U.S.S.R. FUELS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP08S01350R000100080002-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 80
• Document Creation Date: December 21, 2016
• Document Release Date: September 8, 2008
• Sequence Number: 2
• Publication Date: February 1, 1969
• Content Type: REPORT

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TABLE OF CONTENTS
This Section 62F and Section 62P, dated June 1968, supersede Section
62, dated September 1963, copies of which should be destroyed.
Page
A. General ............. ............................... ............. 1
1. Energy position ................................................ 1
a. Production and consumption .................................. 1
b. Major developments .......................................... 1
2. Organization and plans ......................................... 3
3. Investment ..................................................... 4
4. Costs and prices ................. ............. ................ 5
1. Introduction ............................ 5
2. Coal ........................................................... 6
a. Reserves ..................................................... 6
b. Deposits ..................................................... 7
(1) The Donets basin ....................................... 7
(2) The Kuznetsk basin ..... ................................ 7
(3) The Moscow basin ..... ............................... 7
(4) The Karaganda basin ....... ............................. 8
(5) The Pechora basin ... .................................... 8
(6) Other deposits . ............. .................... 8
c. Production .................................. 9
d. Quality and preparation ....... ... .......... ........ 9
e. Foreign trade ................................................ 10
f. Transportation and distribution ................................ 11
g. Consumption ................................................. 11
h. Stocks . ...................................... 12
i. Equipment and technology . ......... ................... 12
j. Mining methods ................. ......................... 14
k. Employment ... . ..... ...... ... ................ 15
1. Investment ................................................... 16
m. Costs of coal ...
.. ..
..... ... ...... ............
n. Prices ....... .
...
.......................................
3. Coke
........... ..... ....................
a. General
... . ... ...........
b. High-temperature
coke
........ ........
(1) Production .... 17
(2) Quality . ............................................ 18
(3) Consumption ............................................ 18
(4) Foreign trade ............................................ 18
c. Low-temperature coke ........................................ 18
d. Coke oven gas ............................................... 18
4. Minor solid fuels ................................................ 19
a. General ..................................................... 19
b. Peat ......................................................... 19
c. Oil shale ..................................................... 19
d. Fuelwood ... ... ... ... ........ 20
16
17
17
17
17
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5. Fuel briquettes ................................................. 20
6. Charcoal ........................................................ 21
7. Manufactured gas .............................................. 21
C. Petroleum ........................................... 21
1. Introduction .................................................... 21
2. Development of resources and reserves ............................ 22
a. Geology ..................................................... 22
b. Resources and reserves ....................................... 23
c. Exploration .................................................. 23
(1) Prospecting work ........................................ 23
(2) Exploratory drilling ...................................... 24
d. Technology and equipment .................................... 25
3. Drilling ........................................................ 25
a. General ...................................................... 25
b. Methods and equipment ...................................... 26
(1) Turbodrill ............................................... 26
(2) Rotary drilling ........................................... 26
(3) Electrodrill .............................................. 27
(4) Vibratory drilling ........................................ 27
(5) Bits ..................................................... 27
(6) Blow-out preventers ...................................... 27
(7) Tubular goods ........................................... 27
(8) Rigs .................................................... 27
4. Crude oil production ............................................ 27
a. Output and plans ............................................ 27
b. Methods of production ....................................... 29
c. Means for increasing output ................................... 29
d. Offshore production ........................................... 30
e. New crude oil discoveries and their significance .................. 31
f. Production costs .............................................. 31
5. Refining .. ..................................................... 31
a. Capacity ..................................................... 31
b. Location of capacity ......................................... 32
c. Refinery construction practices ................................. 32
d. Refinery equipment ........................................... 33
e. Output of products ............................................ 33
f. Quality of crude oils .......................................... 34
g. Synthetic oil facilities ......................................... 34
h. Plans for expansion of capacity ................................. 34
6. Transportation .................................................. 35
a. General . ........... ........................................ 35
b. Pipelines .................................................... 35
c. Other means of transport ...................................... 36
7. Foreign trade .................................................. 36
a. Exports ...................................................... 36
b. Imports ...................................................... 36
8. Consumption ................................................... 37
a. By type of product .......................................... 37
b. By consuming sector .......................................... 37
9. Storage ........................................................ 37
a. Crude oil .................................................... 37
b. Petroleum products ........................................... 38
10. Natural gas and natural gas liquids .............................. 38
a. Natural gas .................................................. 38
(1) Production .............................................. 38
(2) Costs of production ................................ ..... 39
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(3) Transportation ........................................... 40
(4) Consumption ............................................ 41
(5) Foreign trade ............................................ 42
(6) Storage ................................................. 42
b. Natural gas liquids ........................................... 43
E. Comments on principal sources ...................................... 69
Page
Fig. 1
Production and consumption of primary energy (table) ..........
2
Fig. 2
Organizational features of the fuels industries (chart) ............
3
Fig. 3
Production goals for major fuels (table) ........................
4
Fig. 4
Investment in major fuels industries (table) ....................
4
Fig. 5
Underground coal mine, Kuznetsk Basin (photo) ................
8
Fig. 6
Estimated consumption of coal (table) .........................
12
Fig. 7
Soviet PK-8 heading machine (photo) .........................
14
Fig. 8
Cutter heads of longwall mining unit (photo) ..................
14
Fig. 9
Support system of longwall mining unit (photo) .................
14
Fig. 10
Inventory and utilization of coal-mining equipment (table) .......
15
Fig. 11
Average labor productivity in coal mines (table) ................
16
Fig. 12
Postwar investment in the coal industry (table) .................
16
Fig. 13
Production of fuel peat by area (table) ........................
19
Fig. 14
Production of oil shale (table) ...............................
20
Fig. 15
Oil and gas reserves and ratio to production (table) .............
23
Fig. 16
Number of drilling rigs in use (table) ..........................
26
Fig. 17
Production of crude oil (table) ......................:.........
28
Fig. 18
Output of crude oil, by producing region (table) ................
28
Fig. 19
Rig floor operations in Krasnodar Kray (photo) .................
29
Fig. 20
Pumping oil well in Tuymazy oilfield (photo) ...................
29
Fig. 21
Flowing oil well in Tuymazy oilfield (photo) ...................
29
Fig. 22
Desalting unit at Tuymazy oilfield (photo) .....................
29
Fig. 23
Ostrov Artem offshore oil wells (photo) ........................
30
Fig. 24
Gas separation unit, Ostrov Artem offshore oilfield (photo) .......
31
Fig. 25
Polotsk refinery (photo) ............. ........................
32
Fig. 26
Postwar development of pipeline transport (table) ...............
35
Fig. 27
Exports of petroleum (table) ....... ... ................
36
Fig. 28
Supply and demand for petroleum products (table) ..............
37
Fig. 29
Petroleum consumption, by consuming sector (table) ............
37
Fig. 30
Prefabricated petroleum storage tanks (photo) ..................
38
Fig. 31
Planned and reported production of natural gas (table) ..........
39
Fig. 32
Production of associated and non-associated gas (table) ..........
39
Fig. 33
Drilling rig, natural gas well in Kalmyk A.S.S.R. (photo) .........
39
Fig. 34
Laying pipe for Central Asia-Moscow gas pipeline (photo) .......
41
Fig. 35
Investment and steel requirements for gas pipelines (table) ......
41
Fig. 36
Costs of pipeline transport of natural gas (table) ................
42
Fig. 37
Liquefied petroleum gas storage tanks (photo) ..................
43
Fig. 38
Coal reserves (table) .........................................
44
Fig. 39
Production of coal by regions and basins (table) .................
50
Fig. 40
Production of coal by type (table) ............................
50
Fig. 41
Production of coking coal by basins (table) ....................
51
Fig. 42
Classification and characteristics of Soviet coals (table) ..........
52
Fig. 43
Size classification of Soviet coals (table) .......................
52
Fig. 44
Mechanized coal preparation (table)
53
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Fig. 45 Exports of coal (table) ....................................... 53
Fig. 46 Imports of coal and coke (table) .............................. 54
Fig. 47 Exports of coke (table) ....................................... 54
Fig. 48 Investment in exploratory surveys and wells (table) ............. 55
Fig. 49 Exploratory and development drilling (table) .................. 55
Fig. 50 Oil and gas production, by region and depth (table) ............ 55
Fig. 51 Production of crude oil, by type of wells (table) ................ 55
Fig. 52 Regional costs of oil production and oil reserves (table) ......... 56
Fig. 53 Capacities of major refineries (table) .......................... 56
Fig. 54 Secondary refinery capacity (table) ........................... 58
Fig. 55 Area distribution of primary distillation capacity (table) ......... 58
Fig. 56 Soviet trade in refinery equipment (table) ...................... 59
Fig. 57 Estimated output of petroleum products (table) ................ 60
Fig. 58 Transport of petroleum, by type of carrier (table) ................ 60
Fig. 59 Major crude oil and petroleum product pipelines (table) .......... 61
Fig. 60 Major pipelines scheduled for completion (table) ............... 61
Fig. 61 Cost of transporting oil via pipelines (table) ................... 62
Fig. 62 Transport of oil by rail and inland waterway (table) ............. 62
Fig. 63 Soviet foreign trade in petroleum (table) ....................... 62
Fig. 64 Petroleum consumption, by products (table) ................... 63
Fig. 65 Production of nonassociated natural gas, by region (table) ....... 63
Fig. 66 Producing natural gas wells (table) ........................... 63
Fig. 67 Planned investment in natural gas industry (table) .............. 64
Fig. 68 Major natural gas pipelines (table) ............................ 64
Fig. 69 Consumption of natural gas, by consuming sector (table) ........ 65
Fig. 70 Consumption of natural gas, by economic region (table) ......... 65
Fig. 71 Underground storage facilities for natural gas (table) ........... 66
Fig. 72 Natural gasoline plants (table) ................................ 66
Fig. 73 Consumption of liquefied petroleum gases (table) ............... 67
Fig. 74 Coal resources (map) ................................. follows 69
Fig. 75 Major petroleum resources and production (map) ............... do
Fig. 76 Refineries and refining capacity (map) .......................... do
Fig. 77 Major oil and gas pipelines (map) ............................ do
This section was prepared for the NIS by the
Central Intelligence Agency.
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Fuels
A. General
1. Energy position
a. PRODUCTION AND CONSUMPTION - The U.S.S.R.
ranks second among the nations of the world in the
total production and consumption of primary energy,'
being surpassed only by the United States. In 1967
the production of primary energy in the U.S.S.R. was
equivalent to about 1.1 billion tons 2 of standard fuel.3
Of that amount, deducting net exports, approximately
1 billion tons were available for national consumption.
The principal sources of primary energy-coal, oil,
and natural gas-accounted for about 90% of the total
available for consumption in 1967. In the United States,
the estimated consumption of primary energy from
these major sources in 1967 was about 2.1 billion tons
of standard fuel. The per capita consumption of energy
in 1967 was about 11 tons of standard fuel in the
United States and only about 4 tons in the U.S.S.R.
The estimated consumption of primary energy from
principal sources in 1967 by the U.S.S.R. and the
United States is shown below, in million tons of stand-
ard fuel and in percent:
U.S.S.R.
UNITED STATES
QUANTITY
PERCENT
QUANTITY
PERCENT
Coal
416
46
480
23
Oil
301
33
824
39
Natural
gas
186
21
792
38
902
100
2,096
100
During 1959-67, production of primary energy in
the U.S.S.R. rose about 76%, or at an average annual
rate of 6.5%. During this period significant changes
occurred in the contribution to total energy output
by the major fuels-coal, oil, and natural gas. The
share of natural gas in primary energy production in-
creased from about 5% in 1958 to almost 17% in 1967,
and that of oil rose from about 25% to almost 37%
during the same years. The share of coal, on the other
hand, declined from nearly 57% in 1958 to about
38% in 1967. Coal lost its predominant position in
1961 when for the first time it furnished less than half
of total energy output. Details of production and ap-
' Includes energy derived from coal, crude oil, natural gas,
hydroelectric power, nuclear power, peat, oil shale, and fuel-
wood.
2 Tonnages are reported in metric tons throughout this section.
Standard fuel is defined as containing 7,000 kilocalories per
kilogram.
parent consumption of primary energy in the U.S.S.R.
in 1958 and 1967 are shown in Figure 1. 25X1
The U.S.S.R. is the world's leading producer and
consumer of peat, oil shale, and fuelwood, but these
low-grade fuels contributed less than 6% of total
energy produced and consumed in 1967. The com-
bined contribution of hydroelectric and nuclear power
to total primary energy output and use was less than
4% in 1967.
b. MAJOR DEVELOPMENTS - The most important
development in the fuels industries of the U.S.S.R.
during 1959-67 has been the increasing importance
of petroleum and the diminishing role of solid fuels
in the energy balance. The petroleum-solid fuels rela-
tionship throughout this period has been analagous
in most respects to that which prevailed in the United
States in the 1940's when coal was gradually sup-
planted by petroleum as the major source of energy.
It is likely that in the U.S.S.R., as has happened in
the United States, coal eventually may be used pri-
marily for making coke and for generating electric
power, whereas petroleum will satisfy the bulk of the
fuel requirements. This trend continued in 1968 when
594 million tons of coal,'309 million tons of crude oil,
and 171 billion cubic meters of natural gas were pro-
duced.
Several changes in economic policy have influenced
developments in the coal industry since 1958. A major
change called for a reduction in investment during
the early 1960's as it was anticipated that prolific
deposits of oil and gas could be exploited rapidly and
that these fuels would replace the more expensive
solid fuels. The shift to petroleum, however, did not
take place as quickly as planned and as a result in-
creased investments were authorized during 1964-67
for long-term coal mining projects. A major problem
exists in coal mining because of the rising costs for
adding new production capacity and for replacing
older and simpler mining equipment with more mod-
ern items. The recent change in the pricing system has
resulted in significant increases in coal prices in an
attempt to operate the industry on a profitable basis
and to eliminate the large subsidies of the past.
The Soviet petroleum industry not only has met and
overfulfilled plans for the production of crude oil
during 1959-67, but also has provided a steadily rising
surplus of oil for export, much of which has been
sold in Free World markets. During 1965-67 oil ex-
ported to the West was the largest single earner of
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foreign exchange, used to buy Western equipment
and technology for developing Soviet industry. The
U.S.S.R. also provides about 85% of the total oil sup-
plies of the Communist countries of Eastern Europe,
excluding Rumania. The major tasks confronting the
oil industry are: development of extensive crude oil
deposits in remote areas of Siberia; and construction
of secondary refining facilities to vary the mix and
improve the quality of petroleum products.
Production and consumption of natural gas during
the past 9 years rose faster than production and con-
sumption of energy from any other source. Despite the
almost five-fold increase in output during this period,
most of the annual goals were not fulfilled because of
the failure to produce and/or install equipment for
transport and consumption of gas. These problems re-
cently led to downward revision of the production
goal for 1970.
2. Organization and plan
In 1965 a system of centralized control by industrial
ministries was instituted in place of the relatively de-
centralized industrial administration initiated in 1957.
The organization of industry reverted almost to that
which existed before 1957. The sovnarkhozy or Coun-
cils of National Economy, which had operated each
of the industrial and construction enterprises within
specified geographic domains since 1957, were replaced
by 23 industrial ministries. Included in the organiza-
tional changes were increased authority for manage-
ment at the enterprise level and a reduction in the
number of the plan targets centrally assigned to the
enterprises.
Of the major fuels industries in the U.S.S.R. only
the gas industry is administered by an All-Union Min-
istry, which directly controls the operational units
without intervening levels of administration at the
Republic level. Other segments of the fuels indus-
tries-coal and oil-are controlled by Union Republic
Ministries with administrative elements interposed be-
tween the national ministries and the various operat-
ing enterprises. The most important administrative
organs in the coal industry at the Republic level are
the combines and trusts of the R.S.F.S.R., the Ministry
of the Coal Industry of the Ukrainian S.S.R., and the
Administration of the Coal Industry of the Kazakh
S.S.R.
Responsibility for guiding the oil industry is shared
by the Union Republic Ministries of the Petroleum
Extraction Industry and of the Petroleum Refining
and Petrochemical Industry. The Ministry of Petro-
leum Extraction is responsible for all drilling 025X1
tions, exploratory and developmental, for both oil and
gas industries. On the other hand, the Ministry of the
Gas Industry controls the equipping of new fields,
carrying out secondary recovery programs, and con-
structing pipelines and storage facilities for both oil
and gas. The operation of petroleum refineries, the
output of petroleum products, and the production of
chemicals from petroleum feedstocks (including all
rubber and rubber processing) are controlled by the
Ministry of Petroleum Refining and Petrochemical In-
dustry. Basic organizational features of the fuels in-
dustries and related industries within the govern-
mental structure of the U.S.S.R. are shown in Figure 2.
COUNCIL OF MINISTERS
U.S.S.R.
r-
State Committee for
Science and Technology
State Committee for
Material and Technical
Supply
Gosplan Gosstroy C.E.M.A.
Commission
r-
UNION-REPUBLIC
MINISTRIES
I
ALL-UNION
MINISTRIES
State Committee
for Prices
STATE COMMITTEES COMMITTEES
and Specialized Agencies and Specialized Agencies
under the Attached to the
Council of Ministers Council of Ministers
Industrial: Construction:
Defense industry:
State Committee:
Committee
? Coal Industry
? Industrial
? Aircraft Industry
? Labor and Wages
? Inventions and Discoveries
? Petroleum Extraction Industry
and
fi
i
? P
l
R
Construction
Other Industry:
e Vocation-Tedmical
Education
? Use of Atomic Energy
d
n
ng
etro
eum
e
Petrochemical Industry
Noneconomic:
? Gas Industry
Spe
cialize
Agencies:
and Electrification
? Energ
? Chemical and P
etroleum
Specialized Agencies
?
Vneshtorgbonk
y
? Nonferrous Metallurgy
? Defense
? Finance
Machine-Buil
ding
? Gosbank
?
State Material Reserve
Nonindustrial:
? Civil Aviation
? Foreign Trade
? Railways
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FIGURE 3. PRODUCTION GOALS FOR MAJOR FUELS
Coal* .............. Million tons .............
Crude oil ........... .... do ..................
Natural gas**....... Billion cubic meters .......
1969 1 1970
595.3 665-675
900
1,200
326.5 350 450
-470 60
0-620
185.8 215 340
-360 57
0-720
*Subsequent statements by high officials of the coal industry indicate that the 1970 goal may have
been revised downward to 622.5 million tons and that of 1975 to 700 million tons. If these changes
are confirmed, the 1980 goal also will probably be revised.
**Including minor amounts of manufactured gas.
The current Five Year Plan (1966-70) calls for
vigorous development of the major fuels industries in
the U.S.S.R., including a preferential policy for growth
in output of oil and gas and for increasing their
share in the national supply of primary energy. Major
resources of fuels have been discovered east of the
Ural Mountains and production in this area will be-
come increasingly important. It is planned that by
1970 the regions east of the Urals will supply 45% of
the total output of coal, about one-third of the natural
gas and one-sixth of the crude oil produced in the
U.S.S.R. By 1980 the corresponding percentages of
national output to be supplied by these regions are:
50% for coal, 65% for natural gas, and up to 40%
for crude oil. Available data on planned output of the
major fuels in the U.S.S.R. for 1969, 1970, 1975, and
1980 are shown in Figure 3.
Coal industry plans call for greater emphasis on the
production of coking coal for metallurgical uses, and
of low-cost strip mined coal, chiefly for the generation
of electric power. Underground mines will become
much larger in size and are to be supplied with the
most modern equipment. The labor force of individual
mines will be concentrated at fewer and wider work-
ing faces. Increases in production are to be ac-
complished mainly by increasing labor productivity
through intensive mechanization, with an ultimate goal
of complete automation. More effort will be devoted
to reconstructing and reequipping existing under-
ground mines and less on constructing new mines.
Expected increases in production from strip mining
will come from gigantic open pits now in the initial
stage of development or planned for 1970-75.
Petroleum industry plans call for expanding the
production base in the eastern regions by locating
new reserves of oil and gas. This is to be accomplished
by improving exploration capabilities through use of
advanced technology, particularly in seismic work and
deep-drilling. Shortages of equipment at the well-
head are to be overcome by an improved supply sys-
tem. The gas and oil pipeline network will be ex-
panded with the aim of considerably reducing the
transport of oil by rail.
A rapid improvement in the technical level of refin-
ing equipment is called for. Emphasis will be on
secondary refining to increase the variety of the prod-
uct mix and to upgrade product quality. The sulfur
content of diesel fuels is to be lowered and the octane
rating of motor gasolines is to be increased.
Figure 4 shows estimated and planned productive
investment 4 in the major fuels industries of the
U.S.S.R. for periods from 1952 through 1970.
During 1959-65, productive investment in the coal,
oil, and natural gas industries of the U.S.S.R. was
planned at about 25 billion rubles.5 Of that total about
13 billion rubles were planned for the oil industry,
including almost 4 billion for oil refining and petro-
chemicals and 2 billion for construction of oil and gas
pipelines; about 8 billion rubles for the coal industry;
and approximately 4 billion for the gas industry. Actual
investments in these industries during this seven-year
period were estimated at 22.5 billion rubles, or about
90% of plan. Investment in these fuels industries rep-
resented about 22% of total investment in industry of
all types. Compared to the previous seven-year period
(1952-58), investment in the petroleum industry dur-
ing 1959-65 more than doubled while that for the coal
4 Excludes investment not directly associated with production
such as investment in housing for workers, schools, etc.
6 About US$28 billion at the official rate of exchange (1
ruble = $1.11).
FIGURE 4. ESTIMATED AND PLANNED PRODUC-
TIVE INVESTMENT IN THE MAJOR FUELS
INDUSTRIES
1959-65
1961-65
1966-70
PLAN
Oil ...............
Oil refining and pe-
*6.2 5.9
4.8
3.6
trochemicals ... ..
..... 3.7
3.3
6.6
Total oil ........
6.2 9.6
8.1
10.2
Gas ..............
Pipeline construc-
1.0 3.0
2.2
5.9
tion .......... ..
..... **2.7
**2.1
2.3
Total petroleum.
7.2 15.3
12.4
18.4
Coal ..............
6.1 7.2
5.2
7.2
*Includes oil extraction, refining
and petrochemicals,
storage, and pipeline construction.
**Includes relatively minor but unknown amounts for
water pipelines.
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industry rose only about 18%, indicating the relative
emphasis placed on expansion of production and dis-
tribution of oil and gas.
In the course of the present Five Year Plan
(1966-70), total productive investment in these major
fuels industries is to reach almost 26 billion rubles,
and again will represent about 22% of total industrial
investment. Although there probably will be little or
no change in the total share of these fuels industries
in national industrial investment compared to the
1961-65 plan period, some noticeable shifts in alloca-
tions to individual sectors of these industries is ap-
parent. For example, planned investments in the oil
refining and petrochemicals industry are to be double
those actually allocated during 1961-65, as a result
of a greater effort in the construction of high-cost
petrochemical plants and of secondary oil refining
facilities. Productive investment in the gas industry,
excluding pipeline construction, is planned to rise by
168% compared to the 1961-65 plan period. This
represents an attempt to compensate for the past
record of shortfalls in planned output.
4. Costs and prices
In the U.S.S.R. oil and gas are providing an increas-
ingly larger share of the output of primary energy
because, for most uses, they are cleaner, easier to
transport and use, more efficient, and cheaper than
coal. In some areas remote from producing centers of
the major fuels, lower quality local fuels, such as peat
and fuelwood, are used to avoid transport costs. In
certain industrial processes, such as making coke from
coal, specific primary fuels are required regardless of
their relative cost.
During 1959-65 the average cost of 1 ton of standard
fuel in the Soviet Union declined by 24%. This
achievement was due primarily to the increased use
of lower cost petroleum which more than offset the
effect of increased coal costs. The average cost of pro-
duction of natural gas declined almost 42% and that
of crude oil was reduced about 17% while the average
production cost in the coal industry rose more than
15% during this seven-year period.
The estimated average cost of production of the
major fuels in the U.S.S.R. in 1966, in rubles per
natural unit and rubles per ton of standard fuel, are
shown as follows:
RUBLES/TON
RUBLES/TON OF
STANDARD FUEL
Coal
8.69
12.1
Crude oil
2.76
1.9
Natural gas
*0.45
0.4
As shown in the tabulation, the average cost per ton
of standard fuel for natural gas was only 3% of that
of coal and the average cost of production of crude
oil was 16% of the cost of coal. These costs, however,
do not include expenditures for geological and ex-
ploratory work. Thus the true average costs are under-
stated to a greater extent for production of oil and
gas than for coal, as geological-exploratory costs for
these fuels normally are much higher than those for
coal.
The price reforms instituted in 1967 have changed
costs of fuel production, but the full extent of the
changes is unknown. The average cost of production
in the coal industry for the first 3 quarters of 1967
was reported as 12.24 rubles per ton, an increase of
about 41% over costs in 1966. The increase was at-
tributed mainly to the higher cost of materials and to
the inclusion of interest charges for capital. As far as
is known, geological-exploratory costs and rent pay-
ments were not included in the new cost of produc-
tion for coal. In the petroleum industry, however,
geological-exploratory costs and rent payments be-
came chargeable to the cost of production, as are
interest on capital and the rise in the cost of mate-
rials. In the oil industry the new chargeable cost of
geological-exploration work varies according to region
from 0.35 ruble to 3.8 rubles per ton of crude oil, and
rent payments range from 0.7 ruble to 14 ruble25X1
ton of crude oil. Corresponding charges in the natural
gas industry are 1 ruble per 1,000 cubic meters for
exploratory work and 2.15 rubles to 12 rubles per
1,000 cubic meters for rent. The new average costs of
production of crude oil and natural gas are not avail-
able at this time.
The greatest change of the new reforms has been in
the price system for fuels. Prior to the reforms the
coal industry was operating at a substantial annual
loss. One intent of the reforms was to make it profit-
able. In line with this aim, the average wholesale price
of coal was raised 78%, including an increase of 93%
for coking coal and 70% for general purpose coal.
Retail prices for household users, however, were not
increased. Although about 30% to 40% of the total
number of coal mines are still operating at a loss, the
industry as a whole now is showing a profit of 8%
to 9%.
The Soviet petroleum industry, which has always
been profitable, is even more so since the price re-
forms. Total profits in oil extraction, oil processing,
and the gas industries rose from 359 million rubles in
1958 to 957 million rubles in 1965 and accounted for
about 4% of total industrial profits during this period.
After the reforms the average increases in the whole-
sale prices of crude oil and natural gas rose 130%
and 51%, respectively. As in the coal industry, retail
prices were not increased, and the principal effect of
the price changes has been to raise costs and profits
in the industrial sector of the economy.
B. Solid fuels
1. Introduction (C)
The U.S.S.R. is the world's foremost producer of
solid fuels, ranking first in the output of coal, coke,
peat (used as fuel), and fuelwood; second in the ex-
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traction of oil shale; and third in the production of fuel
briquettes. In 1967 the U.S.S.R. produced 595 million
tons of coal, 70 million tons of coke, 60 million tons
of fuel peat, about 22 million tons of oil shale, 96
million cubic meters of fuelwood, and about 10 mil-
lion tons of fuel briquettes. Coal, the major solid fuel,
accounted for about 42% of the apparent consump-
tion of primary energy in the U.S.S.R. in 1967. Pre-
liminary reports for 1968 indicate that 594 million tons
of coal were mined.
The Soviet Union ranks third among the countries of
the world as an exporter of coal, and second as an
exporter of coke. Net exports in 1967 amounted to
14.5 million tons of coal and 3 million tons of coke.
Soviet coal is vital to the Communist countries of East-
ern Europe, both for fuel and for making metallurgi-
cal coke. Approximately 65% of the coal and coke
exported by the U.S.S.R. went to other Communist
countries and the remainder to non-Communist coun-
tries in 1967.
The U.S.S.R. claims to have the largest coal reserves
in the world, about 8.7 trillion tons. However, only
3% of this tremendous total is considered to be proved
reserves, whereas 86% is classified as possible. More
than 90% of the total reserves are located east of the
Urals, far from the more heavily populated and indus-
trialized western areas. The eastern coals are only fair
to average in quality; about two-thirds of these re-
serves are classified as low-rank bituminous and brown
coals.
The western coal deposits are generally of better
quality, but even they have deficiencies. For example,
coking coal produced in the Donets basin, the major
source of such coal, has a sulfur content of more than
2%, which necessitates blending with higher quality
coal prior to use in the metallurgical industry. The
western deposits also are more costly to mine due to
difficult geological conditions. These factors have made
it feasible in certain areas to exploit cheap local
sources of fuel such as peat and oil shale.
Prior to 1967 the price of most coal was deliberately
set below the cost of production, and the necessary
state subsidy to the industry grew year by year. In
1967 as a result of a general price reform the average
wholesale price of coal was raised by 78% and the
average cost of production was increased by more
than 40%. The net effect of these changes was to make
the coal industry profitable.
Although coal is being replaced as a fuel by oil and
gas in various industrial sectors, present plans call for
a continuing growth of coal production. An ambitious
program of reequipping the industry with modern ma-
chinery and equipment has been underway for several
years. The new equipment is to raise labor produc-
tivity and to reduce labor cost. The plans for expan-
sion are aimed chiefly at increasing the output of
coking coal and of low-cost strip-mined coal in the
eastern regions.
2. (UNC
a. RESERVES -According to official estimates,
completed in 1956, the total (actual, probable, and
possible) reserves of coal in the U.S.S.R. amounted to
8.67 trillion tons. In a more realistic appraisal made in
1958, based on the permissible minimum seam thick-
ness and maximum ash content standards of the coal
industry, total reserves of coal were estimated at 7.76
trillion tons. Comparison with the total reserves of
other countries may be misleading because of differ-
ences in standards; nevertheless, the U.S.S.R. is one
of the world's major possessors of coal reserves. Prin-
cipal Soviet coal basins and deposits are shown on
Figure 74.
Reserves are divided into groups by degree of ex-
ploration, by depth, and by type of coal (degree of
metamorphism). Significantly, actual and probable
reserves comprise only 3% and 11%, respectively, of
the total reserves. Lack of sufficiently reliable informa-
tion with respect to the deeper and more remote de-
posits accounts for the high proportion (86%) in the
category of possible reserves. It should also be noted
that the data do not include numerous coal-bearing
areas, such as those found in the northeast of the
U.S.S.R. and parts of Western Siberia, and only partly
include reserves of such vast coal regions as the
Lena and Tungus basins in Eastern Siberia.
The 1956 estimate of reserves included coal to a
depth of 1,800 meters and in seams which exceed 0.4
meter in thickness for hard coals (anthracite and bitu-
minous) and 0.5 meter for brown coals. Moreover,
coals with an ash content as high as 50% were in-
cluded. There were also certain exceptions in apply-
ing the standards, such as in the central part of the
Donets basin where seams of 0.3 meter thickness are
included and in the Moscow basin where coals with an
ash content of up to 60% are included. Over half the
reserves are at depths exceeding 600 meters and 20%
are at depths between 1,200 and 1,800 meters. It is
only within the Donets and Kizel basins that de-
velopment at depths beyond 1,000 meters has been
started. For the majority of other basins and coal
fields of interest, maximum current operating depths
are no more than 300 to 600 meters. The official esti-
mates of coal reserves as of 1957 are tabulated in
Figure 38.
Coal is classified in several ways in the U.S.S.R.
In Figure 38, the classification is divided into 6 groups,
based on the degree of metamorphism. The 6 groups
and their respective shares in the total reserves are
as follows (in percent) :
Anthracite and lean coals (A&T) .... ...... 12.5
Bituminous coals (PS, K and PZh) .... ..... 22.5
Bituminous, gas coals (G) 9.5
Bituminous, long-flame coals (D) .. ........ 15.3
Transition coals, from hard to brown (DB) . 5.5
Brown coals (B) ......................... 34.7
Total 100.0
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Coals suitable for coking are included in groups
PS, K, PZh and G. A considerable part of the coal
reserves in these two groups, however, is unacceptable
for making metallurgical coke because of one or more
unfavorable characteristics-high ash content, high
sulfur content, resistance to cleaning, and weakly cak-
ing or non-caking properties.
Although over-all reserves of coal are tremendous
and deposits are scattered throughout the U.S.S.R.,
the regions east of the Urals have 93% of the total
reserves, of which 55% are located north of 60? north
latitude in Krasnoyarskiy Kray and Yakutskaya
A.S.S.R. In the western (European) regions of the
country and the Urals, deposits of better quality coal
are limited almost entirely to the Donets, Pechora, and
Kizel basins. Production from these three basins has
not satisfied requirements and as a result the western
regions consume large quantities of low-grade fuels
such as brown coal, peat, and oil shale. Considerable
coal is also imported from the Karaganda and Kuz-
netsk basins to the east. Coal from these eastern
sources must be transported long distances-up to
3,700 kilometers-to serve major consuming centers.
The blast furnaces of the Urals iron and steel industry,
for example, are almost entirely dependent on coke
made from coal hauled 1,100 kilometers from Kara-
ganda and more than 2,000 kilometers from the Kuz-
netsk basin.
b. DEPOSITS-Five basins provided about two-
thirds of the total coal produced in the U.S.S.R. in
1966. The major characteristics of these basins are
discussed in the succeeding paragraphs.
(1) The Donets basin-The Donets basin is
located in the Donetskaya, Luganskaya and Dnepro-
petrovskaya Oblasts of the eastern Ukraine and Rostov-
skaya Oblast' of the R.S.F.S.R. The basin as presently
delineated, extends 600 kilometers from east to west,
varies in width from 70 to 170 kilometers, and covers
an area of about 60,000 square kilometers. The dis-
covery of large coal-bearing areas west, east, and
north of the old boundaries of the basin are mainly
responsible for an increase in the estimate of reserves
from 89 billion tons in 1937 to about 241 billion tons
in 1956. As of 1956, anthracite coals constituted 39%
of the reserves and gas type bituminous coals ac-
counted for 27%. Only 13% of the reserves were of
the varieties-PS, K, and PZh-most suitable for cok-
ing purposes. Actually, there is a shortage of low-
sulphur, low-volatile bituminous coal of type PS
which is needed to blend with other types for coking.
About 105 of the 250 coal seams found in the basin
are considered minable, with a thickness of more than
0.45 meter. The average thickness of all seams being
worked is 0.7 meter, but most of the production comes
from seams of about 1 meter in thickness. The seams
are highly folded with a general inclination of 10 to
20 degrees, but in some mines seams with a pitch of
more than 50 degrees are worked. More than half of
all the mines are working thin seams at depths of 300
to 600 meters. Approximately 13% of all the mines
are working at depths of more than 600 meters and
some mines have reached working depths of 1,000
to 1,100 meters. Donets mines are relatively dry, but
are very gassy. In about one-third of the seams being
worked the emission of ethane is more than 15 cubic
meters per ton of coal mined.
(2) The Kuznetsk basin - The Kuznetsk basin,
with reserves estimated at 900 billion tons, is one of
the largest coal basins in the world. It is located in
Western Siberia, almost entirely within the limits of
Kemerovskaya Oblast', and covers an area of 26,700
square kilometers. The basin is about 300 kilometers
long northwest-southeast and about 100 kilometers
wide. The region is in the basins of the Tom' and
Inya rivers, tributaries of the Ob' river, and is largely
covered by forests.
Kuznetsk coals are characterized by low ash and
sulfur content and are generally higher in quality
than any other coals found in the U.S.S.R. Although
more than a third of the reserves are suitable for cok-
ing, there is a relative scarcity of one type (PZh)
needed for blending, a lack which represents a serious
problem.
There are about 85 workable seams, including some
that attain a thickness of from 8 to 18 meters. The
average thickness of the seams being mined was about
2.1 meters and about 22% of the output was from
seams exceeding 6.5 meters in thickness in recent
years. However, approximately half of the production
was from steeply pitching seams (as much as 70 de-
grees), located in the Prokop'yevsk-Kiselevsk coking
coal region. In the southern part of the Kuzbass, some
thick seams have been found near the surface in
the Tom-Usinsk district which can be strip mined on
a large scale. Figure 5 shows a typical underground
mine in the Kuznetsk basin.
(3) The Moscow basin - The Moscow basin
extends over an area of about 120,000 square kilo-
meters and contains 25 to 35 lenticular beds of brown
coal, interspersed in some places with thin lenses of
higher grade cannel or boghead coal. The quality of
the brown coal is impaired by a high content of both
moisture and ash. Reserves are estimated at 24 billion
tons. Practically all of the mines are in the southern
wing of the basin which covers an area of 70,000
square kilometers and is located south of the Smolensk-
Gzhatsk railroad line. The seams, where mined, aver-
age about 2.1 to 2.3 meters in thickness, although they
may attain a thickness of 4 meters locally. They lie
almost horizontally under a shallow cover of 25 to
70 meters. Underground mining is hampered by un-
stable roof conditions, "karst holes," and considerable
ground water. An average of 7 cubic meters of water
was pumped per ton of coal mined. Some strip mining
has been started on shallow coal seams in Kimovskiy
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and Bogoroditskiy Rayons of Tul'skaya Oblast' and
in Gorlovskiy Rayon of Ryasan'skaya Oblast'.
(4) The Karaganda basin-The Karaganda
basin, located in east central Kazakhstan, has a coal-
bearing area of 2,000 square kilometers and ranks
third in the U.S.S.R. as a producer of hard coal. Re-
serves estimated at 51 billion tons, consist almost en-
tirely of bituminous coals suitable for making coke.
About a fourth of the output, however, consists of
brown coal from a strip mine exploiting a thick seam
in the Mikhaylov deposit. There are 58 bituminous
seams in the basin, ranging from 0.5 to 8 meters in
thickness. About one-third of the shaft mines worked
seams at depths of 50 to 200 meters while the other
two-thirds operated at depths of less than 300 meters.
Because of their high content of impurities, most of
the Karaganda coals require intensive cleaning before
they can be used for coking. The Churub Nura and
Tenlek areas have large reserves of coking coal which
are relatively low in ash and sulfur content.
(5) The Pechora basin - The Pechora basin,
despite its remoteness and the severe climate, has been
developed into one of the major sources of coal in
the U.S.S.R. Among the factors contributing to its
development were the completion of the railroad to
Vorkuta in 1941, the proximity to European consuming
centers, and the relatively good quality of its coals.
About a third of the reserves are suitable for coking
(PS, K, and PZh). The total area of the basin is about
120,000 square kilometers and reserves are estimated
at about 344 billion tons. The coal seams which
are worked range from 0.5 to 4.5 meters in thickness
and their pitch is usually between 15 and 40 degrees.
The bulk of the coal is mined at Vorkuta, but some
coal is also mined at Inta, Kozhim, Yedzhid-Kyryin-
skoye, and Khal'mer-yu.
(6) Other deposits - Present policies call for
greater emphasis on the strip mining of coal because
of its low cost compared to underground mining. The
bulk of the reserves suitable for stripping, however, are
located in the Eastern Regions and are mostly low
quality coals. Due to their low quality, these coals
cannot be shipped economically for any great distance
and plans have been made to utilize them locally
for the generation of electric power. The electric pow-
er, in turn, is to be transmitted to the distant European
consumption centers. Attention has been focused on
two deposits, the Kansk-Achinsk basin in Eastern
Siberia and the Ekibastuz deposit in Kazakh S.S.R.
The Kansk-Achinsk basin, located along the Trans-
Siberian Railroad from the city of Mariinsk to Tayshet,
is 700 kilometers long and from 100 to 300 kilometers
wide. Total possible reserves were estimated at 1.2
trillion tons, including 100 billion tons that can be
strip mined. The coal is better-than-average brown
coal with about 50% volatile matter, a moisture con-
tent of 33% to 38%, a calorific value ranging as high
as 3,800 kilocalories per kilogram, and an ash content
of 4.7% to 9.5%. Seams average from 12 meters
to 15 meters in thickness while the overburden ratio
for strippable coal varies from 0.8 to 6 cubic meters
of cover per ton of coal.
The Ekibastuz deposit is located in Pavlodarskaya
Oblast' in the Kazakh S.S.R. The deposit is in a deep
basin about 25 kilometers long and 9 kilometers wide.
Total possible reserves were estimated at 12.2 billion
tons in 1956. The 1958 evaluation based on the stan-
dards of the mining industry cut the estimate of
total reserves to 10.7 billion tons, probably because of
poor quality characteristics, but all of the coal is
considered strippable. There are three major seams
with an average thickness of 118 to 120 meters where
they merge into each other. The seams consist of in-
termixed layers of coal and rock of variable thick-
nesses. Because of the rock, ash content can run as
high as 45% to 50%. The coal is low grade bitumi-
nous, type SS (weakly caking), and, as shipped, has
8% moisture, a low sulfur content, about 40% ash
content, and a calorific value of about 4,000 kilocal-
ories per kilogram. An additional bad characteristic
is the frequent fluctuation in ash content; variations of
as much as 20% have been reported.
The planned program for accelerating strip mined
production at Kansk-Achinsk and Ekibastuz and using
the coal for generating electric power has been ham-
pered by several factors. Among these are the lack
of modern stripping machinery and special combustion
and handling equipment which can utilize low-quality
coal efficiently. In 1966 and 1967 local electric power-
plants rejected large amounts of coal from both basins
because of poor quality and thus prevented fulfillment
of the mines' production plans. Also the proposed
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giant-sized powerplants and the transmission lines to
carry electric power have not yet been constructed.
In early 1968, it was stated by a member of GOSPLAN
that the rate of development of the Kansk-Achinsk
basin could not be raised until the problem of trans-
mitting electric power to the European regions by
ultra-high voltage lines had been solved.
C. PRODUCTION - Although the fuels policy of the
U.S.S.R. emphasizes increasing the share of natural
gas and crude oil in the fuel balance, coal will con-
tinue to play an important role. Despite its diminish-
ing share in the total output of fuels, the production
of coal will increase, although at a slower rate than
contemplated in previous plans. From World War II
through 1958 the output of coal increased annually by
an average of 26.7 million tons a year. The Seven Year
Plan (1959-65) provided for a growth of only 16.8
million tons per year.
In 1958, the U.S.S.R. attained first place among
the coal producing nations of the world, displacing
the United States, which had held this position since
1899. In 1967, Soviet output of coal reached 595 mil-
lion tons, about 84 million tons more than United
States output. However, because of the lower quality
of Soviet coal, the total calorific value of the United
States output was about 23% greater than that of
U.S.S.R. in 1967.
The Seven Year Plan (1959-65) called for the
production of 600-612 million tons of coal in 1965.
Instead of a gain of about 110 million tons during
these years, the actual increase was about 84.5 million
tons. The goals of the Seven Year Plan apparently
were abandoned, as in each year the annual goal was
substantially less than that of the original plan. The
Eighth Five Year Plan (1966-70), stipulates that the
Soviet coal industry is to produce 665-675 million tons
in 1970. However, the yearly planned goals have been
regularly revised downward and it appears that the
control figures for 1970 will not be attained. Total
production in 1968 was 594 million tons while the
annual plan for 1969 is about 595 million tons. The
goal of 670 million tons for 1970 appears too optimistic;
its achievement would require increases of approxi-
mately 38 million tons a year for 1969 and 1970, a feat
not accomplished since 1956.
After World War II coal production shifted back
to the pre-war pattern whereby the western regions
and the Urals accounted for most of the production.
In 1958, the western regions and the Urals produced
65% of the coal mined in the U.S.S.R. By 1965 this
share had fallen to about 61%, and 39% of the total
output came from the eastern regions. During 1959-66,
output of coal in the western regions increased about
10%, in the Urals it declined slightly, and in the
eastern regions it increased almost 39%. In the western
regions the Donets basin and the Pechora basin in-
creased their outputs but production in the Moscow
basin declined, as did that of the Urals region. The
declines in production of the Moscow basin and the
Urals region probably reflect a policy of phasing-out
high cost producers in those areas. In the eastern
regions, the biggest increases were registered by the
Kazakh S.S.R. with 53%, the Far East region with
about 50%, and the Kuznetsk basin with about 33%.
Figure 39, provides detailed information on the
regional pattern of output.
Of the total coal mined in the U.S.S.R. in 1967,
approximately 63% (374 million tons) was bitumi-
nous, 24% (144 million tons) was brown coal, and
about 13% (77 million tons) was anthracite. During
1958-67, total production of coal increased by almost
21%, that of anthracite and bituminous by about 4%
and 34% respectively, and production of brown coal
increased by 2.6%. Production of the various types
of coal in selected years is shown as follows, in millions
of tons:
YEAR
BITUMINOUS
ANTHRACITE
BROWN
TOTAL
1958
278.8
74.2
140.2
493.2
1960
300.8
74.1
134.7
509.6
1965
351.4
76.5
149.8
577.7
1966
362.4
76.8
146.4
585.6
1967 .....
. 374.2
77.1
143.8
595.2
A more detailed breakdown of Soviet coal production
is given in Figure 40.
Practically all of the anthracite is mined in the
Donets basin; the remaining minor quantity is pro-
duced in the Urals from the Yegorshino deposit. Pro-
duction of bituminous coal is more widely dispersed
with most of the output coming from the Donets,
Pechora, and L'vov-Volyn basins in the western region,
the Kizel basin in the Urals region, and the Karaganda,
Kuznetsk, and Irkutsk basins in the eastern regions.
Coking coal averaged about 40% of the total bi-
tuminous output during 1963-67, compared to 34%
in 1958. Production of the best type of coking coal
(K-Koksovyy) is very small, however, and according
to data from the Donets and Kuznetsk basins, the
two major producers, production has been practically
constant at 44-45 million tons a year during 1958-65.
To offset the sparse supply of K coals and the high
sulfur content of the Donets coals (up to 2.5% sul-
fur) the U.S.S.R. blends different types of coal on a
wide scale. In recent years, even minor amounts of
weakly caking (G-Gazovyy) and non-caking (D-
Dlinnoplamennyy) type coals have been used. The
major sources of coking coal for the years 1958-65 are
shown in Figure 41.
d. QUALITY AND PREPARATION - The U.S.S.R.
mines all types of coal, but the average quality of the
total output is inferior to that of the United States.
The average calorific value of Soviet coals in 1967
was about 5,040 kilocalories per kilogram, compared
with an approximate calorific value of 7,220 kilocal-
ories per kilogram for U.S. coal. The lower average
calorific value of Soviet coals results from a com-
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paratively higher proportion of brown coal in total
output (24%) and higher average ash content.
The calorific value of Soviet coals, on an as received
basis, ranges from as high as 8,100 kilocalories per
kilogram for the highest quality Kuznetsk coals to
about 1,600 kilocalories per kilogram for the poorest
grade of Ukrainian brown coal. In 1958, the average
calorific value of coal from major basins was as
follows:
PER KILOGRAM
Donets 6,100
Kuznetsk .................... 6,400
Moscow .................... 2,600
Karaganda .................. 5,400
Pechora ..................... 5,600
Brown coal has a high moisture content which is
normally in the range of 25% to 35%, although
Ukrainian and Bashkir brown coals contain as much as
55% moisture. In general, brown coal in the Asiatic
U.S.S.R. is of better quality than that found in the
European U.S.S.R. Some brown coal is cleaned me-
chanically in the U.S.S.R. and some is processed to
make briquettes, but the amounts are unknown. Or-
dinarily, brown coal does not store well as it dis-
integrates into dust on exposure to the weather and
also is very susceptible to spontaneous combustion.
Brown coal is generally used soon after it is mined,
chiefly at local power stations.
There are no known national Soviet standards for
the classification of coal. The two systems most gen-
erally used are those for coals of the Donets and
Kuznetsk basins. These systems are based mainly on
the volatile matter content and caking properties of
the coal. Available information on these two classifi-
cation systems is summarized in Figure 42. The gen-
eral size classification and nomenclature for Soviet
coals is shown in Figure 43.
The most important quality deficiencies of Soviet
coals are high ash and sulfur content. The ash content
has increased somewhat in recent years as a result
of exploitation of seams with higher ash content and
the inclusion of more extraneous rock as a result of
increased mechanized mining. The increase in mech-
anized mining is also responsible for the bigger
share of fines in the raw coal output. Fines are in-
herently more difficult to clean than the lump sizes.
The share of all coal mined in the U.S.S.R. which was
mechanically cleaned has increased from about 25%
in 1958 to almost 40% in 1967. The yield of clean
coal, however, declined from about 63% of the coal
processed in 1958 to 61% in 1967. Coking coal com-
prised about 69% of the raw coal cleaned in 1958
and about 55% in 1967. The ash content of raw
coking coal rose from slightly more than 18% in 1958
to almost 21% in 1965, but the preparation plants
have held the ash content of cleaned coking coal at
about 8%. In contrast, the ash content of cleaned non-
coking coal was more than 15% in 1965.
There are two types of mechanized coal cleaning
plants in the U.S.S.R. One type is located near and
operated by the coal mines and the other type is
operated by the coke-chemical industry. The latter
type plants process only raw coking coal while the
mine cleaning plants process both coking and non-
coking coal. In 1967, coke-chemical works processed
about 40 million tons of raw coking coal and the mine
plants processed about 196 million tons of raw coal-
including 91 million tons of coking coal and 105 mil-
lion tons of non-coking coal. In addition to the 196
million tons put through preparation plants at the
mines in 1967, 51.6 million tons were processed in
mechanized screening plants at the mine. Moreover,
in 1965 about 40,000 men and women were employed
in the coal industry sorting impurities from coal by
hand. Figure 44 summarizes coal preparation in the
U.S.S.R.
The technology of coal preparation in the U.S.S.R.
has lagged behind that of the Free World. In 1965
about 65% of the raw coal processed was cleaned by
wet washing methods and the remainder by pneumatic
methods. Heavy media separation, widely employed
in the West, was only being introduced in the U.S.S.R.
with the help of a French contractor. Although this
process could reduce preparation costs slightly, it
may not be very successful in handling the high pro-
portion of fines in the Soviet coals to be cleaned. The
large proportion of fines, as much as 50% to 70% in
some instances, is very difficult to cope with in any
method of coal preparation. Another problem is the
high sulfur content of coking coal from the Donets,
which accounts for about 60% of the coking coal
produced. From 1958 to 1965, the sulfur content of
cleaned Donets coking coal has remained constant at
about 2.2%. As a consequence, it still is necessary to
blend Donets coal with low-sulfur coals from the
Karaganda and Kuznetsk basins to bring down the
average sulfur content of coking charges.
e. FOREIGN TRADE
(1) Exports-In 1957 the U.S.S.R. became a
net exporter of coal and has remained so. Total ex-
ports of coal increased from about 10 million tons in
1958 to a peak of about 23.6 million tons in 1964 and
then dropped to 22.3 million tons in 1967. Through-
out the period 1958-67 approximately two tons went
to other Communist countries for every ton sent to
the Free World. Figure 45 shows the export of So-
viet coal by destination for 1958-67.
In 1967, almost one-seventh of the coal exported was
anthracite, most of which went to western Europe.
Soviet anthracite has been a traditional household
fuel in France, which took about 1.4 million tons of the
3 million tons of anthracite exported in 1967. Relatively
minor amounts of anthracite are shipped to the other
Communist countries. Japan was the biggest importer
of Soviet coking coal in 1967, taking about 2.3 million
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tons, and Austria, Italy, and the U.A.R. also imported
substantial amounts. The U.S.S.R. also supplies special
coking coals in varying amounts to the other European
Communist countries with the exception of Czecho-
slovakia. Some of these countries are themselves sig-
nificant producers of coal but lack high quality coking
coal. Soviet fuel coal imported by Czechoslovakia
frees more valuable Czechoslovak coking coal for ex-
port to neighboring countries.
(2) Imports - In the immediate postwar pe-
riod considerable amounts of Polish coal were im-
ported by the U.S.S.R. as a replacement for the lost
production of the war-ravaged Donets mines. As the
Donets mines were rehabilitated, the need for Polish
coal declined. The U.S.S.R. continued to contract for
Polish coal, but the bulk of the coal was actually
shipped to East Germany and credited to the U.S.S.R.
as a Soviet export. This trade has persisted to the
present and although minor amounts of the Polish
coal is shipped to and used by the Soviet Union, much
of the ostensible imports of Polish coal go directly to
East Germany.
Hungary supplies about 50,000 to 75,000 tons per
year of brown coal and brown coal briquettes to So-
viet consumers in areas adjacent to the two countries'
common boundary. This traffic is a matter of conveni-
ence as the Hungarian suppliers probably are closer
to the Soviet users than are producing mines in the
U.S.S.R.
Communist China also exported coal to the U.S.S.R.
in the past. From 1958 to 1965 about 200,000 tons of
Chinese coal per year went to the far eastern parts
of the U.S.S.R. where it was used mainly for railroad
fuel. The Chinese coal was of better quality than that
available from local Soviet sources. In 1966, however,
this traffic ceased due to deterioration in relations be-
tween Communist China and the U.S.S.R., and it has
not been resumed to date. Statistics on Soviet imports
of coal for selected years from 1958 to 1967 are shown
in Figure 46.
f. TRANSPORTATION AND DISTRIBUTION - As hard
coals are mined in only a few widely separated centers
in the U.S.S.R., the long-distance transport of coal is
unavoidable. Although the economic limits for the
transport of coal are considered to be in the range of
1,000 to 2,000 kilometers for hard coal and 200 to
500 kilometers for brown coal, actual distances are
greater in many instances. The average shipping dis-
tances and the exceptional maximum shipping dis-
tances for hard coal from the various basins in the
early 1960's are tabulated as follows:
AVERAGE SHIPPING MAXIMUM SHIPPING
COAL DISTANCE, DISTANCE,
BASIN KILOMETERS KILOMETERS
Pechora 1,800-1,900 2,300
Kuznetsk 1,550 2,500-3,500
Karaganda 1,250-1,300 2,500
Coal and coke account for a significant share of the
railroad freight traffic in the U.S.S.R. About 30% of
the total freight originated and 27% of the total
ton-kilometers generated by the railroads in 1958 were
devoted to transporting coal and coke. Corresponding
figures for 1967 were about 23% and 19%, respec-
tively. Detailed statistics for the movement of coal and
coke by rail are shown in the following tabulation:
MILLIONS OF
TONS ORIGINATED
BILLIONS
OF TON-
KILOMETERS
AVERAGE LENGTH
OF HAUL,
KILOMETERS
1958
478.8
348.9
729
1960
492.5
333.8
678
1962
514.1
347.5
676
1963
544.2
378.6
696
1964
565.9
375.9
664
1965
583.0
396.9
681
1966
583.3
394.5
676
1967
600.9
403.2
671
In 1967, in addition to the 601 million tons of coal and
coke transported by the railroad system, 16.3 million
tons of coal were shipped by river transport and 8.2
million tons by coastal shipping. Truck shipments are
relatively insignificant in terms of ton-kilometers be-
cause of the very short distances involved, although
more than 86 million tons of coal were shipped by
common carrier motor transport in 1965.
To reduce the burden on the railroads and to save
transportation costs, the U.S.S.R. has endeavored to
develop the use of local fuels, including low-quality
coals. Each ton of these so-called local coals, never-
theless, moves an average distance of about 310 kilo-
meters. Some low grade coals move much longer dis-
tances, particularly in Eastern Siberia and the Far
East. In some instances brown coal is shipped as
much as 1,700 kilometers on a regular basis in the Far
East.
Although national policy has called for the elimina-
tion of costly long hauls of coal, the average length
of haul for coal and coke by rail has not changed
appreciably in recent years. In 1967, the average length
of haul was still 671 kilometers, about the same as
during 1960-62.
g. CONSUMPTION - Consumption of coal in the
U.S.S.R. has increased from 490 million tons in 1958
to 570 million tons in 1967, an increase of about 16%.
Figure 6 gives the estimated consumption of coal for
1958, 1960, 1963, 1965 and 1967. The most important
users of coal in the U.S.S.R. are the thermal electric
power and heat stations, which used about 54% of all
coal consumed in 1967. The use of coal by these plants
in 1967 had increased by about 79% compared to their
consumption in 1958 and their consumption is expected
to continue to increase. The communal and household
sector showed the greatest percentage increase from
1958 to 1965, a gain of about 77%, but this use de-
clined in 1967 as more natural gas was made available
for comfort heating. The use of coal for making coke,
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FIGURE 6. ESTIMATED CONSUMPTION OF COAL
(Millions of tons)
Thermal electric power and heat stations .......
173.2
217.3
258.5
286.0
310.0
Industry and construction ....................
80.0
58.0
44.5
46.0
40.0
Ferrous metallurgy ..........................
83.6
92.6
103.0
108.0
113.9
Of which, coke plants ......................
72.5
81.5
92.9
97.4
102.9
Railroads ...................................
95.2
73.1
50.0
35.0
23.6
Of which, locomotive use ...................
79.3
58.4
37.0
22.3
11.0
Communal and household ....................
48.0
50.0
81.0
83.0
75.0
Agriculture .................................
5.0
5.0
5.0
5.0
5.0
Other ......................................
5.0
4.0
3.0
2.0
2.5
a basic raw material in the iron and steel industry,
has increased at a more moderate rate. Approximately
103 million tons of coal were used to make coke in
1967, or almost 34% more than in 1958. Requirements
for coal by agriculture are believed to have been
fairly stable throughout 1958-65.
Reflecting the increasingly greater dieselization and
electrification of the rail system, the total use of coal
by the railroads dropped more than 75%-from about
95 million tons in 1958 to less than 24 million tons
in 1967. It is likely that this trend will persist until use
of coal by railroads is relatively insignificant. Use of
coal by industry and construction also has decreased
considerably. Such use was about 50% less in 1967
than in 1958.
h. STOCKS - The U.S.S.R. attaches great impor-
tance to the maintenance of adequate stocks of raw
materials, including coal, so that shortages will not
impede the steady development of the economy. Stock-
piling policy is influenced generally by three special
factors: the great distance between producers and
consumers, the nature of the climate, and the fact that
additional stocks must be available to consumers at-
tempting to overfulfill their planned production. The
exact level of stocks is determined separately for each
undertaking or group of undertakings, depending on
the particular sector of the economy.
Although little is known about Soviet stocks of coal,
it is believed that they have been generally below
planned levels and local shortages have been reported
from time to time in recent years. The change-over
from coal to natural gas by large consumers has not
always proceeded as planned, and stocks of coal have
varied considerably in recent years. For example, in
the years 1958 through 1962 a total of 22.3 million tons
of unneeded anthracite fines accumulated at Donets
mines as electric power stations converted from coal
to natural gas. As a consequence, production of coal
was deemphasized and coal requirements and stocks
were underestimated. In 1963, the situation changed
abruptly and during 1963-64 it was necessary to use
more than 18 million tons of the 22 million tons of
fines stored at the mines to supplement output. In
1965, the supply situation was still acute and it was
necessary to use 500,000 tons of imported Polish coal
to supply the domestic market in the Ukraine. In 1966,
however, the supply situation eased as there was less
demand for coal due to the greater availability of
natural gas. Since 1966 there have been no known
supply deficiencies other than the routine complaints
of lags in shipments scheduled by rail.
Stocks usually are accumulated during the summer
when fuel requirements are at a minimum. Coal con-
sumers who are distant from their sources of supply
generally maintain larger stocks than those closer to
the mines. With the exception of anthracite and low-
volatile bituminous coals, Soviet coals do not store
satisfactorily for long periods of time. Brown coal,
as well as bituminous coal with a high moisture con-
tent, weathers and disintegrates rapidly and may ignite
spontaneously.
i. EQUIPMENT AND TECHNOLOGY - Although the
U.S.S.R. has some thick coal deposits that are exploited
by strip mining, about 75% of the total output is still
produced by underground mines. Practically all of the
underground mines are shaft mines because the coal
beds are usually too deep and geological conditions are
seldom favorable for developing drift or slope mines.
Numerous problems, such as the varying thickness of
seams, steep and variable pitching seams, faults, un-
stable roof and floor conditions, excessive water and
gas, and susceptibility of many coals to spontaneous
combustion, are encountered in the underground
mines. Many of these conditions become more severe
as mining depths increase. Moreover, new hazards arise
with greater depths. In the Donbas, for example, spe-
cial precautions have become necessary to guard
against the greater frequency of rock bursts encoun-
tered in the development of new mines and the ex-
tension of old mines to greater depths. In the Donbas,
rock bursts increased in number from 14 in 1962 to
189 in 1966. They occur mainly in sandstone forma-
tions and at depths of 900 to 1,250 meters. The average
amount of rock freed per burst amounted to 430 tons
in 1966. Rock bursts also occur in the Pechora basin
but no data are available on their frequency or size.
The Soviet coal industry has passed through several
stages in technological development since World War
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II. In the immediate postwar period the emphasis was
on the reconstruction of the mines wrecked during the
war. A major objective in the 1950's was the mechani-
zation of the different stages-extraction, loading, and
transporting-in the conventional mining cycle. Mech-
anized coal mining and loading machines ("com-
bines") were developed and gradually supplanted the
classic undercutting and loading machines. With one
exception-mechanized loading-the Soviet coal in-
dustry had mechanized most of its mining operations
so that by 1958 they compared favorably with the oper-
ations of other leading European coal producers.
Mechanized loading of coal at the working face has
continued to lag in the U.S.S.R., however, and persists
as a formidable obstacle to increasing labor produc-
tivity. In 1966, about 92% of the U.S. underground
production was mechanically loaded, but the corres-
ponding Soviet index was only 71%. The extent of
mechanized loading in underground coal mines in the
U.S.S.R. is shown as follows, in percent of total under-
ground output mechanically loaded for selected years:
1958 40.0
1960 48.8
1962 56.4
1966 71.3
1967 74.0
Much of the failure in mechanized loading stems
from the difficult conditions encountered in mining
thin, steeply pitching seams, particularly in the Don-
bas. About 10% of the national underground output
and about 45% of the output in the Donbas is mined
from steeply pitching coal seams of thin to medium
thickness (0.5 meter to 1.5 meters). The development
of mechanized equipment to cope with these condi-
tions was time-consuming and not too successful prior
to 1965. Since that time more promising models have
been developed.
During 1958-63 the technology of the Soviet coal
industry fell behind that of western Europe in four
important sectors: 1) mechanization of loading, 2) de-
velopment and application of combines for mining thin,
pitching seams, 3) mechanized roof supports, and 4)
concentration of operations at fewer but more produc-
tive working faces. It is likely that this slow-down in
technological growth was due to the lower priority ac-
corded to coal mining in the allocation of investments
in the early 1960's.
Beginning in 1964, investments were increased and
an ambitious program of reequipment and improve-
ment of the coal industry was undertaken. Major
trends in this latest phase include the development
and manufacture of modern equipment (both under-
ground and strip mining) the modernization of older
mines, and the construction of new large-sized mines.
These efforts have produced varied results-good
gains in making modern underground mining ma-
chinery but poor performance in the commissioning of
new mines on schedule. In the Donbas the new big un-
derground mines have required as much as 9 to 17
years for completion instead of the prior normal aver-
age of 6 to 8 years. The greater frequency of rock
bursts and the high temperatures encountered in the
new and deeper mines have increased the cost of
excavation in development workings from 2 to 2.5 times
that of the original estimate. The U.S.S.R. still lags
in the manufacture of specialized giant-sized strip
mining equipment on which the success of the planned
big strip mines in the eastern regions is predicated.
The underground mines are being supplied with
greater amounts of machinery and equipment, which
although not of top quality by Western standards, still
is better than that used previously. Complaints mainly
concern the poor performance of critical components
such as hydraulic valves, electric switches and controls,
springs, the low quality of repair work at mine shops,
and the lack of spare parts. Typical of the lag in tech-
nology is the fact that the U.S.S.R. did not begin to
replace oil in hydraulic roof supports with a fire-
resistant water-oil emulsion until 1967. A creditable
achievement, however, has been the design and pro-
duction of 2 narrow-web coal combines for working
steeply pitching seams of thin to medium thickness.
These two specialized machines are known as the
"Temp/Ukr-1K" and the "Komsomolets." Unlike the
practice in other countries, where this type of coal
seam is usually worked by ploughs or combines on
a longwall parallel to the strike of the bed, the Soviet
machines operate on a longwall running up the dip of
the bed. Another apparently successful machine is the
new PK-8 heading machine, similar to one type of
American continuous miner. The Soviet model-also
sometimes called a development combine or tunnelling
machine-is used for driving development entries and
workings, a stage in Soviet coal mining that has been
notorious for its slowness and inhibiting effect on pro-
duction. Figure 7 shows the new PK-8 heading ma-
chine. Figure 8 shows the coal-cutting heads and Fig-
ure 9 shows the self-advancing support system of one
of the latest Soviet longwall complex mechanized units.
The inventory and utilization of the more important
pieces of underground equipment in the possession
of the Ministry of the Coal Industry, as of 1 January
1968, is shown in Figure 10. Compared to previous
years, some units such as locomotives, loaders, and
conveyors are not as numerous, indicating the replace-
ment of old obsolete equipment with fewer but newer
and more powerful units of greater individual ca-
pacity.
The U.S.S.R. is considerably behind the United
States in strip mining equipment. Most of the power
shovels are small with bucket capacities of 6 to 8
cubic meters (about 8 to 10 cubic yards) and a few
large ones with 35 cubic meter (46 cubic yard) buck-
ets. The largest American dragline, scheduled for in-
itial operation in the fall of 1968, will have a 220
cubic yard (168 cubic meter) bucket. The biggest So-
viet dragline planned-still in the design stage-will
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have a bucket of only 80 cubic meters, less than half
the capacity of the American machine.
j. MINING METHODS - About three-fourths of the
total Soviet output of coal comes from underground
mines and the remainder is strip mined. The most
widely used method of underground mining of coal
in the U.S.S.R. is the longwall method, which involves
complete removal of coal from long working faces.
There are two variations of the longwall method:
advancing longwall and retreating longwall. In the ad-
vancing longwall method mining progresses away from
the shaft. Development costs are low and mine pro-
duction capacity is attained in short order. With time,
however, the maintenance and repair of haulageways
and entries from the shaft through worked-out areas
to the producing faces become more and more costly
and may become prohibitive. In the retreating longwall
method the haulageways, entries, and air courses are
first extended to the boundaries of the mine before ex-
traction starts. Only then does production start as the
longwall faces are worked toward (retreating to) the
shaft. As extraction proceeds toward the shaft the haul-
ageways and entries in the caved, worked-out areas
are progressively abandoned with a consequent major
reduction in the cost of maintaining and repairing
them. The disadvantages of the retreating longwall,
relative to the advancing longwall method, are the
greater investment required and the much longer time
elapsed before the mine reaches the production stage.
The U.S.S.R. gradually is changing from advancing
to retreating longwall mining and this change un-
doubtedly has increased the average time required to
get new mines into production.
Steeply pitching, thick, coal seams are generally
mined by a method called diagonal slicing. The seam
is removed in benches, working from top to bottom
of the coal, by working faces advancing up the pitch.
Somewhat similar is the shield method, where massive
steel supports protect the miners as they work slices
from top to bottom of the coal seam. A relatively minor
amount of coal is also mined by the classic room and
pillar method, which requires thick horizontal seams
and favorable geologic conditions. Another method is
so-called "hydraulic" mining, in which the coal seam
is drilled and blasted or cut up by mechanized cutting
machines and then moved along the floor of the work-
ings by powerful water jets. Some of this coal is also
transported vertically through pipelines by pumping.
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FIGURE 10. INVENTORY ANI) UTILIZATION OF
UN1)1?IIGROUNI) MINING EQUIPMENT,
MINIS'pltY OF THE, COAL INDITSTUX,
JANUARY 1, 1968 968
(Units and percent of to a onI s
PERCENT
OF UTILI-
ZATION
k. EMPLOYMENT - The coal mining industry is
the largest employer among the fuels industries. It
employed about 1.2 million people in 1966, mor25X11
1 million of them wage workers, the category on ~...~.)
calculations of labor productivity customarily are
based. Total employment and the number of wage
workers in the Soviet coal industry in selected years
follows in thousands:
Mobile mechanized roof support
Systems ........................
56S
80.3
TOTAL EMPLOYMENT
WAGE WORKERS
Coal coinhines ....................
4,044
69.9
1958
1,256
1,071
Of which, narrow web...........
1,775
66.8
1959
na
1,074
Coal ploughs .....................
85
68.2
1960
1,196
1,031
Ileading machines .................
602
75.1
1961
na
1,005
Loaders* .........................
5,157
75.8
1964
1,081
988
Scraper conveyors .................
39,626
85.8
1965
1,200
1,016
Bell conveyors ....................
12,978
91.1
1966
1,202
1,011
Electric. mine locomotives..........
14,314
87.1
Mine cars. .......................
694,281
93.3
Production of coal by hydraulic mining was 3 million
tons in 1962 and 5.6 million tons in 1967.
The different mining methods and the percent of
underground-mined coal produced in 1966 by each
method follows:
MINING N11"THOD
Retreating longwall
50.0
Advancing longwall
35.0
Diagonal slicing
8.2
Shield system
3.2
Room and pillar
1.7
Other
1.9
In 1966, about 146 million tons of coal were pro-
duced from strip mines in the U.S.S.R. Of this total,
143 million tons were produced from mines under
the control of the Ministry of the Coal Industry. Ap-
proximately 59 million tons of hard coal were obtained
from 28 strip pits and about 84 million tons of brown
coal from 36 strip pits. Included in the brown coal
output were 10 million tons of brown coal from 6
strip mines located in the Ukrainian S.S.S.R. The re-
maining 58 strip mines were located as follows: 2 in
the Moscow coal basin, 9 in the Urals, 43 in the Si-
berian and Far Eastern Regions, and 4 others at lo-
cations not revealed.
About 3.8 cubic meters of overburden were removed
per ton of coal produced in 1967. Comparable data
for 1950 were 2.9 cubic meters of overburden per
ton of coal. Methods of overburden disposal in 1965
follow:
Direct dumping by
excavator
31.0
Bridge conveyor
9.1
Railroad dump cars
41.2
Dump trucks ...
13.1
Other (including hydraulic removal) ......
5.6
Data on labor productivity, comparable to that of
other countries, are not available for the U.S.S.R. The
information available is generally compiled on a dif-
ferent basis and is frequently obscure and limited in
application. An occasional reference to labor produc-
tivity in terms better known in the west may be
misleading because of qualifications. In 1960, for ex-
ample, total productivity for all labor engaged in
underground mining was reported as 1.6 tons per
man-shift while that of underground workers was 2.2
tons per man-shift. However, these figures excluded
labor engaged both in the driving and the repair and
maintenance of shafts, entries, haulageways and air-
courses.
Instead of the customary index of physical output
per man-shift or man-day, Soviet productivity is usu-
ally reported in terms of output per worker per
month or year. Based on an index of tons of coal
produced per month, average labor productivity in
Soviet underground mines in 1967 was about 24%
greater than in 1958, ignoring decreases in length of
the working day. Corresponding approximate increases
for strip mines and for all coal mines combined were
14% and 30%, respectively. Figure 11 shows Soviet
labor productivity in coal mining for selected years.
Compared to the gain in average labor productivity of
the bituminous coal industry in the United States-
about 55% from 1958 to 1965-the Soviet national
average of about 30% is not impressive. One factor
contributing to the Soviet lag is the high percentage
of wage workers engaged in surface work at under-
ground mines, 22% in 1966-67.
The coal miner is the highest paid industrial worker
in the U.S.S.R. In the second half of 1958, the entire
coal industry shifted to a six-hour day for most under-
ground workers and to a seven-hour day for all other
workers. The six hours underground is actual work-
ing time and excludes travel time to and from the
working place. There is, however, a "break" of 20 to
25 minutes underground for lunch or refreshment. By
1970, it is planned to reduce underground work to a
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FIGURE 11. AVERAGE LABOR. PRODUCTIVITY IN COAL 1\IINES
(Tons per nian per neonth)
1958
Underground mine's...........
33.2
35.7
37.2
38.4
40.5
41.3
Strip mines ..................
226.7
234.4
235.9
246.8
253.2
258.0
All amines ....................
40.1
43.2
45.6
47.5
51.1
52.2
*Ministry of the Coal Industry only; accounts for about 99% of national output.
30-hour week. The minimum daily pay of an under-
ground worker in 1967 was 3 rubles 20 kopecks while
the operator of a combine earned 9 rubles a day (about
US$3.55 and US$10, respectively, at the official rate
of exchange). In 1967, the average monthly earnings
of all industrial workers was 109 rubles; that of the
average coal miner, almost double that of industrial
workers.
1. INVESTMENT - Annual investment in the coal
industry of the U.S.S.R. in the postwar period in-
creased steadily to a peak of 1.2 billion rubles in
1957. In 1958, the upward trend was reversed and
annual investment declined dropping to 904 million
rubles in 1961. Thereafter began a second rising trend
that has continued through 1967. The lower priority
accorded the coal industry in the allocation of invest-
ment in the period 1958-64 is illustrated by comparison
with other more favored sectors of industry. Invest-
ment in industry as a whole in 1964 was 67% more
than in 1958. The comparable increase in investment
in the oil and gas industry was 87%, in the chem-
icals industry 328%, and in machine building 106%.
In contrast, annual investment in the coal industry in-
creased by only 2.5%.
Capital investment has generally been below
planned levels. The Seven Year Plan (1959-65) pro-
vided for a total investment in the coal industry of
7.5 to 7.8 billion rubles, but actual investment only
amounted to about 7.2 billion rubles. The Five Year
Plan for 1966-70 calls for 7.25 billion rubles of in-
vestment or an average of about 1.45 billion rubles
per year. Actual investment for the first two years
of the plan period, 1966 and 1967, has probably not
exceeded 1.3 billion rubles per year. Details on yearly
investment in the coal industry are shown in Figure
12.
There has been a change in the allocation of in-
vestment in recent years. Less capital is allotted for
construction of new mines while more investment has
been put into reconstruction and mechanization of
old mines and the construction of more preparation
plants. The new mines underway and those planned
for future construction are more costly as they are
bigger and require more time to develop. In 1966 the
annual average output of a coal mine was 478,000 tons.
The average annual planned capacity for mines
scheduled for completion during 1966-70 is 750,000
tons, while those to be put in operation during 1971-
75 will have an average capacity of about 1.5 million
FIGURE 12. INVESTMENT IN THE COAL INDUSTRY
IN TILE POSTWAR PERIOD 25X1
(31 illions of constant rubles)
:ANNUAL INVESTMENT OR
YEARLY :AVER.-AGE
1945-50 .......................
500
1950-55 .......................
700
1956-58 .......................
1,070
1959-65 .......................
1,030
1966-70 plan ..................
1,450
1958
..........................
1,092
1960
..........................
987
1961
..........................
904
1962
..........................
937
1963
..........................
987
1964
..........................
1,119
1965
..........................
1,207
1966
..........................
1,250
1967
..........................
1,281
tons per year. The cost of new mining equipment also
has increased markedly, an important cost factor in
modernizing old mines. For example, the cost of
equipping a 100-I13eter longwall face with an old style
combine, movable conveyor, and individual supports
was about 35,000 rubles. To equip the same working
place with the latest KM-87 complex mechanized
unit system costs approximately 300,000 rubles, or
more than 8 times the cost of the old equipment. On
a national basis, the average capital investment nec-
essary per ton of increased production rose from 23.8
rubles in 1956-60 to 47.33 rubles in 1961-65. Accord-
ing to preliminary estimates made in 1967, this in-
vestment will increase further to about 51.25 rubles
per ton during 1966-70.
m. COSTS OF COAL - Except for some thick seams
of coal in the eastern regions, which can be strip
mined, Soviet coals are relatively expensive to mine.
The high cost of production at underground mines
reflects to a large extent difficult mining conditions.
In the last 10 years the costs of mining coal have
risen constantly, although the true situation has not
been readily apparent in official statistics prior to
1967. In 1967, published average cost figures for the
Ministry of the Coal Industry show an increase of
about 41% over those in 1966. This abrupt jump is
largely attributable to the general reform of whole-
sale prices that took effect in mid-1967. Most of the
increased cost is believed due to the greater cost of
materials used in the coal industry and to the inclu-
sion of interest charges for capital invested. Average
1962 I 1963 I *1966
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costs for production of coal in the U.S.S.R. for various
years are shown in the following tabulation:
RUBLES PER
1958 ......
.. .............
7.68
1960 ...........
...................
8.02
1966 ........ ..
...................
8.69
1967* ........
..................
12.24
* Ministry of Coal Industry only, January-Septem-
ber 1967. Includes increased costs of materials and
interest charges for capital invested.
Underground mining costs are considerably higher
than strip mining costs and mining costs are generally
higher in the main western basins. As of 1966, and
prior to the new economic reforms, the average under-
ground mining cost was about 11 rubles per ton and
that of strip mining about 2.2 rubles per ton. In terms
of calorific value, coal is generally cheaper to produce
than peat and oil shale, but is much more expensive
than either natural gas or crude oil.
Wages and salaries comprised almost two-thirds of
the production cost of coal in 1955 and more than
55% in 1965, as shown below, in percent of total cost:
1955
1965
Wages and salarics*
64.1
55.8
Materials**
17.6
16.1
Fuel
0.7
0.9
Electric power . .....
3.2
3.3
Amortization
6.3
15.0
Other***
8.1
8.9
* Includes social insurance deductions.
** Includes timber, explosives, spare parts, etc.
*** Includes services of repair shops and labora-
tories, training of cadres, etc.
n. PRICES - In the past, coal prices generally
were established deliberately below the cost of pro-
duction and the coal industry had to be heavily sub-
sidized. From time to time prices have been increased,
but in two instances, in 1952 and in 1955, prices
were reduced slightly due to lower production costs.
Wage increases granted coal miners in 1956 and 1958
and the increase in amortization norms in 1961 in-
creased production costs substantially. The annual
loss-and the necessary subsidy-increased year by
year. From 1958 to 1966 the annual loss more than
doubled-from 721 million rubles in 1958 to more than
1.7 billion rubles in 1966. In 1967 there was a marked
reduction in the annual deficit as a result of the in-
creased prices introduced in July of that year. Annual
losses for selected years, in millions of rubles, follows:
1958 721
1960 812
1962 820
1964 1,378
1965 ........................... 1,582
1966 1,718
1967 ........................... 531
In 1966 the loss was reported to represent 18% of
capital or 25% of the cost of production. As part of
a general economic reform in the U.S.S.R., commenc-
ing in 1966 the coal industry began converting to a
new system of planning and economic incentives; all
enterprises were supposed to be working under the new
arrangements by the end of 1968. As part of a general
price reform that took effect on 1 July 1967, a new
price schedule for coal was put into effect. As a result
the coal industry has now become profitable. Ac-
cording to preliminary data it earned 8% to 9% on
fixed and working capital in the first few months after
the price changes took place. Nevertheless, about 30%
to 40% of the coal mines still operate at a loss. Most
of these mines, however, are small, high cost producers
that will be phased out in the near future.
The new price schedule of 1 July 1967 provided
for an average increase of 78% in price, including an
increase of 93% for coking coal and 70% for general
purpose fuel coal. Retail prices for household users
were not increased, however. The new prices of July
1967 were based on the average cost of production for
the individual coal basin, deposit, or mining district,
with allowance for the increased costs of materials
and charges for capital. Two examples of the new
average wholesale prices have been published thus far:
17.5 rubles per ton for Donets coal and 10.3 rubles
per ton for Kuznetsk coal. Corresponding prices pre-
vailing before the change were 9.4 rubles per ton for
Donets coal and 6.3 rubles for Kuznetsk coal.
a. GENERAL. - The term "coke" in the U.S.S.R.
generally refers to high-temperature coke (produced
at 900 degrees Centigrade and above), most of which
is used in the blast furnaces of the iron and steel in-
dustry. The coking industry is under the control of
the Ministry of the Iron and Steel Industry. Soviet coke
plants are usually located near their sources of coking
coal, although in the Urals coal for making coke is
brought in from the distant Karaganda and Kuznetsk
basins. Practically all of the Soviet coke is made in
modern byproduct, slot-type ovens. Coke-oven gas and
other byproducts are important sources of such chemi-
cals as benzol, phenol, toluol, cresol, anthracene, and
xylol.
b. HIGH-TEMPERATURE COKE
(1) Production - The U.S.S.R. has ranked first
in the world in coke production since 1960 when it
surpassed the United States for the first time. Total
production for the years 1958 and 1960-68 is shown
as follows, in millions of tons (moisture content 6%) :
1958
1960
1961
1962
1963
1964
1965
1966
1967
1968
50.89
56.23
58.60
60.93
63.87
66.28
67.46
68.49
69.90
71.50
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Most of the coke is produced at plants in the western
regions, particularly in the Ukraine. The original goal
for 1965 called for production to reach 76 million to
80.6 million tons of coke, but this goal subsequently
was revised downward to about 74 million tons. Ac-
tual output in 1965 was about 67.5 million tons. Non-
fulfillment of the plan was not so serious as it might
appear because the amount of coke required to smelt
one ton of pig iron was reduced during 1959-65. Cur-
rent plans, as of 1968, indicate an output of about 78
million tons for 1970.
(2) Quality - Despite tremendous resources
of coal, the Soviet coke industry is handicapped by
a relative scarcity of high-quality coking coals. Care-
ful blending of many different types, including weakly
caking and non-caking coals is necessary to augment
supplies of better quality coals. Furthermore, there
has been a gradual deterioration in the quality of raw
coking coal as mined. This trend has been countered
with more intensive cleaning processes and the quality
of the coal charged to the coke ovens has remained
fairly constant. A third handicap is the high inherent
ash and sulfur content of the Donets coking coals
that comprised about 59% of the total coking coal
mined during 1958-65.
In 1965, about 69% of the coking coal cleaned was
processed at plants belonging to the coal industry and
about 31% was prepared at cleaning plants of the
coke industry. Average ash content (dry basis) of all
raw coal was about 21% while the cleaned coal had
an average content of 8% ash. The high sulfur con-
tent of Donets coals was conspicuous with an average
of 2.4% sulfur before cleaning and about 2.2% after
cleaning. Other low-sulfur coals, however, brought
the average for all cleaned coal down to about 1.5%.
Coke made from blends of Donets and other coals
generally has a high sulfur content, about 1.7% to
1.8%, and about 10% ash. Blends of Kuznetsk and
Karaganda coals produce coke with a lower sulfur
content, usually about 0.5% to 0.8%, but with a
somewhat higher ash content than Donets coke. The
average quality of all Soviet coke produced during
1958-65 showed about 10.6% ash and 1.2% to 1.3%
sulfur.
Average yield of coke from coal charged is about
77% to 78%. Maximum size of coke is usually less
than 100 millimeters. Approximate size composition
is 93% lump (+25 millimeters), 4% nut (10 x 25
millimeters), and 3% breeze (-10 millimeters). The
general practice is to screen some lump at 40 milli-
meters and use the +40-millimeter portion in large
blast furnaces. Small blast furnaces use the smaller-
sized +25-millimeter coke.
(3) Consumption - About 91% of all coke
consumed in the U.S.S.R. in recent years has been
used in ferrous metallurgy. The iron and steel industry
proper used about 85% while foundries not located at
iron and steel plants accounted for the other 6%.
About 63% of the total supply of coke was lump
coke used in the blast furnaces of the iron and steel
industry to produce pig iron and 22% was used by
foundries at iron and steel plants and in the form
of breeze for agglomerating iron ore. The remaining
users of coke and their estimated share of total con-
sumption were: nonferrous metallurgy, 4%; chemical
industry, 2%; and other industry and household use,
3%. The consumption factor for blast furnace pro-
duction of pig iron for selected years is shown as
follows in kilograms of coke per ton of pig iron:
OF COKE
1958 795
1960 724
1962 670
1964 .... 619
1966 . ..... ......... .. 616
1967 ......................... 600
(4) Foreign trade-The U.S.S.R. is a net ex-
porter of high-temperature coke. Total exports of
Soviet made coke in 1967 amounted to approximately
3.7 million tons, compared to about 2.4 million tons
in 1958. Other communist countries, primarily East
Germany, Hungary, and Rumania, have been the
major recipients of Soviet coke. Official Soviet sta-
tistics include the ostensible imports of Polish coke
which also are included in exports, as all of this Polish
coke is exported to East Germany on the Soviet ac-
count. Finland and Denmark have been the major
Free World importers of Soviet coke during 1958-67.
Soviet exports of coke by country of destination are
shown in Figure 47.
C. LOW-TEMPERATURE COKE - Low-temperature
coke, or semicoke is produced from bituminous coal,
brown coal, and occasionally peat, by heating the raw
material, usually in retorts, at temperatures ranging
from 450 degrees to 550 degrees Centigrade. In the
past the principal products were the tars and oils
recovered in the process while the resultant coke (ac-
tually a "char") was a byproduct used as a general
fuel, as were the gases. The tars and oils were the
principal raw materials for the production of synthet-
ic liquid fuels. The present availability of crude oil
in the U.S.S.R. probably has eliminated the processing
of more costly low-temperature tars and oils and it is
doubtful if low-temperature coke is being made in
as large amounts as in the past. In 1965, the semicoke
plant at Cheremkhovo produced about 120,000 tons.
d. COKE OVEN GAS - Coke oven gas is a byprod-
uct of high-temperature coke production and probably
accounts for 85% to 90% of all gas produced from
coal in the U.S.S.R. Other sources of gas made from
coal are the experimental underground gasification
projects, some municipal plants providing town gas,
and various industrial plants which generate gas for
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their own needs. All of these are of decreasing im-
portance as natural gas is becoming more widely avail-
able. It is likely that the production of gas from coal
has decreased in recent years. The Moscow Coke
and Gas Works, for instance, which formerly made
town gas in coke ovens, now concentrates on the pro-
duction of synthetic ammonia and foundry coke. The
output of coke oven gas, however, can be expected to
increase concurrently with growth in the production
of coke.
The output of coke oven gas has increased from
about 19 billion cubic meters in 1958 to 29.5 billion
cubic meters in 1967. Approximately 375 to 390 cubic
meters of gas are obtained per ton of coke produced.
The gas has a calorific value of from 4,000 to 4,400
kilocalories per cubic meter. In 1963, about 31% of the
coke oven gas was used for heating coke ovens and
boilers at coke plants, 55% was used for metallurgi-
cal purposes, about 8% at chemical plants, less than
2% for household use, and about 4% for miscellaneous
purposes, including losses.
a. GENERAL - Peat, oil shale, and fuelwood
together comprise a small and declining share of the
total primary energy production of the U.S.S.R. Ab-
solute levels of output of peat and oil shale, however,
are to increase while the absolute level of fuelwood
is expected to decline. In 1967, peat accounted for
2%, oil shale less than 1%, and fuelwood less than
3% of total primary energy production.
Although relatively unimportant nationally, peat, oil
shale, and fuelwood are economical for use in local-
ities where great distances separate consumers from
sources of cheaper major fuels. In general, these minor
fuels are utilized in the region of production, prin-
cipally by thermal electric power stations and by
households.
b. PEAT-The U.S.S.R. has the greatest reserves
and is the world's. leading producer of peat. An es-
timated 60% of the world's reserves lie in the more
than 70 million hectares of peat deposits within the
U.S.S.R. Total Soviet reserves have been estimated at
158 billion tons on an air-dried basis, of which 90%
are in the R.S.F.S.R. Peat is also produced and used
for agricultural and other purposes in the U.S.S.R.
but all information in this. section is limited to fuel
peat.
Peat is extracted seasonally from early May until
late September. When the weather is dry, production
is high, as in 1963 and 1966. Conversely, exceptionally
rainy weather leads to abnormally low production as in
1962 and 1965. As the controlling factor is the weather,
output seldom matches planned goals and in 1965
the actual output was far below the planned 71 mil-
lion tons. Production of fuel peat in the U.S.S.R. by
years, in millions of tons, follows:
1958
............................
53.3
1960
............................
53.6
1962
............................
34.7
1963
............................
58.7
1964
............................
59.5
1965
............................
46.0
1966
............................
65.4
1967
............................
60.2
According to the present five year plan peat produc-
tion should increase to 76 million tons in 1970. Fig-
ure 13 provides data on peat production in the U.S.S.R.
by regions for selected years.
Peat production in the U.S.S.R. is extensively mech-
anized and specialized equipment for peat extrac-
tion has been developed. Prior to removal of the
peat, areas are cleared of timber and brush and
drained by a network of drainage ditches. Two
methods are used in extracting the peat. In one meth-
od, special machines somewhat like a bucket dredge
scoop up the peat, mix it to a mud-like consistency,
and eject it in ribbon-like masses that are 2 j-X;nto
"sod" blocks which are left to dry in the c,p- air.
In the second method, the top layer of peat is broken
and cut to a depth of 11/2 inches and then harrowed
and turned over several times to dry. Subsequently the
loose "milled" layer is piled in rows and gathered
up by other machines. Milled peat is the form most
suitable for electric power stations while sod peat
is preferred for household use.
The heat content of Soviet peat ranges from about
2,600 to 2,670 kilocalories per kilogram and aver-
ages about 2,640 kilocalories per kilogram. In 1967,
a breakdown of the total consumption of peat in
the R.S.F.S.R., the major producer, showed that ap-
proximately 80% was used by electric power sta-
tions, 10% was processed into briquettes, and 10%
went to communal-household users. In 1965, the na-
tional supply of fuel peat was distributed as follows:
electric power and steam, 71%; processing, principally
briquetting, 12%; and other uses, chiefly domestic,
17%.
c. On. SHALE - Soviet production of oil shale has
grown slowly but steadily from about 13 million tons
in 1958 to 21.6 million tons in 1967. Approximately
FIGURE 13. PRODUCTION OF FUEL PEAT BY
AREA 25X1
(Millions of tons)
1
1958 1
1960 1
19621
1963 1
1966
R.S.F.S.R ...............
35.8
36.8
20.9
37.9
43.7
Ukrainian S.S.R .........
4.5
4.7
4.1
5.1
5.2
Belorussian S.S.R ........
8.9
8.3
7.1
11.0
12.4
Latvian S.S.R...........
1.6
1.8
1.1
2.2
1.8
Lithuanian S.S.R........
1.9
1.6
1.1
1.9
1.4
Estonian S.S.R ..........
0.4
0.5
0.4
0.6
0.9
Total, U.S.S.R........... 53.3
53.6
34.7
58.7
65.4
NOTE Figures may not add to totals because of rounding.
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three-fourths of the output comes from the Estonian
S.S.R. where the richest deposits are located. Total
geologically possible reserves of the best quality oil
shale in Estonia have been estimated at about 13 bil-
lion tons. Other deposits being worked are located in
Leningradskaya Oblast' and the Volga region of the
R.S.F.S.R.
Of the 16.1 million tons of Estonian oil shale mined
in 1967, 4.2 million tons, or about one-fourth, came
from strip mines and 11.9 million tons were extracted
in underground mines. Both longwvall and room and
pillar mining are used in the Estonian underground
mines, with the room and pillar system mechanized
in a manner similar to American coal mining. The
use of shuttle cars, conveyors, roof-bolting, and like
improvements is reported to have raised labor produc-
tivity to 18 to 19 tons per man shift, compared to 7
to 8 tons per manshift for the longwall system. Plans
call for more strip mining where possible and for
additional conversion to the mechanized room and
pillar system. The five year plan set 21.5 million tons
as the 1970 goal for the Estonian oil shale industry
and 28 million tons for the U.S.S.R. as a whole. Pro-
duction data by republics for selected years is shown
in Figure 14.
Oil shale is used as a raw material to produce gas,
oil, and chemical products, and is burned directly as
a fuel. The ash residue also is used as a raw ma-
terial for building materials. Recent trends indicate
a growing use of oil shale as a fuel and a decline in
its conversion to other products. In 1965, about 59%
of the oil shale consumed in the U.S.S.R. was used to
generate electric power and steam, 37% was processed
to make oils and gases, and 4% went for miscel-
laneous purposes.
d. FUELWOOD - Fuelwood represents a minor
and decreasing share of the soviet fuel balance. How
ever, fuelwood is more important in the national
fuel supply than Soviet statistics reveal, because such
statistics do not include a tremendous volume of wood
that is cut by republic and kolkhoz organizations from
their own timber lands and wood that is cut illegally.
The amount of fuelwood cut in this fashion is almost
as much as that reported officially. Total fuelwood
production in 1967 was estimated at 192 million cubic
meters, whereas only 96.1 million cubic meters were
reported officially. Officially reported fuelwood pro-
duction for selected years follows, in millions of cubic
meters:
1958
124.1
1960
...........................
108.0
1962
. .. . ....................
97.0
1963
........... ...............
102.3
1964
108.4
1965
...........................
104.5
1966
.. ..... . ........ ... .
101.0
1967
.. ........................
96.1
Of the total fuelwood consumed in 1965, household
and communal users accounted for 90%, 8% was used
for the generation of electric power and steam, and
about 2% was processed into other products. Although
fuelwood is of minor importance as an industrial fuel,
some industrial sectors which produce cellulose, paper,
and chemical products from wood, operate chiefly on
wood fuel. This is especially true in the forested north-
ern and northwestern regions of the country. Fuelwood
will probably remain an important local fuel for
household and communal use by the population of
the forested areas of the Urals and Siberia.
5. Fuel briquettes
Briquettes, manufactured from coal and peat, im-
prove the quality and increase the efficient utilization
of low grade fuels. A major gain in briquetting an-
thracite and bituminous coals is the conversion of fine
sizes to lumps which can be more widely used than
the original fines. In the case of brown coal or peat,
briquetting is an effective method not only of ob-
taining lumps of uniform size but also of enhancing
the heat value by reducing the original high moisture
content. Hard coal briquettes are made by mixing
tar or pitch with the fines and then pressing the mix-
ture in molds to produce a lump-sized product. Brown
coal and peat briquettes are generally made without
a binding agent; instead the raw material is dried
and then compressed at high pressures to make the
briquettes. Although Soviet hard coals as mined con-
tain a high percentage of fines, and despite the fact
that about one fourth of the total coal output is high
moisture brown coal, the briquetting industry is of
minor importance in the U.S.S.R. Consumers of coal
are forced to use a great deal of fine sizes and high
moisture brown coal with a consequent loss in the
efficiency of utilization.
Most of the plants producing briquettes from coal
are located in the Ukrainian S.S.R. while the R.S.F.S.R.
accounts for most of the peat briquettes. Estimated
FIGURE 14. OIL SIIALE PRODUCTION
(Millions of tons)
1
1958
1
1960
1962
R.S.F.S.R ................
4.2
4.9
5.1
Estoniani 5.S.It...........
9.0
9.2
11.2
1 1963 1 1964 1 1965 1 1966 1 1967
5.4 5.5 5.4 5.3 5.5
12.9 14.7 15.8 16.1 16.1
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production of fuel briquettes by type for selected
years follows, in millions of tons:
H
ARD COAL Bnowx COAT, PEAT
TOTAL
1958
0.6 4.2 0.8
5.6
1960
0.9 4.3 0.9
6.1
1962
1.3 4.4 1.0
6.7
1965
na na 3.5
10.1
1967
. na no 3.5
10.3
Practically all fuel briquettes are used for com-
munal-househ
old heating.
o
6. Charcoal
I
In the past
charcoal was produced mainly for mak-
ing pig iron, the charcoal being used like coke in
small blast furnaces. The pig iron made with charcoal
is of premium quality and despite its high cost con-
tinues to be made, chiefly in the Urals. The produc-
tion of charcoal pig iron has declined, however, from
26,000 tons in 1958 to about 7,000 tons in 1966, with
a correspondingly decreasing requirement for char-
coal.
Charcoal is also obtained with other wood byprod-
nets in distillation processes employed at wood chemi-
cal plants. These plants are located mainly in the
western regions of the country. Considerable charcoal
is needed in the production of activated and purified
carbon and also of carbon bisulfide. Activated carbon
has many uses in processing and refining plants and
the demand for it has undoubtedly increased. Produc-
tion plans for charcoal from wood chemical plants
called for three times as much output in 1965 as in
1958. Data on actual production of charcoal are not
available and it is not known to what extent these
plans were fulfilled.
7. Manufactured gas
Although the over-all importance of manufactured
gas is declining with the increasingly greater avail-
ability of natural gas, the output of some manufactured
gases such as coke oven gas and blast furnace gas
will continue to grow as they are byproducts derived
from other industrial processes. In 1965, about 22%
of all gas, both manufactured and natural, produced
in the U.S.S.R., in terms of heat value, was manu-
factured gas. This 22% was comprised of about 8%
coke oven gas, 11% blast furnace gas, and 3% gas
made from coal and oil shale.
The combined output of town gas made from coal
and oil shale probably reached a peak in 1961 when
more than 1.9 billion cubic meters were produced.
In 1967 output of the same gases was 1.7 billion cubic
meters. The decline in output of town gas from coal
due to the changeover to natural gas and subsequent
closing of municipal gas plants has been offset to
some extent by increased production of gas by under-
ground gasification. In 1958, output of this gas was
about 624 million cubic meters from six different re-
search sites. The only industrial scale underground
gasification project was commissioned in 1962 in
Uzbekistan. By 1965, the Uzbekistan project had
reached an output of about 1.3 billion cubic meters
according to press reports. Gas from underground
gasification is very low in heat content, about 800
to 990 kilocalories per cubic meter, and it is likely
that the experiments will be stopped in the future.
No data on a continuing comparable basis for the
production of manufactured gases are available. Some
information for 1963 can be regarded as an indicator
of magnitude on a volumetric basis for that year. In
1963, the estimated total output of manufactur25X1,,
excluding gases derived from the processing and re-
fining of petroleum, amounted to approximately 179
billion cubic meters, consisting of 1.6 billion cubic
meters from coal and oil shale, 24.2 billion cubic
meters of coke oven gas, and about 153 billion cubic
meters of blast furnace gas. Possibly included in the
gas made from coal and oil shale were an estimated
700 million cubic meters of gas from the underground
gasification of coal.
Among the manufactured gases derived from solid
fuels, coke oven gas ranks highest in calorific value.
Usual ranges of calorific content for the various gases,
where known, follows, in kilocalories per cubic meter:
Coke oven gas .._.
...
4,000-4,400
Town gas
3,900-4,150
Blast furnace gas _
900-1,000
Underground gasification ......
.. _
800-990
The two most important gases-coke oven gas and
blast furnace gas-are used almost completely for
industrial purposes at the plants where they are pro-
duced. Town gas is supplied mainly for household
purposes. Little is known about the utilization of spas
produced by underground gasification, but 25X1
smaller scale projects it is likely most of the gas was
used by the project or flared. At the Uzbekistan proj-
ect surplus gas is probably used by small industrial
plants.
C. Petroleum
The U.S.S.R. is the second largest producer of crude
oil and natural gas in the world, being surpassed only
by the United States. In 1968, Soviet production of
crude oil was about 309 million tons, about 15%
of total world output. Since 1960 the average annual
increase in Soviet output has been about 20 million
tons and annual goals have been overfulfilled.
Production in the U.S.S.R. is based on large reserves
estimated at the end of 1967 at about 4.7 billion tons,
approximately 8% of the world's proved reserves of
crude oil. These reserves are adequate to support
achievement of the announced goals for production of
350 million tons in 1970 and 460 million tons in 1975.
The discovery and development of new reserves of
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crude oil, however, has not been keeping pace with
the increase in production, and the ratio of reserves
to production, which was 20 to 1 in 1958, had fallen to
16 toIby1967.
The U.S.S.R. also ranks second in the world in
petroleum refining capacity. At the beginning of 1968
total primary distillation capacity amounted to about
255 million tons, not enough to process all of the crude
oil produced domestically. According to the original
Seven Year Plan (1959-65), primary distillation ca-
pacity was to reach 250-260 million tons in 1965, which
would have been adequate to process the 243 million
tons of crude oil produced in that year. During the
seven-year period, however, refinery construction
lagged, particularly construction of the secondary re-
fining facilities necessary for improvement of product
quality and for greater flexibility in the product mix.
Exports of crude oil increased significantly and re-
finery construction goals were lowered so that excess
primary capacity would not be built. During the pres-
ent Five Year Plan (1966-70) emphasis is being
placed on construction of secondary refining units, and
primary distillation capacity probably will increase to
about 300 million tons per year by the end of 1970.
The supply of petroleum products in the U.S.S.R.
has in general been adequate to satisfy the steadily
growing domestic demand. There has been an excess
supply of rather low-octane gasoline, although in
recent years steps have been taken to improve quality.
The supply of diesel fuel, the basic fuel of the Soviet
economy, has been tight, partially because 10% to
15% of the diesel fuel produced has been exported
to earn foreign exchange. The use of diesel fuel has
risen rapidly with the widespread use of diesel equip-
ment in agriculture and transport. Consumption of
petroleum products in the U.S.S.R. increased at an
average annual rate of about 9% during 1959-65,
and it is estimated that during 1966-70 the rate of in-
crease will be about 7% per year.
Pipeline transport of crude oil and petroleum prod-
ucts increased from 9.5% of total ton-kilometers of
oil freight in 1955 to about 22% in 1965. In spite of
this dramatic increase, plans for pipeline transport
during the Seven Year Plan period were not fulfilled.
Railroads continue to be the principal carrier of liquid
petroleum, having accounted for almost 43% of total
ton-kilometers of oil freight in 1965 compared to about
66% in 1955. The network of petroleum pipelines in
the U.S.S.R. reached about 33,000 kilometers in 1968.
Construction of oil pipelines has failed to meet plans
since 1959 as a higher priority has been assigned to
the building of the natural gas pipeline system.
The U.S.S.R. has been a net exporter of oil since
1955. Total exports have risen from 8 million tons
in that year to about 82 million tons in 1968, an aver-
age annual increase of about 20%. In 1968, exports
of petroleum were equivalent to 27% of total Soviet
production of crude oil. The composition of these
exports has shifted over the years; in 1955, crude
oil represented only 36% of the total whereas by
1968 this share had risen to almost 70%. About 56%
of total Soviet exports of oil during 1966-67 was
shipped to Free World countries, primarily to the
industrialized West to earn foreign exchange for the
purchase of equipment and technology. Of the re-
maining exports to other Communist countries, about
80% goes to Eastern Europe.
In addition to its huge resources of oil, the U.S.S.R.
has between one-third and one-half of the world's
potential resources of natural gas. Proved reserves
of natural gas at the beginning of 1966 were estimated
at 2 trillion cubic meters, about 18% of proved reserves
in the world. Production of natural gas in 1968 was
about 169 billion cubic meters, equivalent to about
205 million tons of oil. Plans for 1970 and 1975 call
for gas production to reach 215 billion and 300-340
billion cubic meters, respectively. Attainment of these
goals appears doubtful. Past Soviet goals have not
been fulfilled and annual increments in production
twice the increase of 12 billion cubic meters recorded
in 1968 would be required.
Consumption of natural gas has nearly equalled
production. Small quantities have been exported,
primarily to Poland and Czechoslovakia, and agree-
ments signed in 1966 and 1967 provide for the first
imports of gas from Afghanistan and Iran. In recent
months, Austria has agreed to import Soviet natural
gas through a proposed extension of the existing 28-
inch gas line from the U.S.S.R. to Czechoslovakia.
2. Development of resources and reserves 25X1
a. GEOLOGY - The prospective oil and gas areas
(sedimentary basins) within the U.S.S.R. cover an
estimated 11.1 million square kilometers, or about
half of the total land and inland sea area. Approxi-
mately 7.4 million square kilometers, or two-thirds
of the prospective area is considered favorable for the
occurrence of petroleum. It is reported that some
evaluation has been made of at least 6.5 million square
kilometers of the prospective areas in the U.S.S.R.
The most important geological provinces according
to producing potential for crude oil and natural gas
are the Baku-Caucasus region, the Ural-Volga plat-
form, the Central Asian republics, the West Siberian
lowlands in Tyumen and Tomsk Oblasts, and the
Central Yakutsk lowlands in Eastern Siberia.
The Baku-Caucasus region was the primary source
of crude oil supply in the U.S.S.R. before World War
II, but it has been supplanted by the Urals-Volga
area, which now provides about 70% of the total out-
put of crude oil. Depletion of the older oil and gas
fields west of the Ural Mountains has led to explora-
tion east of the Urals. Major discoveries of crude
oil and natural gas have been recorded in the Central
Asian republics and in the West Siberian lowlands.
The potential for producing natural gas in the Central
Asian region exceeds that for crude oil. Large gas
deposits have been located in Uzbekistan, Turkmeni-
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Stan and western Kazakhstan, but oil production is
confined largely to western Turkmenistan and the
Mangyshlak Peninsula area of western Kazakhstan.
Development of the West Siberian lowlands is ex-
pected to result in the establishment of a "Third
Baku" which will become a major crude oil and
natural gas producing region after 1975. Recent dis-
coveries of natural gas in the Yakutsk lowlands also
indicate the presence of vast gas reserves in eastern
Siberia. The location of petroleum and gas resources
in the U.S.S.R. are shown on Figure 75.
In the postwar period major efforts were directed
to exploring for and developing Paleozoic oil deposits.
The major share of proved reserves and production
of crude oil (1966) is obtained from the Paleozoic.
On the other hand, the major occurrences of natural
gas have been discovered in Cenozoic and Mesozoic
deposits, as illustrated in the following tabulation:
1966
AGE OF DEPOSIT
CRUDE OIL
AND NATURAL
GAS PRODUCTION
RESERVES
------Percent------
Oil
Gas
Oil
Gas
Cenozoic
27.0
53.0
13.8
41.3
Mesozoic
2.9
34.0
3.2
48.4
Paleozoic
70.1
13.0
83.0
10.3
including:
Permian
2.6
1.5
Carboniferous
19.0
18.6
Devonian . .
48.5
62.9
b. RESOURCES AND RESERVES - Existing petroleum
reserves appear adequate to support a 100% increase
in the production of crude oil and perhaps a 200%
increase in the output of natural gas by 1980. Recently
announced goals for 1980 call for slightly more than
a 100% increase in production of crude oil and for
more than a 300% increase in production of natural
gas, based on 1967 rates of extraction. Achievement
of the 1980 goal for production of natural gas is un-
likely even if the ratio of proved reserves to extraction
is lowered drastically.
The preferred ratio of proved reserves to annual
production has been at least 20 years (20:1) for both
crude oil and natural gas. Since 1961, however, ex-
ploration efforts to find new reserves of crude oil
and natural gas have failed to maintain the desired
20:1 reserves-to-production ratio. Production is being
increased at rates which exceed the annual addition
to proved reserves. The reduction in the reserves-to-
production ratio during 1962-66 is estimated to be
much greater in the case of natural gas than for crude
oil. Estimated proved reserves of crude oil and natural
gas and the changing ratios of reserves to production
for selected years from 1950 to 1966 are shown in
Figure 15.
The discovery of large new deposits of oil and gas
in Western Siberia and Central Asia during the past
decade has improved long term prospects, but ex-
FIGURE 15. ESTIMATED PROVED RESERVES AND
ItESI+ERVES-TO-PILOI)UCTION RATIOS FOIL
CRUDE 011, AND NATURAL 25X1
ESTIMATED
ESTIMATED
RESERVES-
RESERVES-
PROVED
PROVED
TO-PRO-
TO-PRO-
CRUDE
NATIT RAI,
1) UCIION
DUCTION
OIL
GAS
RATIO
RATIO
RESERVES
RESERVES
Mi
llion tons
Billion
cubic
meters
1950......
750
25:1
85
15:1
1955 ......
1,400
25:1
389
65:1
1958......
2,300
20:1
1,247
43:1
1960......
3,300
20:1
1,667
36:1
1965......
3,900
16:1
2,091
16:1
1966 ......
4,225
16:1
2,021
14:1
ploration and development of new Asiatic deposits is
still proceeding. Asiatic reserves are expected to supply
an increasing share of future petroleum production.
At present, only a small portion of the Asiatic reserves
have been proven; the greater portion are classified
as probable, being much less thoroughly defined.
c. EXPLORATION - Exploration in the Soviet pe-
troleum industry includes the dual tasks of locating
and evaluating new reserves of crude oil and natural
gas for future development. Exploration activities are
organized along two separate but related types of
operations-prospecting work and exploratory drilling.
Prospecting work includes: preparation of composite
geological maps for future drilling sites from surface
and subsurface geological studies; structural and core-
hole drilling; and geophysical surveys which utilize
gravity meter, magnetometer, and seismograph data.
Exploratory drilling of mapped structures is necessary
to verify the existence of crude oil and natural gas
deposits and to delineate and evaluate reservoir po-
tential for future exploitation. Development drilling
and production usually begins after exploratory drilling
has established the presence of adequate proved re-
serves.
(1) Prospecting work - Mapping of oil and
gas prospects in the U.S.S.R. has become more difficult
in recent years due to the greater complexity of the
geology and the increasing prospecting depths. As
depths have increased, structural and core drilling
have become less reliable tools for subsurface mapping.
Rational development led to exploiting first the larger
more obvious structures that were located by shallow
drilling. In recent years exploration and development
in older producing regions has been restricted to
the remaining smaller, deeper, more subtle structures
that had been deferred for later exploitation. Obsoles-
cence of Soviet seismograph equipment and tech-
nology hinders the location of new sites favorable for
exploratory drilling. The lack of modern computerized
seismograph technology has been particularly detri-
mental in locating and defining deep structures. Un-
scientific methods and poor data that complicate the
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mapping of subsurface structures also are cited as
major causes of unwarranted drilling and dry holes.
The number of Soviet geophysical survey crews
was estimated at about 1,000 in 1965, which included
880 seismograph crews and about 120 magnetometer
and gravity meter crews. The number of seismograph
parties has increased from 118, or 42% of all the geo-
physical parties in 1950, to 880, or about 88% of
all geophysical crews in 1965. This illustrates the in-
creased reliance placed on seismic methods. In gen-
eral, present Soviet geophysical equipment lacks pre-
cision and proper instrumentation, and the poor
quality of seismic cable and geophones limits reception.
Investment in geophysical surveying and evaluation
of exploratory wells for determining the producing
potential of new crude oil and natural gas reservoirs
doubled during 1959-66. Annual investment outlays,
in millions of rubles and by region of expenditure,
are shown in Figure 48.
(2) Exploratory drilling - Exploratory drilling
in the U.S.S.R. is primarily concerned with defining
and evaluating previously mapped subsurface pros-
pects for crude oil and natural gas exploitation. Ex-
ploratory drilling accounted for more than half of all
the drilling conducted in the U.S.S.R. during the Seven
Year Plan (1959-65), and during 1966-67, as shown
as follows, in thousands of meters:
1959 .
7,148
3,386
3,762
1960
7,715
3,692
4,023
1961
8,363
3,830
4,533
1962
8,873
4,065
4,808
1963
9,148
4,287
4,861
1964
10,003
4,687
5,316
1965 .. .. .
10,719
5,151
5,568
1966 ..
11,251
5,603
5,648
1967
11,707
5,905
5,802
More than 70% of the 32.9 million meters of ex-
ploratory drilling conducted in the U.S.S.R. during
1959-65 was located west of the Ural Mountains. A
regional distribution of exploratory drilling in 1950,
1955, and 1963 follows, in percent:
RecroN
1950
1955
1963
West of Urals ..... .. .. .. ..
80.3
79.1
72.2
Caucasus
44.8
28.8
24.5
Urals-Volga . .....
27.6
44.5
41.5
South
7.9
5.8
6.2
East of Urals .. . . . . .... . . .......
19.7
20.9
27.8
Central Asia
10.6
12.5
13.6
West Siberia and other regions
6.6
5.4
11.0
Far East
2.5
3.0
3.2
During 1959-65 about two-thirds of the exploratory
drilling, or 22 million meters, were drilled for new
crude oil reserves and the remainder for gas. The
annual goals for exploratory drilling have not been
fulfilled since 1957, and additions to proved oil and
gas reserves have not kept pace with rising annual
production rates.
The underfulfillment of exploratory drilling quotas
results, in part, from a noticeable increase in the
average depth of all wells drilled and, in recent years,
from a decrease in the rate of penetration, shown as
follows:
Exrl.oniATrony DRILLING INDICES
1950
1960
1965
Average depth of well drilled, in meters .
1,362
1,928
2,269
Drilling rates in meters/rig/month for
exploratory wells ............... ..
209
401
377
The need to drill deeper in search of new reserves
is increasing in all of the older producing regions
such as the Ukraine, the Urals-Volga, Baku, and North
Caucasus and in the new producing regions of the
Central Asian republics. Between 1938 and 1958 in
the U.S.S.R. a total of only 58 wells were drilled to
depths below 3,000 meters; since 1964, however, 150
to 200 wells have been drilled to this depth each
year. By 1966, 12 wells had been drilled below 5,000
meters and as of mid-1968, 2 were drilling below
6,000 meters.
A comparison of deep exploratory drilling costs and
of actual drilling time per day between the U.S.S.R.
and the U.S. reveals a sharp contrast. Soviet sources
estimated the average cost per foot of drilling a 6,300-
meter super deep test in the North Caucasus in 1967
to range from $75 to $150. In the U.S. more than 400
similar deep wells were drilled and completed in
1966 at an average cost of $46 per foot. Data on
Soviet drilling practices reveal that about 16 hours
is spent in raising and lowering drill pipe to replace
worn-out hits for each 8 hours of actual drilling time
below 2,500-meter depths. In the U.S. this ratio is
reversed.
In addition to deep drilling directly aimed at finding
new oil and gas deposits, there are three other forms
of geological exploratory drilling which include sup-
port wells, parametric wells, and regional profile
wells, that collectively accounted for 4% to 7% of
total exploratory drilling during 1962-66. These forms
of general reconnaissance drilling are used to compile
preliminary data for seismograph surveys and geologi-
cal mapping of prime areas for future detailed pros-
pecting and drilling.
It is estimated that during 1959-65 about 175
metric tons of crude oil reserves and about 135,000
cubic meters of natural gas reserves were discovered
for each meter drilled. During these years the most
significant increase in reserves of oil and gas per
meter of exploratory drilling was obtained in Western
Siberia where the increase was 3 times greater than
the national average. The increase in reserves per
meter of exploratory drilling was 2.5 times greater
than the national average in the Kazakhstan S.S.R.
and double the national average in the Uzbekistan and
the Turkmenistan S.S.R.'s. Despite these achievements
the results of exploratory drilling were only about
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80% as effective during 1959-65 as during the previous
5-year period.
d. TECHNOLOGY AND EQUIPMENT - The U.S.S.R.
currently lacks modern exploration technology and
equipment, which poses serious problems for future
development of the petroleum industry. Obsolescent
seismic equipment and technology has hindered ex-
ploration efforts. Most of the existing exploration
equipment and technology for the petroleum industry
was designed and developed for operations in the
Baku and Urals-Volga regions, where most crude oil
deposits were located in rather shallow, uniform res-
ervoirs. More recently, exploration activity has taken
place at much greater depths and in areas outside
of Baku and the Urals-Volga in desert and permafrost
terrain. The new operating environments often impose
performance requirements that greatly exceed and
differ from those for which existing technology and
equipment were designed.
Present Soviet geophysical techniques and equip-
ment for deep prospecting are estimated to lag behind
those in the U.S. by about 10 years. The ability to
locate and define complex structures at greater depths
is essential for the development of accurate subsur-
face geological maps and reducing the number of dry
holes. Deep exploration is both time consuming and
costly, and is largely dependent on the quality of
available seismograph data. Soviet seismic records ob-
tained from deep structures are frequently of poor
quality due to the use of "refraction" techniques rather
than the accepted western "reflection" methods and
also because low frequency signals are ignored. Utili-
zation of the modern digital recording techniques
and computerized processing of seismic data is still in
the experimental stage. "Horizontal stacking," a new
technique developed in the U.S. in 1963, which com-
bines reflection methods with computerized recording
equipment represents one of the most significant
achievements for deep exploration in the history of the
petroleum industry. Soviet experts are aware of this
method but apparently lack the computers and/or
the instrumentation to apply it.
Soviet instrumentation lacks the precision of western
equipment. Nevertheless, Soviet scientists have made
some interesting innovations in regional prospecting
and in the use of extremely long seismic shot lines
reaching up to 570 miles in length. They have initiated
the use of recorded earthquake data in seismic studies
for mapping basement strata and structures. Magnetic
and gravity methods are being used to select areas for
detailed seismic surveys and electrical methods are
used to eliminate places not worth detailing by seis-
mograph.
Efforts to conduct exploratory drilling below 2,500
meters are handicapped by use of equipment designed
for shallower depths. The turbodrill, which was used
for about 85% of all wells drilled in the U.S.S.R. in
1967, is an excellent tool for shallow, slant hole and
directional drilling, but hole deviation becomes a
problem when drilling deep vertical holes. Excessive
drill-pipe wear, separations, and accidents are more
likely to occur, and penetration rates are slower.
The larger diameters of Soviet drill pipe, bits, and
turbodrill-borings also serve to reduce the efficiency,
speed, and volume of exploratory drilling as depth
increases. More use is being made of rotary drilling
in combination with turbodrilling, below 2,000-meter
depths. Experimental work is being conducted to de-
velop an electrodrill for deep drilling. Widespread
operational use of this tool, however, has been pre-
vented by failure to overcome losses of electric cur-
rent as the current is transmitted through the drill
pipe to the drive mechanism and hit.
Shortages of high pressure blow-out preventers on
exploratory drilling rigs has led to many drilling ac-
cidents, needless blow-outs, fires, and waste of valuable
oil and gas resources. Exploratory drilling in the south-
ern regions of the Soviet Union is especially hazardous
without blow-out preventers because high pressure
reservoirs are frequently encountered. Exploration and
production activities in the North Caucasus were forced
to cease temporarily for lack of blow-out preventers in
:3. Drilling
a. GENFIIAL - Since 1950 drilling for crude oil
and natural gas in the U.S.S.R. has emphasized ex-
ploratory drilling, whereas development drilling pre-
dominated in prewar operations. At the present time
exploratory drilling accounts for more than half of
all drilling. During 1950-65 the average depth of
exploratory wells increased from 1,362 meters to 2,269
meters and that of development wells from 1,148
meters to 1,653 meters. The total volume of drilling
rose from about 4.3 million meters in 1950 to about
10.7 million in 1965, an increase of about 150%.
Figure 49 shows average depths and penetration rates
of exploratory and development drilling in 1950, 1960,
and 1965.
Exploratory drilling requires larger expenditure of
time and money than does development drilling be-
cause of the greater average depth per well and the
slower rates of penetration. Penetration rates are slower
because of the need to sample and test cores as the
wells are drilled. Soviet statistics indicate 502 oil
deposits and 231 gas deposits were discovered during
1959-66 by the exploratory drilling of 1,005 oil and
282 gas structures.
The drilling of smaller structures and a larger num-
her of small-yield wells has led to the greater volume
of development work. More than half of all the crude
oil reserves in the U.S.S.R. are concentrated in 24
large structures and about two-thirds of the natural
gas reserves are located in 32 structures. When many
of these large deposits were drilled, output was maxi-
rnized at a minimum of investment input. However, as
the older fields have been depleted, smaller deposits
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have been exploited at greater unit costs, or large new
fields have been developed in remote locations that
require large capital investments. Most of the present
drilling operations are located in the older producing
regions, including Azerbaydzhan, North Caucasus,
Ukraine, and Urals-Volga, where it is possible to
maintain full utilization of existing facilities for pro-
duction, transportation, processing, and storage nearer
the consuming centers. Data for 1966 on the regional
output of oil and gas and on depth of producing
deposits in the U.S.S.R. are given in Figure 50.
The expansion of the drilling program has necessi-
tated an increase in the supply of drilling rigs, both
from domestic output and from imports. During 1956-
65 the total number of drilling rigs available for ex-
ploratory and development work more than doubled
(811 in 1956 to 1,634 in 1965), with the greatest
increase in exploratory rigs. Fewer drilling rigs are
required for development drilling because average
penetration rates are 2 to 3 times greater than for
exploratory tests, and the average depth of develop-
ment wells is only about three-fourths that of ex-
ploratory wells. The total number of drilling rigs
in use in the U.S.S.R. in 1950 and 1955-65 is shown
in Figure 16.
h. METHODS AND EQUIPMENT
(1) Turbodrill - Approximately 85% of all
the wells in the U.S.S.R. are drilled by the turbodrill
method which was perfected during the post-World
War II development of the shallow but prolific Urals-
Volga crude oil deposits. In turbodrilling only the bit
at the lower end of the drill stem rotates. In rotary
drilling, the entire drilling column is rotated from
the surface. The turbodrill rotates at speeds of up to
600 revolutions per minute, whereas rotary tools turn
at rates of less than 150 revolutions per minute. Mud
pumped down through the drill pipe under high
pressure to the turbodrill supplies the drive mechanism
for the turbine which impels the bit. There is little or
no torque on the drill column. Soviet turbodrill equip-
ment is generally bulkier and heavier than conven-
tional western rotary equipment and uses noticeably
larger diameter drill pipe and bits. The relative ad-
IN USE
DEVE
R
LOPMENT
IGS
TO
TAI.
1950
.............
849
286 1,
135
1955
.............
611
259
870
1956
.............
565
246
811
1957
.............
597
253
850
1958
.............
674
270
944
1959
.............
748
283 1,
031
1960
.............
835
310 1,
145
1961
.............
950
331 1
,
281
1962
.............
1,027
342 1
,
369
1963
.............
1,101
361 1,
462
1964
.............
1,185
367 1,
552
1965. . ...........
1,240
394 1,
634
vantages of rotary and turbodrilling methods depend
on the durability of the downhole equipment, espe-
cially drill pipe and bits.
The disadvantages of turbodrilling begin to appear
when drilling in soft rock strata and when drilling
below 2,500 meter depths. The standard turbodrill
commences to lose efficiency at 2,000 meters as pene-
tration rates decrease due to accelerated bit wear.
Lower mud pump efficiency below 2,000 meters causes
a reduction in the mud flow that lubricates and cools
the bit; consequently, accelerated bit wear occurs
with increased depth and greater axial loads. Changing
the bit is a time consuming operation that necessitates
raising and uncoupling the entire drill column to
replace the worn out bit. Below 2,500 meters turbodrill
bits are replaced about twice as frequently as rotary
bits.
Modification of the high speed turbodrill method has
become necessary because of the increased amount of
deep drilling being undertaken in the U.S.S.R. Low-
speed multisectional turbodrills are being specially
designed to improve performance in soft rock and
below 2,000 meters. A series of high-torque turbo-
drills having a variable automatic fluid flow to improve
operation at low speeds is now being tested. Experi-
ments also have begun with internally retractable tur-
bodrill bits which would eliminate the need for pulling
the entire drill column. Reduction of diameters and
improved metallurgy in the fabrication of bits and
drill pipe can also extend the usefulness of turbodrills
to greater depths. Mud pumps with pressure ratings
of 200-250 atmospheres, compared to the present
ratings of 150 atmospheres, would also prove helpful
in extending bit life and in improving deep drilling
performance. In the U.S., mud pumps rated at 200
and 300 atmospheres are common. Treatment of drill-
ing fluids for removal of abrasive material would also
extend the operational life of the turbodrill drive
mechanism and lengthen the time between mainte-
nance periods. The production of turbodrills in the
U.S.S.R. during 1959-67 was as follows:
1959 ........... 4,898
1960 ........... 6,222
1961 ........... 6,752
1962 ........... 7,656
1963 ........... 8,038
1964.._.._.._..8,280
1965 ........... 8,439
1966 ........... 8,487
1967 ...... .._._ 8,322
(2) Rotary drilling - Conventional rotary drill-
ing is being used more frequently for deep drilling
below 2,000 meters, and in combination with turbo-
drills for penetrating alternate soft and hard rock
formations. The slower bit speeds in rotary drilling
increase penetration rates in softer strata and rotary
methods also permit use of smaller diameter drill pipe
and bits. Greater use of rotary drilling will necessitate
improvements in the quality of drill pipe, drill collars,
jet bits, and drilling fluids. About 13% of all drilling
in the U.S.S.R. probably is by the rotary method.
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(3) Electrodrill-The U.S.S.R. is developing
another type of subsurface motor for drilling called
the electrodrill. The electrodrill motor which is located
at the lower end of the drill column is powered by
electric current transmitted from the surface. The
downhole motor develops bit speeds ranging from
400 to 1,000 revolutions per minute. Electric power is
transmitted through a conductor line, consisting of
separate sections of cable imbedded in the wall of
each section of drill pipe. These sections of cable
connect as the pipe is screwed together. Air, gas, or
conventional drilling mud can be used with the elee-
trodrill as a circulation medium. Loss of electric power
along the conductor line constitutes a serious difficulty
that prohibits wider use of the electrodrill in deep
drilling. It is estimated that only 1% to 2% of all
drilling is accomplished with the electrodrill.
(4) Vibratory drilling - Vibratory drilling and
novel percussion rotary methods are being investigated
in the U.S.S.R. The vibratory method employs an
impacting of the bit with short time force pulses by
means of a subsurface vibrator located above the
bit. Certain advantages may result from lower axial
loads and lower rotational speeds, but vibrational
dampers must be developed to protect the drill col-
umn against alternating stresses.
(5) Bits - The most serious problem in oil
and gas well drilling in the U.S.S.R. is the lack of
durability of drill hits. The Soviet petroleum equip-
ment industry manufactures a wide variety of con-
ventional drill bits with varied cutting surfaces, in-
cluding blade-type hits, jet bits, inserts, tri-cone button
and tooth-type roller bits, diamond bits for coring
and super deep drilling, and single cone bits. About
900,000 bits of all types were produced in 1965. In
general, the quality of the most widely used tri-cone
bits needs to be improved by use of better steel and
by improved design if bit life is to be extended and
drilling penetration rates are to improve.
The use of diamond hits for drilling commenced
in 1959, but this technology is still in the develop-
ment stage. The production of diamond bits increased
from 46 in 1961, to 292 in 1965, and is expected to
reach 1,600 in 1970. The average penetration per
diamond bit increased from 81 meters to 193 meters
during 1961-65. In 1966, Soviet drillers claimed an
average penetration of 227 meters per bit. Soviet
natural diamonds are reported to he more brittle than
natural industrial diamonds used in western industry
and this leads to shorter bit life. Very little use of syn-
thetic diamonds in bits for petroleum drilling has
been reported.
(6) Blow-out preventers - Drilling operations
in the Soviet Union have, in many cases, proceeded
without use of blow-out preventers. Penetration of
high-pressure reservoirs containing crude oil and nat-
ural gas is extremely dangerous without this emer-
gency equipment and has resulted in blow-outs, well
fires, and losses of life, equipment, and valuable hy-
drocarbon resources. A universal type preventer rated
at 320 atmospheres (about 4,800 pounds per square
inch) is coming into use. This preventer operates with
pipe sizes ranging from 60 to 300 millimeters in diam-
eter, but only 226 were produced in 1965. Soviet efforts
to produce and import higher pressure fixtures with
5,000, 10,000 and 15,000 pounds-per-square-inch rat-
ings have failed to keep pace with the demand for
these items.
(7) Tubular goods - Drill pipe and casing for
the oil industry are made of five grades of steel with
a maximum yield strength up to 135,000 pounds per
square inch. Drill pipe is made in 8 sizes with outside
diameters ranging from 60 to 168 millimeters. It is
believed that commonly used sizes of oilfield casing
and drill pipe are produced at the same plants and
are of identical quality and weight except that tool
joints are added to the ends to make drill pipe. The
general quality of drill pipe is inferior to that in the
U.S., but quality has not been a limiting factor be-
cause of the absence of torque in turbodrilling. Much
of the domestic drill pipe is not suitable, however, for
rotary drilling methods at depths of more than 2,000
meters.
Oilfield casing is made in 15 sizes ranging from 114
to 426 millimeters in outside diameter. Much of it
is too heavy and inferior in quality by U.S. standards,
but the manufacture of higher quality casing has be-
gun.
Light alloy drill pipe for both turbodrilling and con-
ventional rotary drilling is finding wider use and ac-
ceptance. The use of aluminum drill pipe with a yield
strength of up to 50,000 pounds per square inch has
been reported.
(8) Rigs - Drilling rigs are produced in var-
ious types and sizes in the U.S.S.R. including portable,
semi-portable, light, medium, heavy duty, and super
deep models, similar to the functional types used
in the U.S. Construction differs from that in the U.S.
chiefly in the widespread use of tubular steel for
derrick and mast construction rather than angle iron.
Thus, Soviet rigs tend to be bulkier and heavier and
are more difficult to transport to drilling sites. Annual
production of all types of drilling rigs increased from
350 units in 1958 to 520 units in 1965. Approximately
70% of the rigs produced are furnished with diesel
drives which are most often used for exploratory drill-
ing. Approximately 30% of the rigs are powered by
electric or diesel-electric drives, used largely for de-
velopment drilling. The latest model rigs are equipped
with automatic controls and use pneumatic and hy-
draulically operated equipment such as breakout tongs
and lifts for making up and breaking down the drill
column.
4. Crude oil production
25X1
a. OUTPUT AND PLANS - The Soviet Union is the
second largest producer of crude oil in the world,
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FIGURE 17. PRODIJCTION OF CRUDE OIL
(Millions of tons)
1959 .................... 128.0
1960 .................... 144.3
1961 .................... 161.0
1962 .................... 180.1
1963 .................... 200.0
1964 .................... est 220
1965 .................... 230-240
1966 .................... 264.0
1967 .................... 286.3
1968 .................... 309.0
1969 plan ................ 326.5
1970 plan ................ 345-355
1975 plan ................ 450-470
1980 plan ................ 600-620
being surpassed only by the United States. Total
production of crude oil in 1968 amounted to about
309 million tons, 15% of total world output and equiv-
alent to about 60% of crude oil production in the
United States. Output of crude oil in the U.S.S.R. has
doubled since 1960, reflecting an average annual
growth rate of 10%. Cumulative above-plan perform-
ance in the production of crude oil amounted to 15.3
million tons during 1959-67 (based on revised annual
goals). Figure 17 provides data on goals and actual
output of crude oil during 1959-67 and plans for 1970,
1975, and 1980.
About 70% of the crude oil produced in the U.S.S.R.
in 1967 came from the Urals-Volga region, known as
the Second Baku. The rise in importance of the Urals-
Volga region as a crude oil producer is shown in the
following tabulation (in millions of tons and as a per-
cent of the national total) :
OUTPUT
PERCENT
OF TOTAL
1940
1.8
6
1945
. ....... ...........
2.8
15
1950
.. ..................
11.0
29
1955
.....................
41.1
58
1962
......... ...........
134.1
72
1966
.. ..... . .. . ..
186.3
70
1967
.....................
201.6
70
PERCENT OVER
FCLFII,LMENT OF
REVISED GOALS
128.0 129.6 1.2
144.3 147.9 2.6
164.0 166.1 1.3
185.0 186.2 0.6
205.0 206.1 0.5
222.0 223.6 0.7
242.0 242.9 0.4
264.0 265.1 0.4
286.0 288.1 0.7
309.0 309.4 0.1
..............
One of the largest known oil deposits in the world
was discovered at Romashkino during 1948-49 in the
Tatar S.S.R. The geological structure is very com-
plicated containing 5 oil-bearing zones with a total
thickness of up to 35 meters. The deposit was divided
into eleven separate producing areas, and each was
developed as an individual field. The simultaneous
production of oil and contour water flooding of the
oil-bearing sandstone reservoirs to maintain pressure
has permitted maximum extraction rates and recovery
rates, with a minimum number of producing and in-
jection wells. Crude oil production at Romashkino
rose from 700,000 tons in 1951 to 70 million tons in
1967, or about 25% of total U.S.S.R. output. The
..............
..............
..............
average well productivity at Romashkino is 1,500
tons per month, compared to the U.S.S.R. average of
530 tons. Crude oil production costs in the Romashkino
field are about 1.4 rubles per ton, approximately half
the national average.
The productive Urals-Volga region has relegated the
older producing regions, particularly the Baku fields
of Azerbaydzhan S.S.R., to a less important position.
The Baku fields and other Transcaucasus fields pro-
duced only 9% of the national output in 1966, com-
pared to 71% in 1940. Estimates of crude oil pro-
duction by producing regions of the U.S.S.R. for 1940,
1950, 1960, and 1980 are given in Figure 18. The out-
put of crude oil by economic regions in the U.S.S.R.
in 1967 is illustrated on Figure 75. Figures 19 through
22 show oilfield equipment and activities.
After 1970 the relative importance of the Urals-Volga
region is expected to decline as greater reliance is
to be placed on output from new deposits in Western
Siberia and the Mangyshlak Peninsula in western
Kazakhstan. These new producing regions are to supply
at least 40% of the total production of crude oil by
1980. Plans call for the annual output in the U.S.S.R.
to increase by 22 million tons during 1968-75 to reach
the 1975 goal of about 460 million tons, and by 30
FIGURE 18. F:STIMATEI) OUTPUT OF CItUI)I: OIL,
BY PRODUCING III:GION 25X1
(Percent of total)
OIL PRODUCING REGION
j 1940 1
1950 1
1966 1
1980*
Transcaucasus and Azerbay-
dzhan .....................
71
39
9
4
Northern Caucasus............
15
15
10
6
Urals-Volga ..................
6
29
70
40
Central Asia and Kazakhstan...
6
12
6
15
Ukraine and Belorussia........
1
1
3
7
Others (West Siberia, Far East)
2
4
3
28
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FIGURE 19. RIG FLOOR OPERATIONS DEEP
DRILLING SITE IN KRASNODAR KRAYI
FIGURE 20. PUMPING 011, WELL AND
OVER TOWER IN 'IUYMAZY OILFIELD
million tons during 1976-80 to reach the 1980 goal
of 600-620 million tons.
b. METHODS OF PRODUCTION - In 1967, about 59%
of the crude oil produced was obtained from free-flow-
ing wells, about 39% from pumping wells, and most
of the remainder from gas or air-lift wells. Of the
41,700 wells producing in 1966, however, only about
8,200, or 20%, were free-flowing whereas more than
33,000, or about 80%, were pumped wells. Production
of crude oil in the U.S.S.R., by method of production,
for 1950, 1955, 1961, 1964-67 is given in Figure 51.
Plans for 1970 call for annual production of crude oil
from free-flowing wells to reach more than 200 million
tons and the number of free-flowing producing wells
is to be more than 12,000.
The use of submerged electric centrifugal pumps
in oil producing wells began in the U.S.S.R. in 1951.
About 3,400 bottom hole pumping units were in oper-
ation in 1966 and output of crude oil from wells
FIGURE 21. FLOWING WELL WITH TREATS ND
STORAGE TANK IN TUYMAZY OILFIELD 7 25X1
using this equipment amounted to 48 million tons, or
18% of total output. In 1966, about 30,000 wells in the
U.S.S.R. were equipped with conventional rod-type
pumps and accounted for about 14% of total crude
oil output. Plans for 1970 call for the use of almost
9,000 submersible pumps in producing wells that are
to yield about 100 million tons of crude oil, or at least
30% of total output. The number of rod -type25X1 is
in use in 1970 is expected to be one-third larger than
in 1966, and output from wells equipped with rod
pumps should reach 55 million tons, or almost 16%
of national production.
C. MEANS FOR INCREASING OUTPUT - Since 1948,
primary production and water flooding (both contour
and intra-contour) have been started simultaneously.
The flooding, which continues throughout the life of
the field, maintains reservoir pressure, prolongs pro-
ducing life, optimizes the free-flowing production rates
for each well and field, minimizes the number of
wells to be drilled, and increases the ultimate recovery
of crude oil. The amount of water injected annually
into producing reservoirs increased from about 142 mil-
lion cubic meters in 1958 to more than 360 million
cubic meters in 1966. The number of water flood in-
jection wells during that period rose from about 3,000
to 4,100. The total output of crude oil from fields in
the water flooding programs in 1958 amounted to about
70 million tons, or about 62% of national output. In
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1966 the share of national output from fields where
water flooding was used was estimated at more than
80%.
In addition to development drilling and water flood-
ing, other methods are being used to increase the pro-
duction of crude oil. They include artificial stimula-
tion and rejuvenation of crude oil reservoirs by hy-
draulic fracturing and acidizing the producing forma-
tions; and secondary recovery methods using steam
flooding, fire flooding, and chemical reagents. Acidiz-
ing and hydraulic fracturing are used to increase the
flow of oil from tight formations. The secondary meth-
ods are normally employed when the natural reservoir
drive (either water or gas or a combination of both)
has declined. No information is available on the
amount of crude oil obtained by the above-mentioned
methods, but it probably is small-less than 1% of
total output. The U.S.S.R. also has contemplated and
perhaps made use of nuclear explosions for the stimu-
lation of tight reservoirs, but no data are available on
any results that may have been achieved.
d. OFFSHORE PRODUCTION - Up to the present
time Soviet offshore production of crude oil has been
concentrated in the Caspian Sea, in the shallow waters
surrounding the Baku Archipelago. Production from
these offshore fields has provided most of the gains
in output in Azerbaydzhan in the postwar period. In
1966 offshore wells produced nearly 12 million tons
or about 55% of the 21.7 million tons of crude oil pro-
duced in Azerbaydzhan. The average yield of offshore
wells near Baku is almost 3 times that of the average
in Azerbaydzhan and is attained at a cost 30% to
35% lower than for onshore wells. Typical offshore
wells and facilities are shown in Figures 23 and 24.
The major limitation to the expansion of crude oil
production from offshore deposits has been a lack
of equipment suitable for operation in deep water.
Most of the offshore output has been limited to wells
directionally drilled from onshore locations and from
fixed platforms often connected to the mainland by
trestles. Most of the offshore wells now in production
are located in less than 30 meters of water and opera-
tions from fixed platforms are restricted to water
depths of no more than 40 meters. About half of the
areas of the Caspian Sea considered favorable for
petroleum production lie under water depths in excess
of 100 meters. Before these deeper areas can be ex-
ploited the U.S.S.R. must develop more advanced off-
shore drilling technology and floating drilling plat-
forms.
In 1959 the U.S.S.R. built its first offshore floating
drilling platform the "Apsheron" which drilled about
50 shallow structural prospecting wells for mapping
purposes. This first Soviet floating platform, which re-
sembles early U.S. designs, is equipped with 4 tubular
legs that can be lowered to the sea floor after the plat-
form has been towed to the drill site. Western plat-
forms of this type have been used, for the most part,
in water depths of less than 100 meters. The "Ap-
sheron" has drilled five wells less than 1,200 meters
deep and is preparing to drill a sixth to a maximum
depth of 1,800 meters in 15 meters of water. Con-
struction of a second floating platform, the "Azerbay-
dzhan," is nearing completion. It will have a capa-
bility to drill to depths of 3,000 meters in 30 meters
of water.
A most important acquisition of western offshore
drilling equipment was made in September 1967, when
the U.S.S.R. imported a drilling platform (named the
"Khazar") from the Netherlands. The "Khazar" is a
modification of a 5- or 6-year-old Royal Dutch Shell
platform used in the Persian Gulf. This platform will
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permit Soviet technicians to drill 6,000 meter wells
in water 60 meters deep. The "Khazar" will greatly
facilitate Caspian Sea exploration off the Baku Archi-
pelago, along the Iranian shoreline and along the east
shoreline of Turkmenistan, where numerous prospects
are believed to exist.
Ultimately, the U.S.S.R. will need more advanced
floating platforms. U.S. industry has used platforms
held in a stable floating position, by means of auxil-
iary propellers and anchors, for drilling in water 180
meters deep. In the fall of 1968 the U.S. had built
such a platform capable of drilling in water 300 meters
deep.
e. NEW CRUDE OIL DISCOVERIES AND THEIR SIGNIFI-
CANCE - Recent crude oil discoveries of major pro-
portions have been recorded on the Mangyshlak Pen-
insula of western Kazakhstan and in the Tyumen and
Tomsk Oblasts of West Siberia. The reserves of these
new shallow multizone deposits are potentially very
important for future crude oil supply. Soviet planners
currently estimate that in 1980 about 200 million to
220 million tons of crude oil, one-third of total pro-
duction, will come from fields located east of the Ural
Mountains, in the Western Siberian Lowlands, and
from fields of the Mangyshlak Peninsula in western Ka-
zakhstan. The European portion of the U.S.S.R., how-
ever, consumes about 80% of the fuel used in the
country. The problems associated with the transporta-
tion of rising volumes of crude oil over great distances
from east to west will require significant expansion
of the present petroleum pipeline system and less re-
liance on transport by railroad tank car.
Several technological problems must be resolved
and special equipment will be needed to attain the
production levels planned for the new fields in Cen-
tral Asia and in Western Siberia. Problems of terrain
ranging from arid deserts to arctic tundra suggest that
automation and remote control devices will be needed
for the operation of new fields, treating facilities,
gathering systems, storage sites, and pipelines. More-
over, Mangyshlak crude oil has a high paraffin content
and must be kept in storage or in transit at tempera-
tures above 32 degrees Centigrade (90 degrees
Fahrenheit) or it will solidify and cease to flow.
f. PRODUCIION COSTS - The average cost of pro-
ducing crude oil in the U.S.S.R. declined about 30%
during the past decade, from 4.1 rubles per ton in 1956
to 2.8 rubles per ton in 1966 (the equivalent of 42
cents per barrel). These costs, however, do not include
expenditures' for prospecting and exploratory drilling.
Exploration costs alone are estimated to range from
0.65 rubles per ton in the Urals-Volga region to more
than 3 rubles per ton in the Far East. Costs of pro-
duction and development of reserves by major pro-
ducing regions in the U.S.S.R. in 1966 are given in
Figure 52.
5. Refining
a. CAPACITY-As of 1 January 1968 the U.S.S.R.
had a total crude oil charge capacity (primary dis-
tillation capacity) of about 255 million tons per year,6
a capability exceeded only by that of the U.S. This
Soviet capacity is contained in about 50 separate re-
fineries with almost 60% concentrated in the Urals-
Volga region and in the European part of the coun-
try. Most of the refining processes employed in the
west are in use in the U.S.S.R. but Soviet operational
experience in some of them is limited. Locations of
the major Soviet refineries, estimates of primary ca-
pacity, and available information on secondary ca-
pacities are given in Figure 53.
e One million metric tons per year equals approximately
20,000 barrels per day.
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Soviet primary distillation capacity is not adequate
to process all of the indigenous crude oil produced.
According to the original Seven Year Plan (1959-65)
primary capacity was to have reached 250 to 260
million tons in 1965. This capacity would have been
adequate to process the 243 million tons produced
in that year. During the seven year period, however,
the U.S.S.R. began to export significant quantities of
crude oil and as a result construction goals were
lowered so that excess primary distillation capacity
would not be built.
Unlike the U.S. and other industrialized countries
of the Free World, the relative share of secondary
capacity-catalytic cracking and reforming, hydro-
cracking, hydrogen treating, alkylation, isomerization,
polymerization-in Soviet refineries is small. These
secondary facilities are necessary to improve product
quality and to increase flexibility of the product mix.
Soviet secondary capacity probably does not exceed
20% of primary capacity, whereas in the U.S. sec-
ondary capacity is at least equal to primary capacity.
It must be pointed out that in the past such processes
as catalytic cracking and reforming were not as neces-
sary in the U.S.S.R. as in the west because there was
no great demand for high octane gasoline in the Soviet
economy. Nevertheless, as the need for higher quality
products has increased in recent years, the construction
of secondary processing facilities has been undertaken.
During 1959-65 the construction of these facilities
lagged badly because of poor planning and inadequate
allocation of investment funds for the manufacture
of the necessary equipment. During the present Five
Year Plan (1966-70) considerable emphasis is being
placed on the construction of secondary refining units.
By the end of 1970 the capacity of secondary facilities
is to reach at least 100 million tons per year, or about
one-third of the anticipated 300 million tons of pri-
mary capacity. Estimated capacities of known sec-
ondary refining facilities in the U.S.S.R. in 1965 and
as planned for 1970 are given in Figure 54.
b. LOCATION OF CAPACITY - Before World War
II most of the refining capacity in the U.S.S.R. was
centered in the Caucasus, reflecting the position of
this region as the major crude oil producing area. In
the 1950's most new capacity was built in the Urals-
Volga region which had become the major producer
of crude oil. In recent years, however, Soviet policy
on the location of refineries has changed. Refineries
are now being built in areas of increased demand, es-
pecially in the European part of the U.S.S.R. Never-
theless, the Urals-Volga region remains the largest
center of refining capacity, but its share of total ca-
pacity probably will decline in the future. There is
also a sizable concentration of capacity in a relatively
few large refining sites. For example, in 1967 almost
three-fifths of total primary distillation capacity was
concentrated at 8 locations, as shown in the following
tabulation:
PERCENT
PRIMARY DISTIL- OF TOTAL SOVIET
LOCATION LATION CAPACITY PRIMARY CAPACITY
Million tons
Kuybyshev ............
27
10.6
Ufa
26
10.2
Baku ........ .. .....
24
9.4
Omsk .. . . . ............
20
7.8
Groznyy
13
5.1
Angarsk ...............
12
4.7
Polotsk .......... ....
12
4.7
Yaroslavl
12
4.7
Total
146
57.2
The estimated geographical distribution of primary
distillation capacity in the U.S.S.R. at the end of 1967
is summarized in Figure 55, and shown on the map,
Figure 76. The Polotsk refinery is shown in Figure 25.
c. REFINERY CONSTRUCTION PRACTICES - Tradi-
tionally, Soviet efforts in the construction of refineries
have been dispersed over a large number of projects
and construction times have been extremely long com-
pared to the time that equivalent construction would
require in the United States. Such delays, coupled
with rapid technological progress in oil refining, tended
to make much of the equipment obsolete before it
went on stream. In the period before the Seven Year
Plan (1959-65) the norm in the U.S.S.R. for construc-
tion of a standard design refinery with an annual
crude oil charge capacity of 6 million tons was 7.5
years, but actual construction usually exceeded this
time. After 1959 the construction norm for such a re-
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finery was reduced to 3 to 4 years which more nearly
conformed to western practice. Efforts also were con-
centrated on a smaller number of projects at any one
time.
In 1963 the U.S.S.R. was particularly active in at-
tempting to purchase all types of refining processes
from the industrialized countries of the Free World.
The U.S., Japan, Italy, the Netherlands, the U.K., and
West Germany were asked by the U.S.S.R. to submit
bids on essentially the same integrated refinery-a
plant with a crude oil charge capacity of 12 million
tons per year to contain the most advanced equip-
ment and refining processes available. The projected
refinery, valued at $300-360 million if built by U.S.
firms, was to have been installed about 100 kilometers
southeast of Moscow and was to process Urals-Volga
crude oils. This refinery probably would have served
as a prototype for a number of refineries to be built
in the U.S.S.R. in the coming years. No contract was
concluded, however, for the construction of such a
refinery, but Soviet interest has continued in acquiring
western technology and equipment. For example,
several contracts were signed during 1966-67 with
France for the import of catalytic reforming and
hydrogen treating installations.
During 1959-65 much of the increase in refining
capacity was attained by the modernization and more
intensive use of existing facilities. Construction of new
refineries during these years lagged. For example, two
of the major new refineries-Kirishi and Kremen-
chug-that were originally scheduled for completion
in 1964 and in 1965 did not go on stream until mid
or late 1966.
d. REFINERY EQUIPMENT - The lack of oil re-
fining equipment in the U.S.S.R. probably was a
major factor in failure to build new and modern
facilities on schedule. As shown in the following tabu-
lation, output reached a peak in 1953, then inex-
plicably declined and did not regain the 1953 level
of output until 1962. Despite the sharp gains in out-
put during 1961 and 1962 delivery of equipment to
refineries fell short of plan by about 25,000 tons as
output was diverted to more important consumers,
presumably the chemical industry. After a 5% decline
in 1963, production rose to a maximum in 1966 and
then declined about 5% again in 1967. The goal for
1970 will be difficult to achieve if past performance
is any criterion.
OUTPUT OF
OUTPUT OF
YEAR
REFINERY EQUIPMENT
YEAR REFINERY EQUIPMENT
Thousands of
metric tons
Thousands of
metric tons
1953
.
121.3
1964 .........
139.6
1955
.........
48.8
1965 .........
139.7
1957
.........
60.1
1966.........
147.5
1959
.........
76.5
1967 .........
140.2
1961
.........
106.8
1968 .........
125.0
1962
... ....
121.2
1970 plan ....
210-240
1963
114.8
Because the domestic supply of refinery equipment
is inadequate, the U.S.S.R. has been forced to import
such equipment to maintain its construction program.
Since 1960, at least, the Soviet Union has been a net
importer of refinery equipment. Although no details
are available on the types of equipment traded by the
U.S.S.R. in recent years, imports of refinery equip-
ment, primarily from Rumania and Czechoslovakia,
rose from about the equivalent of US$1.3 million in
1960 to a maximum of about the equivalent of US$30
million in 1965. During 1960-66 small amounts of
refinery equipment have been exported, primarily to
Eastern European Communist countries. Available in-
formation on Soviet trade in refinery equipment during
1960-66 is given in Figure 56.
C. OUTPUT OF PRODUCTS - The refining of crude
oil in the U.S.S.R. has always emphasized a high per-
centage yield of the intermediate distillates, kerosene
and diesel fuel. Since 1958 diesel fuel has been the
basic product obtained from Soviet refineries. Because
of the limited use of passenger automobiles in the
U.S.S.R. the demand for gasoline has been relatively
limited and the percentage yield of gasoline since
1958 has averaged only about 18% of total product
output, compared to more than 40% in the United
States. Despite the relatively low yield from refining,
more gasoline has been produced than could be used
efficiently and in some instances excess low quality
straight-run gasoline was blended with diesel fuel to
increase the output of diesel fuel and to lower the
freezing point of the diesel fuel used in cold weather
service.
The estimated annual yields of petroleum products
in the U.S.S.R., by type of product, for the years 1958-
67 are summarized in Figure 57. Total output of
refined products rose from about 92 million tons in
1958 to 202 million tons in 1967, an increase of 121%.
The importance of diesel fuel in the economy has been
reflected in the 11% average annual rate of increase
in output during the past 9 years, from about 21 mil-
lion tons in 1958 to about 56 million tons in 1967.
The yield of diesel fuel has risen during these years
from about 21% of total crude oil charged to re-
fineries in 1958 to about 25% in 1967. Increased out-
put of diesel fuel has been necessitated by the grow-
ing use of diesel equipment in agriculture and trans-
port. The relative decline in the yield of kerosene
reflects for the most part the replacement of kerosene
fueled tractors by diesel tractors. This decline, how-
ever, has been offset somewhat by the growth in de-
mand for jet fuel.
The output of residual fuel oil (mazut) has ex-
ceeded that of any other product in Soviet refining.
The extensive need for this product in industry, es-
pecially for generation of electric power, brought about
an increase in its yield from about 29% of total crude
oil charged in 1955 to 34% in 1965. It is expected that
as increased secondary refining capacity becomes
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available there will be a greater demand for light and
middle distillates of high quality and the yield of
mazut will decline. Moreover, some of the mazut
consumed in industry will be replaced by natural gas.
The yield of lubricating oils has remained nearly
constant (about 3.5% of total output) during the past
9 years but output has more than doubled. The U.S.S.R.
claims to be self-sufficient in the supply of lubricating
oils and greases but the production of additives for
these products has lagged behind domestic needs.
The quality of gasoline and diesel fuel has suffered
because of the lack of secondary facilities. Construc-
tion of secondary units of all types will be required
to meet future domestic and export needs for high
quality products. Plans call for raising octane num-
bers of motor gasoline to 92 and 98 and for reducing
the sulfur content of diesel fuels from 1% to 0.2%
by weight.
f. QUALITY OF CRUDE OILS - It has been reported
that the majority of Soviet refineries receive crude oil
containing 1% to 3% water and sediments and as
mach as 700 pounds of salt per 1,000 barrels of oil.
In addition, a large share of Soviet crude oils con-
tains a rather high sulfur content (1% to 3%, by
weight). The chronic shortages of desalting and
dehydration equipment in oilfields necessitates the
uneconomic shipment of highly corrosive impurities
to the refinery. Thus the use of extensive electrolytic
and chemical desalting and dehydration units at the
refinery adds to the processing costs that must be
borne by the refiner. The construction of catalytic
hydrogen treating units also has been required to
lower the sulfur content of the distillates produced.
g. SYNTHETIC OIL FACILITIES - The output of
synthetic oils in the U.S.S.R. has been deemphasized
in recent years. Processing facilities for such produc-
tion were centered in the rich and prolific oil shale
region of the Estonian S.S.R. and in the coal producing
area of Siberia near Lake Baikal (both fuel-short
regions). The U.S.S.R. has been producing oil shale in
the Estonian S.S.R. for more than 20 years and has
been engaged in research to improve oil shale mining
techniques and retorting methods. In 1967 the U.S.S.R.
produced almost 22 million tons of oil shale; about
16 million tons were produced in the Estonian S.S.R.
and the remainder from deposits in the R.S.F.S.R.,
mostly near Kuybyshev in the Urals-Volga region. In
recent years major emphasis has been placed on using
oil shale as a powerplant fuel and for production of
gas and chemicals rather than on producing shale oil.
It is estimated that a maximum of 250,000 tons of shale
oil were produced in 1967 and the level of output
probably will decline in the future.
A coal liquefaction plant was built near Angarsk
in the mid-1950's with equipment transported from
Germany after World War II. Although this plant
produced oil products for several years, it is believed
that the primary output now is chemicals. Since a
new petroleum refinery at Angarsk came on stream in
1960, processing Urals-Volga crude oil, the needs of
Eastern Siberia for oil products have been supplied
by this refinery.
h. PLANS FOR EXPANSION OF CAPACITY - Plans for
the 1966-70 period provide for the allocation of 6.6
billion rubles to the oil refining and petrochemical in-
dustries, about twice as much as was allotted to these
industries during the previous 5 years. Primary dis-
tillation capacity will have to be increased by about
15 million tons per year to reach the level of 300-
million-ton capacity anticipated by the end of 1970.
Nine large primary distillation units are scheduled to
be built during the current Five Year Plan. About
70% of total additions to refining capacity during
1966-70 are to be provided at plants in operation or
under construction and the remaining 30% at new
refineries to be built. Crude stills with annual capa-
cities of 6 million tons have been installed at the
new refineries at Kirishi and Kremenchug. Units of
about the same size are to be installed at most of
the refineries under construction or to be built by
1970. Future plans are being considered for the con-
struction of primary distillation units with capacities
of 12 million tons per year and eventually of 18 million
tons. Installation of these larger primary units will
require less investment than would be necessary to
install an equivalent amount of capacity in smaller
units. It also will facilitate the construction of larger
and more economical secondary processing units to
improve product quality. A recent plan calls for con-
struction of a 6-million-ton-per-year standard refinery
to include atmospheric and vacuum distillation, cata-
lytic reforming, hydrogen treating, and hydrocracking
units. This type of plant is to be built by 1975 with
a capital investment of 40-45 million rubles.
Plans for the expansion of secondary processing fa-
cilities are of major importance in the refining industry.
Catalytic reforming will be needed to increase the
octane rating of gasoline; by 1970, about 40% of
total demand will be for 85 octane motor gasoline,
compared with only about 10% in 1965. By 1970 the
output of passenger cars that require high octane gas-
oline will he three times the number produced in
1965. Soviet reports indicate that about 7 catalytic
reformers were in operation at the end of 1965 with
a maximum capacity of 3 million tons per year. Plans
for 1970 call for the construction of 15 new catalytic
reforming units that will be twice as large as those
built in previous years. Recent claims in the Soviet
press and technical journals reveal that a modifica-
tion of the catalytic reforming process has been made
and a better catalyst has been developed. It is likely
that the old hydroforming process using a metallic
oxide catalyst was abandoned and that technology in-
volving the use of a platinum catalyst was adopted.
Extensive use of hydrogen treating is to be made
to lower the sulfur content of diesel fuels and to re-
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duce sulfur in the naphthas charged to the catalytic
reformers. With the application of this process by
1970, 90% of the diesel fuel produced is to contain
no more than 0.2% sulfur whereas in 1965 the aver-
age sulfur content in this product was about 1%.
During 1966-70 catalytic cracking capacity is to be
increased 1.5 times. No data are available on the
capacity or numbers of catalytic cracking units in
operation at the present time. From observations made
by western technicians in 1960 small-sized fluid-type
units were then in use and larger units were under
construction. Catalyst plants producing silica-alumina
catalysts for domestic cracking units are known to
exist at Omsk and Baku. No details are available on
the quantities of catalysts produced.
The most flexible and useful secondary process for
the U.S.S.R. is hydrocracking. This process would be
especially valuable for use in processing the high
sulfur stocks so prevalent in the U.S.S.R. Recent an-
nouncements in the Soviet press claim that a high
pressure hydrocracking process for handling high sul-
fur residual oils has been developed and equipment
is to be installed. However, Soviet technical magazines
have indicated that the hydrocracking process has
not been mastered on a commercial scale.
6. Transportation
a. GENERAL - Transportation of petroleum in the
U.S.S.R. has been, and continues to be, a major
problem because of the concentration of crude oil
production and refining in a relatively few, but not
necessarily coincident, regions and the vast distances
which separate these regions from the centers of
consumption. Railroads have continued to play the
largest role in the movement of petroleum despite
continuous efforts to have pipelines become the domi-
nant mode of transport. Although the share of pipe-
lines in oil movement has increased more rapidly than
the share of other means of transport since 1955, the
plans for construction of oil pipelines have not been
fulfilled in recent years because greater priority has
been allocated to the building of the natural gas pipe-
line system. As shown in Figure 58, which gives data
on transport of petroleum in the U.S.S.R. by type
of carrier, pipelines accounted for about 26% of the
total volume (in ton-kilometers) of oil freight in 1965,
compared to less than 10% in 1955. During the same
period the movement by railroads declined from al-
most 66% to about 50%. No data are available on
the movement of oil by tank trucks used to haul crude
oil from isolated producing wells to gathering pipe-
lines. About 22 million tons of petroleum products
were hauled by common carrier motor transport in
1965.
b. PIPELINES - The total length of the oil pipe-
line network in the U.S.S.R. at the end of 1968 was
about 33,000 kilometers. At least 80% of the system
consisted of crude oil pipelines and the remainder,
of product lines. During the postwar years there has
been a considerable effort to expand the oil pipeline
network to supplant the more expensive movement of
oil by rail. However, the annual goals for construc-
tion of oil pipelines have failed to meet plans since
1955. At first the shortfalls were relatively minor but
around 1960 priority was assigned to the construction
of natural gas pipelines at the expense of the
oil pipeline program. At the end of 1965 about 28,000
kilometers of oil pipelines had been built whereas the
original goal of the Seven Year Plan had called for
the system to total about 43,000 kilometers. The plan
for this 7-year period called for: building oil pipe-
lines to link all the major oil refineries with the
crude oil producing fields; completing the Friendship
crude oil pipeline system to Eastern Europe; and
constructing crude oil and product pipelines to Baltic
and Black Sea ports to facilitate Soviet exports of oil.
A list of the major crude oil and product pipelines
built during 1959-67 is given in Figure 59. Major
oil pipelines are shown on Figure 77. General data
on the postwar development of the oil pipeline net-
work, including tons of oil carried and ton-kilometer
movements are given in Figure 26.
Plans for 1970 call for the oil pipeline system to
be increased to approximately 41,000 kilomel25X1 r
about 13,000 kilometers more than in 1965. The vol-
ume of oil to be moved by pipeline in 1970 is to be
almost double that in 1965. The future need for oil
pipeline construction is especially great in view of the
development of prolific new deposits in Western Si-
beria and Central Asia that are remote from major
refinery and consuming centers. The most important
crude oil and product pipelines scheduled for com-
pletion during 1968-75 are listed in Figure 60. The
use of larger diameter lines to transport larger volumes
of oil at lower unit costs also will be necessary to move
crude oil and petroleum products over greater dis-
tances. Domestic supplies of large diameter pipe are
not adequate to provide the needs of both the oil and
gas industries. Imports of such pipe will be required
from western and eastern Europe to meet pipeline
construction goals. The throughput capacity and cost
Fiw,itE 26. POSTWAR. 1)I:~-I;LOI'\I! OF Oii,
I'1i'ELTNE, TRANSPORT 25X1
f(ITIL
LEN (:'1'11
P
OF (IIL
1 I'E1.1 NEti
K
ilometer., Mil
lion
Billion
1945
..............
4,400 5
.6
2.7
1950
..............
5,400 15
.:3
4.9
1955
..............
10,400 51
.7
14.7
1960
..............
17,:300 1'29
.9
51.2
1965
..............
28,200 225
.7
146.7
1966
..............
29,500 247
.7
165.0
1967
..............
32,400 273
.3
183.4
1970 plan ..... ...
41 , 100 452
:300
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of transporting oil via pipelines of varying diameters
are given in Figure 61.
C. OTHER MEANS OF TRANSPORT -Movement of
oil by railroad tank car accounts for more than half
of total oil transport in the U.S.S.R. With the short-
fall in the pipeline construction program any extra
petroleum traffic resulting from overfulfillment of oil
production plans or increased regional demands for
oil normally is handled by the railroads. This increased
burden on the railroads creates occasional bottlenecks
in supply and adds to the overall cost of transporting
oil. Data on the amount of oil shipped by rail and
the average distance hauled are given in Figure 62.
Maritime and inland water transport accounts for
about 15% of the total amount of oil transported in
the U.S.S.R. Liquid cargoes accounted for less than
half of total Soviet shipments by sea in 1966 and almost
all liquid cargo is estimated to be oil. Information on
the transport of oil by inland waterway is given in
Figure 62.
7. Foreign trade
Since 1955 the U.S.S.R. has been a net exporter of
petroleum in steadily increasing amounts. Net exports
rose from about 4 million tons in 1955 to approximately
77 million tons in 1967, an average annual increase of
about 29%. Details of Soviet trade in crude oil and
petroleum products for the years 1955 and 1959-67
are given in Figure 63.
a. EXPORTS - In the period since 1960 about
55% of total Soviet exports of petroleum were shipped
to Free World countries. The greatest portion of this
oil has been sold to industrialized countries of the west
to earn foreign exchange to import technology and
equipment. In 1967, for example, it is estimated that
Soviet exports to the Free World were valued at about
US$510 million. Of this amount the equivalent of
approximately US$340 million was in hard currency.
During 1966 and 1967 all of the increase in Soviet
sales of petroleum to the Free World was in exports
to the developed countries, primarily to Western Eu-
rope. Exports to the less developed countries declined
during these 2 years.
At least three-fourths of Soviet exports of oil to
other Communist countries have been delivered to
the nations of Eastern Europe. Most of the petroleum
supplied to Eastern Europe is crude oil delivered via
the Friendship pipeline. Growing needs for oil in
Eastern Europe and in the U.S.S.R. may inhibit any
future rise in the annual rate of increase in Soviet
exports of oil to the Free World. In 1967 the 6.5%
increase in Soviet exports to the Free World was the
smallest annual rate of growth since 1955; this may
presage a future trend.
The composition of Soviet exports of petroleum has
changed considerably during the past 9 years. In 1959,
crude oil and petroleum products represented almost
equal shares in total exports. As refining capacity in
the Free World and in other Communist countries
has expanded, the demand for crude oil has risen
more rapidly than that for products. Thus, in 1966
and 1967 exports of Soviet crude oil accounted for
more than two-thirds of total petroleum exports. This
trend is expected to continue in the future. Figure 27
gives details of Soviet exports of petroleum to the Free
World and other Communist countries for selected
years since 1955.
Exports of petroleum from the U.S.S.R. have rep-
resented a rising share of indigenous production of
crude oil. In 1960 total oil exports were equal to about
22% of total output of crude oil whereas by 1967
this share had risen to about 27%.
b. IMPORTS - Official Soviet trade statistics show
that imports of petroleum declined from about 4.4 mil-
lion tons in 1955 to less than 1.4 million tons in 1967.
It is probable that most of the oil products did not,
in fact, enter the U.S.S.R. but were delivered to other
Eastern European Communist countries, primarily
from Rumania, on the Soviet account. Some small
quantities probably were shipped from Rumania to
the contiguous areas of the U.S.S.R. (Moldavian
S.S.R., for example) which can be supplied more
economically from Rumania than from domestic re-
fineries in the Ukrainian S.S.R. Also, the crude oil
reported to have been imported by the U.S.S.R.
through 1963 was actually Austrian crude oil shipped
FIGURE 27. EXPORTS OF PETROLEUM
(Millions of tons)
GRAND
TOTAL.
I
Cr
ude oil I Pr
oducts I
Total
C
rude oil I
Products I
Total
E
XPORT
S
1955
..............
0.7
3.1
3.8
2.2
2.0
4.2
8.0
1959
..............
6.1
7.1
13.2
6.4
5.8
12.2
25.4
1960
..............
9.0
9.1
18.1
8.8
6.3
15.1
33.2
1962
..............
13.6
11.1
24.7
12.7
8.0
20.7
45.4
1964
..............
18.8
12.5
31.3
17.9
7.4
25.3
56.6
1965
..............
21.0
14.5
35.5
22.4
6.5
28.9
64.4
1966
..............
24.8
16.5
41.3
25.5
6.8
32.3
73.6
1967
..............
26.7
16.8
43.5
27.3
8.0
35.3
78.8
1968* .............
26.4
16.9
43.3
31.0
8.0
39.0
82.3
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to Eastern European Communist countries on Soviet
account as part of the Soviet-Austrian reparations
agreement.
8. Consumption
During 1959-67 the apparent domestic consumption
of petroleum products in the U.S.S.R. more than
doubled, increasing from almost 88 million tons in
1958 to about 187 million tons in 1967. During the
same period, exports of petroleum products rose from
9 million tons to about 25 million tons and the alloca-
tion of petroleum products from total supply to meet
domestic needs declined from about 91% in 1958 to
88% in 1967. A simplified supply and demand balance
for petroleum products in the U.S.S.R. for selected
years during 1958-67 is given in Figure 28.
a. BY TYPE OF PRODUCE - The supply of petro-
leum products, in general, has been adequate to satisfy
the steadily growing domestic demand. There is, how-
ever, some inflexibility in refinery operations resulting
at times in a range of product output that does not
satisfy seasonal variations in demand; consequently,
sporadic shortages of oil products occur. Shortages
also result from insufficient transport facilities during
peak periods of consumption as, for example, at har-
vest time when railroad facilities are overburdened
supplies of diesel fuel are not always adequate. The
supply of diesel fuel, the basic fuel in the Soviet
economy, has been tight, partially because 10% to
15% of the total output has been exported to earn
foreign exchange. The estimated consumption of diesel
fuel rose from about 18 million tons in 1958 to almost
45 million tons in 1966 due to increased demands by
agriculture and transport.
It has been reported in recent years (1966-67) th25X1
36% of the Soviet supply of diesel fuel and 28% of
the motor gasoline supply are consumed in agricul-
ture. In 1967 the estimated quantities of diesel fuel
and gasoline consumed in agriculture would approxi-
mate 21 million and 11 million tons, respectively. Esti-
mates of consumption of petroleum products in the
U.S.S.R. for selected years, by type of product, are
shown in Figure 64.
b. BY CONSUMING SECTOR - It is estimated that
the industrial sector uses about half of all the petro-
leum products consumed in the Soviet economy. The
three major consuming sectors-industry, agriculture,
and transport-probably accounted for about 87% of
total consumption of oil products in the U.S.S.R. in
1966. As shown in Figure 29 the relative share of con-
sumption by industry since has risen, those of agri-
culture, transport, and communal-household have re-
mained about the same, and that of other consumers
has declined.
9. Storage
a. CRUDE OIL - The storage capacity for crude
oil in the U.S.S.R. probably averages at least 10% of
the annual production. Thus, at the end of 1967 total
crude oil storage capacity approximated 30 million
tons. Most of this capacity is at oilfield installations
and refineries; however, some transfer oil bases handle
FIGURE 28. SUPPLY AND DEMAND FOR PETROLEUM PRODUCTS
(Millions of tons)
1 1958 1 1960 1 1962 1 1964 1 1965 1 1966 1 1967
Supply:
Refinery output (nongas) .................. 92.7
Imports ................................. 3.2
Natural gas liquids and synthetics.......... 1
Total supply ........................... 96.9
Demand:
Apparent domestic consumption............ 87.9
Exports .................................. 9.0
116.1 141.5 164.8 176.8 190.3 207.0
3.2 2.3 2.1 1.9 1.7 1.4
1 2 3 3 3 3
104.9 126.7 150.0 160.7 171.7 186.7
15.4 19.1 19.9 21.0 23.3 24.7
FIGURE 29. ESTIMATED CONSUMPTION OF PETROLEUM PRODUCTS, BY CONSUMING
SECTOR (U/OU)
Industry ....................
Agriculture ..................
Transport ...................
Communal-household .........
Other (including military) .....
Million
tons
M
t
illion
ons
Million
tons
Percent
39.5
45
80.3
50
85.8
50
17.6
20
32.2
20
34.3
20
14.1
16
27.3
17
29.2
17
2.6
3
4.8
3
5.2
3
14.1
16
16.1
10
17.2
10
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crude oil in addition to petroleum products. Transit
storage of crude oil in railroad tank cars, pipelines,
river barges, tank trucks, and ocean tankers provides
some unidentifiable portion of crude oil storage
capacity.
b. PETROLEUM PROnucrs - The storage capacity
for petroleum products in the U.S.S.R. at the end of
1967 was estimated at 46 million tons, the equivalent
of about 90 days of domestic consumption. Approxi-
mately 7 million to 8 million tons of this capacity was
located at petroleum refineries, an amount equivalent
to 12 to 14 days of refinery throughput during the year.
The remainder of the capacity is located at primary
and secondary storage bases and at military airfields.
Primary storage bases handle petroleum products
in their movement from the refinery to local distribu-
tion points. The Main Administration for the Transport
and Supply of Petroleum and Petroleum Products
(Glavne f tesnab) controls all of the primary storage
capacity, except for a certain portion controlled by
refineries. There are two types of primary storage
bases, the transfer oil base and the distribution base.
The transfer oil base is found at seaports, on the banks
of navigable rivers, and in the areas of large railroad
junctions. From the transfer oil base, crude oil and
petroleum products move by pipeline, tanker, or
barge to a distribution base. From this base the prod-
ucts are distributed by tank cars, barges, or tank
trucks. Storage capacity at these primary storage
bases is generally quite large and the period of stor-
age usually is short.
The distribution base is the main link between
the petroleum industry and the national economy.
Storage capacity at these bases is much less than
that at transfer bases and a smaller variety of products
is handled.
Cylindrical steel storage tanks are the most common
type used in the U.S.S.R. Most of these tanks are pre-
fabricated at the factory and the side walls are
delivered to the site in rolls, where they are unrolled
and welded to the bottom. Oil storage tanks assembled
from prefabricated rolls are shown in Figure 30. The
U.S.S.R. also is installing underground tanks or par-
tially buried tanks in precast reinforced concrete. In-
stallation of this type of storage is done primarily
for fire prevention and for insulation against daily
temperature changes to minimize loss of volatile petro-
leum fractions, but it is also effective against blast
and shock.
10. Natural gas and natural gas liquids
a. NATURAL GAS
(1) Production-Within the past decade the
Soviet Union has become the second largest producer
of natural gas in the world, surpassed only by the
United States. Production of natural gas in the U.S.S.R.
in 1968 amounted to about 169 billion cubic meters,
or almost 20% of total world output. The United States
produced about 545 billion cubic meters in 1967, about
60% of total world output. Approximately 88% of
total Soviet output of natural gas is obtained from
natural gas wells (nonassociated gas) and the re-
mainder is produced in association with crude oil at
oil wells (associated gas). Soviet statistics on natural
gas production, however, usually include gas made
from coal and oil shale (manufactured gas), which
has averaged about 1.7 billion cubic meters annually
since 1959.
During 1959-67 the Soviet output of natural gas
rose at an average annual rate of about 21%, but
in only three of these years have the revised (down-
ward) annual goals been fulfilled. Much of the short-
fall resulted from lags in installation of compressors
on existing pipelines, shortages of production and con-
suming equipment, and inadequate development of
urban distribution systems. The original goal for pro-
duction in 1970 (225 billion to 240 billion cubic me-
ters) was revised late in 1967 to 215 billion cubic
meters as it is apparent that the industry has not
solved the problems that caused past underfulfillments.
Data on planned and actual production of natural gas
in the U.S.S.R. during 1958-68 and plans for 1969
and 1970 are given in Figure 31. A breakdown of total
output during 1958-67 by associated and nonassociated
gas is shown in Figure 32.
Development of natural gas fields and construction
of gas pipelines have taken priority over investments
in similar oil operations since 1958 when these func-
tions of the oil and gas industries were separated
organizationally. The rapid growth in production of
natural gas was made possible by the discovery and
development of large deposits conveniently located
in the north Caucasus, eastern Ukraine, and to a lesser
extent in the Urals-Volga regions. Although proved
reserves of gas have increased significantly since 1958,
the rapid growth in output has resulted in a lowering
of the ratio of reserves to production from a 43-year
supply in 1958 to a 14-year supply at the end of 1966.
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FIGURE 31. PLANNI?I) AND REPORTED PRODUCTION OF NATURAL GAS
(Billions of cubic meters)
1958 ....................
1959 ....................
196)) ....................
1961....................
1962 ....................
1963 ....................
1964 ....................
1965 ....................
1966 ....................
1967 ....................
1968 ....................
1969 plan** ..............
1970 plan** ..............
30.0
39.2
5 1 .5
61.3
70.5
85.8
na
PERCENT 013'
PLAN (REVISET))
FUL.FI LLME NT
28.1 93.7
35.4 90.3
45.3 88.0
59.0 96.2
73.3 104.3
89.8 104.7
108.6 na
127.7 106.4
143.0 97.7
157.0 99.4
169.3* 98.8*
150 120.0
............ 146.3
............ 158.3
............ 171.3
............ 185.8
225-240 215
na I)ala not availahle.
*I'relinlinarv ('stinla I('.
**Includes manufactured gas from coal and oil shale.
ASSOCIATED NATITI;AL GAS
(Bil
lions of cubic
meters)
1958 ...........
5.4
22.7
28.1
1959 ...........
6.5
28.9
35.4
1960...........
7.7
37.6
45.3
1961...........
8.6
50.4
59.0
11)112...........
9.9
63.6
73.5
1963...........
12.1
77.7
89.8
1964 ...........
14.2
94.4
108.6
1965...........
16.5
111.2
127.7
1966...........
17.8
125.2
143.0
1967 ...........
18.9
138.6
1557.5
The growth in reserves and output of natural gas
during the 1957-66 decade was accompanied by a
noticeable shift in production by geographical region.
In 1956, about 85% of the nonassociated natural gas
produced in the U.S.S.R. came from 5 regions. In 1966,
output from these 5 regions had increased 170% over
that in 1956, but their share of total output was only
about 15%. The discovery of 4 prolific gas fields-
Shebelinka (Kharkov Oblast), Krasnodar, Gazli (Uz-
bek), and Stavropol-during these years resulted in
a significant increase in output with these new regions
accounting for almost three-fourths of total output of
nonassociated gas in 1966. The Soviet production of
nonassociated natural gas, by region, for 1956 and
1966 is shown in Figure 65. The total number of wells
and active producing gas wells in the U.S.S.R. in 1956
and 1966 is given in Figure 66. Drilling operations at
a natural gas site in the Kalmyk A.S.S.R. is shown in
Figure 33.
(2) Costs of production - Fixed costs account
for the largest part of the total costs of producing
natural gas. Costs for producing gas usually are lower
than those for producing oil because gas wells do not
FIGURE 33. DRILLING RIG, NATURAL
GAS WELL IN KALMYK A.S.S.RJ
25X1
need lifting equipment such as tubing, rods, and
pumps. However, the surface installations for gas pro-
duction, treating and transport require a much greater
relative investment than those for crude oil.
Capital costs can vary with well depths but the
most significant cost factors are the number of wells
drilled for maximum development and the productivity
of each well, which determines the selection and qual-
ity of well-head fixtures and gathering systems. Con-
struction of low-temperature natural gasoline separa-
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tion units for processing condensate can greatly
increase the average cost of production. For example,
the removal of liquefied petroleum gases (LPG) sepa-
rated from the methane streams produced at She-
belinka and Krasnodar caused average production
costs to more than double.
The average cost of producing 1,000 cubic meters
of natural gas in the U.S.S.R. during 1966 was 0.45
rubles, which is about 36% of the average cost in
1956. Soviet production costs do not include geological
exploration expenditures made prior to development
and therefore appear to be unrealistically low in com-
parison with U.S. costs. Exploration costs averaged
1 ruble per 1,000 cubic meters of natural gas produced
as of mid-1967. The cost of producing natural gas
varies from field to field and area to area. The lowest
producing costs of 0.14 rubles per 1,000 cubic meters
were recorded at the huge Gazli field in Uzbekistan
S.S.R. and the North Stavropol field in Stavropol Kray.
The average cost at Gazli is expected to double and
that at Stavropol to triple in the near future as low-
temperature separation equipment is to be added. A
comparison of the average costs of production for
each gas producing region in the U.S.S.R. in 1966 is
shown as follows, in rubles per 1,000 cubic meters:
GAS PRO- AVERAGE COST
DUCING REGION OF PRODUCTION
U.S.S.R. 0.45
Komi A.S.S.R. 2.61
Kuybyshev Oblast' ................... 2.23
Saratov Oblast' . ..... ....... ...... 0.73
Volgograd Oblast' ....... .... 0.58
Astrakhan Oblast' 0.70
Krasnodar Kray ..... .... ... ...... 0.52
Stavropol Kray ............ . . . 0.14
Tyumen Oblast' ..................... 5.59
Kharkov Oblast' .............. ..... 0.32
Poltava Oblast' ...................... 0.81
Lvov Oblast' 0.45
Ivan-Frankovo Oblast'. 0.60
Uzbek .. .... .................... 0.23
During 1971-75 the average cost of producing 1,000
cubic meters of gas in the U.S.S.R. is expected to rise
almost 85% to a level of 0.83 rubles. Greater utiliza-
tion of associated gas and further exploitation of gas-
condensate deposits will greatly intensify capital in-
vestment requirements after 1970. Also, in older fields,
declining reservoir pressures will require the construc-
tion of a greater number of compressor stations in
order to repressure depleted gas reservoirs and main-
tain existing production levels. Data on costs of ex-
traction and average capital investment by region in
the U.S.S.R. during 1971-75 are given in Figure 67.
(3) Transportation - Pipelines are the only
economical means for transporting natural gas. In the
U.S.S.R. the expansion of the gas pipeline system has
been a priority goal to facilitate the production and
consumption of gas in the economy. During the Seven
Year Plan period (1959-65) almost 30,000 kilometers
of gas pipelines were built and shipments of as rose
from about 13 billion cubic meters in 1958 to about 109
billion in 1965. Most of the remainder of the gas not
shipped by pipeline probably consists of propane or
butane from associated natural gas and is transported
in containers (bottled gas) by rail, inland waterway,
or road. The expansion of the Soviet gas pipeline net-
work annually since 1950 is shown in the following
tabulation:
KILOMETERS
(at end of year)
1950 .......................... 2,213
1955 ........ ... 4,861
1958 ....... ............ .... 12,202
1959 .......................... 16,494
1960 ........ ....... 20,983
1961 ............ 25,328
1962 ....... .................. 28,492
1963 .. . ............ ........ 33,033
1964 ...... . ....... ... . 36,908
1965 . . ................. 41,800
1966 47,400
1967 .......................... 52,600
1968 ...... .................. 56,000
1970 plan ...................... 70,000
The average capacity of natural gas pipelines has
increased in recent years with the use of larger diam-
eter pipe. The following tabulation gives throughput
capacities of the various diameter gas lines used in
the U.S.S.R.
DIAMETER
Milli-
meters Inches
325
377
426
529
630
720
820
920
1,020
1,220
1,420
ANNUAL.
THROUGHPUT
CAPACITY*
13 .. .
15 .. ............
17
21
25
28
32 .. .
36 .......................
40 ................. 10.0
48 15.0
56 ...................... 22.5
*At an operating pressure of 780 pounds per square
inch.
When the first 720-millimeter gas line was put into
operation in 1956, its throughput capacity exceeded by
almost 40% the total throughput capacity of all other
major gas pipelines in the U.S.S.R. More than half
of the gas transmission lines in operation in 1967 were
720 millimeters or more in diameter compared to only
about one-fourth of the total in 1958. In 1962 the first
gas pipeline using 1,020-millimeter line pipe was com-
pleted from Krasnodar to Serpukhov. Many of the
major trunklines since that time have been installed
with 1,020-millimeter pipe. The first 1,220-millimeter
line pipe was used in 1967 in the construction of the
first line of the Tyumen-Moscow system and on the
second line of the Central Asia-Moscow trunkline. Con-
struction plans also call for the use of 1,420-millimeter
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pipe in the second pipeline of the Tyumen-Moscow
system and in the third line of the Central Asia-
Moscow network. After 1975 the Tyumen-Moscow sys-
tem will have a capacity of 130 billion cubic meters
per year and that of the Central Asia-Moscow network
is to reach 110 billion per year. The eventual use of
line pipe with diameters of 2 meters (79 inches) and
2.5 meters (98 inches) is under consideration; such
pipelines will have capacities of 50 billion and 100 bil-
lion cubic meters per year, respectively. The major
natural gas pipelines in operation in the U.S.S.R. are
listed in Figure 68 and are shown on Figure 77. Pipe-
line laying operations on the Central Asia-Moscow
line are shown in Figure 34.
Soviet natural gas pipelines are designed to operate
at pressures of about 780 pounds per square inch,
considerably lower than the U.S. average of 1,030
pounds per square inch. Efforts are being made to
increase pipeline operating pressures to 925 pounds
per square inch but better compressors will have to
be developed to reach this goal. In the past, shortages
of large diameter pipe and related operating equip-
ment, such as valves, have hindered pipeline construc-
tion. For example, undersized valves were used on
the Central Asia-Urals network and throughput capac-
ity was reduced 15%. Shortages of large diameter
pipe are expected to continue through 1970 and it is
expected that at least 700,000 tons of pipe will be
imported during 1968-70 from both eastern and west-
ern Europe.
Capital investment in the construction of natural
gas pipelines in the U.S.S.R. during 1959-65 amounted
FIGURE 34. LAYING 40-ITCH PIPE FOR
CENTRAL. ASIA - Moscow GAS PIPELINE
to 1.5 billion rubles, or about 40% of the total capital
investment in the gas industry. Present Soviet con-
struction includes laying 1,220-millimeter natural gas
pipelines. Use of large diameter line pipe is claimed
to yield significant economies in the requirements for
steel. The amount of steel required for pipeline con-
struction is being further reduced by efforts to fabri-
cate pipe with a wall thickness that averages only 1%
of the diameter. Even greater economies in steel and
investment costs are anticipated from the use of ultra-
large (2-2.5 meter) diameter line pipe in the future.
Indexes of the capital investment and steel require-
ments for the larger size U.S.S.R. gas lines are given
in Figure 35.
High fixed cost in the transport of gas makes varia-
tion in unit cost depend largely on the degree of
utilization of pipeline capacity. In recent years unit
costs of moving gas from distant producing regions
to consuming centers have been reduced as a result
of using larger diameter line pipe to increase through-
put capacities: For example, the average cost of trans-
porting 10,000 cubic meters of natural gas in the
U.S.S.R. declined from about 22 rubles in 1959 to
about 17 rubles in 1965 (Figure 36).
(4) Consumption
(a) BY COUSUMINC SECTOR - Natural gas is
finding increased favor in the U.S.S.R. as an indus-
trial and household fuel and is being used to an in-
creasing degree as a raw material in the manufacture
of chemicals. Natural gas can be produced and trans-
ported more cheaply than other types of fuel, and it
has a higher thermal efficiency. Because of these ad-
vantages natural gas is being substituted on a growing
scale for other types of fuels, particularly coal, at
electric powerplants and at enterprises of the metal-
lurgical and construction materials industries. It has
been reported that during 1959-65 the delivered cost
of natural gas was 7.8 billion rubles less than the cost
of supplying the same quantity of energy from alter-
native sources.
The industrial sector of the Soviet economy con-
sumes more than 80% of the total natural gas used.
In this sector, electric powerplants are the major con-
sumer, having accounted for more than 30% of indus-
trial consumption of natural gas and more than one-
fourth of total use in 1967. The most significant gains
in consumption of gas since 1958 have been register2 jX1
FIGURE Sri. INDI!XES OF CAPITAL INVESTMENT AND STEEL EEQUIRENIENTS FOR
Throughput capacity......... .
Total capital investment for pipe.........
Average capital in vestment ..............
Total steel required .....................
Average steel consumption ...............
4)) in.
48 in. 1
56 in. 1
79 in. 1
98 in.
100
I 60
237
594
1 , 050
100
125
171
382
615
100
79
72
64
58
100
142
195
400
613
100
89
82
67
58
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TRANSPORT OF NATURAL (A8
Million rubles Rubles R Ibles
co5'r/ 10,000
CURIO METERS
COST/ 10,000
CUBIC METERS
FOR 100
KILOMETERS
19119........
40.5
22.3
3.91
1960........
50.5
22. t
3.64
1961........
77.7
20.7
3.34
1962........
98.6
19.4
3.08
1963........
112.8
16.0
2.46
1964.. _ ....
139.5
16.0
2.4)
1965 ........
174.1
16.9
2.45
by the metallurgical and chemical industries. The
share of total consumption by the chemical industry
rose from about 1% in 1958 to almost 6% in 1967
while that of metallurgy increased from 6% to 17%
during the same period. Efforts also have been made
to increase the supply of gas to households. Con-
sumption of gas by the commercial-household sector
during 1959-67 rose five-fold but the relative share
of total consumption increased only from about 10%
to 11%. Data on consumption of natural gas in the
U.S.S.R. by consuming sector is given in Figure 69.
Preliminary plans for 1970 (the lowered goal for
production will cause a downward revision of the
estimates of consumption) called for consumption of
gas by industry to reach about 175 billion cubic meters
including 55 billion for electric powerplants, 44 bil-
lion for metallurgy, 15 billion for chemicals. The com-
mercial-household sector is expected to consume at
least 32 billion cubic meters, about 80% more than
in 1965.
(b) BY ECONOMIC REGION - The regional pat-
tern of consumption of natural gas in 1958 was for
the most part determined by use in the cities of Mos-
cow, L'vov, Kiev, Kharkov, and Baku. In that year
almost two-thirds of the total available natural gas
was consumed in Regions III, V, and VII where these
cities are located. By 1965 with the completion of sev-
eral large diameter pipelines into the Moscow area
and into the Urals region, Regions VII and VIII in-
creased their share of total gas consumption to about
32%, compared to almost 22% in 1958. Details on
regional consumption of natural gas in the U.S.S.R.
are given in Figure 70.
(5) Foreign trade - Prior to 1967 the U.S.S.R.
exported small quantities of natural gas to Poland
via pipeline and did not import any natural gas. The
quantities exported during 1958-66 were as follows,
in millions of cubic meters:
1958
1959
1960
1961
1962
206
222
242
272
300
1963
1964
1965
1966
1967
301
295
392
828
1,290
In 1967 the U.S.S.R. began to export natural gas
through the new pipeline ("Brotherhood") from the
Dolina fields in the Ukraine S.S.R. to Sala in Czecho-
slovakia. Total Soviet exports of natural gas in 1967
reached about 1.3 billion cubic meters, of which about 25X1
1 billion went to Poland and the remainder to Czecho-
slovakia. By 1970 exports to these 2 countries may
reach 2.5 to 3 billion cubic meters. The Soviet Union
began exports of small volumes of liquefied petroleum
gases (LPG) in 1967 to France from new facilities at
Riga on the Baltic coast. Also, during 1967 the U.S.S.R.
began for the first time to import natural gas from
Afghanistan via a newly completed pipeline network.
Such imports probably did not exceed 300 million cubic
meters in 1967 but are to increase gradually to 2
billion cubic meters in 1970, 3.5 billion in 1973, and
4 billion annually during 1976-84. By 1970 imports of
natural gas from Iran are scheduled to reach 6 billion
cubic meters per year if the 42-inch pipeline from Iran
to the U.S.S.R. now under construction can be com-
pleted on schedule. Deliveries from Iran will increase
to 10 billion cubic meters by 1974 and are to remain
at that level until 1985. The imported gas will be used
to augment local supplies in Central Asia and in the
Transcaucasus region.
The U.S.S.R. has been conducting negotiations with
Free World nations-Austria, Italy, Japan, France,
Finland, Sweden-to export natural gas. In mid-1968
a contract was signed with Austria to supply Soviet
natural gas for 23 years, beginning with 300 million
cubic meters in 1968 and reaching 1 billion cubic
meters per year in 1970 and a maximum of 1.5 billion
by 1975. No further contracts with other Free World
countries have been made as some of these countries
are reluctant to become dependent on Soviet supplies
over the long term in view of the prolific alternative
sources of natural gas being developed in the North
Sea, the Netherlands, Algeria, Libya, and in offshore
areas of the Mediterranean and Adriatic Seas.
(6) Storage - Optimum utilization of natural
gas transmission and processing facilities depends on
a regular flow of gas at, or near, the maximum possible
level of throughput. Demand for natural gas fluctuates
on a seasonal basis with maximum rates being experi-
enced in the winter months and slack demand periods
occurring in the summer. Such fluctuations may cause
daily gas consumption rates at large Soviet industrial
centers to vary 50% above or below the average daily
requirements. Soviet pipeline operating procedures are
being adapted to each situation. The most practical
solutions to problems of over supply and under supply
in the U.S.S.R. have been: the interconnection of pipe-
line systems as with the "Moscow Gas Ring," which
permits shifting of supply; construction of multiline
pipeline systems; development of buffer consumers
such as electric powerplants (Soviet powerplants
switch to gas 6 or 7 months a year during slack demand
periods and to other fuels in peak demand seasons);
and the construction of underground gas storage
reservoirs.
Storage of surplus gas during the summer months,
primarily near centers of consumption, permits a given
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system to meet excessive requirements for gas during
the winter when heating needs often cause total de-
mand for gas to exceed the total capacity of the
transmission system. Underground storage caverns
fall into four categories: water-free sandstone reser-
voirs, such as in depleted oil and gas fields; water-
bearing strata that usually overlie and conform to
dome shaped structures; natural underground caverns;
and artificial, or manmade caverns such as dissolved
(leached out) salt domes and mined out rock caverns.
In 1963 a program was announced calling for the
construction of 27 underground natural gas storage
reservoirs near large Soviet industrial centers by 1970.
At least 12 areas have been surveyed for gas storage
in the European portion of the U.S.S.R. Total gas
storage capacity is expected to reach 17-18 billion
cubic meters with an active withdrawal capacity of
about 9-11 billion cubic meters by 1970. Present with-
drawal capacity in the U.S.S.R. is estimated at 5-6
billion cubic meters. The Soviets have made unique
technological headway in utilizing shallow gently dip-
ping aquifers for natural gas storage near Moscow,
Leningrad, and elsewhere. Total storage capacity of
reservoirs located in water-bearing strata is estimated
at 10 billion cubic meters with an active withdrawal
capacity of about 5 billion cubic meters of gas. During
the winter of 1966-67, only 3.4 billion cubic meters
were stored in underground facilities and a total of 1.4
billion cubic meters were withdrawn. A list of the
underground storage reservoirs, by type, and capacity
of each is given in Figure 71.
In addition to underground caverns, spherical pres-
sure tanks also are used for storing small volumes of
gas on the surface, for industrial consumers and for
LPG distribution systems.
h. NATURAL GAS LIQUIDS - In contrast with the
United States, where the production of natural gas
liquids reached about 51 million tons in 1967, the
production of natural gas liquids in the U.S.S.R. had
not been stressed. Only with the establishment of a
petrochemicals industry and the desire to supply gas
to rural regions has emphasis been placed on increas-
ing production of natural gas liquids. Data are not
available on total production of natural gas liquids
during the post war years. However, according to the
control figures of the Seven Year Plan, output was to
rise from 550,000 tons in 1959 to 6.5 million tons in
1965.
As has been the case in the United States, the
planned increase in production of natural gas liquids
was to he derived largely from increased yields of
liquefied petroleum gases (LPG). The original goal
for 1965 called for the output of 4.4 million tons of
LPG, but actual output was only about 2.8 million
tons. The shortfall resulted from shortages of consum-
ing equipment, transport, and storage facilities; lack
of facilities for collection of associated gas and for
stabilization of crude oil; and failure to meet schedules
for construction of natural gasoline plants. The esti-
mated output of LPG in the U.S.S.R. during 1958-65
and 1967 follows, in thousand of tons:
1958 ........................... 308
1959 503
1960 660
1961 ... .. ...... ............. 950
1962 1,256
1963 .... ...... .. .......... 1,661
1964 2,299
1965 2,793*
1967 ........................... 3,612
*Nfore than three-fourths of total output
came from Urals-Volga regions.
Although the original plan for 1965 was not
achieved, actual output of LPG rose eightfold during
the Seven Year Plan period. Ten new natural gasoline
plants were put into operation during 1959-65, raising
the capacity of gas processing units sixfold over that
in 1958. Plans for 1970 call for increasing the capacities
of some existing plants and for construction of at least
8 new natural gasoline plants. A list of the natural
gasoline plants in operation, under construction, and
planned is given in Figure 72. Typical LPG storage
facilities are shown in Figure 37.
Although some use is made of LPG as a motor fuel
(less than 6% of total output in 1965), it is consumed
principally as a raw material for the manufacture of
chemicals and as a household fuel. In 1965, 63% of
the total available LPG was used by the chemical in-
dustry, about 26% by the commercial-household sec-
tor, and the remainder by other industrial and trans-
FIGURE 37. LIQUEFIED PETROLEUM GAS (LPG)
STORAGE FACILITIES NEAR TATAR OILFIELD IN
URALS-VOLGA REGION
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port sectors. At the end of 1965 about 4 million apart-
ments were reported to be using LPG. The estimated
consumption of LPG in the U.S.S.R., by economic
region, in 1965 is as follows, in thousands of tons:
IV
North Caucasus .....................
161
VI
Volga .............................
1,305
VIII
Urals ..........................
116
IX West Siberia ........................
135
All other
513
Total R.S.F.S.R . ...................
2,230
II
Baltic and Belorussia .................
72
III
South ..............................
116
V
Transcaucasus .......................
215
X
Kazakh S.S.R. and Central Asia ........
160
The changing pattern of consumption of LPG by
consuming sector, during 1958-65 is shown in Fig-
ure 73.
Rail and pipeline are used primarily for the trans-
port of LPG from producing to consuming areas. At
the end of 1965 about 3,500 propane-butane rail tank
cars reportedly were in service, delivering about two-
thirds of the LPG consumed in the U.S.S.R.
D. Statistical data
This subsection consists of detailed statistical data
in tabular form in general order of reference in
text.
FIGURE 38.
COAL RESE
(
RVES,
Billions
344.50
4.10
19.40
321 .00
1.75
1.65
0.10
0
4.18
3.05
0.99
0.14
173.16
49.00
56.49
67.67
179.09
53.70
57.58
67.81
67.46
8.16
23.04
36.26
1.32
0.10
0.25
0.97
68.78
8.26
23.29
37.23
0.46
0.29
0.17
0
0.08
0.07
0.01
0
0.15
0.10
0
0.05
0.69
0.46
0.18
0.05
30.32
0
0
30.32
24.31
8.89
5.32
10.10
1.60
0.06
0.29
1.25
1.06
0.61
0.32
0.13
1.76
1.56
0.20
0
1.63
1.37
0.19
0.07
1.03
0.62
0.41
0
1.07
0.21
0.29
0.57
(1.96
0.63
0.15
0.18
7.51
5.00
1.56
0.95
905.30
70.88
253.51
580.91
17.23
0.07
2.26
14.90
2.59
0
0
2.59
0.11
0
0
0.11
Western regions
Ib........... North
Pechora basin ....................................
III........... Ukrainian S.S.R.
L'vov-Volvn'region ..............................
Dneper basin ....................................
Donets basin .....................................
Total III ......................................
IV ........... Northern Caucasus
Donets basin .....................................
Deposits on the northern slopes of the Caucasus......
Total IV ......................................
V ............ Transcaucasus
Tkibuli deposit ...................................
Tkvarcheli deposit ................................
Akhaltsikhe deposit ...............................
Total V .......................................
VI ........... Volga
Kama basin .....................................
VII.......... Central
Moscow basin ....................................
na ....... Other deposits .....................................
Eastern regions
VIII......... Urals
Kizel basin ......................................
Yuzhno-Ural basin. . ........................... ..
Chelyabinsk basin ................................
Orsk basin .......................................
Northern Sos'va coal-bearing region ................
Other deposits ...................................
Total VIII ....................................
IX........... Western Siberia
Kuznetsk basin. . ................................
G orlovo basin ....................................
Deposits of Tomskaya Oblast' .....................
Other deposits ...................................
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 Approved For Release 2008/09/08: CIA-RDP08SO1 350R0001 00080002-7
U.S.S.R., 1957
of tons)
0-300 m.
30
0 to
600 to
1 ,
20
0 to
PS, K and
60
0 m.
1,200 m.
1,
80
0 M.
PZh
0.06
1.55
0.14
0
0
0.01
1.74
0
0
0
4.18
0
0
0
0
0
0
0
0
4.18
20.90
35.53
71.05
4
5.68
39.78
28.63
63.57
19.75
21.43
0
25.14
37.08
71.19
4
5.68
39.78
28.64
65.31
19.75
21.43
4.18
7.49
14.52
25.36
2
0.09
53.70
3.45
1.86
8.45
0
0
0.42
0.90
0
0
0.01
0.04
1.27
0
0
0
7.91
15.42
25.36
2
0.09
53.71
3.49
3.13
8.45
0
0
0.24
0.17
0.05
0
0
0
0.46
0
0
0
0.08
0
0
0
0
0.08
0
0
0
0
0.04
0.07
0.04
0
0
0
0
0
0
0.15
24.31
0
0
0
0
0
0
0
0
24.31
1.50
0.10
0
0
0
0
0
0
0
1.60
0.32
0.20
0.43
0.11
0
1.06
0
0
0
0
1.76
0
0
0
0
0
0
0
0
1.76
1.04
0.45
0.13
0.01
0
0
0
0
0
1.63
1.03
0
0
0
0
0
0
0
0
1.03
1.07
0
0
0
0
0
0
0
0
1.07
0.73
0.17
0.06
0
0.31
0
0.23
0
0
0.42
156.48
1
69.34
302.36
27
7.12
263.42
216.00
304.82
65.16
55.90
0
3.30
3.80
6.53
3.60
17.23
0
0
0
0
0
2.59
0
0
0
(1
0
0
0
0
2.59
0.11
0
0
0
0
0
0
0
0
0.11
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 Approved For Release 2008/09/08: CIA-RDP08SO1 350R0001 00080002-7
Eastern regions (Continued)
Kazakhstan
Karaganda basin .................................
Turgan (Ubagan) basin ...........................
Ekibastuz deposit ................................
M aykuben deposit ................................
Lenger deposit ...................................
Other deposits ...................................
51.23 10.30
36.49 6.32
12.21 9.11
21.01 1.33
2.02 0.12
16.94 1.81
Total X a ......................................
Xb ........... Central Asia
Gissar coal-bearing region .........................
South Gissar coal-bearing region ....................
South Tadzhik depression .........................
Ziddy deposit .....................................
Magian deposit ..................................
Fan-Yagnob deposit ..............................
Other deposits of Zeravshan region .................
Nazar-Aylok deposit ..............................
Shuroabad-Ravnouss deposit .......................
Mionadus deposit ................................
Sulyukta deposit.t ..................................
Angren deposit ...................................
Pritashkentskiy region ............................
Shurab deposit. . .................................
Kyzyl-Kiya deposit ...............................
Deposits of northern Fergana. . ...................
Aldyyar deposit ..................................
Kok-Yangak deposit ...............................
Eastern Fergana (IJzgen) basin .....................
Minkush coal-bearing region .......................
Other deposits. ..................................
Total Xb ......................................
XI........... Eastern Siberia
Kansk-Achinsk basin .............................
Minusinsk basin ..................................
Deposits of Tuvinskaya ...........................
Irkutsk basin ....................................
Tavrnvr basin. . ................... ..............
Tungus basin .. .................................
Ust'-Yenisey coal-bearing region. ...................
Lena basin .... .................................
Yuzhno-Yakutsk coal-bearing area ..................
Zyryanka coal-bearing area ........................
Deposits of Transbaykal ..........................
Other deposits ...................................
3.78 0.06
1.67 0.01
2.46 0
1.44 0.02
1.07 0.01
1.78 0.34
1.93 0
0.44 0
0.68 0.02
1.47 0
0.76 0.17
2.82 1.52
0.64 0
3.08 0.13
2.38 0.11
2.55 0.15
0.48 0.02
2.07 0.22
3.09 0.27
4.21 0.47
1.98 0.03
1,220.30 35.00
:36.94 2.31
18.68 1.06
88.90 5.17
583.50 0.25
1,744.77 1.40
221.75 0
2,647.24 1.79
40.05 0.65
102.60 0.34
8.37 1.63
0.56 0.02
25.76 15.17
10.53 19.64
1.30 1.80
13.11 6.57
0.20 1.70
6.33 8.80
0.11 3.61
0.01 1.65
0 2.46
0.07 1.35
0.04 1.02
0.37 1.07
0 1.93
0.02 0.42
0.04 0.62
0.03 1.44
0.16 0.43
0.40 0.90
0 0.64
1.14 1.81
0.17 2.10
0.47 1.93
0.13 0.33
0.08 1.77
1.66 1.16
0.70 3.04
0.26 1.69
234.28 951.02
32.98 1.65
2.20 15.42
29.54 54.19
23.25 560.00
53.37 1690.00
4.75 217.00
106.87 2,538.58
2.40 37.00
2.26 100.00
1.43 5.31
0.01 0.53
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 Approved For Release 2008/09/08: CIA-RDP08SO1 350R0001 00080002-7
0-300 in.
300 to
600 to
1,
200 to
A and T
PS, K and
D
600 ni.
1,200 m.
1,8
00 in.
PZh
9.74
9.04
19.64
12.82
0
49.43
0.63
0
0
1.17
29.83
6.66
0
0
0
0
0
0
0
36.49
4.62
5.84
1.75
0
0
12.16
0.05
0
0
0
14.02
6.36
0.63
0
0
0
0
0
0
21.01
0.08
0.35
1.11
0.48
0
0
0
0
0
2.02
10.75
2.29
3.00
0.90
1.83
11.10
1.50
0.04
0
2.47
0.33
0.72
1.37
1.36
0.45
3.27
0.06
0
0
0
0.34
0.35
0.70
0.28
0
1.67
0
0
0
0
0
0
1.23
1.23
0
2.46
0
0
0
0
1.44
0
0
0
0
1.44
0
0
0
0
0.15
0.13
0.31
0.48
0
0
0
1.07
0
0
0.75
0.32
0.48
0.23
0
0.98
0.80
0
0
0
0.72
1.15
0.06
0
0
0
1.93
0
0
0
0.28
0.11
0.05
0
0.44
0
0
0
0
0
0.12
0.14
0.17
0.25
0
0.68
0
0
0
0
0.24
0.25
0.48
0.50
0.67
0.80
0
0
0
0
0.11
0.23
0.22
0.20
0
0
0
0
0
0.76
0.95
0.98
0.73
0.16
0
0
0
0
0
2.82
0
0
0.28
0.36
0
0
0
0
0
0.64
0.39
0.71
1.24
0.74
0
0
0
0
0
3.08
0.07
0.55
1.21
0.55
0
0
0
0
0
2.38
0.57
0.65
0.75
0.57
0
0
0
2.55
0
0
0.12
0.07
0.11
0.18
0
0
0.48
0
0
0
0.57
0.68
0.53
0.29
0
0
0
2.07
0
0
1.17
0.67
0.85
0.40
1.03
1.02
1.04
0
0
0
1.01
0.92
1.27
1.01
0
0
0
0
0
4.21
0.25
0.55
0.79
0.39
0.35
0.45
0.33
0.56
0
0.29
9.58
9.18
12.83
9.18
2.94
12.77
4.64
6.25
0
14.18
249.90
114.70
487.30
368.40
0
0
1.70
0.06
0
1,218.54
17.50
8.50
9.29
1.65
0
0
7.51
29.43
0
0
3.25
3.75
4.94
6.74
0
7.27
11.41
0
0
0
87.17
1.73
0
0
0
0
36.20
48.50
0
4.20
83.30
104.30
242.90
153.00
143.10
412.30
0
0
0
28.10
575.00
485.77
646.00
38.00
522.00
737.00
52.00
243.00
190.77
0
51.50
63.40
67.85
39.00
0
0
0
55.00
166.75
0
779.09
560.25
713.50
594.40
1.49
***390.50
0
749.80
0
1,505.45
24.95
15.10
0
0
0
39.60
0.45
0
0
0
34.30
24.40
31.30
12.60
0
102.60
0
0
0
0
6.72
1.53
0.12
0
0
0
***1.18
0
3.80
3.39
0.56
0
0
0
0
0
0
0
0
0.56
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 Approved For Release 2008/09/08: CIA-RDP08SO1 350R0001 00080002-7
Eastern regions (Continued)
XII.......... Far East
Burcya basin ....................................
25.02
1.08
9.24
14.70
Bikin deposit ....................................
2.90
1.43
0.51
0.96
Suy'fun basin ....................................
1.66
0.37
0.15
1.14
Suchan basin ....................................
1.43
0.19
0.34
0.90
Uglovaya basin ..................................
1.02
0.65
0.26
0. 11
M aykhin deposit .................................
0.60
0.32
0.28
0
Suputin deposit ..................................
0.45
0.10
0.35
0
Deposits on Sakhalin .............................
20.09
2.01
3.88
14.20
Otsukchan coal-bearing area .......................
2.87
0.01
0.03
2.83
Otolon coal-bearing area ..........................
0.55
0
0
0.55
Chaun-Chukotcoal-bearing area ...................
1.30
0
0
1.30
Anadry coal-bearing area ..........................
97.71
0.01
0
97.70
El'gen deposit ....................................
2.93
0.03
0.50
2.40
Avckov deposit ..................................
13.91
0.01
0
13.90
Okhotsk coal-bearing area .........................
10.00
0.20
3.30
6.50
Arkagala coal-bearing area .........................
1.09
0.15
0.01
0.93
Bukhta Ugol'naya ................................
6.18
0.07
2.38
3.73
Deposits on Kamchatka Peninsula ..................
0.83
0.03
0.80
0
Other deposits ...................................
2.60
0.96
0.28
1.36
Total XII .....................................
193.14
7.62
22.31
163.21
Total Western regions .........................
649.29
75.47
105.06
467.76
Total Eastern regions .........................
8,020.22
165.73
835.83
7,018.66
Total U.S.S.R .......................................................
8,669.51
241.20
941.89
7,486.42
no Data not available.
*A-anthracite; T-lean or low-volatile bituminous; PS-steam-caking (bit.); K-coking (bit.); PZh-steam-fat (bit.); G-
gas (bit.) ; D-long-flame (bit.) ; DB-sub-bituminous coals; B-brown coal or lignite.
**As reported. The total is not equal to the sum of the components.
***Information adequate to permit accurate allocation of these quantities between the category, PS, K, and PZh, and the cate-
gory, G, was not available. In the sub-totals, these quantities were arbitrarily allocated equally to each category.
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 Approved For Release 2008/09/08: CIA-RDP08SO1 350R0001 00080002-7
0-300 in. I
300 to
600 to
1, 200 to
600 m.
1
,200 m.
1,800 m.
6.19
7.20
7.63
4.00
2.71
0.19
0
0
0.75
0.85
0.06
0
0.29
0.24
0.59
0.31
0.51
0.38
0.13
0
0.50
0.10
0
0
0.35
0.10
0
0
10.38
5.33
2.88
1.50
0.89
0.79
1.07
0.12
0.52
0.03
0
0
0.10
0.20
0.60
0.40
24.51
24.10
35.40
13.70
2.93
0
0
0
6.96
6.95
0
0
10.00
0
0
0
0.88
0.21
0
0
3.48
1.80
0.80
0.10
0.83
0
0
0
2.22
0.36
0.02
0
75.00
48.83
49.18
20.13
116.22
133.94
237.18
161.95
2,235.29
1,645.94
2,600.85
1,538.14
P
S, K and
PZh
D
D B
0.02
0
25.00
0
0
0
0
0
0
0
0
2.90
0
0.03
0
1.63
0
0
0.34
0.32
0.66
0.11
0
0
0
0
0
0
0.11
0.91
0
0
0
0
0
0.60
0
0
0
0
0
0.45
0.05
1.80
0.85
7.08
4.94
5.37
2.87
0
0
0
0
0
0
0
0.55
0
0
0
0
1.30
0
0
0
0
0
0
0
0
0
97.71
0
0
0
0
0
2.93
0
0
0
0
0
13.91
0
0
0
0
0
10.00
0
0
0
1.09
0
0
0
***6.18
0
0
0
0
0
0
0.20
0.63
0
0
0.56
0.10
0.24
0
0
1.70
3.84
6.64
30.59
10.54
5.05
136.48
124.29
149.21
172.10
121.70
51.75
30.24
956.16
1,803.18
647.57
1,208.37
422.27
2,982.67
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 Approved For Release 2008/09/08: CIA-RDP08SO1 350R0001 00080002-7
FicuiE 39. PRODUCTION OF COAL BY REGIONS AND BASINS
(Millions of tons)
1
1958 1
1960 1
1961 1 1
965 1
1966
Western (European) regions:
Pechora Basin ............................
16.8
17.6
17.6 1
7.3
18.8
Donets Basin .............................
181.7
188.2
186.1 20
5.9
2(17.4
Moscow Basin ............................
47.3
42.8
36.8 4
0.8
39.2
Dnieper Basin ............................
na
na
na
na
11.0
L'vov-Volyn' Basin ........................
2.0
na
na
8.9
10.0
Georgian S.8.R ............................
3.0
2.9
2.7
2.6
2.6
Other* ...................................
13.7
16.2
17.6 1
3.6
1.9
Subtotal ................................
264.5
267.7
260.8 28
9.1
290.9
Urals region ................................
58.1
59.0
59.3 6
1.6
57.8
Subtotal ..................................
58.1
59.0
59.3 6
1.6
57.8
Eastern regions:
Kazakh S.S.11 ..............................
31.5
32.4
34.6 4
5.8
48.2
Including Ekibastuz deposit ..............
6.2
6.0
7.4 1
4.6
15.5
Karaganda Basin ........................
24.4
25.8
26.7 3
0.9
32.0
Kuznetsk Basin ...........................
75.4
84.0
84.9 9
6.9
100.2
Kirgiz S.S.R ...............................
3.4
3.5
3.4
3.7
3.9
Tadzhik S.S. It ............................
0.8
0.9
0.8
0.9
0.9
Uzbek S.S.R ..............................
3.5
3.4
4.4
4.5
3.9
Far East region ...........................
20.0
21.9
21.7 2
7.3
**29.6
Other* ...................................
36.0
36.8
36.5 4
7.9
50.2
na Data not available.
*Residual includes other producers.
**Estimated.
FraURF: 40. PRODUCTION OF COAL BY TYPE (U/OU)
(Thousands of tons)
1
1958 1
1960 1
1962 1
1963 1
1964 1
1965 1
1966 1
1967
Total coal .................................
Including:
493,236
509,623
517,408
531,722
553,997
577,731
585,604
595,201
Anthracite ............................
*74,220
74,128
72,536
72,729
74,898
76,467
76,775
77,139
Bituminous ...........................
Of which,
278,810
300,797
313,896
322,403
333,972
351,414
362,395
374,247
Coking coal .......................
94,407
110,198
117,462
127,063
133,617
138,959
142,549
147,623
Subtotal, hard coal** .....................
353,030
374,925
386,432
395,132
408,870
427,881
439,170
451,386
Brown coal ............................
140,206
134,698
130,976
136,590
145,127
149,850
146,434
143,815
Strip-mined coal*** ....................
97,940
101,977
114,28(1
121,254
130,854
140,517
146,035
151,164
Percentage of total coal strip-mined......
19.9
20.0
22.1
22.8
23.6
24.3
24.9
26.4
*Estimated.
**Includes anthracite and bituminous coal.
***Includes both hard coal and brown coal.
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 Approved For Release 2008/09/08: CIA-RDP08SO1 350R0001 00080002-7
FIGURE 41. PRODUCTION OF COKING COAL,* BY BASIN;
(Millions of tons)
1958 1
1959 1
1960 1
1961 1
1962 1
1963 1 1964
1 1965
Pechora ..........................
2.5
3.2
3.8
3.9
4.0
4.4 4.8
4.7
Donets ........... ..............
54.5
58.9
64.9
65.6
68.3
74.8 77.4
80.8
Kuznetsk .........................
25.7
26.9
28.5
30.2
32.6
33.9 36.7
37.5
Karaganda .......................
6.6
7.1
8.2
8.2
8.2
9.5 9.8
11.0
Urals ............................
2.2
2.1
2.3
2.2
**2.1 *
*2.2 na
no
Georgian deposits .................
2.4
2.3
2.2
2.1
2.3
2.3 2.1
2.0
East Siberian deposits ..............
0.4
0.4
0.2
0.1
Insig
Insig na
no
na Data not available.
*As mined and before cleaning.
**Estimated.
***As reported. The total may not be equal to the sum of the components.
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 Approved For Release 2008/09/08: CIA-RDP08SO1 350R0001 00080002-7
U
y
O O
U
c. O
Q?1
q F
V y
d O
'y 0 0 0 0 O O O O C O
y M
O O
O 00 K 'N CO 00
M M N .-?~ 00 -
O O O : O O
O 93 Cn O b . O O O , b
41 Ql 0.1 R ? dJ C Q0
(Z O b 0 b C) O b
2~ 2~ 40 O) . 0 O DO t`
rr +~ ti ti ti M +~ ti
b b 0 0 b 0 0 0 0 O
b b b ~Y? b C b 2~ 00
ca
0) G U a
O
U b a
z w x E,zz
00 Z" ? 01 O CO ? 91 -Y? 00 N
V 6V t~ QQ 00 qr~ --
1z Z Z- 00 N e, 10 ~O -q, Qq
ti ry ~i O
cd U ~ ~ O
?J v
R L g bO a
d .
U 4
iM.
a~a.o b
cd O O O m 0 ?4 m 0) q> q A
o d 01 a n a. N.g
~aHa`~,ov ~xaNC7~lw
y
m o
C
N 10 . 10
CV . N
x iG 0 iC ,y CC
0) 0 0) 0 0) 0
O o o
xa
ti
0r.
G o
^y n
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FIGURE 44. MECHANIZED COAL PREPARATION* IN THE U.S.S.R.
(Millions of tons)
Total raw coal cleaned .....................
124.9
152.1
169.8
181.7
198.0
215.0
221.2
236.1
Including at mine plants .................
97.1
116.8
132.2
141.9
158.0
174.9
181.0
195.7
Including at coke-chemical plants .........
27.8
35.3
37.6
39.8
40.0
40.1
40.2
40.4
Total raw coking coal cleaned ..............
85.7
98.5
111.0
118.8
125.0
129.9
131.0
131.0
Including at mine plants .................
57.9
63.2
73.4
79.0
85.0
89.8
90.8
90.6
Including at coke: chemical plants .........
27.8
35.3
37.6
39.8
40.0
40.1
40.2
40.4
Total cleaned coal produced ................
79.3
95.1
105.6
113.1
119.6
129.4
135.3
143.0
Including at mine plants .................
57.7
67.8
77.0
83.1
89.2
98.7
104.5
112.0
Of which, coking coal ..................
39.2
42.8
49.8
53.1
58.1
60.8
61.7
63.5
Including at coke-chemical plants.........
21.6
27.3
28.6
30.0
30.4
30.7
30.8
31.0
Total cleaned coking coal produced .........
60.8
70.0
78.5
83.1
88.5
91.5
92.5
94.5
Total cleaned non-coking coal produced......
18.5
25.1
27.1
30.0
31.1
37.9
42.8
48.5
NOTE-Figures may not add to totals because of rounding.
*Excluding hand-picking and mechanized screening at the mine.
**Preliminary estimate.
FIGURE 45. EXPORTS OF COAL*
(Thousands of tons)
1958 1
1960
Free World Countries:
Austria ........................
292
733
838 905
900
819
841
745
Algeria ........................
0
0
0 0
5
5
0
0
Belgium .......................
69
20
181 600
485
290
270
261
Denmark ......................
16
413
469 672
660
522
621
500
Finland ........................
789
739
731 621
762
665
545
460
France ........................
703
795
949 1,908
1,723
1,601
1,465
1,497
Greece .........................
24
51
30 42
37
40
52
39
Iceland ........................
1
1
1 1
1
1
0
1
Italy ..........................
258
475
1,021 1,194
1,213
1,023
1,360
1,845
Japan .........................
437
542
1,144 956
1,088
1,233
1,589
2,379
Netherlands ....................
41
32
120 294
252
92
29
23
Sweden ........................
67
141
114 246
300
428
203
330
Switzerland ....................
0
0
0 0
1
2
1
0
Tunisia ........................
0
21
15 20
24
21
22
25
U.A.R. (Egypt) .................
4
24
0 15
352
421
305
471
West Germany .................
127
66
227 209
130
58
17
22
Other** .......................
50
14
8 12
75
3
3
0
Total, Free World Countries...
2,878
4,067
5,848 7,695
8,008
7,224
7,323
8,598
Communist Countries:
Bulgaria .......................
0
10
932 1,283
1,994
2,504
3,047
3,231
Cuba ..........................
0
7
0 11
0
0
30
88
Czechoslovakia .................
1,010
1,054
2,862 3,058
3,342
2,915
2,062
2,343
East Germany*** ...............
4,778
5,066
6,785 5,838
6,194
5,994
5,876
5,063
Hungary .......................
90
204
298 971
1,318
1,060
876
406
Poland ........................
390
794
1,042 1,228
1,223
1,218
1,164
1,143
Rumania ......................
3
133
395 190
201
251
358
399
Mongolia ......................
77
53
180 31
256
134
9
4
Yugoslavia .....................
725
927
1,008 1,057
1,092
1,123
1,083
1,022
Total, Communist Countries...
7,073
8,248
13,502 13,667
15,620
15,199
14,505
113,714
Total U.S.S.R ....................
9,951
12,315
19,350 21,362
23,628
22,423
21,828
22,312
*Including small amounts of hard coal briquettes.
**Residual, including bunkers.
***Reported as exports in Soviet trade statistics. Except for small amounts of anthracite coal, however, most of this total was
shipped from Poland on the Soviet account.
tIncluding 15,000 tons to North Korea.
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(Thousands of tons)
ORIGIN
1958 1
1960 1
1962 1
1963 1
1964 1 1965
I
1966
1967
Coal:
Poland* .......................
3,559
4,519
4,686
4,829
4,805 6,518
7,206
7,770
Communist China ..............
208
200
201
205
202 201
0
0
Hungary** .....................
49
56
49
75
75 74
55
no
Total ........................
t3,826
4,775
4,936
5,109
5,082 6,793
7,261
7,770
High-temperature coke:
Poland*** .....................
678
658
607
654
661 662
654
685
no Data not available.
*Hard coal, most of which was shipped directly to East Germany on the Soviet account.
**Brown coal and brown coal briquettes.
***Most of this coke was shipped directly to East Germany on the Soviet account.
tlncluding 10,000 tons of unknown origin.
FIGURE 47
. EXPORT
(Tho
S OF COKE
ds of tons)
usan
Free World Countries:
Austria ........................
30
64
53 79
82 88
92
71
Denmark ......................
80
76
194 257
246 284
292
144
Finland ........................
174
99
207 252
504 517
596
610
Greece .........................
6
9
6 8
11 8
6
6
Iceland ........................
1
1
1 1
0 0
1
1
Sweden ........................
98
125
151 204
101 89
147
58
U.A.R.(Egypt) .................
4
28
167 18
0 0
0
0
Other* ........................
2
5
4 0
0 1
1
12
Total, Free World Countries...
393
Communist Countries:
Bulgaria .......................
89
103
106 139
177 103
158
195
Cuba ..........................
0
5
24 28
31 31
26
39
Czechoslovakia .................
0
3
25 32
68 7
5
67
East Germany** ................
914
1,026
1,378 1,511
1,530 1,505
1,487
1,275
Hungary .......................
617
594
523 636
638 576
604
592
Mongolia ......................
0
0
1 2
1 2
1
1
Rumania ......................
402
407
431 618
599 541
592
551
Yugoslavia .....................
0
101
51 11
11 0
0
0
Total, Communist Countries... ***2,024
2,239
2,539 2,977
3,055 2,765
2,873
2,792
Total, U.S.S.R ...................
2,417
2,646
3,322 3,796
3,999 3,752
4,008
3,694
*Bunkers and unaccounted destination.
**Much of the coke ostensibly shipped to East Germany from the U.S.S.R. actually originated in Poland, but was credited to
the Soviet account.
***Including 2,000 tons to Albania.
tPreliminary report.
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 Approved For Release 2008/09/08: CIA-RDP08SO1 350R0001 00080002-7
EXPLORATORY OIL WELLS
(Millions of rubles)
U
.S.S.R.
TOTAL
R.
S. F. S. R.
AZ
D
ERRAY-
ZHAN
K
AZAKH-
TURKMEN
1959
........
32.46
21.10
3.80
2.20 1
.64
1.42
1.53 0.77
1960
........
36.19
23.30
4.10
2.78 1
.98
1.57
1.59 0.87
1961
........
40.87
25.70
4.12
3.52 2
.75
1.86
1.61 1.31
1962
........
46.62
28.44
4.88
4.84 2
.62
2.03
2.15 1.66
1963
........
48.57
30.96
4.40
4.16 2
.70
2.06
2.46 1.83
1964
........
55.11
33.40
5.70
4.71 3
.98
3.02
2.83 1.47
1965
........
59.47
35.56
5.35
5.62 4
.38
3.77
3.03 1.76
1966
........
65.00
no
no
no
no
no no
1950 I
1960 1
1965 I
1967
Average depth of wells drilled (meters) :
Exploratory ...........................
1,362
1,928
2,269
no
Development ..........................
1,148
1,586
1,653
no
Drilling rates (meters/rig/month) :
Exploratory ...........................
208
401
367
380
Development ..........................
636
993
1,137
1,107
Total meters drilled (thousands) ............
4,283
7,715
11,291
11,707
PERCENT OF
TOTAL OIL
PRODUCTION
DEPTH OF
OCCURRENCE
IN METERS
PERCENT OF
TOTAL GAS
PRODUCTION
U.S.S.R ............................
100
Northern regions:
Urals ..........................
23.2
2,500-3,000
Povolga ........................
47.1
2,000-2,500
West Siberia ....................
1.0
1,000-3,000
0.5
Far East .......................
0.9
1,800
0.3
Southern regions:
Ukraine ........................
2.8
1,250-2,800
33.6
North Caucasus .................
9.5
1,300-3,500
32.8
Transcaucasus ..................
9.1
3,500
2.5
Uzbek .........................
I
4.1
Turkmen .......................
Kazakhstan .....................
1.2
1,000-3,000
Ukhta .........................
1.2
1,500-1,700
FIGURE 51. PRODUCTION OF CRUDE OIL BY METHOD OF EXTRACTION
(Percent of total)
METHOD OF EXTRACTION 1
1950 1
1955
1961 1
1964
Free-flowing wells .........
32.5
58.3
74.0
66.8
64.4
61.3
58.9
Pump ....................
44.7
34.0
23.5
30.9
33.5
36.7
39.0
Compressor gas/air-lift .....
21.1
6.5
2.1
1.9
1.8
1.8
1.8
Other ....................
1.7
1.2
.4
.4
.3
0.2
0.3
25X1
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OIL RESERVES, 1966
PERCENT OF
TOTAL OIL
PRODUCTION
U.S.S.R ................. 100
Urals ................... 23
Povolga ................. 47
North Caucasus .......... 10
Transcaucasus ........... 9
Central Asia ............. 4
Ukraine ................. 3
Kazakhstan .............. 1
Ukhta .................. 1
West Siberia ............. I
Far East ................ I
AVERAGE DEPTH
OF PRODUCING
DEPOSITS
COST OF
PREPARING 1
TON OF OIL
RESERVES
COST OF
PRODUCING 1
TON OF OIL
(Meters) - - - - - - Rubles - - - - -
.... 38 2.8
2,500-3,000 26 2.6
2,000-2,500 36 2.3
3,000-3,500 160 4.6
3,500 61 8.0
2,500 103 9.4
2,500-2,800 68 2.7
2,000 22 5.3
1,500-1,700 65 4.2
2,000 30 4.5
1,800 190 9.1
LOCATION OF
REFINERY*
PRIMARY
DISTIL-
LATION
? 'N.
Angarsk ............ ......................... 52 32
Baku ............... Waterfront Group (5) ...... 40 23
Novo Baku ............... 40 24
Batumi............. ......................... 41 39
Drogobych.......... No. I .................... 49 21
No. 2 .................... 49 20
Fergana ............ ......................... 40 27
Gorkiy ............. No. 26 ................... 56 20
Novo Gorkiy ............. 56 06
Groznyy ............ ......................... 43 18
Novo Groznyy ............ 43 16
Ishimbay ........... ......................... 53 26
Novo Ishimbay .......... 53 26
Khabarovsk......... Ordzhonikidze ............ 48 30
Kirishi ............. ......................... 59 29
Komsomolsk ........ No. 409 .................. 50 37
Konstantinovsky.... Mendeleyev .............. 57 49
Krasnodar .......... ......................... 45 00
Krasnovodsk ........ ......................... 40 01
? 'E. - - - - - - - Million tons per year - - - - - - -
103 57 12 CC-1.2
HT-1.5
HC-U/C
49 54 20 na
49 55 4 2 CC (Thermofor) ....... 0.7
CC (Fluid) ........... 0.35
CC (Fluid) ........... U/C
HT .................. na
CR .................. na
Alk ..................0.05
41 41 3 na
23 33 1 na
23 29 1 na
71 48 3 CR-na
43 54
44 09
45 39
45 37
56 00
56 02
135 03
32 04
137 04
39 37
38 58
52 57
HT-na
1 na
7 CR-na
HT-na
10 HT-na
3 CC-na
C R-n a
1 CC (Houdry) ........ 0.2
Alk ................. 0.1
2 0
2 na
1 0
6 CR-0.6
1 0
1 0
3 0
7 CC (Fluid) .......... 0.75
CR .................. 0.6
6 CR-0.6
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 Approved For Release 2008/09/08: CIA-RDP08SO1 350R0001 00080002-7
FIGURE 53. ESTIMATED CAPACITIES OF MAJOR SOVIET REFINERIES, 1 JANUARY 196 ~ (Continue25X1
LOCATION OF
REFINEIIY*
? 'N.
Kuybyshev ......... Lend Lease No. 3 ......... 53 06
Novo Kuybyshev .......... 53 06
PRIMARY
DISTIL-
LATION
o 'E. - - - - - - - Million tons per year - - - - - - -
50 03 5 na
49 55 22 CC (4 Thermofor).... 1.8
Moscow ............ Lyubertsy ................ 55 39 37 49
Nadvornaya ......... ......................... 48 38 24 36
Omsk .............. ......................... 55 04 73 13
Orsk ............... Lend Lease No. 2 (No. 421). 51 15 58 31
Perm ............... ......................... 57 55 36 07
Polotsk ............. ......................... 55 32 28 33
Ryazan ............. ......................... 54 34 39 45
Salavat............. ......................... 53 25 55 54
Saratov ............. Kirov .................... 51 27 45 57
Syzran ............. ......................... 53 05 48 24
Tuapse ............. ......................... 44 07 39 06
Ufa ................ Staro-Ufimskiy............ 54 51 56 05
Novo-Ufimskiy ............ 54 53 56 05
Chernikovsk .............. 54 56 56 04
Ukhta .............. ......................... 63 34 53 43
Vannovskiy (Khamzy ......................... 40 26 71 31
Khakimzade).
Volgograd ........... ......................... 48 29 44 37
Yaroslavl ........... ......................... 57 33 39 48
na Data not available.
*See map, Figure 76.
Alk ...... Alkylation.
CC ....... Catalytic cracking.
CR....... Catalytic reforming.
HC ....... Hydrocracking.
HT ...... Hydrogen treating.
U/C ...... Under construction.
CR (Hydroformer) ... 0.3
CR (Platformer) ..... 0.6
Alk ................. 0.05
HT .................na
H C ................. Reportedly U/C
4 CR-na
2 na
20 CC-na
C R-n a
HT-na
A1k-na
3 CC (Houdry)-0.4
9 CR-na
12 CR-na
HT-na
9 CR-na
8 no
6 no
7 CC-na
C R-n a
HT-na
3 na
4 no
14 3 CC (Thermofor) .... 1.2
CR (Hydroformer) ... 0.3
CR (Platformer)..... no
Alk .................0.3
H T .................na
8 CC-na
1 0
6 no
12 CC--na
CR-na
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In percent
of primary
distillation
capacity*
Million tons
per year
In percent
of primary
distillation
capacity**
Million tons
per year
Hydrogen treating .................... 6.0 13.6 14.0 42.0
Catalytic reforming ................... 4.2 9.4 8.8 26.4
Catalytic cracking .................... 5.3 11.9 6.1 18.3
Coking .............................. 0.8 1.8 2.6 7.8
Urea deparaffination .................. 0.3 0.7 2.1 6.3
*As of 1 January 1966, primary distillation capacity was estimated at 225 million tons.
**As of 1 January 1971, primary distillation capacity is estimated at 300 million tons.
Million Percent
tons of total
Million
tons
Percent
of total
Urals-Volga ...................................... 55 46.2 96 37.7
Caucasus ........................................ 38 32.0 46 18.0
European U.S.S.R. (West and Central) - North..... 6 5.0 54 21.2
West Siberia ..................................... 8 6.7 20 7.8
Kazakhstan and Central Asia ...................... 9 7.6 13 5.1
East Siberia ..................................... 0 0 12 4.7
Ukraine ......................................... 2 1.7 12 4.7
Far East ........................................ 1 0.8 2 0.8
Total ......................................... 119 100.0 255 100.0
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C m fJ.,' C -~ ~f: N
- N ^ N m N
cC ~- N N ~-^_ N N
N cr C I- CC
o O C m d
N - O
ocoocvo_w
M d N
O C C O tl tl n
cp .--~ CC G tl n n
C '."~ N C
c: cC < ~ c
n N C ~c -~ ~ o0
-+ m C C !V cC C
cr m :o N N
- N N
tl N C N n n n
- N N
ti
W ?-+ N
m N a n w C
C C C C o C
m C
c
d~ .-r N C N C
co N