SIGNIFICANT DEVELOPMENTS IN THE FUELS AND POWER INDUSTRIES OF THE USSR IN 1960

• Document Type: CREST
• Collection: General CIA Records
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• Document Creation Date: December 23, 2016
• Document Release Date: July 15, 2013
• Sequence Number: 1
• Publication Date: June 1, 1961
• Content Type: REPORT

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SIGNIFICANT DEVELOPMENTS
IN THE FUELS AND POWER INDUSTRIES OF THE USSR
IN 1960
June 1961
NOT TO BE REPRODUCED IN WHOLE OR
IN PART WITHOUT THE PERMISSION OF
THE CENTRAL INTELLIGENCE AGENCY
CENTRAL INTELLIGENCE AGENCY
9:756 7/I
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NOTICE
This report has been loaned to the recipient by
the Central Intelligence Agency. When it has
served its purpose it should be destroyed or
returned to the:
CIA Librarian
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SIGNIFICANT DEVELOPMENTS
IN THE FUELS AND POWER INDUSTRIES OF THE USSR
IN 1960
CIA/RR ER 61-29
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
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Summary and Conclusions
CONTENTS
Page
1
I. Crude Oil and Natural Gas 5
A. Production 5
1. Crude Oil 5
2. Natural Gas 6
B. Drilling 6
C. Refining of Crude Oil 8
D. Consumption of Petroleum Products and Natural Gas 11
1. Petroleum Products
2. Natural Gas
E. Oil Pipelines
F. Natural Gas Pipelines
11
13
13
15
II. Solid Fuels (Coal) 16
III. Electric Power 18
IV, Trade 20
A. Crude Oil and Petroleum Products
B. Coal
Appendix
20
20
Source References 23
Tables
1. Estimated Production of Primary Energy in the USSR,
by Source of Energy, 1958-60 and 1965 3
2. Estimated Production of Crude Oil in the USSR, 1955,
1958-60, and Plans for 1961 and 1965 5
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Page
3. Estimated Production of Natural Gas in the USSR, 1955,
1958-60, and Plans for 1961 and 1965 7
4. Exploratory and Developmental Drilling for Crude Oil
and Natural Gas in the USSR, 1959-60 and Plan
for 1961 7
5. Estimated Production of Petroleum Products in the USSR,
by Type of Product, 1958-60 and 1965 9
6. Estimated Refining Capacities in the USSR, by Refining
Area, 1959-60 10
7. Estimated Increments in Refining Capacity in the USSR,
by Type of Process, 1960 11
8. Estimated Balance of Supply and Demand for Petroleum
Products in the USSR, 1960 12
9. Estimated Construction and Availability of Oil Pipe-
lines in the USSR, 1955-60 and Plans for 1961 and
1965 14
10. Estimated Production of Coal and Coking Coal in the
USSR, 1959-60 and Plans for 1961 and 1965 17
11. Estimated Production of Electric Power by Thermal
Electric and Hydroelectric Powerplants in the USSR,
1959-60 and Plans for 1961 and 1965 18
12. Estimated Capacity of Electric Powerplants in the USSR,
1959-60 and Plan for 1965 19
13. Estimated Trade in Crude Oil and Petroleum Products
by the USSR, by Destination, 1955-60 21
14. Estimated Trade in Coal and Coke by the USSR, by
Destination, 1955 and 1958-60 22
Chart
Percentage Distribution of Production of Primary Energy
in the USSR, 1958-60 and 1965 2
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SIGNIFICANT DEVELOPMENTS
IN Tut FUELS AND POWER INDUSTRIES OF rut USSR
IN 1960
Summary and Conclusions
Production of primary energy in the USSR in 1960 is estimated to
have been about 733 million tons of standard fuel, about 7.7 percent
more than in 1959.* The share of oil and natural gas in the total
production of primary energy increased from 33.4 percent in 1959 to
36.3 percent in 1960, and the share of solid fuels declined from
63.4 to 60.1 percent.
All goals for production of energy were achieved with the excep-
tion of those for coal and natural gas. Although the USSR produced
45.3 billion cubic meters (cu m) of natural gas, an increase of
approximately 10 billion cu m above 1959, the plan was underfulfilled
by 6.2 billion cu m. Production of coal was 513 million tons, approxi-
mately 2 million tons below the plan, although the reduction probably
was deliberate and reflected the continued existence of a surplus of
anthracite fines. The 1961 plan for producing 512 million tons of
coal reflects a continuation of this downward trend, and, insofar as
is known, 1961 is the first time that the announced goal has been be-
low the level of achievement (513 million tons) of the preceding year.
Production of crude oil in 1960 reached 148 million tons, 4 million
tons above the goal; and a total estimated at 294 billion kilowatt-
hours (kwh) of electric power was generated -- an increase of 29 bil-
lion kwh above 1959 and 3 billion kwh above the plan. The contribu-
tion of less important sources of primary energy -- peat, shale, fuel-
wood, hydroelectric power, and nuclear electric power -- showed rela-
tively little change (in either percentage or absolute terms) in the
over-all output of energy. (The estimated production of all types of
primary energy in the USSR in 1958-60 and 1965 is given in Table 1,**
and the accompanying chart*** shows graphically how the shares of oil
and gas in the total production of primary energy have been increasing
and will continue to increase at the expense of coal.)
Probably the most important feature of the performance of the
Soviet fuels and power industries was the increasing availability of
* Standard fuel has a calorific value of 7,000 kilocalories per
kilogram. Tonnages are given in metric tons throughout this report.
** Table 1 follows on p. 3.
*** Following on p. 2.
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PERCENTAGE DISTRIBUTION OF PRODUCTION OF PRIMARY ENERGY
IN THE USSR, 1958-60 AND 1965
Other
13%
13%
12%
9%
Natural Gas
--
17%
5%
6%
7%
Crude Oil
25%
27%
29%
35%
Coal
57%
54%
52%
39%
1958 1959 1960 1965
(Estimated)
35137 6-61
oil in excess of the amount required for domestic consumption. In
1960 the USSR sold 19 million tong of oil to the Free World, about 4
million tons more than in 1959. Three countries, Cuba, India, and
Guinea, imported Soviet oil for the first time.
The willingness of the USSR to accept soft currencies and commodi-
ties in exchange for oil advanced its competitive position considerably.
Significantly, many of the trade agreements concluded or being nego-
tiated with countries of the Free World for the export of Soviet oil
provide for reciprocal imports of industrial equipment including pipe,
which is urgently needed to complete the Soviet construction program
for petroleum and natural gas pipelines.
Other important developments in the Soviet fuels and power indus-
tries in 1960 included an increase of 23 percent in oil pipeline
transport, which reached 51 billion ton-kilometers; the first signifi-
cant improvement in labor productivity in the coal industry in 8 years;
a decline in the average cost of production of coal compared with the
preceding year; and significant progress in automation and mechaniza-
tion of the coal industry, including the successful, but limited, em-
ployment of underground hydraulic mining.
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Table 1
Estimated Production of Primary Energy in the USSR
by Source of Energysi
1958-60 and 1965
1958
1959
1960 b/
1965
Million Metric Tons
of StandArd
Percent
Million Metric Tons
of Standard
Percent
Million Metric Tons
of Standard
Percent
Million Metric Tons
of Standard
Percent
Source of Energy
Fuel c/
of Total
Fuel c/
of Total
Fuel c/
of Total
Fuel c/
of Total
Coal
362.1
56.7
370.0
54.3
384.8
52.4
420.0 a/
38.8
Crude oil
161.9
25.3
185.3
27.2
211.6
28.9
379.0 fi
35.0
Natural gas
33.9
5.3
42.5
6.2
54.5
7.4
180.0
16.6
Peat
21.1
3.3
23.0
3.4
19.1 f/
2.6
25.7
2.4
Shale
4.5
0.7
4.7
0.7
5.0g/,
0.7
6.0
0.6
Fuelwood
32.9
5.2
33.9
5.0
32.0 E/
4.4
28.6
2.6
Hydroelectric power
22.3
3.5
21.8
3.2
26.4
3.6
39.5
3.7
Nuclear electric power
Negl.
Negl.
Negl.
Negl.
Negl.
Negl.
3.0
0.3
Total
638.7
100.0
681.2
100.0
733.4
100.0
1,081.8
100.0
a. Unless otherwise indicated, data are from source 1/. (For serially numbered source references, see the Appendix.)
b. Computed on the basis of production data for 1960.
c. The term standard fuel refers to a measure adopted by Soviet authorities for the purpose of comparing fuels on the basis of their calorific
values. Standard fuel has been assigned a calorific value of 7,000 kilocalories per kilogram.
d. Computed on the basis of an estimated production of 560 million metric tons in 1965. The plan is 606 million to 612 million metric tons.
e. Computed on the basis of an estimated production of 265 million metric tons in 1965.
f. Production data estimated on the basis of data in source J.
g. Estimated.
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Many of the problems in the Soviet fuels and power industries in
1960 were a continuation of those that existed in 1959. Underfulfill-
ment of the production goal for natural gas by 6.2 billion cu m con-
tinued to be primarily the result of inadequacies in storage, gas-
consuming equipment, city distributing systems, and a shortage of
compressor equipment for major pipelines.
Although primary refining capacity in 1960 was sufficient to handle
the 130 million tons of crude oil charged to refining, the total
secondary refining capacity continued to be inadequate. Production of
diesel fuels, for example, reportedly were in short supply, although
there were significant increases in capacity in the thermal conver-
sion, catalytic cracking, and catalytic hydrotreating processes. It
is probable that considerably more improvement in the construction
and installation of secondary capacity than was evident in 1960 will
be required if the refining capacities planned for 1965 are to be
achieved.
In 1960, fulfillment of a reduced plan for the installation of
5.7 million kilowatts of new generating capacity reflected the lowest
annual rate of increase in capacity during the postwar years. AS in
the previous 2 years, the installation of new generating capacity in
the USSR was inadequate to maintain reserve capacity at the desired
level, and the hours of utilization had to be increased.
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I. Crude Oil and Natural Gas
A. Production
1. Crude Oil
Production of crude oil in the USSR in 1960 reportedly
exceeded the plan goal by 2.8 percent, reaching 148 million tons, an
increase of about 14 percent above production in 1959. 3/ Continua-
tion of this rate of increase would result in production of 288 mil-
lion tons by 1965, well in excess of the goal under the Seven Year
Plan (1959-65) of 240 million tons. The plan for 1961, however, calls
for only a 10.8-percent increase. It is currently estimated that pro-
duction in 1965 may be about 265 million tons, a level that can be
achieved by an average annual increase slightly in excess of 12 per-
cent. (The estimated production of crude oil in the USSR in 1955 and
1958-60 and that planned for 1961 and 1965 are given in Table 2.)
Table 2
Estimated Production of Crude Oil in the USSR 2/
1955, 1958-60, and Plans for 1961 and 1965
Million Metric Tons
Year
1955
Amount
70.8
1958 113.2
1959 129.6
1960 12/ 148.0
1961 Plan .2./ 164.0
1965 Plan 240.0
1965 265.0
a. Unless otherwise indicated, data are from
source11/.
b. e
d. Estimated.
5
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Probably at least 70 percent of the Soviet production of
crude oil in 1960 was provided by the Urals-Volga oilfields. Slightly
more than 12 percent, or 18.1 million tons, was produced in Azerbay-
dzhan SSR. Little significant growth in output of crude oil was ob-
tained in the other principal producing areas of Kazakhstan, the Central
Asian Republics, and the Ukrainian SSR.
The use of water flooding to maintain formation pressure
resulted in the extraction of 45 million additional tons of crude oil,
an 89-percent increase above the amount recovered by this method in
1959. At present, deposits that are included in the water flooding
program account for 63 percent of the national production of crude oil,
and it is claimed that up to 70 percent of the oil in place is being
recovered.
2. Natural Gas
Production of natural gas in the USSR in 1960 amounted to
45.3 billion cubic meters (cu m), an 88-percent fulfillment of the
planned 51.5 billion cu in. In 1959 the plan was fulfilled by only
90.6 percent.
Underfulfillment of the plans for extraction of natural
gas appear to be more related to shortcomings in supporting activities
than to difficulties in production. It is probable that the continu-
ing underfulfillment of plans is due mainly to inadequate storage fa-
cilities, insufficient gas consuming equipment, limited city distribu-
tion systems, and lack of compressing equipment for pipelines. Planned
additions to reserves have consistently been exceeded, and proved re-
serves as of 1 January 1960 were estimated at about 1.7 trillion
cu m..1/ (The estimated production of natural gas in the USSR in 1955
and 1958-60 and that planned for 1961 and 1965 are given in Table 3.*)
B. Drilling
Exploratory and developmental drilling for crude oil and
natural gas in 1960 fell below the level in 1959. This decline re-
sulted primarily from a rather sharp underfulfillment of the explora-
tory drilling program, although the amount of exploratory drilling
exceeded that of developmental drilling for the second consecutive
year. The relatively poor performance in exploratory drilling served
to depress to an unknown degree the increments in the proved reserves
of crude oil and natural gas. Nevertheless, in the RSFSR alone, it
was reported that 15 new oil deposits were discovered in 1960, includ-
ing the discovery of the first commercial crude oil deposit in Siberia.
* Table 3 follows on p. 7.
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Table 3
Estimated Production of Natural Gas in the USSR
1955, 1958-60, and Plans for 1961 and 1965
Billion Cubic Meters
Year Amount
1955 2/
1958 p.../
1959 2./
1960 12/
1961 Plan
1965 Plan p.../
9.0
28.1
35.5
45.3
61.4
148.0
a. 2/
b. 12/
c. 11/
(The amount of exploratory and developmental drilling for crude oil
and natural gas in the USSR in 1959-60 and that planned for 1961 are
given in Table 4.)
Table 4
Exploratory and Developmental Drilling
for Crude Oil and Natural Gas in the USSR
1959-60 and Plan for 1961
1960
1959 Plan Actual Percent 1961 Plan
Type (Thousand (Thousand (Thousand of (Thousand
of Drilling Meters) Meters) Meters) Plan Meters)
Exploratory 4,094 4,608 41000 87 5,100
Develop-
mental 3,649 3,74-8 3,700 99 3,900
Total 7,743 8,356 7,700 92 9,000
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C. Refining of Crude Oil
In 1960 the USSR is believed to have had a yield of 119.6 mil-
lion tons of refined products, an increase of 11.7 percent above 1959.
Because of a shortage of secondary refining capacity, the practice of
maximizing output of residual products, especially fuel oil, at the
expense of gasoline, kerosine, and light diesel fuel was continued in
1960. 12/ Production of a high percentage of residuals is to continue
throughout the Seven Year Plan. (The estimated yields of principal
petroleum products in the USSR for 1958-60 and the yield planned for
1965 are given in Table 5.*) The yield of gasoline, kerosine, and
light diesel fuel declined from 52.4 percent in 1959 to 50.8 percent
in 1960, and, concomitantly, the yield of residuals increased from
31.9 to 33.3 percent.
The total primary refining capacity in the USSR amounted to
157.3 million tons in 1960, 19.9 million tons, or 14.5 percent, above
that in 1959.** This rate of growth is well above the average annual
rate of about 10 percent necessary to reach the goal for 1965, esti-
mated to be 252 million tons. Of the increase in capacity for refin-
ing of roughly 20 million tons, about 15 million tons, or about 75
percent, are estimated to have been installed at existing refineries,
including 12 million tons at the following six refineries:
Million Tons of Capacity
Location of Refinery
1959
Installed in 1960
1960
Batumi
2.4
1.2
3.6
Fergana
2.6
2.4
5.0
Groznyy
10.2
2.1
12.3
Omsk
14.5
1.5
16.0
Perm'
2.6
2.4
5.0
Stalingrad
2.6
2.4
5.0
The remaining 5 million tons of the increment in capacity for
refining in 1960 is assumed to be accounted for by the commissioning
of new refineries at Angarsk (4-million-ton capacity)*** and Ryazan'
(1-million-ton capacity). la/
* Table 5 follows on p. 9.
** For a list of refineries in the USSR with their estimated capac-
ities for 1959 and 1960, see Table 6, which follows on p. 10;
*** Represents only the capacity available for efficient use in 1960.
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Table 5
Estimated Production of Petroleum Products in the USSR, by Type of Product
1958-60 and 1965
Product
Gasoline
Kerosine
Light diesel fuel
Total light products
Heavy diesel fuels
Total distillation
Lubricants
Residuals and others a/
Total output of petroleum
products
Gas and loss
Grand total
1958
Million
Metric Tons
21.5
13.2
21.5
56.2
3.2
1959
Percent Million
of Total Metric Tons
20.7
12.7
20.6
23.4
14.6
23.0
54.0 61.0
3.1
59.4 57.1
4.6
4.4
31.7 30.5
95.7
8.3
104.0
92.0
8.0
100.0
4.0
65.0
5.0
37.1
1960
1965
Percent Million Percent Million Percent
of Total Metric Tons of Total Metric Tons of Total
20.1 25.4 19.5 35.4 16.5
12.5 16.0 12.3 24.0 11.2
19.8 24.7 19.0 31.8 14.9
52.4 66.1 50.8 91.2 42.6
3.4 4.8 3.7 11.2 5.2
55.8 70.9 54.5 102.4 47.8
4.3 5.4 4.2 7.9 3.7
31.9 43.3 33.3 86.7 40.5
92.0 119.6 92.0 197.0 92.0
8.0 10.4 8.0 17.0 8.0
100.0 130.0 100.0 214.0 100.0
a. Residual fuel oil, road oils, asphalts, bitumen, and bituminous tar.
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Table 6
Estimated Refining Capacities in the USSR
by Refining Area
1959-60
Million Metric Tons
Capacity
Location of Refinery
1959
1960
Baku
20.6
21.0
Kuybyshev
17.5
18.0
Ufa
17.5
18.0
Omsk
14.5
16.0
Groznyy
10.2
12.3
Syzran'
7.0
7.0
Krasnovolsk
6.7
6.7
Ishimbay/Salavat
6.3
7.0
Gur'yev
4.9
4.9
Gor'kiy
3.2
3.6
Saratov
3.2
3.6
Tuapse
3.1
3.1
Moscow
2.7
2.7
Fergana
2.6
5.0
Perm'
2.6
5.0
Stalingrad
2.6
5.0
Batumi
2.4
3.6
Orsk
1.8
1.8
Vannovskaya
1.8
1.8
Krasnodar
1.2
1.2
Angarsk
0
4.o
Ryazan'
0
1.0
Other
5.0
5.0
Total
137.4
157.3
Although Soviet publications indicate that notable gains were
achieved in 1960 in secondary refining, especially in thermal conver-
sion, catalytic cracking, and catalytic hydrotreating processes, the
total secondary refining capacity probably is still below the level
desired, particularly for production of diesel fuels that were re-
ported to be in short supply. It is not known at what sites the in-
crements in secondary refining capacity occurred. (The estimated
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increments in refining capacity in the USSR for 1960, by type of proc-
ess, are shown in Table 7.)
Table 7
Estimated Increments in Refining Capacity in the USSR
by Type of Process
1960
Type of Process
Refining Capacity
(Million Metric
Tons)
Increase in 1960
Million Metric
Tons
Percent
1959
1960
Primary distillation
137.4
157.3
19.9
14.5
Secondary process
Thermal conversion
27.5
31.5
4.0
14.5
Catalytic cracking
16.3
22.0
5.7
35.0
Catalytic reforming
2.9
5.4
2.5
86.2
Catalytic hydrotreating
5.9
12.4
6.5
110.2
Lubricant processing
6.2
7.0
0.8
12.9
D. Consumption of Petroleum Products and Natural Gas
1. Petroleum Products
(The estimated balance of supply and demand for petroleum
products in the USSR in 1960 is shown in Table 8.*) Of the slightly
more than 103 million tons of petroleum products available for domestic
consumption, a total estimated at about 90 million tons was consumed
by the civil sector of the economy, and about 13 million tons remained
for consumption by the military sector and by civil aviation. Compared
with 1959, military consumption declined 10 percent, and civil consump-
tion increased about 13 percent. Changes in the organization and equip-
ment of the military forces will continue to reduce the POL requirements
of this sector of the Soviet economy. Significant increases in the ex-
tent of civil air activities will be insufficient to offset the decline
in military demand. The industrial sector of the Soviet economy
* Table 8 follows on p. 12.
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continued to dominate the civil consumption of petroleum products, as
shown below:
Percent
Million Tons of Total
Industry 46 51
Transport 17 19
Agriculture 20 22
Communal and household 7 8
Total 22 loo
Table 8
Estimated Balance of Supply and Demand
for Petroleum Products in the USSR
1960
Million Metric Tons
Supply
Production
Imports
Amount
119.6
3.0
Total 122.6
Demand
Military 13.0 2,./
Civil 90.0
Exports 15.0
Losses and increments
in storage 4.6
Total 122.6
a. Including consumption by civil aviation.
b. Estimated at about 3 to 4 percent of the total
supply.
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The continued emphasis on dieselization in transport and
agriculture in the USSR helps to explain criticisms by the Soviet press
regarding the inadequate supply of diesel fuel and an oversupply of
gasoline. The Soviet regime alleviated this condition somewhat by
using low-quality straight-run gasoline in light diesel fuel blends,
a practice that had an added advantage of improving diesel fuel for use
in frigid weather by lowering its initial freezing point.
2. Natural Gas
1
The share of Soviet industry in the total consumption of
natural gas was estimated to be about 85 percent in 1960 and is ex-
pected to be more than 90 percent in 1965. In 1960 the major industrial
consumer of natural gas was the electric power industry, which utilized
about 50 percent of the total natural gas consumed in the industrial
sector. This share is expected to decline, however, to about 25 percent
of the total by 1965. Reportedly, considerable progress was made during
1959-60 in increasing the use of natural gas in the metallurgical in-
dustry of the USSR. The share of the metallurgical industry in the
total consumption of natural gas is expected to increase from less than
5 percent of the total in 1960 to about 20 percent in 1965.*
E. Oil Pipelines
A significant advance in the USSR in 1960 was achieved in the
transport of oil by pipeline, which increased to 51 billion ton-
kilometers in 1960, a growth of 23 percent compared with 1959.
The USSR fulfilled the annual construction plan for trunk oil
pipelines for the first time since 1950. However, the plan was so
modest -- about 2,000 kilometers (km) -- that the achievement was not
particularly significant, at least in terms of the increment to the
total availability of pipelines. 22/ Availability of pipelines at
the end of 1960 amounted to 18,700 km. Significantly the construc-
tion plan for pipelines for 1961 calls for 2,800 km, a 40-percent
increase above the construction in 1960. Apparently this increase
is to be made at the expense of the construction of gas pipelines
because there is a 15-percent reduction in the construction program
for gas pipelines for 1961. (The estimated construction of oil pipe-
lines in the USSR and their availability for 1955-60 and as planned
for 1961 and 1965 are given in Table 9.**)
* Data based on information contained in studies listed in source
** Table 9 follows on p. 14.
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Table 9
Estimated Construction and Availability of Oil Pipelines
in the USSR a/
1955-60 and Plans for 1961 and 1965
Thousand Kilometers
Year
End-of-Year
Availability
Annual Construction
1955
10.4
N.A.
1956
11.6
1.2
1957
13.2
1.6
1958
14.4
1.2
1959
16.7
2.3
1960 sj
18.7
2.0
1961 Plan
21.5
2.8
1965 Plan 2/
45.1
8.1
a. Unless otherwise indicated, data are from source 18/.
b. Derived from end-of-year availability data.
c. 19/
The major achievement in the construction of pipelines in the
USSR in 1960 was the completion of that part of the proposed Tuymazy-
Irkutsk crude oil pipeline between Sokur and Klukvennaya, a distance
of 771 km, that will permit the completion of this system probably
late in 1961 or early in 1962. Other major installations completed in
1960 were as follows:
Origin
Length
Terminus (Kilometers)
Ishimbay* Orsk 300
Gortkiy** Ryazan' 415
Penzaxxx Michurinsk 342
Novosibirskt Krasnoyarsk 375 to 400
For the supplying of Urals-Volga crude oil to the Orsk refinery.
** For the supplying of Urals-Volga crude oil to the Ryazan' re-
finery.
*** A part of the planned Kuybyshev-Bryansk products pipeline.
f A part of the planned Omsk-Chita products pipeline.
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Initial construction on the proposed Soviet-European Satel-
lite crude oil pipeline was not begun until early 1961, probably re-
flecting a lack of steel pipe. During 1960, negotiations were con-
tinued with firms of the Free World for purchases of steel pipe to
close the apparent gap between requirements and indigenous output,
and a contract was concluded with the Italian State Corporation for
Oil and Natural Gas (ENI) that called for the delivery of 240,000 tons
of steel pipe during 1961-64. 20/ Early in 1961, additional .contracts
providing for imports of pipe into the USSR were reported to have
been concluded with a firm in Sweden for 135,000 tons and with a firm
in the UK for 150,000 tons. Negotiations are reported to be in progress
with Japan that would provide for Soviet imports of as much as
250,000 tons of large-diameter pipe.
F. Natural Gas Pipelines
The construction program for natural gas transmission pipe-
lines in the USSR for 1960 exceeded the plan by about 12 percent.
The plan called for laying 3,660 km of pipeline, 21/ and a total of
4,101 km was installed. 22/ The length of the transmission gas pipe-
line system in the USSR at the beginning of 1961 was approximately
21,000 km. Significantly the plan for 1961 is only 3,400 km, 17 per-
cent below the gas pipeline installations in 1960. 21/ Many Soviet
gas pipelines have operated at only 35 to 70 percent of planned capac-
ity.211/ The major difficulty is the failure of the USSR to achieve
the planned construction of compressor stations. Attempts to import
and/or produce compressors apparently have not eliminated the bottle-
necks. Other problems have been the lag in construction of adequate
storage facilities and in development of city distribution systems.
A major accomplishment in the installation of gas transmis-
sion pipelines in 1960 was the installation of more than 1,200 km of
40-inch pipeline. The major part of the 40-inch, 1,000-km line from
Krasnodarskiy Kray to Serpukhov, which is expected to be completed
early in 1961, and all of the 240-km branch line from Shebelinka to
Ostrogozhsk was completed. 22/' Other significant transmission gas
pipelines installed in 1960 include the 665-1m, 32-inch pipeline from
Dashava to Minsk 2./; the 652-1m, 32-inch pipeline from Saratov to
Gor'kiy 22/; and the 570-1m, 28-inch pipeline from Dzharkak to Bukhara
to Samarkand to Tashkent.
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II. Solid Fuels (Coal)*
Production of coal in the USSR reached 513 million tons in 1960 --
about a 2-million-ton underfulfillment of the 1960 plan, which called
for a 1.7-percent increase above output in 1959 of 506.6 million tons.
As there is no evidence of a shortage of coal in the USSR and as all
preliminary reports show that coal targets were exceeded, the original
annual plan for 1960 must have been deliberately reduced.** Perhaps
the revision reflects an acceleration of the program under the Seven
Year Plan for virtually eliminating production of high-cost, low-
quality energy coal in the Moscow Basin and reducing output of surplus
unprocessed anthracite coal dust in the Donets Basin.
A problem of surplus low-quality, high-cost energy coal has
plagued the Soviet coal industry for the past few years. Early in
1960, because of this surplus, electric power stations in the Ukraine
that had been converted to use low-cost natural gas were reconverted
to coal. Significantly, production of energy coal declined from
405.7 million tons in 1959 to 403 million tons in 1960.
One of the most important tasks of the Soviet coal industry in
1960 was the continued output of adequate quantities of coking coal.
Output of coking coal reached 110 million tons, exceeding the pre-
liminary annual plan for 1960 by about 2 million tons. 32/ The share
of coking coal as a percent of the total production of coal increased
to 21.4 percent in 1960 compared with only 19.9 percent in 1959. (The
estimated production of coal and coking coal in the USSR in 1959-60 and
that planned for 1961 and 1965 are given in Table 10.***) Even though
the total production of coal is scheduled to be reduced below that of
the previous year for the first time in 1961, production of coking
coal is expected to increase 5.5 million tons to 115.5 million tons.
In 1960 the USSR made considerable progress in the mechanization
and automation of coal mines. A great deal of equipment, including
pumps, ventilators, and conveyors, was converted to completely auto-
matic, semiautomatic, or remote control. The coal industry of the
USSR now leads the world in the use of mechanical coal mining equip-
ment. Reports indicate that during 1960 several new models of combines
* Except for coal, the data on solid fuels in this'report are
limited to Table 1, p. 3, above.
** The original Seven Year Plan goal of 606 million to 612 million
tons of coal in 1965 probably also has been reduced. Production of
coal in 1959 and 1960 and the plan for production of coal in 1961
(511.7 million tons) are not adequate to meet the goal for 1965. It
is estimated that production of coal in 1965 probably will be about
560 million tons. 29/
*** Table 10 follows on p. 17.
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were introduced with good results. The USSR also is replacing scraper
conveyors and locomotives with belt conveyors in order to improve coal
haulage in the mines.
Table 10
Estimated Production of Coal and Coking Coal in the USSR a/
1959-60 and Plans for 1961 and 1965
Coking Coal
Year
Coal
(Million Metric Tons)
Million Metric Tons
Percent of
Total Coal
1959
506.6
100.8
19.9
1960 12/
513.0
110.0
21.4
1961 Plan
511.7
115.5 sj
22.6
1965 Plan
560.0 d/
153.0
27.3
a. Unless otherwise indicated, data are from source
b. 2
c. Based on data contained in source 12/.
d. Estimated. The official plan called for 606 million to 612 mil-
lion metric tons.
These advances in the automation and mechanization of the Soviet
coal industry in 1960 have resulted in the first significant Improve-
ment in labor productivity in 8 years, labor productivity in the mines
having increased about 6 percent compared with 1959. Because of the
increase in labor productivity, it is believed that the average cost
of production of coal decreased during 1960 compared with 1959. For
example, in the Ukraine, where one-third of the total Soviet coal is
produced, costs of production of coal decreased 2.65 rubles per ton,
from 108.8 rubles in 1959 to 106.15 rubles in 1960.*
* Ruble values throughout this report are in current rubles (pre-1961
exchange rate) and may be converted to US dollars at a rate of exchange
of 4 rubles to US $1. This rate does not necessarily reflect the value
of the ruble in terms of dollars.
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A significant technical achievement by the Soviet coal industry
in 1960 was the successful employment of the hydraulic method of
mining, whereby water under pressure is used as a cutting force to
extract coal as well as to transport it to the surface. In 1960 the
hydraulic method was employed to some extent in the Donets Basin in
15 mines with a total capacity of only 2 million tons. However, a
new Donets mine came into operation which has an estimated eventual
production of about 3 million tons annually and which is designed to
produce coal exclusively by the hydraulic method. By 1965, produc-
tion of coal by this method is planned to reach 41.6 million tons,
and labor productivity is expected to be from two to three times
greater with the hydraulic method than with conventional mining
methods.
III. Electric Power
Production of electric power in the USSR in 1960 is estimated at
about 294 billion kilowatt-hours (kwh), an increase of 29 billion kwh
above that in 1959 and 3 billion kwh above the plan. (The estimated
production of electric power in the USSR in 1959-60 and that planned
for 1961 and 1965 are shown in Table 11.)
Table 11
Estimated Production of Electric Power
by Thermal Electric and Hydroelectric Powerplants in the USSR
1959-60 and Plans for 1961 and 1965
Million Kilowatt-Hours
Type of Powerplant
1959 LI/
1960 11
1961 Plan 2/
1965 Plan 21/
Thermal electric
217,482
236,000
N.A.
420,000
Hydroelectric
47,630
58,000
N.A.
100,000
Total
265,112
294,000
327,000
520,000
a. 12/
b. Production of electric power in the USSR in 1960 was reported to
have been 292 billion kwh. ..aW The figure was preliminary, however,
and on the basis of past adjustments of such figures it is estimated
that it will be adjusted to a final production figure of almost 294
billion kwh. The figure for hydroelectric production assumes an
annual utilization of hydroelectric capacity close to the historic
average.
d. The total figure is the upper limit of the Plan range for
1965. ,3.i3j The figure for hydroelectric production is a rounded fig-
ure from an average of several Soviet statements.
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The final 1960 plan for the installation of 5.7 million kilo-
watts (kw) of new electric power generating capacity is estimated to
have been fulfilled. ..U./ The original plan of 6 million kw, however,
was underfulfilled by 300,000 kw, and the actual installation re-
flected an annual rate of increase in new capacity of only 9.7 per-
cent, the lowest annual percentage increase during the postwar years.
In 1960, as in the previous 2 years, the installation of new capac-
ity for generating electric power was inadequate to maintain reserve
capacity at the desired level. Only the more intensive use of in-
stalled capacity enabled the USSR to exceed the 1960 plan for generat-
ing electric power. It is estimated that the average annual hours of
operation increased from 4,775 hours in 1959 to 4,84o hours in 1960.
(The estimated capacity of electric powerplants in the USSR in 1959-60
and as planned for 1965 is given in Table 12.)
Table 12
Estimated Capacity of Electric Powerplants in the USSR
1959-60 and Plan for 1965
Thousand Kilowatts
Type of Powerplant
1959 21
1960 IJ
1965 Plan .2.1
Thermal electric
46,557
50,190
92,000
Hydroelectric
12,710
14,810
22,000
Total
59,267
65,000
114,000
a. ).i2i
b. The total is as reported. 41/ Hydroelectric is based on re-
ported additions to specific plants; thermal electric is a re-
mainder.
c. Derived by adding the planned new capacity to be installed dur-
ing 1959-65 142/ to the capacity at the end of 1958.1132
The construction of 27,900 km of new high-tension lines by the end
of 1960, as scheduled under the Seven Year Plan, is believed to have
been fulfilled. 44/ The plan for 1961 calls for the completion of
29,280 km of new transmission lines. 45/
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IV. Trade
A. Crude Oil and Petroleum Products
Soviet exports of crude oil and petroleum products to the Free
World have increased annually since 1955. In 1960, at a time when the
consumption of oil by the Free World increased less than 10 percent
and when world oil supplies were in excess of demand, Soviet net ex-
ports of oil to the Free World increased 4.4 million tons, or about
32 percent, reaching 18 million tons. Of this amount, it is estimated
that 9 million tons were crude oil and that 9 million tons were petro-
leum products. Soviet oil was exported to at least 28 countries of the
Free World, including 3 countries -- India, Cuba, and Guinea -- that
imported Soviet oil for the first time.
Economic considerations may be secondary to political considera-
tions in Soviet sales of oil to underdeveloped countries, but the main
objective of the USSR in selling oil to industrialized countries prob-
ably is to pay for the imports of needed industrial equipment. Signifi-
cant to the Soviet success in selling oil is a willingness to accept
payment in soft currencies and in commodities. Many of the agreements
to export Soviet oil to the Free World provide for the reciprocal im-
port of pipe that is urgently needed to complete the Soviet construction
program for pipelines. In 1960 the Italian State Corporation for Oil
and Natural Gas (ENI) agreed to import 12 million tons of Soviet crude
oil over a 4-year period, to be paid for principally by Soviet imports
of pipeline material, including 240,000 tons of steel pipe.)14,/ The
USSR also hopes to conclude a long-term agreement with Japan to sup-
ply oil in exchange for 250,000 tons of pipe.
In 1960 the total Soviet net exports of crude oil and petroleum
products increased by 6 million tons, to 26 million tons. Net exports
to other countries of the Sino-Soviet Bloc increased by 1.6 million
tons, or about 25 percent. (The estimated Soviet trade in crude oil
and petroleum products with the Free World and with the Sino-Soviet
Bloc in 1955-60 is given in Table 13.*)
B. Coal
In 1960, Soviet net trade in coal and coke amounted to only
about 7.5 million tons. In comparison with 1959, Soviet exports of
both coal and coke declined by about a half million tons. Imports
were less than a half million tons. (The estimated Soviet trade in
coal and coke with the Free World and the Sino-Soviet Bloc in 1955
and 1958-60 is given in Table 14.**)
* Table 13 follows on p. 21.
** Table 14 follows on p. 22.
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Soviet exports of coal to the Free World, although relatively
small, have increased annually since 1955. Trade negotiations with
Japan late in 1960 reflect further Soviet efforts to increase the
future exports of coal to the Free World. Japan agreed informally to
double imports of coal from the Kuznetsk Basin during 1961-63. The
estimated average prices for Soviet coal delivered to Japan (about
$15 per ton) are $3 to $4 lower than comparable prices for US coal
($18 to $19 per ton)./21/ The US, which currently supplies 80 to 90
percent of Japanese imports of coal) probably will face more serious
competition from the USSR in the future.
Table 13
Estimated Trade in Crude Oil and Petroleum Products
by the USSR, by Destination a/
1955-60
Million Metric Tons
Destination
1955,
156
1957
19>8
1959
1960
With the Free World
Imports IV
0.5
1.4
1.3
1.0
1.0
1
Exports
3.1
4.6
7.9 s/
9.6 pi
14.6 21
19
Net d/
2.6
3.2
6.6
8.6
13.6
18
With the Sino-Soviet Bloc
Imports
3.8
3.9
3.0
2.9
4.4
3
Exports
2.1
4.1
5.8
8.5
10.8
11
Net 1/
-1.7
0.2
2.7
5.6
6.4
8
Net total trade
0.9
3.4
9.4
14.2
20.0
26
a. 8 . Except for 1960, which was estimated on the basis of pre-
liminary reports.
b. Austrian reparations.
c. Residual.
d. Net imports are designated by the use of a minus sign.
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Table 14
Estimated Trade in Coal and Coke by the USSR
by Destination a/
1955 and 1958-60
Million Metric Tons
Destination
1955
1958
1959
3.60
Coal
Coke
Coal
Coke
Coal
Coke
Coal12/
Coke s.1
With the Free World
Exports
1.8
0.2
3.6
0.4
4.2
0.4
4.5
0.4
Imports
0
0
0
0
0
0
0
0
Net
1.8
0.2
0.4
4.2
0.4
4.5
0.4
With the Sino-Soviet Bloc
Exports
0.2
1.0
2.8
1.3
2.7
1.4
1.9
1.0
Imports
6.6
o
0.3
o
0.3
o
0.3
o
Net d/
-6.3
1.0
2.6
1.3
2.4
1.4
1.6
1.0
Net total trade
-4.3
1.2
6.1
---
1.7
6.6
1.8
6.1
1.4
a. Basic studies used in the construction of this table are those listed in source
Official Soviet data include Polish coal and coke that are reexported but never enter the USSR.
These amounts are excluded from these data.
c? a/
d. Derived from unrounded data. Net imports are designated by the use of a minus sign.
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APPENDIX
SOURCE REFERENCES
1. US Joint Publications Research Service. JPRS 6901, The
National Economy of the USSR in 1959, P. 175. (hereafter
referred to as National Economy in 1959)
2. Torfyanaya promyshlennost', no 5, May 60, p. 3.
3. Pravda, 28 Oct 59, p. 1.
4. National Economy in 1959, p. 182-183.
5. Pravda, 21 Dec 60, p. 2.
6. Ekonomicheskaya gazeta, 21 Dec 60, p. 2.
7. Ibid., 1 Jan 61.
8. Gazovaya promyshlennost', no 12, Dec 60, p. 2.
9. Bokserman, Yu.I. Gazovyye resursy SSSR (Gas Resources of
the USSR), Moscow, 1959, Table 22, p. 65.
10. Pravda, 27 Jan 61.
Gazovaya promyshlennost', no 6, Jun 60, p. 56.
11. Gazovaya promyshlennost', no 1, Jan 61, p. 2.
12. Planovoye khozyaystvo, Jan 59, p. 42-52.
Ibid., Mar 58, p. 14-23.
13. Stroitel'naya gazeta, 3 Aug 60, p. 1.
Ibid., 16 Oct 60, p. 1.
14. Neftyanoye khozyaystvo, Jan 60, p. 1-12.
15. Planovoye khozyaystvo, Mar 58, p. 14-23.
16. Maslakov, D, I. Toplivnyy balans SSSR (Fuel Balance of the
USSR), Moscow, 1960, p. 112-146.
World Power Conference. Principles of Compiling Energy Balance
in the USSR, Madrid, 9 Jan 60, p. 6.
Voprosy ekonomiki, no 9, Sep 60, p. 117.
17. Stroitel'stvo truboprovodov, no 1, Jan 60, p. 2.
18. National Economy in 1959, p. 493.
19. Stroitel'stvo truboprovodov, no 2, Feb 61, map insert.
Neftyanoye khozyaystvo, no 1, 1961, p. 1-7.
20. Russo-British Chamber of Commerce. Information Circular to
Members, no 1 (60/61), 3 Nov 60, p. 5.
21. Stroitel'stvo truboprovodov, no 1, Jan 60, p. 2.
22. Gazovaya promyshlennost', no 4, 1961, p. 56.
23. Stroitel'stvo truboprovodov, no 1, Jan 61, p. 1.
24. Gazovaya promyshlennost', no 9, Sep 60, p. 45.
25. Ekonomicheskaya gazeta, 29 Dec 60, p. 1.
26. Neft' i gaz, Dec 60, p. 58.
27. Ekonomicheskaya gazeta, 28 Oct 60, p. 1.
28. US Joint Publications Research Service. JPRS 7945, 12 Mar 61,
p. 19.
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29. USSR. Osnovy tekhnicheskoy progressa ugoltnoy promysh-
lennosti SSSR (The Basis for Technical Progress in the
Coal Industry of the USSR), Moscow, 1959.
30. US Joint Publications Research Service. JPRS 3625, 27 Jul 60,
p. 2.
31. National Economy in 1959, p. 176-180.
32. SSSR v tsifrakh v 1960 godu (The USSR in Figures in 1960),
Moscow, 1961, p. 128.
33. Koks i khimiya, no 1, 1961, P. 1-2.
34. Ugol' Ukrainy, no 1, Jan 61, p. 4.
35. USSR. Narodnoye khozyaystvo SSSR v 1959 godu (The National
Economy of the USSR in 1959), Moscow, 1960, p. 193.
36. Izvestiya, 26 Jan 61, p. 1.
37. Ibid., 20 Dec 60, p. 2.
38. Ibid., 8 Feb 59, p. 3.
39. Planovoye khozyaystvo, no 7, Jul 60, p. 65.
4o. Narodnoye khozyaystvo (35, above).
41. Elektricheskiye stantsii, no 4, Apr 61, p. 2.
42. Izvestiya, 8 Feb 59, p. 3.
43. Narodnoye khozyaystvo (35, above).
44. Stroitel'naya gazeta, 6 Jul 60, p. 1.
45. Ibid., 25 Dec 60, p. 2.
46. Soviet Weekly, 20 Oct 60, p. 6.
47. Interior, Bureau of Mines. International Coal Trade, vol 29,
Aug 60, p. 21.
48. USSR, Tsentral'noye Statisticheskiy Upravleniye. Vneshnyaya
torgovlya SSSR (Foreign Trade of the USSR), Moscow, various
years, 1955-59.
49. Ibid.
50. Interior, Bureau of Mines. International Coal Trade, vol 29,
no 11-12, Nov-Dec 60.
51. Ibid.
ECE. coal/144/cTsc/151, 5 Jul 6o.
ECE. Coa1/145/CTSC/153, 28 Sep 60.
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