JPRS ID: 10098 USSR REPORT ENERGY

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• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000400070013-6
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• Document Page Count: 22
• Document Creation Date: November 1, 2016
• Sequence Number: 13
• Content Type: REPORTS

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JPRS L/ 10098
5 November 1981
USSR Re ort
p
_ ENERGY
(FOUO 18/81)
FBIS ~OREIGN BROADCAST INFORMATION S~RVICE -
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NOTE
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~ JPRS I,/10098
5 Nove~~ber 1981
u USSR REPORT
ENERGY
4
cFOUO i8/ai)
~
CONTENTB
ELECTRIC POWER
Deputy Power Minister Outlinea Wiriter Preparation Work
(Ye. I. Borisov; ELEKTRICHESKIYE STANTSII, Aug 81~ 1
FUELS
Wh~lesale Oil Prices Raiaed, More Frequent Price Reviaions Urged
(V. K. Vasi4'yeva, N. N. Rosinov; NEFTYANAYA
PROMYSHLENNOST' SERIYA EKONOMIKA NEFTYANOY PROMYSHLENNOSTI,
No 7, 1981), 10
Improved Transportation Systems Needed for Tyumen
(V. A. Vasilyuk; NEFZ'YANAYA P1tOMYSIiLENNOST' SERIYA
NEFTEPROMYSLOVOYE STROITEL'STVO, No 8, 1981) 16
- a - [III - USSR - 37 FOUO]
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- ELECTRIC POWER
DE?'UTY POWER MINI~TER OUTLINES WINTER PREPARATION WORK
Moscow ELEKTRICHESKIYE STANTSII in Russian No 8, Aug 81 pp 2-5
/Article by Ye. I. Borisov, first deputy minister of Power and Elect-
rification, USSR: "Implementing the Decisions of the 26th Party Con-
gress: Preparing the Power Systems for Operation in Winter Conditions
- A Crucial State Task"/
(Excerpts~ In the electric power sector, just as throughout the Soviet ~
Union, the all-union socialist competition to successfully fulfill and
' overfulfill the assignments of the ilth Five-Year Plan and to ensure
the implementiation of the historical decisions of the 26th Pa.rty Con-
gress and the suggestions and instructions that were outlined in L. I.
Brezhnev's report to the Party Congress has ~otten underway.
The power workers have much to do in order to prepare the power equip-
ment of electric power stations, the electric and thermal systems, the
fuel and transport services of the electric power stations, and the
auxiliary services for the winter. They also must solve important
tasks regarding the creation of fuel reserves and the timely implemen-
tation of power capacities. No less important tasks are to be en-
countered in ensuring the conservation of fuel and elect~ic and ther-
- mal power both for the power systems and the consumers and in prepar-
ing personnel for work~in complex winter conditions. These.and other
basic questions, connected with preparations for winter, are outlined
- in detail in several orders of the USSR Ministry of Power and Electri-
fication (Minenergo).
Organizing the steady power supply for consumers requires that signif-
icant steps be taken, that there be increased responsibility and that
- things be well or;anized. It also re~uires the strictist discipline
in all sectors and in all links of the power system both during the
actual preparations for winter and during the period of the maximum
load.
In 1980 the power workers did a good job and the national economy's
power supply was provided. .
Throt~ghout the Soviet Union 13.3 milliori kilowatts of new electric po-
wer capacities were put into opexation. Several key high voltage po-
wer transmission lines (500 - 750 KV) were built. The rated capacity
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FUit ur'r~.~t;tA1. U~~ UNLY
of Soviet electric power stations reached 267 million kilcwatts and
the length of high voltage power transmission lines of all voltages
was nearly five million kilometers. The unified power system today
emt~races 90 percent of all rated electric power station capacity and
95 percent of the electric power produced.
~ In 1980 the production of electric power reached 1,295 billion kilo-
' watt-hours. ~
The work that has be2n done has made it possible to more fully meet
the needs of consumers for electric power, to completely hand over
the capacities of the Chernobyl', Leningrad, Ekibastuz el~.:tric power
- stations, and to significantly increase the throughput capacity of the
inter-system ties.
In 1980 the operational per~onnel of the electric power stations and
power systems took many steps to solve the important state task of
further reducing the relative outlays of fuel for the production of
- energy. For this indicator the assignments of the Basic Directions
for the lOth Five-Year Plan, which were approved by the 25th Party
Congress, were fulfilled the relative outlay reached 328 grams per
kilowatt-hour.
The operation of the atomic electric power stations (AES) improved
significanrly. The utilization factor of the rated capacity of the
Kiirsk AES was 7~.1 percent, the Chernobyl' AES - 80.9 percent, the
; Kol'skaya AES - 93.5 percent. In the majority of the electric power
systems the accident rate fell. On the whole for the ministry the to-
tal number of accidents decreased in 1980 as compared with 1979.
An analysis of the sector's work during the fall and winter maximum
load once again demonstrated the advantages of the parallel operation
of the power systems in supplying the more rational use of fuel and
- energy resources and the effective maneuverability of rated power ca-
pacities. The collectives of the majority of the power systems and
electric power stations displayed a high degree of responsibility and
discipline in carrying ~ut the effective orders for providing the as-
signed modes of operation; this significantly simplified the trans-
mission of the elapsed maximum load.
At the same time several electric powex systems and stations had sig-
nificant shortcomings in their work in the com~licated winter situa-
- tion. They failed to ensure the full utilization of rated capacities
and did not work closely enough with consumers to regulate the consump-
tion of electricity during the maximum load hours. And they did not
adhere to equipment maintenance schedules.
Some electric power administrations failed to realize their fuel funds,
which led to the under utilization of the power capacities of several
electric power stations.
~
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Some electric power stations were not adequately prepared for opera-
tion during the winter. This includes the Yermakovskaya and Gusino-
ozerskaya GRESs, tha Nizhnekamskaya TETs-2, the Dzhezkazganskaya TETs
and the Lipetskaya TETs-2.
Sume power systems and construction and installa~ion subdivisions did
not take ti~?ely measures to ensure the reliable operation of newly in-
troduced power units. Tais was evident at the Engel'skaya TETs-3, the
Petrozavodskaya TETs, the Mazheyskaya TETs, and the Tselinogradskaya
TETs- 2.
Tatenergo, Kuybyshevenergo, Bashkirenergo, Tyumen'energo, Novosibirsk-
energo, Tomskenergo, Komienergo and the Kazakh SSR Minenergo failed to
fulfill assignments for eliminating disruptions in power capacities and
to ensure the full output of capacity.
We must recall that last winter was warm and the conditians for trans-
mitting the maximum load were not as difficult. The forthcaming fall
and winter season maximum load will be more difficult and all power
systems must prepare for it. The collectives of the power systems of
the Center, Central Volga, the South, Urals and Siberia, where the
higher mobilization of reserves will be required, have an especially
- large amount of work to do. ,
- This year it will be necessary to complete all basic repair work by
no later tl-~an October; by this time .~11 power enterprises must be
ready to operate at full capacity. This means that the preparation
of the electric power stations and the electric and thermal networks
by winter must be carried out within more compressed time periods
and that this is a crucial obligation of managers at all levels.
First of aIl a main~enance campaign must be conducted on a timely ba-
sis and a quality basis. This year some 673 turbounits and 791 hoiler
= units must be repaired. In order to carry out such an amount of re-
- pair work, the workers of the repair subdivisions,electric power sta-
tions, power systems and main administrations must appl.y maximum ef-
forts, achieve a clear organi.zation of repair work, increase disci-
pline in the repair subdivisions,and direct basic efforts and material
resources to repairs. These efforts and resources can be found in
cases where the work can be done later. Special attention must be
- given to the repair of hot water hoa.lers, mainline thermal pipes, the
timely prepawation of buildings and structures, and the repair of the
equipment of the electric power net~rorks.
In the Glavtsentrenergo, Glavuralenergo, Ukrainian SSR Minenergo, Ka-
zakh SSR Minenergo and Zaglavenergo power systems there is a lag in
the repair of equipment. This makes it difficult to observe the
schedulesfor later repairs. The managers of all subelements must
establish the required order in this matter.
At the Starobeshevskaya, Ku=akhovskaya, Moldavskaya, Kashirskaya, Ir-
iklinskaya, Uglegorskaya, Stavropol'skaya and Kirishskaya GRES's they
have pernitted the established repair schedules of some power units
to be exceeded.
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We are also concerned about the fact that at several electric power
stations - the Predneprovskaya, Zainskaya and Navoiyskaya GRES's -
thez�e have been repeated shutdowns of power units following repair
work. This attests to the poor quality of the work performed during
the repair campaign.
The Main Administration for the Pr:.duction of Spare Parts and Repair
of Electric Power Stations, the Main Administration of Material and
Technical Supply and the Main Administration for the Outfitting of
Electrical Equipment for Electric Power Stations, Substations and Net-
works must quickly within the shortest time period possible join
with the republic-level subelemer.ts, main administrations and power
systems determine what steps are needed to provide repair work with
~ the required materials and spare parts.
All power systems need to step up measures to ensure the work tr.at is
connected with eliminating disruptions and production of power capaci-
ties, which were determined by a USSR Minenergo order of 16 January
1981, No. 3.
The timely introduction of power capacities, without which it is im-
possible to solve the task of fully preparing the power sector for
winter or of successfully reaching the fall and winter maximum load,
plays a key role in providing a power supply during the winter season.
The construction, installation and operational subelements are obli-
gated to introduce new capacities: the Unified Power Grid of the Cen-
ter - 3,615,000 kw; the Central Volga Unified Power Grid - 1,077,000
kw; the Urals Unified Power Grid - 345,000 kw; the Northwest Unified
Power Grid - 1,935,OOU kw; the Southern Unified Power Grid - 3,230,000
kw; the North Cacausus Unified Power Grid -306,000 kw; the Cacausian
Unified Power Grid - 300,00~ kw; the Kazakh Unified Power Grid -
2,022,Q00 kw; the Siberian Unified Power Grid - 990,000 k~; the Cen-
tral Asian Unified Power Grid - 1,582,000 kw; and the Eastern Unified
Power Grid - 270,000 kw.
The Atomenergostroy /construction of atomic electric power stations/
Association has a particularly important task in introducing power ca-
pacities at the AES's, which is connected with a seriQUS improvement
in the fuel balance and is very important in organizing a reliable po-
wer supply.
The introduction and assimilation of new power capacities is one of
the most responsible and complicated tasks in preparing for winter;
the solution of this task must come from the construction, installa-
tion and operational subelements. It is no less important that se-
veral crucial electric power network construction projects be p~it in-
to operation, �
For the individual regions the key tasks are: in the Center and Ura~s
unified power grids - prior to December 1981 put into operatian power
capacities at the Kurskaya and Smolenskaya AES's, the Ryazanskaya and
Surgutskaya GRES's; Mosenergo's TETs-25; eliminate capacity disrup-
tior.,s at Mosenergo's TFTs-23, the Saratovskaya TETs-3, the Ivanovskaya
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TETs-3, the Saranskaya TETs-2, Penzeuskaya TETs-1, Novocheboksarskaya
TETs-3, Novo-Sterlitamaksyaya TETs, *_he TETs of the Vol~a Automobile
Plant; the equipping and turning on of the 500 KV VL /power line/
from the Kostromskaya GRES to Vologda, the S00 KV VL approaches be-
tween Lipetsk and Balashov to the Novovoronezhskaya AES. For the nut-
put of the capacity of the Surgutskaya GRES it is necessary to build
a 500 KV VL ~linking the Surgutskaya GRES - Dem'yanskaya and Surgut-
skaya GRES and Urengoy;
in the Southern Unified Power Grid - introduction of the first power
units at the Southern Ukrainian AES, the Zuyevskaya GRES-2 and the
Kievskaya TETs-6, power capacities at�the Chernobyl'skaya and Roven-
skayaAES; the creation of conditions for the steady operation at
full capacity of all existing equipment and providing for the trans-
fer. of capacity for export and to the Center; the timely introduction
of the 750 KV VL linking the Chernobyl'skaya AES and Vinnitsa and
ensuring the output of full capacity from the Chernobyl'skaya AES;
in the Kazakh Unified Power Grid - the further construction of the
Ekibastuzskaya GRES-1 and the introduction of the next power units
with a capacity of 500,000 kw and the performance of work connected
with the regular operation of this electric power station and the
Yermal~ovskaya GRES;
in the Siberian Unified Power Grid special attention must be given
to the timely elimination of capacity disruptions at the Irkutskaya
TETs-11, the Omskaya TETs-4, the Tomskaya GRES-2, providing the re-
gular operation c~f the Gusinoozerskaya GRES. It is necessary to in-
troduce the 640,000 kw capacity hydraulic turbogenerator unit of the
Sayano-Shushenskaya GES and the 500 KV VL between Abakan and Itat
for the output of the capacity of this GES;
in the Central Asian Unified Power Grid it is necessary to ensure the
introductior. of the second link of the 500 KV VL between the Nurek--
skaya GES and Re~ar prior to the fall and winter maximum load;
- in the Eastern Unified Power Grid it is important to complete the con-
struction of the 500 KV VL between Svobodnyy and Khabarovsk and Pri-
morskaya and Dal'nevostochnaya as soon as possible.
The accumulation and economical use of hydroresources is an important
task in preparing for the fall-winter maximum load.
The Central Dispatch Administration, the ODU /unified dispatch admini-
- stration/ and all operational subelements, upon which depends the mode
of the GES's operation, must provide the maximum preservation of wa-
ter supplies in all of the basic reservoirs of the Volga, Kama and
I)nepr rivers cascades, which will make it possible to more fully use
the GES's c..apacities during the winter.
It is necessary to protect the water resources of the Baykal and
Bratsk reservoirs. Hydroenergy occupies a significant percentage of
wt~at is needed to meet the ~~~eds for electric power in regions of Si-
beria. The Siberian ~Di? and Giavvostokenergo /Main Adminiseration
S
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for the Exploitation of Power Systems of the East/ are obliged to
take steps for conserving water resources of the Angarsk and Yenisey
cascade during the summer.
All operational subelements face especially important tasks in creat-
ing fuel supplies at all electric power stations. The realization of
fuel and its timely unloading must constantly be in the center ofOWer
tention of the primary managers of the electric power stations, p
systems and main administrations. At all electric power stations it
is necessary to provide for the maintenance of railroad tracks, rol-
ling stock and gyuipment in fueJ~ depots and fuel handling, defrosting
equipment, their preparation for reliable operation in winter condi-
tions, which will do away with excessive idle tim~ of railroad cars
and tank cars during unloading operations and interruptions in the
feeding of fuel to the shops of the electric po~rer stations. There
are still many problems in solving this task.
A great deal of responsibility rests in the collectives, which pro-
vide the start up and assimilation of atomic power units at the Novo-
voronezh~kaya, Southern Ukrainskaya, Smolenskaya, Kurskaya, Cherno-
byl'skaya, Rovenskaya and Kol'skaya AESs, for improving the fuel ba-
lance.
In 1980 the republic ministries, operati~nal and production main ad-
ministrations, the power administrations, and the power sales organi-
zations did a great deal of work with the consumers in all branches
of the national economy for conserving power resources. According to
- data of Gosenergonadzor /State Inspectorate for Power Engineering Con-
trol/ the enterprises ofrindustry, tr.ansport and construction in 1980
conserved more than 14 billion kilowatt-hours of electric power as
compared with the relat~ve norms. This shows the importance of the
~ measures that ar2 being performed. However, at many industrial en-
terprises in the sphere of domestic consumption there are still a
great many non-production losses.of power, which indicates that not
enough work is being done to reduce the electric power expenditure
norms. Frequently ~stablished limits of power consumption are ex-
ceeded; in some cases violators are not being prosecuted as they
- should. In conjunction with local organs and consumers it is neces-
sary to strengthen efforts to find and eliminate shortcomings in the
u[ilization of electric and thermal power, to eliminate non-produc-
tion losses, to increase the responsibility of ente:prises and organ-
izations for the wasteful expenditure of power and for the violations
oF the modes of electric and thermal power consumption. It is very
- important to ensure that measu~res are taken to carry out the assign-
ments in maintaining the level of compensation of reactive capacity
and norms for the recycling of praduction condensate.
' During the last fall-winter maxitnum load the power systems did a sig-
nificant amount of work with the consumers in leveling the load
schedules during the peak load hours of the power systems. Kesearch
performed by organs of Gosenergonadzor uncovered additional reserves
for reducing the consumption during peak hours by more correctly ob-
serving the modes of operation of the technical and auxiliary equip-
- ment of the consumers. In concert with the consumers and local
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organs it is necessary to develop and implement additional regulatory
measures and to ensure during the winter a reduction in the size of
the 24-hour ma:cimum loads of the power systems by not less than 2 to
3 percent.
The ministries and departments, managers of enterprises, organizations
and institutions must direct their efforts and those of the labor col-
lectives toward the thrifty utilization of fuel and power and the ob-
- servation of the conservation mode in all links of production.
For all po~~er systems at?d power associations a key task is to continue
the struggle to further reduce the relative expenditures of fuel.
We must remember that reducing the ~xpenditure of fuel for the produc-
- tion of electric power by one gram per kilowatt-hour yields nearly one
million tons in fuel savings per year. For the 1981 the ministry has
been given the assignment of reducing the relative expenditu:e of fuel
for the thermal electric power stations as compared with 1980 by 1.1
gram per kilowatt-hour and to raise it to 326 grams per kilowatt-hour.
This is a difficult assignment. During the past several months the re-
lative expenditure has been reduced by only l.l gram per kilowatt-hour;
this is quite disturbing and all power systems must do everything pos-
sible to ensure fulfillment of this key assignment.
There are quite a few good examples of work done in reducing the reta-
tive expenditures of fuel, including the following: the Kostromskaya,
Konakovskaya, Reftinskaya and Shchekinskaya GRESs; Mosenergy, Saratov-
energo, Permenergo, Khabarovskenergo. At t~:e same time several pow~r
systems are not fulfilling this indicator, including: Chelyabenergo,
Irkutskenergo, Mordovenergo, Penzaenergo, Saratovenergo, Buryatenergo,
Novosibirskenergo, and Chitaenergo. Their indicators are even worse
than last year's.
Analysis shows that in addition to the difficulties connected with de-
liveries oF poor quality fuel in some cases and the overloading of in-
efficient equipment, there are instances ~erework modes are being vio-
- lated, where there are excessive losses of heat in escaping gases, the
mechanical incomplete burning of fuel, inadequate temperature of feed
water and other shortcomings.
The main task in reducing the expenditure of fuel is to determine the
" complete set of organizational and technical measures to be taken for
each power station and power system. We need to tighten up the mode
charts for loading and operating the power units, to tighten control
of equipment operation, and to eliminate the still significant delays
in repairing efficient equipment.
We must trace the structure of electric power production. 'The Central
Uispatch Administration of the Unified Power Grid of the USSR, the
Unifi.ed Dispatch Administratioc~, the electric power stations, the power
systems, the operational main administrations must utilize all oppor-
tunities for optimizing the modes and the full loading of efficient
pc~wc~r u~iits and atomic electric power stations. A no less important
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condition, which can help to conserve fuel, is the fulfillment of inea-
s~res Eor modernizing and updating equipment.
A very important section on the preparations for winter has to ~do wi~h
reducing the accident rate. Many electric power stations and power
systems have done a great deal of work and have managed to increase
the reliability of equipment operation and have improved their work
with personnel. These include the Sredne-Ural'skaya, Ladyzhinskaya,
Litovskaya, Lukoml'skaya GRESs, TETs-21 and TETs-23 of Mosenergo, Len-
energo's TETs-7. At the same time during the last maximum load several
electric power statior.s were not prepared for operation~ in winter con-
ditions, but the mariagers of the power systems had issued documen~s
stating that they were prepared. These documents were issued without
justification to ti?e Penzenskaya TETs-l, the Stavropol'skaya GRES, and
the Lipetskaya thermal networks.
Several accidents, which took place in 1980, were connected with short-
- comings in organizing the opera[ion at electric power stations and in
electric and thermal networks.
During the past months of 1981 there has been no substantial decrease
in the accident rate for the ministry on the whole; there has been
an increase in the accident rate within some power systems. T~e num-
ber of accidents increased significantly within Pavlodarenergo, Dal'-
energo, Tatenergo, Kuzbassenergo, N:osenergo, Kievenergo� Lenenergo,
Permenergo, Chelyabenergo, Ryazan'energo, and Vo]gogradenergo.
At some electric power stations accidents occurred due to lack of ad-
herence to the rules governing the technical operation and the in-
structions; in other cases ther~ were violations in the ways of hand-
ling the work modes of equipment and simply through personnel errors.
Such things took place at the Mazheykskaya, Tyumenskaya TETs, and the
- Tbilisskaya and Zainskaya GRESs.
The reliability of the operation of the Ekibastuzskaya GRES-1 ~s cause
for serious concern. A key task for the Kazakh SSR Minenergo and its
subelements, the managers of construction and installation subelements
is to eliminate weak spots and to create the necessary conditions for
the normal operation of the electric power station. Work experience
of tne Ekibastuzskaya GRES-1 must be carefully studied and taken into
censideration in the planning, construction and operation of subse-
quent electric power stations within the Ekibastu~ fuel and nower com-
plex.
Ensuring a reliable and accident-free operation of the power enter-
prises requires the systematic raising of the skills of personnel and
ens~iring the appropriate discipline and sense of responsibility of per-
sonnel. The concern of managers about creating the needed conditions
in work is of considerable importance. They must also concern them-
selves about the living conditions and recreation of the workers and
must ensure a favorable moral and psychological climate within the
collectives.
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It is necessary to give added attention to checking the relay protec-
tion devices, the AChR /automatic frequency discharge/ and the auto-
mati_c safety equipment, taking into consideration the impending operat-
ing modes of the electric power stations and the loading of [he high
voltage power transmission lines. It is necessary to check the status
of the instructions and other documents having to do with organizing
the operation of the pow~r units and which determine the activities of
the personnel in preventing accidents. It is also necessary to con-
duct the needed training sessions.
- Serious attention must be given to questions having to do with raising
the stability of the power systems' work on the whole, including the
power associations. Attention must also be devoted to the equipping
ot the electrical networks and electric power stations with automatic
safety equipment. It is particularly important that measures be taken
in a timely manner in regard to automatic safety equipment. And steps
must be taken to ensure the output of the capacity of the Chernobyl'-
skaya, Novovoronezhskaya and Smolenskaya AESs, the Ekibastuzskaya and
_ Ryazanskaya GRESs and to ensure the reliability of their operation.
~t is 31so necessary to raise the reliability of the basic intersystem
connections. The assignments of the Central Dispatch Administration
of ~he Unified Power Grid of the USSR and the Unified Dispatch Admini-
stration for connecting the load of users to AChR and SAON devices.
In preparing the power enterprises and power systems for winter it is
necessary to give attention to the qualitative performance of repair
work not only of the basic equipment of the boilers and turbines, but
all equipment of the power facilities - the ~ZU /lightning protector/
systems, water supply, and the fuel transport shops equipment, the
KhVO, heating, ventilation of buildings and structures and the carxy-
ing out of safety measures, sanitary and domestic measures and wurk
on other safety eCUipment.
A key question concerns the need to preserve the needs of the electric
power stations in any difficult conditions. This important question
does not always receive the needed attention.
In organizing the reliable power supply it is particularly important
that discipline be maintained in ensuring the assigned dispatch sche-
- dules to the power enterprises and to observing the modes of power
consumption.
This year it is necessary to do a significant amount of work to fulfill
the order to raise the reliable supply of power to rural consumers.
All power systems and power enterprises are required to strictly ob-
serve assignments for transferring capacity and electric power between
the power systems and associations of the Unified Power Grid. It is
necessary to do everything possible to ensure power transfer assign-
ments while preparing for winter.
COPYRIGHT: Energoizdat, "Elektricheskiye stantsii", 1981
8927
CSO: 1822/234
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FULLS
UDC [622.323+622.24]003.1
WHOLESALE OIL PRICES RAISED, MORE FREQUENT PRICE REVISIONS URGED
Moscow iVEFTYANAYA PROh1YSHLENNOST' SERIYA EKONOMIKA NEFTYANOY PRObIYSHLENNOSTI in
Russian No 7, 1981 pp 2-5
[Article by V. K. Vasil'yeva and N. N. Kosinov (VNIIOENG [All-Union Scientific-
Research Institute i'or the Organization, Management and Economics of the Petroleum
Industry]): "The New Schedule of Enterprise Wholesale Prices for Oil"]
[Text] The steps now being taken to further improve planning and to strengthen the
influenc~ c~f the econamic mechanism on increasing production efficiency and work
quality require co.nstant improvement of the country's system of prices and price-
setting.
The wholesale prices for oil and gas that are effective until 1 January 1982, which
were formulated in 1967, are.very much out of date. They reflect neither the chan-
ges that have occurred in development of the industry nor its structural shifts.
The average enter~rise wholesale price for oil has been kept at one level for more
- than 14 years, so in recent years (since 1975), it has been necessary each year to
revise the griee levels for the various associations in order to enable them to ap-
erate profitably. Many associations, by virtue of a degradation of technical and
economic indicators, have stopped making income payments into the budget (since
1 January 1979 income payments f~r the industry have been completely abolished),
and average interest for the use of capital has been reduced below the standard by
more than 2 percent. The retention of a stable level of wholesale oil prices for
the iridustry as a whole over such a lengthy period has not enabled reimbursement of
the true expenditures for geological prospecting and exploration, which in recent
years have tended to rise per estimated to;~ of crude. The profitability of many
associations has fallen sharply and price has ceased to fulfill its motivational
function of promoting growth of oil-production effectiveness. During this period
a steady trend of shifting to the development of fields that have worse geological
conditions fram the standpoint of recovery has been noted. Aging of the fields that
- are producing, the ilecessity for introducing less productive fields into develop-
, ment, and the increasing remoteness of the oilfields and deepness of the pro-
ductive formations have entailed growth in labor and material expenditures for
recovering the crude.
During this period water encroachment and the share of inechanized recovery
have increased, and specific expenditures on new capacity per ton of absolute
growth in ~il recover~y have risen. The dynamics of the ~rowth of these indica-
tors has been directly r�eflected in the capital intensiveness and the prime costs
of recovery, especially in the "old" oil regions.
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These trends in the industry's development will also occur over the long term,
since many fields i.ri the European part of the Union are in the concluding stages of
~ development, and gx~o~ath in oil recovery will occur mainly by the introduction of
f'ields in the country's eastern regions into development.
Corisequently, the problem oF wholesale prices for crude came up a long time ago,
and the question of reviewing them and improving the price-setting system itself
has been posed more than once to the appropriate legislative organs.
Accordingly, schedules for wholesale prices for oil and gas were prepared which
have now been approved and will go into effect 1 January 1982.
In developing the schedules of the wholesale oil price lists the main point was
that the prices reflect ~:he soci.ally necessary labor expenditures more fully, and
tha~; other measures be talten which were aimed at achieving normal profitability and
effectiveness of oil recovery. Work on the new.price lists was oriented to further
impro�ring the whole system of setting prices for oil in a way that will make them
most important tools for implementing the country's economic policy.
tiVholesale-price planning should be based upon an analysis of actual development of
the economics of the industry, taking into account long-term changes in its de-
ployment and pace of development, the dynamics of production outlays, capital in-
tensiveness, labor productivity and other factors. The determination of an econom-
ically valid level for wholesale prices becomes especially urgent in light of the
CPSU Central Committee and USSR Council of Ministers decree of 12 July 1979, "On
the Improvement of Planning and Strengthening of the Influence of the I:conomic
Mechanism on Increasing Production Efficiency and Work Quality," which paid great
attention to cost accounting and to strengthening the role of economic levers and
incentives.
The decree aimed both at the economical use of material, labor and monetary resour-
ces and at a strict accounting for and monitoring of the funds spent. In this
connection, the prime cost of the output, which is the basis for price, has a spe-
cial role in forming the soczally necessary expenditures (ONZT's) for labor and
- wholesale prices.
In or~der that prices may reflect socially necessary labor expenditures more fully,
it is necessary to improve prime costing in the areas of refining the b~sic stand-
ard-practices principles and of making a more detailed accounting for all expen-
di.tures for producing the product, without, at the same time, allowing all kinds of
nonproduction expenses and losses to be included in the prime cost or overstating
consumption norms for material resources and labor expenditures. When the new
wholesale price list schedules are put into use, the methodology for figuring pri.me
costs for~ oil recovery also is changed. Thus, in order to r~flect actual
expenditures for social. insurar,ce more fully in the product's prime cost, interest
on the deductior~s for these purposes will be raised, becoming 14 percent.
On 1 January 1982 payments for water consumption by industrial enterprises will be
introduced for thc: first time. Payment for the diversi.on of water from water sour-
ces and for the discharge of' unpurified or inadequately purified effluent into
them will promote the rational use of water resources, the reproduction of which
requires substantial expenditures by the national economy.
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Also being changed is the schedule of deductions for reimbursing the costs of geo-
_ logical prospecting and exploration. The new single per-ton rate of deductions for
GI~R [geological prospecting and exploration], which is double the current rate,
calls for more cornplete reimbursement of expenditures for these purposes. However,
_ studies indicate that the level of expenditures for prospecting and exploration per
- estimated ton of oil recovered during the llth Five-Year Plan will exceed the ap-
proved rate of deductions. Some inconsistency in the contemplated expenditures for
reimbursement thereof in the planned wholesale oil prices was occasioned by the
general standard practice for setting prices, based upon expenditures during the
base, preplan period. Such an approach may answer.the requirements of machine-
builciing, but it does not meet the needs for development of an extractive industry.
One of the key- factors in the price-setting problem was and is the question of
- profit, the role of which rises especially at present,in light of the tasks for
improvin~ the economic mechanism that were noted above.
Profit i~i the prices of products is economically justified because it enables en-
terpi~ises to function on the basis of cost-accounting prineiples. So the minimal
profit-level limit should be determined by the magnitude of payments made into the
b�.~dget ir, accordance with the established standards and the magnitude of the eco-
nomi_c incentive funds. Justification for profitability in the prices of a produc~:
involves a consideration of the specific conditions for production, primarily the
ratios of current outlays and the cost of production capital. It should be noted
that the approach to the formation of profit within pri.ces has not been identical
for the various stages o~' development of the socialist economy. Thus, during the
period preceding the overall review of prices (1967), the level of profit within
pi�ice i~as established in minimal amounts relative to the prime cost of the product.
This principle was adopted mainly as an incentive f'or enterprises to reduce produc-
tion autldys. Profitability is now figured in relation to production capital, the
more effective use of which is a task of no little importance for developing the
national economy. Such an approach to the establishment of profitability presup-
poses that prices take the capital intensiveness of output into account. Payment
for productive capital becomes a mandatory element of price. These changes in Lhe
principles of forming profit were reflected also when the system of prices for the
oil industry ~vas devised.
The profit level for oil ir~ the new prices that are being introduced 1 Jar,uary 1982
~aas set ori the basis of a planned increase. This amount of profit will, in accord-
ance with the requirements for price-setting, allow actuation in the nearest fu-
ture of a].1 the cost-accounting levers of tlie economic mechanism for ~;he indus-
ti�y's f'unct~oning, that is, resLor�ation of the income payments system, the intro-
duct.ion of payments into t}ie budget for the use of capital in accordance w=.th
~stablished standards, the forming of economic incentive funds (the material incen-
tive furid, the fund for the construction of facilities for social, cultural and
- personal-amenity purposes, and the production-development fund), and ttie reimburse-
ment of other plan expenditures.
Gxperier~ce indicates that the price structure for oil must i.nclude such an economic
regulator as income payments if normal cost-accounting conditions are to be creat-
ed for~ the.operation of all the industry's associations.
In thc: oil industry, the problem of differential income arose in its practical
aspects at the time of the price reform of 1967, when wholesale prices for oil were
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more than doubled. As is known, the wholesale oil prices that were in effect prior
to the 1967 reform did not include income payments, and their role was, in essence,
filleci by the turnover tax on oil-product prices. Thus the differential incomc
created thereby directly during oil recc,very was realized through the prices of
other commodities--petroleum product.
The probl.em of setting apart the differential income that has been formed from the
remaining L~ortion of the profit, so tt,at it will become an element independent of
it, was solved by intr~oducing income payments in the oil industry. In this case
there is a potential for eliminating the influence of natural factors on an enter-
prise's production activity. In so doing, the task should be performed in such a
- way that removal of the income payments will not be reflected in the level of
accounting profit, the more so since the latter is the source for forming economic
incentive funds.
It should be noted that the level of differential income depends directly upon how
the principle under which one rrice or another has been formulated. Thus, while it
would be possible in oil recovery to establish a single price for oil on the
basis of the expenditures of the associations that were operating under the worst
- conditions, the level of the income payments schedule would be determined by the
di.fference between the expenditures of these associations and of those that are
car�rying out their activity iznder more favorable conditions.
I3ecause, begi.nning 1 January 1982, there is to be a limited rise in the average
level of' wholesale prices paid to enterprises for oil, zonal prices were worked
out, within the framework of which income payments were determined. Three pricing
zones have been formed and, accordingly, three piice levels, in which the schedule
of iricome payments has been set to take into account production outlays and the
capital intensiveness of oil recovery, which are tentatively '-+eing called "adduced
expenditures." In each pricing zone, no income payments are planned for associa-
tions with the highest adduced expenditures. A"rebirth" of the system of income
payments and the introduction of the new schedule of enterprise wholesale oil
prices will enable normal cost-accounting activity to be executed by those asso-
ciations at which growth in expenditures for oil recovery is anticipated during
the plan period. As changes occur in the dynamics of prime cost and capital inten-
siveness for the various associations, an annual adjustment of schedules for income
payments is recommended, wi.th a view to preserving normal cost-accounting cotidi-
tions for their operation and to creating a potential fer forming the necessary
: accounting profit. In addition to income payments, such an element of price as
payment ('or the use of capital exerts a definite influence on the amount of
accounting profit. This mast important eeonomic tool of management was intended to
incrcase the utilization effectiveness of capital, and it reflects actual produc-
ti~n conditions.
As a result of the changes in the siting of oil recovery that have taken shape, the
c:eritcrs for oil-industry development arP moving to regions with difficult natural
and ~eographical conditions, where the capital investment level is severalfold
- higher than iri old oil regions. Moreover, growth in capital investment even in the
"old" o.il regions is inevitable by virtue of the need to increase drilling in order
to mairitain the level of oil recovery.
In i.ts turn, growth in capital. investment causes a corresponding rise in the cost
of industrial-production funds and, consequently, in the capital inLensiveness of
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oil recovcry. Substantial fluctuations in capital intensiveness among the various
associations are observed here. Further growth in the capital intensiveness of oil
recovcry has necessitated a rise in the share of payment for the use of productive
capital per rated unit of output in the new prices for oil, and it was also one
, of' the main causes of growth in the prime cost of oil recovery, alon~ with the
drop in flow from the wells.
Payment for the use of production capital in the schedule for the new wholesale
prices was calculated in accordance with the standards adopted for the oil indus-
try--11 percent of the residual cost for oil wells, and 6 percent of the initial
cost for other items. Introducing payment for~ the use of production capital
into the budget in full measure, in accordance with the established standards,will
exert a positive influence on the strengthening of cost accounting.
Thus, a distinguishing feature of the new wholesale oil prices, compared with ex-
isting prices, is the fact that they support adequately the ac'tion of all the cost-
accounting levers of' the economic mechanism for the industry's functioning in the
future .
The expcrience of past years indicated that the period for preserving a stable
price level in some branches of industry should have definite limits. In regard to
the extractive industries, ~ahere sharp changes in production conditions take place,
the ~'ive-year plan can be the optimal period. Beyond this period, price ceases to
f'ulfill its inherent motivational function and remains only an accounting category.
Theoretically, the desirabili~y of precisely this effect of wholesale price lists
on extractive-ind~astry output, but for no l.onger a period, has been generally rec-
ognized. However, in practice the periods for review are stretched out unjustifi-
- ably for extremely long time periods. The consequences from such a leng~~hy period
of keeping price lists i.n effect were indicated above.
Since the middle of the 1970's the q;iestion has repeatedly been posed of the neces-
sity For a most accelerated revision upwards of wholesale prices for oil. During
that time; it was recommended that the average wholesale oil price paid to enter-
prises be greatly raised. However, review of the drafts of the new pricc. lists
was stretched out. Even the prices to be introduced on 1 January 1982 have some
def'ects. So the eff'ective period of the new price lists for oil should be re-
stricted to the 11th Five-Year Plan period, in order that these prices will not be-
- come a brake on development of the industry's economics. An average oil-price lev-
el prescribed by directives for the industry beyond such a period will. not enable
_ cost accounting to Ue conducted at many oil-recovery associations. This relates
~ ~rimarily to the fact that most associations will not have the funds even to make
payments into the budget for the use of production capital in accordance with the
full standards, not to mention the income payments. Under such conditions prices
lose their motivating function, and in this case th~ potential for a leveling out
of the riatural factar for equalizing conditions for the economic act.ivity of asso-
ciations ~vill be exhaus+;ed.
Therefore, work to ~'urt'~er improve the system for setting oil prices within the
industry should be continued, primarily in the area of economic substantiation of
. the oil-pri_ce level beyorid the lith, Five-Year Plan. One of the possible ways for
resolvi.ng this task is to establish a correct ratio of prices to the output of
various br~anches oF the national economy through a redistributi.on of profit.
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Within the frameworlc of this task, questions of strengthening the incentive effect
of price (and of its various elements) on raising oil-production effectiveness also
need further study.
COPYKIGHT: Vsesoyuznyy nauchno-issledovatel'skiy institut organizatsii, uprav-
leniy i ekonomiki neftegazovoy promyshlennosti [VNIIOENG~~ 29A1
11409
CSO: 1822/235
~
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FUELS ,
IMPROVED TRANSPORTATION SYSTEMS NEEDED FOR TYUMEN
Moscow NEFTYANAYA PROMYSHLENNOST' SERLYA NEFTEPROMYSLOVGYE STROIT'~L'STVO in
Russian No 8, 1981 pp 16-18
[Article by V.A. Vasilyuk: "The Economic Problems of Improving Transportation Ser-
vices For the Tyumen' Petrc~leum and Gas Extracting Region"]
[Text] Transportation availability is one of the basic factors in the development
of the petroleum and gas extracting areas of Tyumenskaya Oblast. At the present
time the extracting industry of the Middle Priob'ye is shifting to the north and
natural-climatic and economic-geographic conditions are changing. T:~e lake,and
swamp density of these tarritories comes to 80 percent. The new deposits have dif-
ferent geolagical characteristics which make the process of drilling difficult and
reduce productivity and the average yield of each new well compared to the Middle
Priob'ye. As a result of this, the volume of freight being ~upplied for drilling
- has been increasing substantially. The transportation system which serves the
petroleum and gas extracting industry of the Tyumen' North includes railroad;
river, maritime, motor vehicle, and air transport. All of'the mainlines are iso-
lated and removed from one another by 200-500 kilometers.
The geographic location and length of the existing railroad network does not �uiiy
meet the needs of the areas extracting hydrocarbon raw materials. New railroad
lines which would ensure the delivery of freight without excessive transshipments
are needed. Practice shows that when freight is delivered by mixed transportation
methods the cost of the hauls is lowered, but the expenditures for loading and un-
loading operations increase subatantially. In addition, with fivefold transshipments
15-20 percent of the freight is ruined whiie in route. The Main Administration for
Petroleum and Gas in Tyumenskaya Oblast brings in 98 percent of its material and
technical resources by railroad, and of this amount, only 40 percent directly into
the petroleum extracting areas, and the other 60 percent is transferred onto river
vessels and deiivered to the bases of associations in the extraction areas. Then
some of the freight is transferred to small ships and delivered to the deposits
on small rivers, some of the freight is taken to the deposits by motor vehicle trans-
' port, and the rest is kept at the bases until the ~nset of winter and the beginning
of the operation of winter roads. The winter roads are used for delivering as much
as 700,000 tons of freight ta the deposits. The development of the railroad net-
work and an increase in the amount of freight deliveries by the Northern Sea Route
has not decreased the rale of river transport. The rivers of the Ob'~Irtysh basin
continue to be chief waterways. Within Tyumenskaya Oblast the navigable river sys-
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- tem include~ the rivers Ob', Irtysh, Tura, Tobol, Agan, Vakh, Lyamin, and also Pur,
Taz, and Nadym. In the latitudinal current of the Ob' the river fleet performs
hauls 160-190 days, and at the . more northern small rivers and the Nizhnyaya
Ob'--from 120 to 80-30 days.
Motor vehicle transportation performs ~ost of the freight hauls in the petroleum '
and gas extracting areas. The relationship between interfield an~ intrafield motor -
roads with basic servicing is 2:1. On the average, there are 4.5 units of motor
vehicle-tractor equipment per kilometer of motor vehicle roads with basic ser-
facing in the Tyumen' North. The in~rease in the need for such equipment is con-
nected with the constantly increased difficulties in developing new deposits. In
the future the need for this equipment will incr~ase.
The experience connected with developing the deposits of the Tyumen' petroleum and
gas extracting region has demonstrated the necessity for an oVerall approach to in-
proving the transportation system. Different types of transportation are used in
internal and external freight hauls, sometimes without regard to economic expedi-
ency. In the development of new deposits intra-area and inter-field freight hauls
will be performed at the level of 80 percent by motor vehicle transport, and the
= rest by helicopters (more rarely, airplanes). At the present time the lowest
cost for freight hauls is on river transport, and the highest on railroads. Most
of the freight is brought to the Tyumen' North by river transp4rt during the nav-
igation period whose length is around five months in the north Priob'ye, and not
more than four months in the Far North. As a result of the seasonal operation of
river transport it is necessary to e.quip bases for the storing of material and
technical resources, which leads to a substantial "freezing" of resources.
In recent years the freight turnover of the riverports has been increasing annually
and, for this ~eason, a large part of the freight is delivered through southern
ports with a large overrun, which with the short navigation period reduces the in-
dicators of fcleet use.
The experience in operating one of the railroads in this area during 1975-1980
shows a decrease in transportation expenditures in petroleum field construction.
However, at the same time, on account of an insufficiently developed network of
inter-field motor vehicle roads with hard cover, which holds back the work of the
motor vehicle pool, the share of transportation expenditures increases. The over-
all tendency in a change of transportation expenditures and the additional expend-
itures connected with them can also be traced in analysis of the expenditures re-
lated to one million rubles of construction and installation work.. To a substant-
ial degree an improvement of railroad and motor vehicle freight flows will be pro-
moted by an expansion of the network of rail and motor roads. New liaes will en-
sure supply for the petroleum and gas extracting industry and for construction
subdivisions. However, to ~evelop a system of motor vehicle roads in the Pri-
polyar'ye on the basis of increasing the length of dirt-log roads and winter roads
is economically inexpedient. It is essential to have a scientifically substanti-
ated technology for the construction of inexpensive and reliable motor vehicle
roads. Otherwise, it would be expedient to build railroad lines. Let us examine
an example. The amount of earth work in making an embankment for motor vehicle
and railroads at a given latitude is the same, and the upper part of the construc-
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tion of a motor vehicle road in its amount of cost is more and its operational
periods are shorter than a railroad. With a minimum width of the motor vehicle
road of six mPters per kilometer it is necessary to have 850 cubic meters of
fe~rocon~rete_ plates, and on the rail base with a width of tu;o meters (replacing
the ballaGt ar.d ties with ferroconcrete plates or frames)-200 cubic meters. When
freight intensity falls off the rails and the under-rail foundation can be used
repeatedly on newly built inter-field lines, while the motor vehicle road plates
quickly become unserviceable as a result ~f active cryogen processes.l At this
latitude the valley river co~nplexes have sand~, pebB.I.es, and sandy loam; the water
divide sectors are more frequently represented by sandy loams, loams, and clays.
Since the vegetation and soil strata are of negligtble strength, dirt can be taken
by the open method for the earthen right-of-way; in zones where thawed ground is
- widespread hydromechanization is used. The forced development of the transport-
- ation system is the result of the tendency for construction industry enterprises
to move near to the sites of industrial and housing construction.
It would be useful to create Pnterprise~ for the production of road cover plates
involving the thermal processing of fe rroco ncr ete products. Local small gxade
sand is used to prepare heavy concrete; one cubic meter of mass for 2.4 tons uf
products. The :on-site production of road cover plates will make it possible to
ciecrease the cost of road surfacing by 50 percent. However, the problem of intra-
area freight hauls and of the thoroughfare importation of freight cannot be solved
solely through the construction of inter-field roads and railroads. It is clear
- that in the North river transport will preserve its leading place for a long time,
while urgent freight will be delivered from the bases to deposits by aviation.
In the development of the most remote petroleum deposits the basic freight will be
delivered by motor vehicle transport on winter roads, while during the warm time
of the year this will be done by aviation (helicopters). The MI-8 and MI-6 hel;.-
copters are the basic ones in the petroleum extracting areas. In order to improve
the transportation network in the North it is necessary first of all to solve the
problems of the siting and construction of support railroads, and also of railroad
branches to individual dep~sits, railroad sidings, dead ends, ~nd areas; and to
determine the economic and geographic rationality of siting a network of motor
vehicle inter-field roads with hard-top surfacing. This will make it possible to
decrease the river freight flow and, consequently, the additional construction of
storage bases, and also hauls ori winter roads. It is also necessary to substant-
ially decrease the use of expensive air transport for inter-field communications.2
The chief task of the development of the transportation system is to provide the
necessary material and technical resources for areas where petroleum and gas de-
posits are being developed. It is advisable to create a support transportation
network in an area out of railroad lines and hard-top motor vehicle roads. This
_ will make it possible to decrease the adduced expenditures per ton of freight by
- ten times compared to the supply system which has developQd.
In order to increase the capacity of permanent railroads it is necessary to build
sidings and loading and unloading areas and to raise the level of the mechaniza-
tion of loading and unloading work.
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The successful work of river transport in petroleum and gas extracting areas needs
an improvement. of the condition of piers, an expansion of.the_sphere Qf river trans-
port on small rivers by means of lengthening, an increase in the transshipment cap-
- acities of ports, and the construction of new and expansion of existing take-off
and landing strips at a number of deposits. 41 further increase in petroleum and
- gas extraction in the Tyumen' region depends upon the correct solution of the pro-
blems of improving the transportation system.
_ FOOTNOTES
1. A.V. Gruzdov, "Neslivayush.chiyesya merz].otnyye porody v pripolyarnykh
rayonakh Zapadnoy Sibiri," "Pr.irodnyye Usl~viya 7apadnoy Sibiri," No. 7,
_ MGU, Moscow, 1980.
2. I.D. Karyagin and V.S. Bulatov, "Razvitiye gazovoy promyshlennosti Severa
Tyumenskaya Oblast, " Moscow, "Ne~3ra," 1979.
COPYRIGHT: Vsesoyuznyy nauchno-issledovatel'skiy institut organizatsii,
upravleniya i ekonomiki neftegazovoy promyshlennosti (VNIIOENG), 1981
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