonal factors have an additive or multiplicative effect on economic processes? 10 Of the many methods for deseasonalizing data, we have selected the X-11 approach developed by the Bureau of the Census. This is the most commonly used method, primarily because of its great flexibility. It In another article Zorkal'tsev urges the use of regression techniques that account for seasonal influences as well as trend during the plan formation process. See "The Basis of Choice of a Regression Model for the Analysis and Forecasting of Processes of Fuel Supply With a Seasonal Component," Izvestiya akademii nauk SSSR, energetika i transport, No. 3, 1978, pp. 135-143. See Harry M. Rosenblatt, "A New Look Into and Beyond Tra- ditional Methods of Seasonal Adjustment," X-II Information for the User, 1969. Also see the papers in Seasonal Analysis of Eco- nomic Time Series, US Department of Commerce, Economic Re- search Report, ER-1, 1978. An example of the complex modeling techniques currently under investigation can be found in Charles I. Plosser, "The Analysis of Seasonal Economic Models," Journal of Econometrics, October 1979. In seasonal adjustment terminology, that part of fluctuation explainable by the business cycle and secular trend is combined into a single component known as the trend-cycle. Because the Soviet Union is not exposed to a Western-style business cycle, henceforth, we refer to this component purely as trend. 10 The choice itself is an oversimplification as the considerable controversy on this issue demonstrates. Seasonal factors could im- pact in combined additive and multiplicative forms in some nonlinear fashion. provides an analysis of variance to determine the shares of variation in output over different timespans that can be attributed to random events, trend, and seasonal factors. It also permits changes in the seasonal pattern over time rather than holding the pattern fixed as most other methods require. In addition, the X-11 method allows for either additive or multiplicative seasonal influence assumptions. Finally, one of the chief advantages of the X-11 is its flexibility in treating extreme observations so that the deseasonalization pro- cess is not distorted." Analysis of Seasonal Influences in Energy Production and Foreign Trade The Data We analyzed quarterly data on production of coal, oil (including gas condensate), natural gas, and elec- tricity, and commodity exports and imports to identify seasonal behavior. (The raw data are presented in the appendix.) We compiled the energy data from Ekonomicheskaya gazeta from first-quarter 1960 to second-quarter 1980; approximately a month after the end of each quarter, the Central Statistical Agency in Moscow issues reports on the cumulative energy production through that quarter. Quarterly production data are derived by subtracting from each quarter's cumulative output the previous total, except for the first quarter, which is given directly. Since published Soviet statistics are often highly rounded, some error may be introduced into a particular quarterly total derived in this manner. Development of the series for electricity generation is complicated by the reporting practices employed be- fore third-quarter 1971. As Hutchings has pointed out, "All of the X-11 calculations in this paper were based on the multiplicative assumption regarding seasonal influences. Experi- ments were also conducted using the alternate assumption of ad- ditive seasonality. This gave less stable seasonal patterns and was therefore rejected in favor of the multiplicative adjustment. The influence of extreme observations on the seasonality calculations was moderated by discarding data points that were more than 2.5 stand- ard deviations beyond a moving average mean and reducing the weight given to points within the band defined by 1.5 and 2.5 standard deviations from the mean. Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 power generation output before 1971 was only reported for the first and third quarters as output "of electric power stations of general utilization and block sta- tions" while the second- and fourth-quarter cumulative figures presumably represented the national total." To overcome this difficulty, we have used regression tech- niques to determine historical relationships between quarterly and cumulative semiannual totals. With the help of these relationships, we interpolated values for first- and third-quarter national totals before 1971. This procedure obviously introduces some additional error into the pre-1971 data and, therefore, into the estimates of seasonality for electricity in this period. The foreign trade data in current prices are obtained from several sources. Hutchings constructed quarterly data for imports and exports for the period 1960-67 and 1968-74 in his studies." Post-1974 data were ob- tained in cumulative form from the journal, Vneshnyaya torgovlya, current through second-quar- ter 1980. We derive the quarterly figures by the same procedure used for energy. Since these trade figures are ruble values in current prices, they do not measure the actual volume of trade. Soviet official data permit a crude adjustment of these data to a constant price base by the publication of an annual index series of the volume of exports and im- ports in comparable prices. By comparing these in- dexes with the annual trade figures in current prices, implicit price deflators for the year are derived. Be- cause we have no information about how prices change during the course of a year, the same price deflator is applied to every quarter within a given year.14 The result is that the X-11 procedure will mix together the seasonal effects that result from both trade volume and price fluctuation. 'Z Hutchings, "Recent Trends," op. cit., p. 259. The designation of block electric power stations probably excludes captive power sta- tions belonging to specific production facilities. " Hutchings, Seasonal Influences, pp. 309-310, and "Recent Trends," pp. 247-285. " If prices rise uninterrupted during the year, this procedure will understate the values of the earlier quarters and overstate the values of the latter quarters. If prices rise and fall during a year, the direction and degree of bias are indeterminate. Components of Change in Activity Levels The deseasonalization process decomposes the change in a particular time series into shares that may be attributed to random events, trend growth, and sea- sonal factors. In a seasonally stable series, the relative importance of each component depends on the unit of time used to measure change. Table 1 summarizes the results for each of the six series examined; we cal- culated change from period to period, where the period varied from one to four quarters. As expected, in all cases the dominance of the seasonal component diminishes as the unit of time increases. Seasonal factors are short-term phenomena whose in- fluence essentially vanishes when year-to-year comparisons are made. Conversely, the significance of the trend factor increases as the unit of time lengthens; in no case does the trend factor account for less than 86 percent of the annual variation in the series examined. Except for coal, the importance of the random compo- nent for the energy products either drifts downward over longer time periods or remains steady. Seasonal volatility seems most important in explaining short-term fluctuations in electricity generation and least important for oil and gas condensate. Coal and natural gas fall in an intermediate position. The growth trend is relatively unimportant in explaining quarter-to-quarter changes in electricity, coal, and natural gas, but it is very important for oil. Coal is the only fuel that has a consistently high irregular compo- nent (from 8 to 18 percent), suggesting that variations in coal output are to a large extent the result of factors having nothing to do with trend or seasonal factors. For example, irregular deliveries of equipment, abrupt changes in manpower availability, and extreme weather in certain years could be more important in coal than in the other sectors. Foreign trade is much like electricity in that a heavy seasonal component dominates short-term trade move- ments. Indeed, the growth trend is not important in determining changes for periods of less than a year. Seasonal factors seem to have equally important roles in both imports and exports, while the influence of random events is small in both. Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Relative Importance of Three Components in Explaining Variation in Energy Production and Foreign Trade a Periods b 5.1 57.6 37.3 0.9 76.2 22.9 0.6 92.6 6.8 0.4 99.6 NEGL 1 13.8 18.9 67.2 2 3.0 28.5 68.6 3 4.4 70.3 25.3 4 4.0 95.9 NEGL Coal 18.4 8.3 73.3 2 8.2 27.2 64.6 3 9.1 39.8 51.1 4 13.1 86.8 0.2 Electricity 0.6 4.3 95.1 2 0.1 5.9 94.0 3 0.3 31.8 67.9 4 0.4 99.6 0.1 Exports 1 3.9 3.4 92.8 2 4.4 18.7 76.9 3 2.1 18.1 79.8 4 7.6 92.3 0.2 1 6.4 4.4 89.2 2 7.9 25.3 66.8 3 3.2 20.2 76.7 4 13.0 86.3 0.6 a Because of rounding, components may not add to the totals shown. b Period length is three months. Annual Activity Profiles An activity profile shows how economic activity varies from quarter to quarter during an average year. It is not necessarily the pattern recorded in any particular year because changes in trend and extraneous events can also affect the distribution of activity within a given year. Seasonal influences can also change over time for a host of reasons-changes in production technology, output mix, or the location of production, for example. Activity profiles can be computed from a series of link relatives: activity in each quarter is expressed as a ratio of the previous quarter. The mean link relative for a given quarter is the average of all of the link relatives for that quarter. Activity profiles are created by chain linking the quarterly mean link relatives, treating the first quarter as the base. The quarterly activity profiles for energy (figure 1) and foreign trade (figure 2) show the average activity variations over the year. Because they are not trend adjusted and because activity has increased over time, the data show some net growth on a first-quarter to first-quarter basis. The quarterly patterns, however, are by no means identical. Generation of electricity falls in the second quarter, remains low in the third quarter, and approaches a peak in the fourth and first quarters. Extraction of oil and gas condensate rises throughout the year before falling somewhat in the first quarter. Production of natural gas follows a pat- tern similar to that of electricity except that it does not fall by nearly as much in the second and third quarters and rises by more in the fourth and first quarters- reflecting the high growth trend in gas extraction. Coal dips in the second quarter and gradually climbs back until it peaks in the following first quarter. Exports and imports generally move together. Values for the second quarter are nearly 20 percent above first-quarter values; exports and imports then fall slightly in the third quarter, although the decline is steeper for imports. Both series peak in the fourth quarter with exports climbing most. Finally, both se- ries fall back to about the same relative level in the following first quarter-about 10 percent more than the same quarter a year earlier. Seasonality Patterns While activity indexes are useful general measures of the time patterns of production or trade, they can distort seasonal influences because growth trends and random disturbances are mixed in with seasonal fac- tors. In the Soviet economy, where most indicators of Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Figure 1 Activity Profile for Energy Production, 1960-79 Index: 1st qtr.=100 I I I I I 1 St qtr. 2nd qtr. 3rd qtr. 4th qtr. 1St qtr. economic activity grow over time, we must especially remove the trend elements to discern the true seasonal pattern. Seasonal indexes computed by the X-11 procedure convey a clearer impression of the annual pattern of activity independent of trend and irregular disturb- ances. If there were no seasonal rhythm, these indexes would record a value of 100 in every quarter. An index greater than the base indicates that the quarter in question is more active than average and a value less than 100 means just the reverse. Since the X-11 deseasonalization procedure generates different sea- sonal indexes over time, we will focus on those for 1979. (We defer discussion of historical changes in seasonality to a later section.) Seasonal indexes for energy for 1979 (figure 3) show a slightly different pattern than link relatives by remov- ing trend. Because electricity cannot be stored, the Figure 2 Activity Profile for Foreign Trade, 1960-79 Index: 1st qtr.=100 I I I I I 1St qtr. 2nd qtr. 3rd qtr. 4th qtr. 1St qtr. seasonal pattern of electricity generation reflects de- mand considerations much more than supply. Based on Zorkal'tsev's finding that "the amplitudes of the sea- sonal fluctuations are greater for fuel consumption than for production," we would expect that electricity generation would be the most volatile of energy forms." Indeed, a comparison of the seasonal indexes for different kinds of energy shows this to be true. Electricity generation peaks in the first and fourth quarters when we would anticipate demand to be high- est. In the first or winter quarter, household and municipal demand for lighting, ventilation, hot water, and heating purposes would be at a maximum.'b Since Robert Campbell has shown that household and municipal sources consumed more than 16 percent of " Zorkal'tsev, "Seasonal Impact." The next few paragraphs borrow from this article to help explain the seasonal phenomena we have witnessed. " S. L. Pruzner, A. N. Zlatonol'skiy, and A. M. Nekrasov, Ekonomika energetki SSSR (Moscow: Vyshaya Shkola, 1978) pp. 26-27. Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Figure 3 Seasonal Indexes for Energy Production, 1979 Index: 1979 average=100 Electricity Natural gas on Coal 1St qtr. 2nd qtr. 3rd qtr. 4th qtr. electricity available for distribution during 1975, we would expect the first-quarter share to be substantially higher than average." With the well-known phenom- enon of end-of-year storming by industry, the chief consumer of electricity, the shorter days of fall, and the advent of cold weather, we would also expect fourth- quarter demand for electricity to be relatively high. Peak periods of electricity demand, however, do not coincide with peaks in hydroelectricity generation. Hydro potential is at its maximum in the second and, perhaps, third quarters periods of rather low elec- tricity demand. Hydroelectricity generation cannot be used to augment seasonal peak loads; rather it serves the function of expanding the underlying capacity of the entire network. This inability to rely on hydroelectricity in periods of peak seasonal demand " Robert Campbell, Soviet Energy Balances (Santa Monica: Rand R-2257-DOE, Part II, December 1978). Most of the energy consumption statistics in this section are taken from Campbell's work. must force increased reliance on thermoelectric sta- tions and increase the demand for fuel during the winter.18 Seasonality is next strongest in natural gas production. While production does not follow current demand as closely in gas as in electricity, the amount of gas that can be stored at any one time is limited. Thus, gas production also peaks in the fall (fourth quarter) and winter (first quarter). Space heating requirements and heat losses in industrial processes peak in those quar- ters. For example, in urban locations, where private and communal consumption is a large share of local fuel consumption, the use of fuel in January is three to five times higher than the monthly average for the year.19 Moreover, the energy required for heat in indus- trial processes in the winter is often 40 to 100 percent more than in the summer.20 Storming in industry, which accounts for about half of domestic gas consumption, undoubtedly contributes to the fourth- quarter surge in gas demand. Despite the increased production during cold weather, gas shortages occur because demand rises more than production. To com- pensate, the shortages are rationed by drawing on underground storage, by converting to alternative fuels, and disconnecting some users.21 The seasonal profile for coal production is similar to that for natural gas except that it has a smaller am- plitude. Because coal can be stored more readily than electricity or gas, we would expect supply consider- ations to dominate the seasonal rhythm in coal output. One reason for the relatively stable seasonal pattern is the operation of offsetting supply influences. Winter weather impedes strip mining and summer weather hinders shaft mining.22 Summer vacations and the tendency to do repair work then both serve to hold down third-quarter output.23 " V. D. Bel'kin and A. F. Tret'yakova, "Optimization of the Branch Complexes in the System of Interbranch Balance, Calculating Prices and Rents," I. Ya. Birman, ed., Optimalniy plan otrasli (Moscow: Ekonomika, 1970) p. 93. " Ibid., 93. Ye. N. Il'ina and L. D. Utkina, "Unevenness of Gas Consump- tion," Ekonomika gasovoy promyshlennosti, No. 9, 1978, pp. 3-15. Ibid. =Z B. Pichugin, "Prepare Coal During Summer," Sotsialisticheskaya industriya, 17 July 1980, p. 3. 21 Zorkal'tsev, "The Basis of Choice," p. 135. Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Demand does play some role in coal's seasonality, albeit a reduced one. Coal production is at a peak in the first and fourth quarters when energy demand is also highest. Undoubtedly, this extra coal output is used for the generation of electricity in thermal stations and power and heat in cogeneration facilities, which to- gether accounted for nearly two-thirds of noncoking coal consumed in the economy in 1975. This increased demand for coal for electricity is not only due to greater energy requirements during cold weather, but also because many thermal plants substitute coal for natural gas during this period of tight gas supply.24 Industrial storming associated with the fourth quarter would exert a ripple effect on coal demand both as a fuel and for coking purposes. Also, the relatively low level of demand in the second and third quarters, especially as thermal plants return to gas usage, per- mits inventory accumulation, so there would be less need to greatly accelerate production in the fourth quarter.25 Oil production is seasonally the least volatile energy indicator examined. In no quarter does output diverge from the quarterly average by more than 2 percent. While storage theoretically could be a limiting factor, in reality potential drilling and pumping rates are the operative constraints to production. Thus, quarterly oil output seems more sensitive to fluctuations in supply than demand. Like coal, offsetting factors limit the seasonal volatility: drilling conditions in moderate locations are the worst in the winter, but in Central Asia and Tyumen they are the worst in the summer. Here again, demand exerts a limited influence on the seasonal pattern. Petroleum products have more alter- native uses than other forms of energy, so the heating needs of winter do not play a dominant role in the first- quarter demand for oil. Oil output instead peaks in the third and fourth quarters, when the economic sectors most dependent on oil are most active. A surge in the demand for petroleum products in agriculture, trans- portation, and industry plays a key role in boosting oil demand in those particular quarters. A factor limiting 11 Ilina and Utkina. Pruzner, et al., p. 50. Also see N. S. Neporozhnego, ed., Elektrdikatsiya SSSR (Moscow: Energiya 1970), p. 541. Z' Ibid. the volatility of oil demand is that mazut, like coal, is used as a partial substitute to alleviate the natural gas shortage during the winter. In summary, electricity and natural gas output are the most volatile energy series on a quarterly basis because storage limitations make them reflect quite directly the volatile demand for energy in the Soviet economy. Coal and oil are more stable because production possibilities rather than storage capacities are limiting; hence, these fuels may be stockpiled in advance of demand. Also, offsetting technical factors contribute to reduced volatility in oil and coal production. Demand and con- sequently production of energy tends to be highest in the first quarter because of heating needs and lower energy efficiency in industrial processes, and in the fourth quarter because of the rapid pace of economic activity. Foreign trade also shows a distinct seasonal pattern (figure 4). Weak export activity in the first quarter probably reflects problems in the transportation sector-inclement weather and closed ports and/or a need to divert limited transportation resources to higher priority activities. The rebound in the second quarter could represent a reduction in the backlog of undelivered goods held over from the previous quarter. The high export activity in the final quarter is a likely sign of storming to meet plan targets and export commitments. The import pattern is somewhat different from ex- ports. First-quarter activity is about average, the sec- ond quarter is the most active, the third quarter is relatively inactive, and the last quarter is about aver- age. The first two quarters may dominate imports because of the increased reliance on imported grain. Grain must be imported early in the year to com- pensate for any crop shortfalls in the previous year and to sustain livestock herds until the winter grain crop is harvested and spring pastures are available. Likewise, other imports may fall off toward the end of the year as planned foreign currency allocations become tight and some new purchases must be deferred until the follow- ing calendar year. Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Figure 4 Seasonal Indexes for Foreign Trade, 1979 Index: 1979 average=100 I I i I 1St qtr. 2nd qtr. 3rd qtr. 4th qtr. Price effects may also have a role here. If prices tend to rise during the year, this would mean that for exports the low activity of the first quarter and the high activity of the fourth quarter would be exaggerated; rather both would approach somewhat closer to aver- age activity. The net effect of price changes on imports is harder to assess because of the high share of food and agricultural raw material imports, about one-fifth in 1978. We suspect that food prices have a high seasonal component and that they do not rise in an uninter- rupted manner, as most other products. Trends in Seasonal Influences Seasonality patterns are not necessarily stable over time. Long-term changes in location, resource avail- ability, labor supply, technology, industrial structure, and even weather could affect the balance of seasonal forces and therefore the variation in activity over the year. Trends in seasonal patterns can be measured in three ways: (1) changes in the role of seasonal influ- ences in explaining quarterly variations in economic activity, (2) changes in seasonal volatility over time, and (3) changes in the seasonal profile itself. No clear relationship exists between economic develop- ment and the relative importance of seasonal influ- ences. Development can reduce the importance of fac- tors like weather that are highly seasonal; it can also increase the importance of budgetary and financial systems that have strong seasonal rhythms. To see whether the role of seasonal forces in Soviet economic activity is changing, we divided the 1960-79 period into four five-year subperiods. The activity levels of each shorter period can then be analyzed separately to determine the shares of the variations attributable to irregular disturbances, the growth trend, and seasonal influences. The analysis here is limited to activity changes over one- and two-quarter spans since seasonal influences generally are most important in explaining variations over short periods. Summary results for the six series (table 2) allow few generalizations about the changing strength of sea- sonal forces over time. The importance of seasonal factors varies considerably for most of the series, but there has been no general tendency toward a reduction in seasonal influences. There is some suggestion of a connection between the relative growth over the period and the explanatory power of seasonal influence- seasonal factors become important as the annual growth rate falls. Oil and coal output have shown stronger seasonality in recent periods, probably be- cause long-term growth has been slowing in both cases. The importance of seasonal forces in the rapidly grow- ing but slowly decelerating natural gas sector has decreased somewhat in recent periods. No pattern emerges in electricity, although its seasonal component has consistently been among the highest of the series studied. The significance of the seasonal component in export activity has been relatively stable but has be- come somewhat less important in explaining change over two quarters. There has been some shift to less seasonal influence in quarter-to-quarter changes in imports, but seasonal factors still dominate in these comparisons. Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Relative Importance of Seasonal Factors in Explaining Variation in Activity Over Selected Periods One-Quarter Two-Quarter Span Span Oil and gas condensate 1960-64 1965-69 1970-74 32.5 1975-79 59.3 Natural gas 1960-64 _51.4- 1965-69 89.5 1970-74 80.0 Coal 1960-64 75.9 1965-69 71.6 1970-74 60.6 1975-79 90.9 90.4 Electricity 1960-64 95.9 89.4 1965-69 87.3 92.9 1970-74 90.2 94.6 Exports 1960-64 96.0 82.8 1965-69 86.6 81.6 1970-74 94.8 1975-79 93.5 Imports 1960-64 1965-69 87.8 72.9 1970-74 88.5 11.3 To test for changes in seasonal volatility, we computed the standard deviation of each year's seasonal adjust- ment indexes. If there were no seasonal volatility in a given year, the standard deviation would be zero. A large standard deviation indicates that the series is subject to extreme seasonal fluctuations, whereas vari- ations in the standard deviation over time measure the shift in seasonal volatility. The standard deviations are Figure 5 Annual Standard Deviations of Indexes of Seasonality for Energy Production 0.5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1960 1965 1970 1975 Natural gas shown in figures 5 and 6 for 1960-79, using a logarith- mic scale so that equal vertical movements represent equal percentage changes in volatility. Figure 5 confirms that seasonal fluctuations are more intense in electricity and natural gas than in coal and oil. While the volatility of electricity has been high, it also has shown the most stable seasonal pattern. Some of this stability, however, may reflect the statistical procedures used to complete the raw data series that we have discussed above. Natural gas production has shown a considerable de- cline in volatility, although seasonal variations are still large. The seasonal volatility of oil production has been relatively stable over the two decades. But after declin- ing for a time, volatility has risen slightly since 1975. The growing share of Siberian oil in the national total and the declining production in regions with a less Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Figure 6 Annual Standard Deviations of Indexes of Seasonality for Foreign Trade Exports Imports 0.5 I I I I I I I I I I I I I I I I 1 1 1 1960 1965 1970 1975 severe climate may account for the turnaround. Coal output has become more seasonal over the last 10 years. This probably reflects the expansion of strip mining at the expense of shaft mining. Both exports and imports were more volatile than any of the energy series during the early 1960s. With the growing importance of foreign trade in Soviet plans, exports and imports have become less volatile and are now less affected by seasonal factors than electricity. Nonetheless, seasonal variations in trade activity are still high. In fact, the volatility of imports has risen in the last five years as a probable reflection of the growing importance of grain and other food imports. Of the two series, the seasonal volatility of imports has changed more than export volatility. The standard deviations of the seasonality indexes show shifts in the degree of fluctuation over time but do not indicate how patterns have changed within a year. Only by examining the seasonal indexes directly can such shifts be tracked. The quarterly seasonal indexes for electricity output have been stable through- out the period, although some changes in individual seasonal indexes can be observed. Synthetic proce- dures used to reconstruct part of the raw power series may be a source of some of this stability. First-quarter activity-always higher than average-has increased in relative terms. The below-average activity of the second and third quarters has remained unchanged, while the fourth quarter has fallen from a pronounced peak to a level similar to that of the first quarter. The seasonal indexes for oil exhibit a marked stability throughout the 1960s and 1970s. The only discernible change is a slight weakening of the third quarter and a concomitant strengthening of the fourth quarter. The decreasing amplitude of the seasonality of natural gas is reflected in the seasonal indexes, with each quarter trending toward the average rate of activity. The first and fourth quarters remain the peak periods for gas production, although the peak quarterly rates exceed the yearly average by smaller amounts now than earlier. The coal quarterly profile has changed slightly as seasonality has increased. The first quarter has remained the most active period on a seasonal basis and has accounted for an increasing share of annual output. The fourth quarter displayed below-average activity early in the 1960s, but now rivals the first quarter in terms of seasonal output activity. Similar- ities in the seasonality shifts of coal and electricity illustrate the importance of coal to much of electricity capacity. The shifts in seasonal indexes of foreign trade have been minimal for exports and most dramatic for im- ports. With decreasing export volatility, some of the seasonal indexes have moved closer to the quarterly average. The fourth quarter remains the strongest period, but less than formerly. In recent years, the second quarter has become stronger and remains only slightly below the annual peak. The seasonal indexes for imports have changed radically. First-quarter activity has gone from 20 percent below average to about average. The second quarter has become the most active period, while the fourth quarter-which once dominated import activity-has fallen to slightly below average. The weakest import period is now the third quarter after having supplanted the first quarter from this position. Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Figure 7 USSR: Electricity Generation Billion kilowatt-hours Adjusted Unadjusted I I I l 1 1 I . .III I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 l I I I I I I I I I I 1 1 1 1 1 1 1 1 1 1 1 IIII I I I I 1111111 50 1960 1965 1970 1975 1980 Seasonally adjusted time series are derived by applying indexes of seasonality to the official Soviet data. The adjusted series, purged of seasonal influences, reflect trend growth and random factors. The deseasonalized and official series for energy production and foreign trade are compared in figures 7 through 12. (The appendix presents the adjusted values for each quarter in 1960-80.) The deseasonalized figures provide a dif- ferent view of Soviet economic growth. The contrast between the unadjusted and adjusted series shows that economic activity in these areas of the Soviet economy are subject to distinct annual rhythms. The use of deseasonalized data is especially important in judging the intensity of random events or the timing of turning points-for example, the possible peaking of Soviet oil production. Oil production measured by the quarterly unadjusted series has fallen below the level of the previous quarter 10 times in the 80 observations in this study. Thus, the drop in oil production between fourth-quarter 1978 and first-quarter 1979 was not unusual. Analysis of seasonally adjusted oil produc- tion, however, reveals that the first-quarter 1979 drop in deseasonalized production had happened only twice before-in first-quarter 1969 and in second-quarter 1976. Moreover, the failure of seasonally adjusted oil production to turn upward in second-quarter 1979 was unprecedented in the 20 years covered by this analysis-a development that went unnoticed in the raw data that reported a rise in output in the second quarter. Adjusted oil production later turned upward again, demonstrating the severity of the winter of 1979 and its intense and unusual impact on the Soviet econo- my. It could also suggest that oil production is nearing its long-run peak. In reality, it is unlikely that an economic variable will smoothly approach a peak from which it begins a monotonic decline; rather we would expect that as the peak is approached there will be more frequent occurrences of short-term production declines such as have happened since 1979. Regardless of the cause of the 1979 winter production Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Figure 8 USSR: Natural Gas Production Billion cubic meters Adjusted Unadjusted I I I I I I II I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I IIII 0 1960 1965 1970 1975 1980 Figure 9 USSR: Oil and Gas Condensate Production Million metric tons 1979, 1st qtr. - Adjusted Unadjusted L - I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Figure 10 USSR: Coal Production Million metric tons Adjusted Unadjusted I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I i I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I II 100 1960 1965 1970 1975 1980 Figure 11 USSR: Exports Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Figure 12 USSR: Imports Million 1970 rubles decline-weather related or nearing a long-term peak-the seasonally adjusted data provide a better framework for the analysis of oil production than the unadjusted data. Another possible value of seasonally adjusted data is to isolate the "echo effect" from the quarterly data. This effect may be defined as the statistical anomalies that appear in Soviet data during a year subsequent to a poor one. For example, in first-quarter 1980, the Soviet press reported that industrial production had grown 5 percent over the corresponding period in the previous year, a respectable rate of growth by anyone's stand- ards. The real reason for the high growth rate was not industrial expansion, however; rather the harsh winter of 1979 brought growth to a virtual standstill with output of many products far below the 1978 level. By merely recouping those production losses, the echo effect virtually guaranteed a high rate of apparent growth for 1980 with minimal expansion of industrial capacity. By seasonally adjusting the series examined in this paper and others, it becomes possible to compare dis- parate quarters on an identical basis. For example, we need not always compare thefirst quarter of one year with the first quarter of another year; now we can validly compare any quarter with any quarter in an- other year or the same year. In this way it is possible to more easily remove the echo effect. Since the second, third, and fourth quarters of 1979 were only indirectly affected by the harsh winter that year, we can compare the first quarter of 1980 to these latter quarters to discover the true rate of growth that is not biased upwards by comparison with an abnormal period. Exports are a case in point. The dislocations of the 1979 troubles caused exports in the first quarter to drop 11 percent below 1978. If 1980 exports in the first quarter are compared with this unusual 1979 quarter, the impression is created that exports have risen dramatically by 19 percent. When a comparison is made with the seasonally adjusted third or fourth quarters of 1979, it becomes apparent that exports in constant prices have risen much more slowly and may even have declined. Thus, the echo effect is neutralized in our interpretation of economic events. Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Appendix USSR: Quarterly Statistics on Energy Production and Foreign Trade Official energy data (tables A-1 through A-4) were compiled from various issues of Ekonomicheskaya gazeta. Because of a change in reporting practices, data for electricity generation through second-quarter 1971 had to be reconstructed through a combination of partial official data and historical relationships. For- eign trade data (tables A-5 and A-6) were obtained from Hutchings26 and Vneshnaya torgovlya. The trade data are reported in current rubles, but we have used this basic data and its relationship with Soviet indexes of trade in constant prices to derive an implicit price deflator to convert the data to 1970 rubles. In all cases, quarterly values were derived from published cumula- tive totals. The seasonally adjusted data were computed by using the X-11 statistical routine of the Bureau of the Cen- sus. The assumption of multiplicative seasonality was used throughout. To limit the influence of extreme observations, the standard default criterion of 1.5 and 2.5 standard deviations was used. This means observa- tions more than 2.5 standard deviations beyond the norm were discarded for purposes of deriving the in- dexes of seasonality. Observations from 1.5 to 2.5 standard deviations received a reduced weight as they approached 2.5 standard deviations. All other observa- tions received a full weight. u Hutchings, Seasonal Influences, pp. 309-310, and "Recent Trends," pp. 247-285. Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Electricity Production 1960 73.4 68.6 62.1 87.9 1961 81.6 75.4 72.4 97.6 1962 94.0 86.0 82.3 106.7 1963 107.0 97.0 92.3 115.7 1964 117.3 105.7 105.1 130.9 1965 129.7 116.3 117.0 144.0 1966 140.6 125.4 126.7 152.3 1967 154.6 137.4 136.3 160.7 1968 166.0 147.0 149.1 175.9 1969 181.2 159.8 160.4 187.6 1970 193.1 169.9 173.6 203.4 1971 210.4 184.6 187.0 218.0 1972 229.0 198.0 199.0 232.0 1973 240.0 209.0 214.0 252.0 1974 258.0 225.0 228.0 264.0 1975 272.0 241.0 241.0 284.0 1976 297.0 256.0 255.0 303.0 1977 307.0 265.0 265.0 313.0 1978 321.0 279.0 276.0 326.0 1979 332.0 289.0 283.0 335.0 1980 354.0 298.0 NA NA First Second Third Fourth First Second Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 69.4 72.3 70.6 79.0 77.1 79.6 82.1 87.9 88.6 91.0 92.9 96.4 100.7 103.0 103.4 105.1 110.1 112.6 116.8 119.6 121.5 124.3 128.9 132.4 131.5 134.3 138.6 140.9 144.3 147.3 148.3 149.5 154.6 157.6 161.8 164.5 168.3 171.5 173.7 176.0 179.0 182.5 187.8 191.0 194.7 198.5 202.2 204.8 211.9 213.0 215.2 218.0 221.9 224.8 231.6 236.6 238.5 242.0 247.2 247.7 251.4 259.1 261.8 266.1 274.4 275.0 277.7 283.6 283.6 284.5 289.3 292.5 296.5 299.4 301.8 304.3 306.7 310.2 309.6 312.6 326.9 319.7 NA NA Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter 1960 129.0 128.0 130.0 126.0 127.8 129.0 129.0 127.2 1961 129.0 126.0 129.0 126.0 127.8 127.0 128.0 127.1 1962 130.0 128.0 129.0 130.0 128.7 129.1 128.1 131.0 1963 131.0 131.0 135.0 135.0 129.7 132.2 134.2 135.8 1964 138.0 135.0 142.0 139.0 136.7 136.3 141.3 139.6 1965 144.0 143.0 145.0 146.0 142.6 144.6 144.4 146.4 1966 147.0 146.0 146.0 146.0 145.5 148.0 145.4 146.1 1967 149.0 146.0 151.0 149.0 147.3 148.3 150.5 148.8 1968 151.0 145.0 149.0 149.0 149.1 147.5 148.7 148.6 1969 150.0 147.0 154.0 157.0 147.8 149.7 154.1 156.5 1970 158.0 152.0 155.0 159.0 155.3 154.8 155.6 158.5 1971 162.0 165.0 151.0 163.0 158.9 167.9 152.0 162.5 1972 166.0 161.0 163.0 165.0 162.4 163.7 164.5 164.5 1973 171.0 164.0 164.0 169.0 167.1 166.8 165.7 168.4 1974 173.0 167.0 171.0 173.0 169.0 169.9 172.9 172.2 1975 177.0 171.0 174.0 179.0 172.9 174.0 176.0 178.0 1976 181.0 175.0 176.0 180.0 176.8 178.1 178.2 178.9 1977 184.0 178.0 179.0 181.0 179.8 181.1 181.4 179.9 1978 185.0 177.0 178.0 184.0 180.7 180.0 180.5 182.8 1979 187.0 179.0 174.0 179.0 182.6 182.0 176.5 177.9 1980 186.0 176.0 NA NA 181.6 179.0 NA NA Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 First Quarter Second Quarter Third Quarter Fourth Quarter 11.9 10.6 11.0 13.5 15.2 13.4 14.2 18.1 19.9 16.6 23.0 15.7 23.7 20.8 21.0 26.0 27.9 25.7 26.0 30.4 32.3 30.3 31.0 35.4 37.0 33.8 34.2 40.0 41.0 37.6 37.4 43.0 44.6 40.5 39.9 46.0 46.6 43.5 43.9 49.0 50.5 47.6 47.9 54.0 53.8 51.2 52.0 55.0 57.3 53.7 53.0 57.0 59.9 57.1 57.0 62.0 64.1 62.9 64.0 70.0 71.3 69.7 70.0 78.0 80.3 77.7 78.0 85.0 86.6 83.4 84.0 92.0 93.0 90.0 90.0 99.0 102.0 99.0 98.0 108.0 109.0 105.0 NA NA First Second Third Fourth Quarter Quarter Quarter Quarter 10.9 11.2 12.0 12.9 14.0 14.1 15.4 17.3 18.4 17.4 25.0 15.0 22.0 21.8 22.7 24.8 26.0 26.9 28.0 29.0 30.3 31.7 33.3 33.8 34.8 35.4 36.6 38.1 38.6 39.4 39.9 41.0 42.2 42.3 42.4 44.0 44.3 45.3 46.5 47.0 48.2 49.4 50.4 52.0 51.5 52.9 54.5 53.2 55.0 55.3 55.4 55.3 57.7 58.6 59.5 60.3 61.8 64.5 66.7 68.1 68.9 71.4 72.9 75.8 77.7 79.5 81.3 82.5 83.9 85.3 87.6 89.2 90.2 92.0 93.8 96.0 98.9 101.2 102.2 104.7 105.7 107.4 NA NA Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Table A-4 Oil and Gas Condensate Production First Second Third Fourth First Second Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 1961 39.1 40.6 42.3 44.0 39.8 40.8 41.7 43.6 1962 43.7 45.6 47.7 49.0 44.5 45.8 47.1 48.5 1963 48.6 50.4 53.0 54.0 49.5 50.6 52.3 53.5 1964 53.8 55.2 57.0 58.0 54.8 55.4 56.2 57.6 1965 57.7 60.3 62.0 63.0 58.7 60.6 61.0 62.7 1966 63.2 65.3 68.5 68.0 64.4 65.6 67.4 67.7 1967 68.0 71.0 75.0 74.0 69.2 71.3 73.7 73.6 1968 74.7 76.3 79.0 79.0 76.1 76.6 77.8 78.5 1969 76.7 81.3 84.0 86.0 78.0 81.6 82.9 85.4 1970 84.8 87.2 90.0 91.0 86.2 87.6 89.0 90.2 1971 90.1 91.9 94.0 96.0 91.5 92.3 93.1 95.1 1972 95.6 97.4 100.0 101.0 97.0 97.7 99.2 100.0 1973 100.0 103.0 108.0 110.0 101.4 103.3 107.3 108.9 1974 110.0 114.0 116.0 119.0 111.6 114.2 115.4 117.7 1975 118.0 122.0 124.0 127.0 119.7 122.2 123.5 125.5 1976 127.0 128.0 131.0 134.0 128.9 128.2 130.5 132.3 1977 132.0 136.0 138.0 140.0 134.0 136.4 137.4 138.0 1978 138.0 141.0 145.0 148.0 140.1 141.6 144.3 145.8 1979 143.0 144.0 148.0 151.0 145.2 144.7 147.2 148.7 1980 148.0 149.0 NA NA 150.3 149.9 NA NA Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 First Second Third Fourth Quarter Quarter Quarter Quarter 1960 986 1,212 1,161 1,361 1961 1,071 1,243 1,296 1,564 1962 1,243 1,504 1,431 1,827 1963 1,280 1,646 1,545 1,782 1964 1,366 1,620 1,562 1,907 1965 1,527 1,765 1,701 2,095 1966 1,682 1,943 2,099 2,397 1967 1,872 2,215 2,255 2,499 1968 1,873 2,217 2,255 3,400 1969 2,249 2,733 2,696 3,121 1970 2,578 2,827 2,924 3,191 1971 2,646 3,086 2,840 3,298 1972 2,767 3,084 2,918 3,454 1973 2,802 3,334 3,439 4,341 1974 3,478 4,138 3,866 4,226 1975 3,591 4,295 3,982 4,370 1976 3,759 4,517 4,323 4,896 1977 4,220 5,029 4,706 5,167 1978 4,425 5,017 5,180 5,355 1979 3,952 5,070 5,292 5,824 1980a 4,707 5,333 NA NA First Quarter Second Quarter Third Quarter Fourth Quarter 1,134 1,184 1,195 1,199 1,231 1,214 1,335 1,378 1,426 1,472 1,477 1,608 1,464 1,616 1,592 1,567 1,560 1,600 1,602 1,674 1,743 1,756 1,734 1,840 1,919 1,945 2,126 2,108 2,130 2,232 2,270 2,207 2,122 2,233 2,268 3,021 2,533 2,742 2,721 2,790 2,886 2,815 2,974 2,865 2,947 3,053 2,902 2,975 3,079 3,021 2,994 3,134 3,121 3,238 3,531 3,962 3,882 3,986 3,965 3,883 4,013 4,119 4,064 4,043 4,210 4,319 4,387 4,551 4,734 4,810 4,753 4,810 4,975 4,807 5,211 4,985 4,450 4,864 5,314 5,421 5,307 5,118 NA NA Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5 Imports First Second Third Fourth Quarter Quarter Quarter Quarter 1960 1,238 1,407 1,365 1,782 1961 1,128 1,475 1,607 1,778 1962 1,376 1,672 1,631 1,904 1963 1,303 1,818 1,713 2,215 1964 1,416 1,972 1,811 2,076 1965 1,521 1,960 1,927 2,387 1966 1,626 2,065 1,824 2,140 1967 1,760 2,112 2,095 2,282 1968 1,800 2,160 2,142 3,196 1969 2,165 2,663 2,373 2,671 1970 2,491 2,826 2,475 2,767 1971 2,610 2,884 2,648 3,125 1972 2,990 3,309 3,100 3,754 1973 3,652 3,951 3,669 3,823 1974 3,393 3,927 3,811 4,475 1975 4,490 4,853 4,218 4,863 1976 4,838 5,462 4,491 4,793 1977 5,064 5,563 4,632 4,664 1978 5,584 6,119 5,129 6,099 1979 5,250 6,194 5,464 6,190 1980 a 6,447 7,056 NA NA First Quarter Second Quarter Third Quarter Fourth Quarter 1,526 1,395 1,379 1,496 1,395 1,455 1,626 1,496 1,706 1,635 1,655 1,612 1,613 1,761 1,744 1,892 1,741 1,895 1,851 1,792 1,843 1,877 1,978 2,086 1,929 1,981 1,877 1,897 2,035 2,027 2,165 2,060 2,020 2,073 2,229 2,934 2,366 2,551 2,491 2,488 2,661 2,702 2,618 2,607 2,748 2,747 2,818 2,972 3,112 3,144 3,308 3,601 3,775 3,735 3,927 3,700 3,484 3,686 4,096 4,381 4,575 4,5'6 4,561 4,815 4,888 5,044 4,891 4,784 5,084 5,104 5,077 4,677 5,583 5,596 5,642 6,129 5,238 5,658 6,018 6,226 6,428 6,443 NA NA Declassified and Approved For Release 2012/03/16: CIA-RDP08SO135OR000200360002-5