PETROLEUM IN NORTH VIETNAM AT THE OUTSET OF 1967

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CIA-RDP78T02095R000800070030-2
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April 21, 2009
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February 1, 1967
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Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Secret DIRECTORATE OF INTELLIGENCE Intelligence Memorandum Petroleum in North Vietnam at the Outset of 1967 (A Review of Developments During 1966) JCS review completed. DIA review(s) completed. Secret N?- 138 RR IM 67-9 February 1967 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 WARNING This document contains information affecting the national defense of the United States, within the meaning of Title 18, sections 793 and 794, of the US Code, as amended. Its transmission or revelation of its contents to or re- ceipt by an unauthorized person is prohibited by law. OROUP t Eccludad from automatic dawagrading and dcuificafian Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET This memorandum makes estimates of the supply of petroleum in North Vietnam at the beginning and end of 1966 and on 28 June 1966, the day before intensified bombings began. It also estimates storage capacity on these dates. No hard intelligence is available on inventories of petro- leum, total petroleum storage capacity, or losses through bombings, but a methodology has been developed to provide the necessary estimates. SECRET Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 SECRET CONTENTS Page Summary . . . . . . . . . . . . . . . . . . . . . 1 1. Introduction . . . . . . . , 2. Petroleum Storage . . . . . . . . . . . . . . . . . a. b. c. d. e. Principal Storage Terminals . . , , , , Dispersed Storage Sites -- Tanks . . . . . . . Dispersed Storage Sites -- Drums . . . Other Storage Sites . . . . . . . . . . . . . Capacity at the End of the Year . . . . . . . . 4. Petroleum Supply and Demand in 1966 . . 5. Effects of the Bombings of Petroleum Targets . . . . Appendixe s Appendix A. Methodology . . . . . . . . . . . . . . . 9 10 1. North Vietnam: Location and Estimated Capacities of Principal Petroleum Storage Terminals, 1 January and 31 December 1966 . . . . . . . . . . . . . . 12 2. North Vietnam: Location, Capacities, and Routes of Communication for Dispersed Petroleum Storage 3. North Vietnam: Estimated Imports of Petroleum, by Carrier, 1964-66 . . . . . . . . . . . . . . . . . 16 SFCR FT Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET Page North Vietnam: Estimated Monthly Imports of Petro- 16 leum, by Carrier, 1966 . . . . . . . . . . . . . . 5, North Vietnam: Estimated Average Monthly Consump- 17 tion of Petroleum, July-December 1966 . . Figure 1. Principal Petroleum Storage Terminal at Hanoi, Before and After Bombing (photograph) following page . . . . . . . . . . . . . . . Figure 2. North Vietnam: Principal Petroleum Storage 4 Terminals (map) following page . . . . . . . Figure 3. Cu Van Dispersed Storage Tank Site, Before and After Bombing (photograph) following 4 page . . . . . . . . . . . . . . . . . . Figure 4. Thuong Thon Dispersed Storage Tank Site, Before and After Bombing (photograph) 9: following page . . . . . . . . . . . . .. . Figure 5. North Vietnam: Dispersed Petroleum Storage Sites - Tanks (map) following page . . ? . ? . Figure 6. Hanoi (Duc Noi) Dispersed Storage Tank Site (photograph) following page . . . . Figure 7. Soviet Tanker in Haiphong Waters with Barges and Tugs Alongside (photograph) following page . . . . . . . . . . . . . . . . . . . Figure 8. Phuc Loi Dispersed Storage Tank Site, Before and After Bombing (photograph) following page . . . . . . . . . cr.f T]~T Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 SECRET PETROLEUM IN NORTH VIETNAM AT THE OUTSET OF 1967 (A Review of Developments During 1966)* Summary The bombing of petroleum targets during 1966 destroyed an estimated 82, 000 tons of storage capacity and between 41, 000 and 62, 000 tons of petroleum; the combined replacement value is between US $4. 9 million and $5. 6 million. In addition, the bombing increased the cost and diffi- culty of importing and distributing petroleum, both for the USSR and North Vietnam. There is no evidence, however, that the bombing of petroleum targets seriously weakened the economy of North. Vietnam, produced shortages of petroleum, or diminished North Vietnam's capability to support military activities or the infiltration of men and supplies into the South. At the beginning of 1967, between 52, 000 and 56, 000 tons of petroleum are estimated to have been on hand -- the equivalent of between 90 and 100 days' supply. The program for constructing dispersed storage tanks, which is still under way, provided North Vietnam with between 30, 000 and 40, 000 tons of usable capacity by 1 January 1967. This, together with the residual capacity estimated to be available at the principal storage terminals and a sizable inventory of drums, gives North Vietnam between 87, 000 and 97, 000 tons of capacitywith which to operate its oil economy. Although present storage capacity is less than that which existed at the beginning of 1966, the North Vietnamese can move petroleum in bulk, principally by water, closer to points of consumption; store it in facilities which arc relatively invulnerable to air attack; and disperse it throughout the countryside to a degree not previously possible. North Vietnam has improved its tanker unloading procedures in the lasthalf of 1966 to the pointwh.ereit candischarge the cargoes of 10, 000- ton tankers, using barges, on a routine basis. * This memorandum was produced solely by CIA. It was prepared by the Office of Research and Reports; the estimates and conclusions repre- sent the best judgment of the Directorate of Intelligence as of February 1967. >: Unless otherwise indicated, tonnages are given in metric tons. SECRET Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 1. Introduction North Vietnam has no known resources of petroleum and is com- pletely dependent on imports for its supplies. Moreover, it has no refineries and must import all of its petroleum in the form of products. Historically, most petroleum imports have been delivered to North Vietnam by sea -- mostly in bulk on tankers, but also in packages on dry cargo vessels. Intelligence on sea shipments is good, and imports by sea can be estimated with a high degree of accuracy. In recent years, petroleum has also been imported by rail through Communist China. Intelligence on rail shipments is poor, and estimates of imports by rail are, therefore, subject to considerable margins of error. For- tunately, such shipments have almost certainly been small, except for the probable transshipment of the cargoes of four tankers diverted to Communist China in 1966. 2. Petroleum Storage a. Principal Storage Terminals The principal storage terminals are large-capacity installa- tions with conventional above-ground tanks. Figure 1 shows the terminal at Hanoi before and after bomb ing. On 28 June, the day before the in- tensified bombings began, nine principal storage terminals, with. a total estimated capacity of almost 101, 000 tons, were operational in North Vietnam. At the end of the year, about 24, 000 tons of residual capacity-,* remained at seven installations, although the capacity at two of these installations may not in fact have been usable. Table 1 shows the loca- tion and capacity of the principal storage terminals on 1 January and 31 December 1966. The locations of the nine principal storage terminals are shown on Figure 2. b. Dispersed Storage Sites -- Tanks The dispersed storage tank system was first observed in 1965 and was still being expanded at the end of 1966. The sites consist essen- tially of small cylindrical tanks placed horizontally in shallow excavations and covered with. earth. At some sites the tanks are placed side-by-side in rows, and at others they are placed at random. Individual tanks come >ti Residual capacity at JCS fixed targets totals about 26, 000 tons, includ- ing about 24 000 tons at principal storage terminals and 2, 500 tons at Can Thon , a dispersed storage site. SECRET Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 SECRET in three sizes -- 6, 10, and 21 tons -- and individual sites have varying :numbers and mixes of the tanks. Figures 3 and 4 show examples of dispersed storage tank sites. There is no intelligence on which to make an estimate of the capacity of these sites on 1 January 1966. On the basis of photographic intelligence that became available during 1966, it is estimated that their capacity on 28 June was 17, 000 tons. By the end of 1966, 89 dis- persed tank sites with a total estimated capacity of about 32, 000 tons had been identified and analyzed from photography. Pilot and other reports from the field suggest that the number of sites may exceed 100, with an original total capacity of perhaps 35, 000 to 45, 000 tons. The average (median) capacity of the 89 sites is 226 tons; almost two-thirds have capacities of less than 300 tons, and only about 10 percent have capacities greater than 1, 000 tons. Figure 5 shows the general loca- tion and dispersal of the 89 sites. Dispersed tank sites have been bombed in recent months, but damage has been difficult to assess. According to one analysis, almost 5, 000 tons of capacity have been destroyed, 1/* and this estimate is considered reasonable. Although the estimate probably does not allow fully for the inflation inherent in pilot and other reports from the field, it. also excludes damage to sites for which no assessments are avail- able. Thus, at the end of 1966, these sites, after bombing, may repre- sent between 30, 000 and 40, 000 tons of capacity. The tank sites are dispersed throughout the country, and, although many are in urban areas, they are generally remote from densely populated areas. Figure 6 shows a dispersed site in an iso- lated area near Hanoi. Sixteen sites, having a total capacity of 3, 900 tons, have been identified within a 10-mile radius of Hanoi, and 33 sites, with. a capacity of about 12, 000 tons, within a 30-mile radius. There are 11 sites, with a total capacity of almost 5, 000 tons, within a 10-mile radius of Haiphong. This capacity, together with the residual capacity at the remaining principal storage sites in the Hanoi/Haiphong area, enables North Vietnam to discharge (using barges) fully loaded ocean tankers on a routine basis. Figure 7 shows a Soviet tanker with barges alongside in the Haiphong waters. The North Vietnamese generally have located dispersed tanks at sites accessible to more than one mode of transport and have taken advantage of security inherent in cover, concealment, and dispersal. ~For serially numbered source references, see Appendix B,. QVI'D t'm Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 PRINCIPAL PETROLEUM STORAGE TERMINAL AT HANOI, BEFORE AND AFTER BOMBING Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Phong Saly Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 ' Ko chiu Vang Vieng 'Ban Chieng .r' r Linn Cam ,' ~ Ha Giang LAOS Samneua \?.; VIENTIANE TLHAILAND Udon Thani 0 Existing site C Destroyed site ---t Railroad ~,,.? Dong\ Van Nakhon Phanom`. Khammouane Sakon Nakhon I SavannakhetL ?1 N Dong Hoi - f DEMARCATION LINE Dong Ha '?w' ~ Hue Muong Nong. ` VIETNAM Saravane oN??~ Figure 2 NORTH VIETNAM PRINCIPAL PETROLEUM STORAGE TERMINALS 1. Viet Tri 2, IIa Gia 3. Ilanoi (Thanh Amt 4. Nguyen Khc 5. Bac Giang 6. Ilai Phong 7. Duong Nharn 8. Do Son 9. Vinh Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 05, NOTE RANDOM PATTERN OF EXCAVATIONS FOR FUTURE TANKS AND TANKS COVERED AND CONCEALED IN PLACE NOTE THAT EXPANSION HAS BEEN HALTED AND THAT TANKS, PREVIOUSLY COVERED AND CONCEALED, HAVE BEEN REMOVED FIGURE 4. THUONG THON DISPERSED STORAGE TANK SITE, BEFORE AND AFTER BOMBING Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Phong Saly -Dien Bien Phu Ban Chieng . Xieng Khouang ~..~ Vang Vieng VIENTIANE I.IlNong Khai H A I L A N D 0 25 50 75 Mlles 0 25 50 75 Klorneteu 36 Vinh Linh ~?. ~~x}/ DEMARCATION LINE Deng Ha ? 53 N? Cang o J Ba Tuyen Quang 8 4 ?4s /e 29 Bac Man R8 57__ Z2 45g53 ?47 - ,76 -'"a 0 J4 'Hon Gal ng 86,87 D Haig 84Q ng Hon uon Y Yeen Hun Phu Yeng 410 1 di 0~phong Ly 61 42 1 75 ? -Thai 44 6 ?8Binh 80 1 am Dinh 51 Ninh Binh r Linh Cam 4i55,58,71, Nathan Phanomy.Khammouane Sakon Nakhon r.,.? Don Van Savannakhet CCCCCC .~ Ban Laee \..s? ..y .~- CHINA - \ 46 %Dong Hoi \ VIETNAM LAOS Saravane ry Figure 5 NORTH VIETNAM DISPERSED PETROLEUM STORAGE SITES-TANKS 1. La Danh 2. Van Lung 3. Van Lung (West) 4. Iluaug Mai 5. Hanoi, '1'hi Cain 6. Bai Thuong, Southeast 7. Son La S. Thuong Thou 9. Ngoc Son 10. Thai Lai 11. Yen Ilan 12. Thanh Lang 13. IIanoi, Thanh Lict (Area 1) 14. Hanoi, Thanh Lict (Area 2) 15. Bang So 16. Son Chan 17. Can Thon 18. IIanoi, Due Not (Area 1) 19. IIanoi, Due Not (Area 2) 20. Hanoi, Due Not (Area 3) 21. IIanoi, Due Not (Area 4) 22. Cu Van 23. Cu Van, East 24. Duo Quan, East 25. Dao Quan, West 26. Nam Dinh 27. Thai Nguyen, South 28. Phu(, Yen Airfield, Area 1 29. Phuc Ycn Airfield, Area 2 :30. Xom Duong Quan, East :31. Xom Duong Quart 32. Nui Tap Tiuh 33. Sac Le 34. Plut Doug :35. '1 huan Lc 36. Phu Loc 37. Thank Hoa 38. Ba Don 39. Phue Loi, Navy 40. Thu 'Prang 41. Ninh Ciang 42. Viet Yen 43. Kcp IIa 44. Tien Iloi 45. Doug Mai 46. Xom Lang 47. Van IIoa 48. Phn Lo 49. Jaunc Island 50. Co Nhue Iloang 51. Quang Suoi 52. Trung Phu 53. Cia IIoa 54. Bai Chay 55, Vinh Petroleum, Yen 'I Ninh 56. Ba Don, West 57. Bac Ninh 58. Vinh, Xuan Yen 59. Tri Binh 60. Xuyen Duong 61. Can Cong 62. Tung Tu 63. Don Son 64. Quy Khe 65. Tran Xa 66. T'hanh Hoa 67. Tram Du 68: Luc Nong 69. Thai Nguyen 70. Tien Nong 71. Vinh, Ben Thuy 72. Chi Linh 73. Vinh, Yen Dai 74. Iloang Pha 75. Kien An 76. Phu Thi 77. Phuc Yen 78. Vinh, North 79. Mach 'Prang 80. Tram Bac 81. Nam Lo 82. IIanoi, Duc Noi (Area 5) 83. Lai Son 84, Phu Xa 85. Hoa Loan 86. Tu Iloang 87. Tay Tun 88. Nguyen Khe 89. Lau Khe Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 FIGURE 6. HANOI (DUC NOI) DISPERSED STORAGE TANK SITE. NOTE NATURE AND STAGES OF CONSTRUCTION, TANK SIZE MIX, AND LOCATION REMOTE FROM POP- ULATION AREA. Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 SECRET All of the identified sites are served by road: 38 are served by road, rail, and waterways, 30 others by road and waterway, 16 more by road and rail, and the remaining 5 by road only. The waterways that serve these sites are shallow, however, thus limiting the type of craft that can approach. Table 2 shows the location and capacity of the 89 iden- tified sites and indicates the kind of transportation routes available. The dispersed storage tank system provides North Vietnam with a new and greater capability to distribute petroleum internally. Although the estimated capacity of this system is far less than the capacity destroyed at the principal storage terminals, the flexible and reasonably secure routes of communication that serve the dispersed sites and the ability to move and store sizable quantities of petroleum in bulk closer to points of consumption are offsetting influences. More- over, the dispersed tank sites are relatively invulnerable to bombing. Figure 8 illustrates the latter characteristic. More than 400 airstrikes were mounted against 39 dispersed tank sites, where an estimated 5, 000 tons of capacity were destroyed. * Only 85 airstrikes were mounted against principal storage terminals, destroying an estimated 77, 000 tons of capacity. c. Dispersed Storage Sites -- Drums North Vietnam has accumulated a sizable inventory of various types of small petroleum containers. It is not possible to identify the number or size of these containers; for purposes of this memorandum, estimates are expressed in terms of 55-gallon-drum equivalents. A drum-equivalent inventory has been estimated from the tonnages of packaged petroleum shipped to North Vietnam on dry cargo vessels during the period 1 January 1963 through 31 December 1966 by convert- ing at the rate of six drums per metric ton. A loss factor of 10 percent per year was applied to the estimated drum inventory at the end of 1963, 1964, and 1965, and 5 percent was applied as of mid-1966. It is esti- mated that by mid-1966 there may have been about 130, 000 drums in North Vietnam. An additional 49, 000 drums were received during the last half of 1966. A loss factor of 5 percent was applied to the total to account for normal losses in the last half of 1966. On this basis, 170, 000 drums -- equivalent to about 28, 000 tons of storage capacity -- may have been on hand in North Vietnam on 31 December 1966. In addition, almost 800 strikes were made against identified or sus- pected dispersed tank and drum storage sites for which no damage assessment is available. SECRET Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 SECRET Not all of these drums are filled at any one time. ~k reason- able drum use cycle can be postulated as follows: (a) Drums in reserve supply depots - filled (b) Drums at fill and repair sites - empty (c) Drums at points of consumption - one-half filled, one-half empty (d) Drums en route to points of consumption - filled (e) Drums en route to fill and repair sites - empty In the absence of the intelligence necessary to make a more definitive estimate, each phase of this cycle is considered to require an equal share of the drum inventory. Overall, therefore, 50 percent of the drums are estimated to be filled and 50 percent empty at any given time. Drums, too, have been the targets of air attacks, but it is not possible to make a realistic estimate of losses. Losses probably have been small because drums are dispersed among woods, in fo'Liage along roads, and in trenches and thus are difficult to identify and destroy. d. Other Storage Sites Other bulk petroleum storage facilities have been identified at industrial and military installations. These facilities are for the ex- clusive use of the installation they serve, whereas the facilities dis- cussed above store and distribute petroleum for a variety of consumers. It is estimated that total capacity represented by these limited-use facilities -- about 5, 000 tons -- did not change during 1966. e. Capacity at the End of the Year Petroleum storage capacity as of the end of 1966 may be sum- marized as follows: n 1' f-' i r T Approved For Release 2009/04/21 : CIA-RDP78T02095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 25X1 25X1 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET Thousand Metric Tons Principal storage terminals 24 Dispersed storage sites (tanks) 30 to 40 Dispersed storage sites (drums) 28 Military and industrial sites (tanks) 87 to 97 SECRET Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 25X1 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET 4. Petroleum Supply and Demand in 1966 It is estimated that supplies of petroleum in North Vietnam on 1 January 1966 were between 46, 000 and 71, 000 tons. The lower limit represents 90 days' supply at the then-current rate of consump- tion. It is reasoned that North Vietnam would maintain a minimum of 90 days' supply. Seaborne deliveries from the Black Sea normally take about 30 days. In the event of abnormal delays in resupply, stocks of petroleum in North Vietnam might otherwise decline to a dangerously low level for a country on a wartime footing. The upper limit of the range was derived from a supply/demand balance calculated (in reverse) from the estimated supply of petroleum on 28 June 1966. It is estimated that the supply of petroleum on the latter date was 103, 000 tons. This estimate is based on the assumption that all the bulk petroleum storage was filled to 75 percent of capacity and drums to 50 percent of capacity. Information from the US oil in- dustry suggests that, in the absence of definitive information, bulk storage normally may be considered to be filled to 75 percent of capacity on the average. Moreover, other considerations suggest that stocks on hand were this great on 28 June. bombings. This was probably necessary because there was insufficient unused storage capacity in the Hanoi/Haiphong area. High stock levels were created, in turn, because imports in the ten-month period -- September 1965 through 28 June 1966 -- were substantially in excess of estimated demand. * It is estimated that consumption of petroleum for the year 1966 was about 190, 000 tons. This total reflects a moderate increase from slightly less than 15, 000 tons per month (500 tons per day) at the outset of 1966 to 16, 400 tons (about 550 tons per day) at the end of the year. Consumption from 28 June to the end of the year was estimated to have been 99, 000 tons. Table 5 shows the estimated normal monthly con- sumption of petroleum, by sector, for the last half of 1966. The estimated loss of petroleum through bombings before 28 June was 1, 000 tons and after 28 June between 40, 000 and 61, 000 tons. The range of these losses is a function of the inventory of petroleum on 28 June, the inventory of petroleum in specific storage sites at the time of the bombing, and destruction of storage capacity at the specific sites. * For details of the methodology used in deriving these estimates, see Appendix A. SECRET Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET Using these data, estimates of petroleum supply and demand dur- ing 1966 are summarized as follows: Supply, 1 January Plus Thous and Metric 'I'ons Lower Limit Upper Limit 46 71 Imports, 1 January - 28 June 121+ 124 Minus Consumption, 1 January - 28 June 91 Losses, 1 January - 28 June 91 1 Supply, 28 June 78 103 Plus Imports, 29 June - 31 December 11- 1=_3 Minus Consumption, 29 June - 31 December Losses, 29 June - 31 December Supply, 31 December 99 99 4(J 61 5. Effects of the Bombings of Petroleum Targets The principal effects of the bombing of petroleum targets in North Vietnam during 1966 are as follows; a. The destruction of an estimated 77, 000 tons of storage capacity at the principal terminals and 5, 000 tons at the dispersed tank sites plus related support facilities,with a total replacement value of about $3. 6 million. b. The destruction of between 41, 000 and 62, 000 tons of petroleum valued at between $1. 3 million and $2 million. Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET c. The loss of the normal use of the principal petroleum terminal at Haiphong and the complete destruction of the principal storage and distribution terminal at Hanoi, as well as the loss of considerable capacity at principal storage terminals elsewhere. d. Additional costs and inconvenience to both. the USSR and North Vietnam for the import 'and internal distribution of petroleum. There is no evidence, however, that the loss of petroleum or petro- leum storage facilities has seriously weakened the economy. There is no evidence of widespread shortages of petroleum, of dislocations in any sectors of the economy, or of inability to infiltrate men and supplies into the South that is attributable to the loss of petroleum or petroleum storage facilities. SECRET Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 2:1e y 4 7 t and ?stir to ac c ?. L Fe roleum Storage Terminals t V 1 Ian~,ar~.T n.:. 11. !iecem JE'..! ` 6 JCS Target Number . Coordinates Metric Tons Name North East 1 January J 31 December Hai phong 20 52 106 39 40,620 4,330 Han oi 21 03 105 53 30,620 0 Vin h 18 40 105 )3 1,350 1,350 Ng uyen Kre 21 10 105 51 7,500 5,000 Ha Gia J 21 16 105 50 9,910 9,910 Cl) Ba c Giang 21 16 106 11 2,260 1,560 Do Son 20 42 106 47 2,860 1,430 H Vi et Tri 21 17 105 26 1,400 40 Du ong Nhamm 21 01 106 30 4,130 100,650 -3,620 a. Can Thon , because of the nature of its construction and location, considered as a dispersed tank site and is excluded from this table. b. These capacities existed also on 28 June, the day before the intensified bombings c. Ha Gia was attacked in late December, but information available at the end of the year disclosed no damage. Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET North Vietnam: Location, Capacities, and Routes of Communication for Dispersed Petroleum Storage Tank Sites a/ 31 December 1966 Location Site Number Capacity (Metric Tons Road Rail Water North of 210 1 La Danh 1,230 X X 2 Van Lung 282 X X X 3 Van Lung, West 71 X X X )4 Hoang Mai 252 X X X 5 Hanoi,, Th-I.. Cam 141 X X 7 Son La 323 X 17 Can Thon 2,520 X X 18 Hanoi, Due Noi No. 1 385 X X X 19 Hanoi, Due Noi No. 2 713 X X X 20 Hanoi, Due Noi No. 3 252 X X X 21 Hanoi, Due Noi No. 44 111 x x x 22 Cu Van 1,827 X X 23 Cu Van, East 1,092 X X 24 Dao Quan, East, 373 X X 25 Dao Quan, West 302 X X 27 Thai Nguyen, South 1,109 X X 28 Phuc Yen, Airfield, No. 1 252 X X 29 Phuc Yen, Airfield, No. 2 202 X X 32 Nui Tap Tinh 20 X X X 34 Phu Dong 353 X X 43 Kep Ha 81 X 45 Dong Mai 232 X X 47 Van Hoa 121 X X 48 Phu Lo 192 X X 49 Jaune Island 40 X X 50 Co Nhue Hoang 151 X X 52 Trung Phu 141 X X 57 Bac Ninh 171 X X 62 Tung Tu 315 X X 63 Don Son 625 X X 64 Quy Khe 1,129 X X 65 Tran Xa 1,050 X X 69 Thai Nguyen 71 X X X 72 Chi Linh 1,452 X X 76 Phu Thi 302 X X X 77 Phuc Yen 60 X X X 79 Mach Trang 94 X X X 82 Hanoi, Due Noi No. 5 219 X X X SECRET Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET North Vietnam: Location, Capacities, and Routes of Communication for Dispersed Petroleum Storage Tank Sites J 31 December 1966 (Continued) Location Site Number Capacity (Metric Tons) _ Road Rail Water North of 210 83 Lai Son 555 x x x Continued) ( 85 Lung Ngoai 91 x x x , 86 Tu Hoang 147 x x 87 Trung Tu 273 x x 88 Nguyen Khe 30 x x x 89 Lau Khe 181 x x x Subtotal 19,533 Between 200 and 20059' 8 Thuong Thon 383 X X 10 Thai Lai 101 x x .12 Thanh Lang 373 X X 13 Hanoi, Thanh Liet No. 1 433 X X X 14 Hanoi, Thanh Liet No. 2 101 X x x 15 Bang So 196 X X X 26 Nam Dinh 222 X X 33 Sac Le 14l x X 41 Ninh Giang 272 X X 42 Viet Yen 1,210 X X 44 Tien Hoi 393 X X 51 Quang Suoi 81. X X 54 Chay Bai 42 X X 60 . Xuyen Duong 81. X x 61 Cau Cong 322 x x 67 Tram Du 882 x x 68 Luc Nong 605 x x x 70 Tien Nong 353 X X X 74 Hoang Pha 202 X X X 75 Kien An 242 X x 80 Tram Bac 1,071 X X 81 Nam Lo 84C) X X X 84 Phu Xa 168 x x x Subtotal 8,71!l. 0L`/-I D L`T Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET North Vietnam: Location, Capacities, and Routes of Communication for Dispersed Petroleum Storage Tank Sites a/ 31 December 1966 (Continued) Location Site Number Capacity (Metric Name Tons) Road Rail Water Between 19? and 19059' 6 Bai Thuong, Northeast 1,159 X X 11 Yen Mau 333 X X X 16 Son Chau 282 X X X 37 Thann IIoa, No. 1 99 X X X 40 Tho Trang 202 X X 59 Tri Binh 40 X 66 Thanh Hoa, No. 2 71 X X X 2,186 Between 18? and 18?59' 9 Ngoc Son 292 X X 35 Thuan Le 229 X 39 Phuc Loi 252 X X X 53 Gia Hoa 111 X X X 55 Vinh, Yen Thinh 111 x x x 58 Vinh, Xuan Yen 59 X 71 Vinh, Ben Thuy 141 X X X 73 Vinh, Yen Da.i, 60 x x 78 Vinh, North 81 X X Subtotal 1, 336 Between 17? and 17?59' 30 Xom Duong, East N.A. X X X 31 Xom Duong 20 X X 36 Phu Loc 131 X X X 38 Ba Don 161 X X X 46 Xom Lang 262 X X X 56 Ba Don, West 71 X X X 645 32 4 a. ,FCR FT Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET North Vietnam: Estimated Imports of Petroleum, by Carrier 1964-66 'housand Metric Tons 1964 1965 1966 Tanker 138 160 186 Cargo vessel 4 10 15 Rail. 8 7 36 a/ 150 177 a. Including 33,900 tons of petroleum aboard tankers diverted to Communist China and considered to have been transshipped by rail to North Vietnam. North Vietnam: Estimated Monthly Imports of Petroleum, by Carrier 1966 Thousand. Metric Tons Month Tanker Cargo Vessel Rail Total J anuary 21.0 0.3 0.8 22.1 February 9.7 0.2 0 9.9 March 21.3 1.6 0.2 23.1 April 31.9 2.4 0.2 34.5 May 31.8 1.0 0.3 33.1 June 10.0 b/ 1.1 0.2 11.3 b/ July 0 0.9 0.5 1.4 August 10.8 1.4 10.4 cJ 22.6 September 11.0 3.1 12.0 iJ 26.1 October 4.0 1.1 11.8 16.9 November 11.9 0.1 Hegl . 12.0 December 22.6 1.6 24.2 186.0 14.8 237.2 a. Except for the months August, September, and October~see foot- note c, below), imports by rail include only observed shipments and, therefore, are considered to be a minimum. b. A tanker with a cargo of 10,000 tons arrived in the Haiphong har- bor before 28 June. However, it was not completely discharged until mid.-August, and the cargo is considered as an import during the last half of 1966. c. Immediately before and after the bombings began in mid-1966, a total of 33,900 tons of petroleum consigned to North Vietnam by tanker was delivered to ports in Communist China. This petroleum was con- sidered to have been delivered subsequently to North Vietnam by rail as follows: August, 10,400 tons; September, 12,000 tons; and October, 11,500 tons. QL'C'D L`T Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SEURE 1 North Vietnam: Estimated Average Monthly Consumption of Petroleum July-December 1966 Metric Tons Percent Aircraft 1,106 6.7 Naval vessels 281 1.7 Wheeled vehicle s 2,690 16.4 Armored vehicle s 75 0.5 Generators 2,272 13.8 6,424 39.1 Civil transport Trucks 3,852 23.5 Coastal and inl and waterway vessels 1,314 8.0 Port vessels 33 0.2 Cars, buses, an d administrative vehicles 297 1.8 Fishing fleet a nd merchant vessels 487 3.0 Subtotal 5,983 36.5 Industry 1,833 11.2 P,Cri culture: 84 0.5 Household 2,083 12.7 Total 16 407 100 a. 3 . Estimates shown are intended to reflect a "normal" pattern without taking into account interruptions resulting from the inten- sified bombings of petroleum storage sites or other targets. Esti- mates for civil transport were derived from indicated activity during the first half of 1966; estimates of military consumption were based on the inventory of petroleum consuming equipment on hand as of 1 August 1966 and the observed or calculated use of such equipment during 1966; estimates of industry, agriculture, and household con- sumption are rough calculations based on probable consumption in 1965. SECRET Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET The limits of the range of the estimate of petroleum supplies in North. Vietnam on 1 January 1966 were derived from two approaches: The 46, 000 tons represents 90 days' supply at rates of consump- tion estimated for the end of 1965. This level was considered to be a minimum. Tanker deliveries to North Vietnam from the Black Sea take about 30 days. It was reasoned that if a tanker became disabled only a few days before arrival at Haiphong and a substitute tanker Were ordered from the Black Sea, another 30 days would elapse before re- supply to North Vietnam would be possible. If levels of petroleum supply in North Vietnam were maintained at less than 90 days, inven- tories (under the above thesis) would decline to a dangerously low level for a country on a wartime footing. Imports of petroleum from 1 January through 28 June were added to the supply estimated for 1 January, and consumption and modest losses (from bombing isolated dispersed storage) were deducted. The remainder represented the estimated supply on 28 June, the day before the bombing attacks on petroleum storage began. 2. The Upper Limit The 71, 000 tons was derived from the supplies estimated to have been in North Vietnam on 28 June -- 103, 000 tons. A reverse supply/ demand balance was calculated to yield the estimate for 1 January. The estimate for 28 June was based on the belief that all the bulk storage facilities were filled to 75 percent of their total capacity and that 50 percent of the inventory of 55-gallon drums estimated for mid-1966 was filled. Several factors supported the basis for consider- ing the bulk storage to be 75 percent full: a. Information from the US oil industry suggests that, in the absence of definitive information, it is reasonable to consider bulk storage to be about 75 percent full on the average. b. The calculated upper limit of the range for 1 Jan- uary 1966, derived from the 75-percent factor for 28 June, - 19 - Q17 PPT" Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET compares closely with data derived from a supply/ demand balance starting on 1 September 1965,. Imports in the last four months of 1965 were at an average monthly rate of almost 21, 000 tons, compared with an estimated average monthly con- sumption rate of only 15, 000 tons. d. The development of dispersed tank storage sites was well advanced by mid-June, and it is reasoned that imports and inventories were high in order to fill that storage. Moreover, the drum inventory had grown, and this storage medium prob- ably also was being exploited. e. There was worldwide speaa.lation that: the petroleum storage sites might be bombed. The North Vietnamese probably calculated that, with large inventories of petroleum on hand, there was a good probability that a sufficient amount would survive any bombing to support their needs until post-bombing supply procedures were established. f. Examination of post bombing photography suggests that the storage tanks probably contained sizable quantities of petroleum. It was estimated that the following petroleum storage capacity was available on 28 June (rounded to the nearest 1, 000 tons): Principal storage terminals 101,000 Dispersed storage sites (tanks) 17,000 Dispersed storage sites (drums) 22,000 Military and industrial sites (tanks) 5,000 (OL`!"'D L`T Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET It was reasoned that the North Vietnamese would exploit, to the optimum, the capacity at facilities other than the principal terminals. Thus under both approaches the dispersed tank and industrial sites were considered to be filled to 75 percent of capacity; the drum inven- tory to 50 percent (one-half the drums were considered to be filled). Under the lower limit the petroleum represented by the derived difference between the petroleum stored at the dispersed facilities and the total estimated supplies on 28 June was allocated to the principal storage terminals in the relative share which each terminal represented of the total of such storage capacity. Under the upper limit, the capacities at the principal storage terminals were considered to be 75-percent full on 28 June. a. Imports Stocks in the dispersed tanks, industrial sites, and drums were maintained at the levels described above by allocating sufficient imports to these storage facilities. During those periods when imports exceeded the amount necessary to maintain these stock levels, the excess was allocated to each principal storage terminal in shares corresponding to the capacity that each. terminal represented of the total storage capacity at these terminals, b. Consumption Estimated withdrawals from stocks were made from each terminal or category of storage on a pro rata basis, co Losses of Petroleum from Bombings The percentage destruction of capacity at each terminal or in each category of storage was estimated from photography. This per- centage was applied to the stocks estimated to have been in storage at the site at the time of the bombing to calculate the losses of petroleum. The Defense Intelligence Agency (DIA) has prepared :indepeiicteint estimates of the petroleum situation in North Vietnam during 19u6, The DIA approach. involved the use of a combination of supply/demand cal- culations and the allocation of stocks to dispersed storage on a percentage basis. Selected estimates for 1966 by DIA and CIA are as follows: QFf`A R?T Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 SECRET Metric Tons DIA a~ C::A Supply, 1 January 52,500 46,ooo to 71,000 Imports 233,700 237 ,200 Consumption 190,600 190 ,600 Losses 51,500 41,000 to 62,000 Supply, 31 December Storage capacity, 31 December 44,100 52,000 to 56,000 .Principal terminals b 23,750 2 3,620 Dispersed sites 49,320 63,000 to 73,000 Tanks 30,000 'to 40,000 Drums 2 8,000 Other 5,000 a b. Capacity at Can Thon , normally included by DIA in its list of major insertions, is included in dispersed sites in this tabulation. nrI'n r ~ Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 25X1 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2 Secret Secret Approved For Release 2009/04/21 : CIA-RDP78TO2095R000800070030-2