CIVIL CONSUMPTION OF PETROLEUM PRODUCTS IN THE USSR 1953-57

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CIA-RDP79S01046A000600120008-5
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K
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118
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November 9, 2016
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March 8, 1999
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8
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Publication Date: 
March 1, 1960
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REPORT
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ApPro chfgrsl l WIWO8 4 M Q4 6"A' 3O T I;-5 C COQ 3. ROLEUM PRODUCTS - - - ------ ---- T JSSR L March 1960 TKI$ O o SHOULD NOT eU REPRODUCED IN WHOLE OR IN PART V.`TT} ODUT THE PERNUSSION -2-& -- C.ENTRAAi INTELLIGENCE AGENCY CENT-RACNTEfLLIGENCE AGENCY Approved for J el a 1 90 1` O8 ; CIS! R-DPZ-9S0104 jti 4w J 01,20008-5:- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 lung n 2f~ I)- C. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 CIVIL CONSUMPTION OF PETROLEUM PRODUCTS IN THE USSR 1953-57 Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 CONTENTS Page Summary . . . . . . . . . . . . . . . . . . . . . . . . . . 1 I. Introduction . . . . . . . . . . . . . . . . . . . . . 11 A. General . . . . . . . . . . . . . . . . . . . . . . 11 B. Statement of Methodology . . . . . . . . . . . . . 13 II. Consumption by Consuming Sector and by Type of Product . . . . . . . . . . . . . . . . . . . . . . . 15 A. Transport . . . . . . . . . . . . . . . . . . . . . 15 1. Rail . . . . . . . . . . . . . . . . . . . . . 15 2. Inland Waterway . . . . . . . . . . . . . . . . 16 3- Oceangoing . . . . . . . . . . . . . . . . . . 18 4. Motor . . . . . . . . . . . . . . . . . . . . . 18 5. Civil Air . . . . . . . . . . . . . . . . . . . 20 B . Agriculture . . . . . . . . . . . . . . . . . . . . 21 C. Households . . . . . . . . . . . . . . . . . . . 23 D. Construction . . . . . . . . . . . . . . . . . . . 25 E. Industry . . . . . . . . . . . . . . . . . . . . . 26 1. Petroleum . . . . . . . . . . . . . . . . . . . 26 2. Chemical . . . . . . . . . . . . . . . . . . . 28 3. Coal . . . . . . . . . . . . . . . . . . . . . 28 4. Steel . . . . . . . . . . . . . . . . . . . . . 29 5. Electric Power . . . . . . . . . . . . . . . . 30 6. Nonferrous Metals and Manufacturing . . . . . . 31 III. Regional Distribution of Consumption . . . . . . . . . 39 A. General . . . . . . . . . . . . . . . . . . . . . . 39 B. By Consuming Sector . . . . . . . . . . . . . . 41 1. Transport . . . . . . . . . . . . . . . . . . . 41 a. Rail . . . . . . . . . . . . . . . . . . . 41 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Page b. Inland Waterway . . . . . . . . . . . . . 42 c. Oceangoing . . . . . . . . . . . . . . . .. . 42 d. Motor . . . . . . . . . ... . . . . . . . . . 42 e. Civil Air . . . . . . . . . . . . . . . . . 43 t 2. Agriculture . . . . . . . . . . . . . . . . . 43 3. Households . . . . . . . . . . . . . . . . . . . 44 4. Construction . . . . . . . . . . . . . . . . 45 5. Industry . . . . . . . . . . . . . . . . . . . . 45 C. By Major Type of Product . . . . . . . . . . . . . . 54 1. Gasoline . . . . . . . . . . . . . . . . . . . . 54 2. Kerosine . . . . . . . . . . . . . . . . . . .. . 55 3. Diesel Fuel . . . . . . . . . . . . . . . . . . . 56 4. Lubricants . . . . . . . . . . . . . . . . . . 57 5. Residual Fuel Oil . . . .. . . . . . . . . . . . . 57 6. Road Oils and Asphalts . . . . . . . . . . . . . 58 D. Increased:Role of Eastern Regions . . . . . . . . . . 76 IV. Prospects for Exports . . . . . . . . . . . . . . . . . . . 79 Appendixes Appendix A. Supplementary Statistical Data . . . . . . . . . 83 Appendix B. Methodology . . . . . 87 Appendix C. Selected Bibliography .. . . . . . . . . . . .. . 105 Tables 1. Summary of Estimated Civil Consumption of Petroleum Products in the USSR, by Consuming Sector, 1953-57 ? . ? 2 2. Summary of Estimated Civil Consumption of Petroleum Products in the USSR, by Type of Product, 1953-57 ? ? 6 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release. 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Summary of Estimated Civil Consumption of Petroleum Products in the USSR, by Economic Region, 1953-57 . . . 8 4. Estimated Total Consumption of Petroleum Products in the USSR, by Major Type of Product, 1965 . . . . . . 10 5. Estimated Consumption of Petroleum Products in the USSR, 1953-57 . . . . . . . . . . . . . . . . . . . . . 12 6. Estimated Civil Consumption of Petroleum Products in the USSR, by Consuming Sector and by Type of Product, 1953 .......................... 33 Estimated Civil Consumption of Petroleum Products in the USSR, by Consuming Sector and by Type of Product, 1954 .......................... 34 8. Estimated Civil Consumption of Petroleum Products in the USSR, by Consuming Sector and by Type of Product, 1955 .......................... 35 9. Estimated Civil Consumption of Petroleum Products in the USSR, by Consuming Sector and by Type of Product, 1956 .......................... 36 10. Estimated Consumption of Petroleum Products in the USSR, by Consuming Sector and by Type of Product, 1957 .......................... 37 11. Estimated Distribution of Civil Consumption of Petroleum Products in the USSR, by Economic Region and by Consuming Sector, 1953 . . . . . . . . . . . . . . . . . 49 12. Estimated Distribution of Civil Consumption of Petroleum Products in the USSR, by Economic Region and by Consuming Sector, 195+ . . . . . . . . . . . . . 50 13. Estimated Distribution of Civil Consumption of Petroleum Products in the USSR, by Economic Region and by Consuming Sector, 1955 . . . . . . . . . . . 51 14. Estimated Distribution of Civil Consumption of Petroleum Products in the USSR, by Economic Region and by Consuming Sector, 1956 . . . . . . . . . . . . . . . . . 52 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08: CIA-RDP79SO1046A000600120008-5 15. Estimated Distribution of Civil Consumption of Petroleum Products in the USSR, by Economic Region and by Consuming Sector, 1957 . . . . . . . . . . . . . . . . . 53 16. Estimated Distribution of Civil Consumption of Gasoline in the USSR, by Economic Region and by Consuming Sector, 1953-57 . . . . . . . . . . . . . . . . . . . 60 17. Estimated Distribution of Civil Consumption of Kerosine in the USSR, by Economic Region and by Consuming Sector, 1953-57 . . . . . . . . . . . . . . . . . . . 63 18. Estimated Distribution of Civil Consumption of Diesel Fuel in the USSR, by Economic Region and by Consuming Sector, 1953-57 . . . . . . . . . . . . . . . . . . . . 64 19. Estimated Distribution of Civil Consumption of Lubricants in the USSR, by Economic Region and by Consuming Sector, 1953-57 . . . . . . . . . . . . . . . . . . . . . . 67 20. Estimated Distribution of Civil Consumption of Residual Fuel Oil in the USSR, by Economic Region and by Con- suming Sector, 1953-57 . . . . . . . . . . . . . . . . . 71 21. Estimated Distribution of Civil Consumption of Road Oils and Asphalts in the USSR, by Economic Region, 1953-57 . 75 22. Estimated Total Consumption of Petroleum Products in the USSR, by Type of Product, 1965 . . . . . . . . . . . 81 23. Position of Crude Oil and Natural Gas in Production of Petroleum and Mineral Fuel in the USSR, 1957 and 1965 82 24. Estimated Quantities of Petroleum Products Available for Consumption in the USSR, 1953-57 . . . . . . . . . . 84 25. Estimated Yield of Petroleum Products from the Refining of Crude Oil in the USSR, 1953-57 . . . . . . . . . . . 85 Approved For Release 1999/09/08: CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Following Page Figure 1. Estimated Civil Consumption of Petroleum Products in the USSR, by Consuming Sector, 1953-57 (Chart) . . . . . . . . . 2 Figure 2. Estimated Civil Consumption of Petroleum Products in the USSR, by Major Type of Product, 1953-57 (Chart) . . . . . . . . 6 Figure 3. Estimated Distribution of Civil Consump- tion of Petroleum Products in the USSR, by Major Geographic Area, 1953 and 1957 (Chart) . . . . . . . . . . . . . . . . . 8 Figure 4. Estimated Distribution of Civil Consump- tion of Petroleum Products in the USSR, by Major Geographic Area and by Consuming Sector, 1953 and 1957 (Chart) . . . . . . 8 Figure 5. USSR: Administrative Divisions and Eco- Inside nomic Regions, January 1955 (Map) . . . . Back Cover Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 CIVIL CONSUMPTION OF PETROLEUM PRODUCTS IN THE USSR 1953-57 Summary The civil consumption of petroleum products* in the USSR in- creased steadily from 40.1 million metric tons** in 1953 to 63.8 million tons in 1957. Annual increases during this period are estimated to have averaged 12.3 percent compared with an average annual increase in the US estimated at 3.7 percent. Because the consumption of petroleum products by the military sector of the Soviet economy apparently has increased still more rapidly, the proportion of petroleum products accounted for by civil consump- tion in the USSR has shown a marked decline, from 86.1 percent of the total in 1953 to 81.8 percent in 1957. Estimated civil consumption of petroleum products in the USSR, by consuming sector, during 1953-57, is summarized in Table 1*** and shown graphically in the chart, Figure 1.**** Consumption in every sector increased in each of these years. Although consumption by the chemical and coal industries remained constant, consumption by the entire industrial sector of the Soviet economy registered a substantial increase. Consumption of petroleum products by rail transport in the USSR reached 5 million tons in 1957, or twice the level of 1953. Con- sumption by households also doubled during this period, sharing with rail transport the highest rate of increase in consumption by the civil economy. The consumption of diesel fuel by rail transport has been increasing steadily and is estimated at more than 6 million tons in 1965, or about one-half of such consumption by US railroads in 1956. Nevertheless, the increase in the consumption of petroleum prod- ucts by rail transport may not keep pace with the planned increases in the total consumption of such products. Inland waterway, oceangoing, * As used in this report, the term petroleum product refers to a petroleum material which serves an end use without further refin- ing. ** Tonnages are given in metric tons throughout this report. *** Table 1 follows on p. 2. **** Following p. 2. Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Summary of Estimated Civil Consumption of Petroleum Products in the USSR, by Consuming Sector a/ 1953-57 Million Metric Tons Consuming Sector 1953 1954 1955 1956 1957 Rail 2.5 2.7 3.0 3.8 5.0 Inland waterway 0.9 1.0 1.1 1.2 1.5 Oceangoing 0.7 0.8 1.0 1.1 1.2 Motor 6.8 8.2 9.5 10.9 12.6 Civil air 0.7 0.8 0.8 0.8 1.0 Total b 11.7 13.5 15.4 17.9 21.4 Agriculture 9.8 10.9 11.9 12.4 12.8 Household 1.2 1.4 1.6 2.0 2.4 Construction Industry 5.6 6.5 7.3 8.3 9.3 Petroleum 2.7 3.0 3.6 4.3 5.0 Chemical 0.2 0.2 0.2 0.2 0.2 Coal 0.2 0.2 0.2 0.2 0.2 Steel 2.3 2.5 2.7 2.9 3.0 Electric power 5.6 6.4 6.9 7.6 8.2 Nonferrous metals and manufacturing 0.9 1.2 1.4 1.2 1.2 Total 11.8 1 16.4 17.9 Grand total 40.1 45.8 51.3 57.0 63.8 a. Data in this table have been compiled from Tables 6-through 10, PP. 33 through 37, below. Estimates have been rounded to the nearest hundred thousand. For a graphic representation of these data, see Figure 1, following p. 2. b. Totals were derived from unrounded data and do not always equal the sums of the rounded components. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 ESTIMATED CIVIL CONSUMPTION OF PETROLEUM PRODUCTS IN THE USSR BY CONSUMING SECTOR, 1953-57 40 V Q) ZE G 0 30 1954 1955 1956 1957 Figure 1 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 and civil air transport do not consume significant quantities of petroleum products, and no important change in this respect is antici- pated. Consumption of petroleum products by motor transport increased at an average annual rate of 17 percent to reach a total of 12.6 mil- lion tons in 1957. The gain above the level of 1953, 5.8 million tons, represented the largest absolute increase registered in any sec- tor of the civil economy. As a result of this sharp increase, motor transport not only accounted for 20 percent of total civil consump- tion of petroleum products but challenged the position of agriculture as the leading civil consumer. Final figures for 1958 may show that motor transport already has replaced agriculture as the leading con- sumer in the civil economy. Long-range plans call for a rapid in- crease in the volume of freight transported by diesel trucks during the next 10 to 15 years. Nevertheless, certain limitations implicit in these plans indicate that motor gasoline will remain the primary source of power for Soviet motor transport. Agriculture continued to be the leading civil consumer of petro- leum products in the USSR, accounting for about 12.8 million tons in 1957. The relatively small increase of 3 million tons since 1953 resulted primarily from the wide-scale program of dieselization of the tractor park and the inherently lower rates of consumption of primary fuel per unit of output by diesel tractors compared with other types. At the same time, there has been a reduction in the consumption of kerosine by Soviet tractors. Available information indicates a continuation of these trends. The consumption of kero- sine by tractors in 1965 is expected to be reduced to about 1.4 mil- lion tons, a decline of 64 percent from the level of 1955. Conversely, the consumption of diesel fuel by agriculture is expected to increase steadily and may reach about 23 million tons in 1965. The demand for diesel fuel will increase still more rapidly, however, in other sec- tors of the economy, particularly in motor transport. The consumption of lamp and stove kerosine by the households of the USSR in 1957 is estimated to have reached 2.4 million tons, or twice the level of 1953. Inasmuch as production of kerosine is ex- pected to increase and the demand for tractor kerosine to decline sharply, the consumption of kerosine by households may reach about 4 million tons in 1960 and about 10 million tons in 1965. Plans to in- crease deliveries of gas* to households, especially in urban areas, * The term gas includes both natural gas and the gas produced from shale and the underground gasification of coal. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 are not expected to have an appreciable effect on the domestic con- sumption of kerosine by 1965. The consumption of petroleum products in construction in the USSR amounted to 9.3 million tons in 1957, an increase of about 66 percent since 1953. The principal products used in construction are road oils and asphalts, and continued increases in the consump- tion of these items are expected. In addition, construction accounted for almost 21 percent of the civil consumption of diesel fuel in 1957. The demand for other types of fuel in construction is de- clining, and requirements for tractor kerosine and ligroine have vir- tually ceased. The consumption of petroleum products in the USSR in the genera- tion of electric power makes the electric power industry the leading consumer of petroleum products in the entire industrial sector of the Soviet economy. In 1957 the electric power industry accounted for 16 percent of all the petroleum products consumed by the indus- trial. sector. Although significant advances in the generation of electric power are planned, there is to be no substantial change in the generation of electric power by stations utilizing petroleum fuels. It is possible, therefore, that there will be no correspond- ing increase in the consumption of petroleum products by the electric power industry. In a speech at the dedication of the hydroelectric power station at Kuybyshev, Khrushchev called for an increase in the rate of construction of thermal electric power stations, but de- tails of the program have not been announced. Implementation of such a program is certain to result in an increase in the consumption of fuel by the electric power industry, principally in the consumption of natural gas. Throughout 1953-57 the petroleum industry ranked second only to the electric power industry as an industrial consumer of petroleum products in the USSR. Of the 5 million tons estimated to have been consumed by this industry in 1957, about 56 percent of the total represented residual :fuel oil consumed in refining crude oil. About 42 percent was consumed in drilling operations and producing crude oil, which accounted for all of the gasol.ine, diesel fuel, lubricants, and crude oil consumed by the industry. Consumption of petroleum products in construction and repair of trunk oil and gas pipelines is insignificant. A program for the conversion of refineries and field equipment to gas has yet to be adopted nationally. The consumption of petroleum products by the petroleum industry may reach 9 million to 10 million tons in 1965? Significant quantities of residual fuel oil are consumed by the steel industry of the USSR in firing open-hearth furnaces, soaking Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 pits, and reheating furnaces. The consumption of residual fuel oil for these purposes is estimated to have reached 3 million tons in 1957 compared with 2.3 million tons in 1953. The use of residual fael oil to fire steelmaking units, however, is less frequent than the use of blast furnace and coke oven gas. A decision to increase the consumption of residual fuel oil or to convert to the use of natural gas probably will be made locally on the basis of available supplies. Estimates of the consumption of petroleum products by the non- ferrous metals and manufacturing industries of the USSR indicate a steady increase during 1953-55, followed by a decline in 1956. The apparent decline reflects the replacement of residual fuel oil as an industrial fuel by gas. The trend is toward the increased use of gas, in particular by machine-construction plants, although residual fuel oil probably will retain its present relative importance. Estimated civil consumption of petroleum products in the USSR, by type of product, during 1953-57 is summarized in Table 2* and shown graphically in the chart, Figure 2.** Increases in the con- sumption of all the products except tractor kerosine occurred in each of these years. Available information indicates a continued decline in the consumption of tractor kerosine at least through 1965. Although the consumption of lamp and stove kerosine doubled between 1953 and 1957, the total consumption of kerosine declined from 5.8 million tons in 1953 to 5.4 million tons in 1957. The consumption of ligroine remained negligible. Particularly outstanding has been the very sharp increase in the consumption of diesel fuel, which in 1957 amounted to about 16.3 million tons, or more than twice the level of 1953. During this period, diesel fuel supplanted gasoline as the major distillate.* In the US, on the other hand, gasoline always has been the principal petroleum product. The USSR has declared its intention of introduc- ing diesel equipment and engines into practically every phase of the civil economy, especially in transportation and in agriculture, and it is probable that diesel fuel will become increasingly more impor- tant than gasoline. The category of residuals and other petroleum products**** con- tinued to rank first among the petroleum products consumed by the Table 2 follows on p. 6. Following p. 6. The principal distillates are gasoline, ligroine, kerosine, and diesel fuel. **** Including residual fuel oil, road oils, asphalts, bitumen, and bituminous tar. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Summary of Estimated Civil Consumption of Petroleum Products in the USSR, by Type of Product 1953-57 Million Metric Tons Type of Product 125_-; 1954 1-x.55 1956 1957 Aviation 0.7 0.8 0.8 0.8 0.9 Motor 7.8 9.1 10.4 11.8 13.4 Total .9 11.3 12.7 14 3 Lamp and stove 1.2 1.4 1.6 2.0 2.4 Tractor 4.6 4.5 3.9 3.4 2.9 Total 8 5;4 5.4 J Diesel fuel 7.9 9.8 12.2 14.2 16.3 Lubricants 2.0 2.2 2.4 2.8 3.0 Residuals and others 15.4 17.4 19.2 21.2 23.8 Crude oil consumed as a product 0.5 0.6 0.7 0.8 1.0 Grand total 40.1 45.8 5 5 .0 6 8 a. Data in this table have been compiled from Tables 6 through 10, pp. 33 through 37, below. Estimates have been rounded to the nearest hundred thousand. The consumption of ligroine in each of the years was negligible. For a graphic representation of these data, see Figure 2, following p. 6. b. Totals were derived from unrounded data and do not always equal. the sums of the rounded components. c. 1.ncluding jet fuel consumed by civil air transport. d. Including residual fuel oil, road oils, asphalts, bitumen, and bituminous tar. civil economy of the USSR. Consumption of such products in 1957 is estimated at 23.8 million tons, or more than 37 percent of the total civil consumption. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 Figure 2 ESTIMATED CIVIL CONSUMPTION OF PETROLEUM PRODUCTS IN THE USSR BY MAJOR TYPE OF PRODUCT, 1953-57 1953 1954 1955 1956 1957 of hers J~a~s Res 40010 000 ~Goso\`re 000 ..~.- Kerosine 5 Lubriccant5 ? -- -- ? Crude oil consumed as a product Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 The civil consumption of petroleum products within the 12 economic regions* of the USSR during 1953-57 is summarized in Table 3** and shown graphically in the charts, Figures 3 and 4.*** Consumption has increased most rapidly in the eastern regions**** of the USSR, pri- marily because of the new lands program and related activities. Con- sumption in these regions is estimated to have increased at an average annual rate of 16 percent, amounting in 1957 to 29 million tons, or 46 percent of total civil consumption. Of the eastern regions of the USSR, those making the most impres- sive gains have been Economic Regions IX (West Siberia), X (Kazakhstan and Central Asia), XI (East Siberia), and XII (the Far East). The consumption of petroleum products in these regions almost doubled in 4 years, amounting to about 15.6 million tons and representing more than one-half of the total civil consumption in the eastern regions in 1957. Meanwhile, the consumption of petroleum products in the European USSR has increased 9.6 percent annually, reaching 34.6 mil- lion tons in 1957. Even greater than the increase in the consumption of-petroleum products in the eastern regions has been the increase in production of crude oil, primarily from the highly productive oilfields in Eco- nomic Regions VI (Volga) and VIII (Urals), which was accompanied by a shift in the center of refining from Regions IV (Southeast) and V (Transcaucasus) to the eastern regions. The shift in the centers of production and refining of crude oil may help to solve several critical problems regarding the adequate and timely supply of petroleum products to consumers. First, the centers of production have been brought closer to the centers of consumption, thus reducing significantly the distances over which petroleum products must be hauled. Second, the petroleum industry is in a better position to supply the rapidly increasing needs for petroleum products in Economic Regions IX, X, XI, and XII, where local production of crude oil is less than one-half of estimated re- quirements. The solution to the resulting problem of supply is the * The term economic region (or region) in this report refers to the economic regions defined and numbered on Map 13702 (4-55), USSR: Administrative Divisions and Economic Regions, January 1955 (see Figure 5, inside back cover). Table 3 follows on p. 8. Following p. 8. As used in this report, the term eastern regions of the USSR refers to the geographical area formed by Economic Regions VI VIII, IX, X, XI, and XII. The remaining area is referred to as the western regions. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Summary of Estimated Civil Consumption of Petroleum Products in the USSR, by Economic Region 1953-57 Region 1953 1954 1955 1956 1957 I 1.8 2.0 2.2 2.5 3.1 II 1.4 1.7 1.9 2.1 2.2 III 6.6 7.4 8.1 8.6 9.2 IV 3.4 3.8 4.1 4.3 4.6 V 3..8 4.3 4.6 5.1 5.5 vi 4.o 4.6 5.5 5.8 6.5 VII 7.0 7.9 8.4 8.8 10.0 viii 4.1 4.7 5.3 5.9 6.9 IX 2.0 2.4 2.7 3.2 3.6 X 3.7 4.5 5.7 7.1 8.1 XI 1.0 1.2 1.4 2.0 2.2 XII 1.2 1.3 1.5 1.6 1.7 Total c/ 40,1 45.8 51.3 57.0 63.8 a. Data in this table have been compiled from Tables 11 through 15, pp. 49 through 53, below. For a graphic repre- sentation of these data, see Figures 3 and 4, following p. 8. 1). Economic regions are those defined on Map 13702 (4-55), USSR: Administrative Divisions and Economic Regions, Janu- ary 1955, c. Totals were derived from unrounded data and do not always equal the sums of the rounded components. construction of an oil pipeline network which will extend ultimately to the Pacific Ocean. From the oilfields of Economic Regions VI and VIII, this network will supply the eastern regions with both crude oil and petroleum products. In connection with this project, a large-scale program for constructing and expanding refineries in the eastern regions is underway. It is believed that the continued development of the new lands, accompanied by the expansion of industrial and transport facilities in the eastern regions of the USSR, may lead to a more equitable distribution of petroleum products for civil consumption between the eastern regions and the western regions by 1965 or possibly earlier. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 Million Metric Tons 27506 2-59 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 ESTIMATED DISTRIBUTION OF CIVIL CONSUMPTION OF PETROLEUM PRODUCTS IN THE USSR BY MAJOR GEOGRAPHIC AREA, 1953 and 1957 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Figure 4 ESTIMATED DISTRIBUTION OF CIVIL CONSUMPTION OF PETROLEUM PRODUCTS IN THE USSR BY MAJOR GEOGRAPHIC AREA AND BY CONSUMING SECTOR 1953 and 1957 m 30 Industry 20 1953 1957 1953 1957 1953 1957 1953 1957 EUROPEAN USSR CENTRAL ASIA and KAZAKHSTAN SIBERIA FAR EAST Agriculture Transport Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 The development of the eastern regions is reflected again in the distribution of petroleum products by consuming sector.* In 1957, civil consumption of such products by agriculture in Region X, the center of the new lands program, amounted to 2 million tons, an in- crease of 135 percent compared with 1953. In the field of construc- tion, consumption in Regions VIII, IX, and X amounted to about 3.5 million tons in 1957, an increase of 166 percent compared with 1953. Industrial consumption of petroleum products is concentrated in the relatively highly developed areas of Regions III (the Ukraine), V, and VIII. These regions accounted for more than one-half of the total consumption of petroleum products by industry in 1957. Under the Seven Year Plan (1959-65), however, increased deliveries of gas to the industrial centers of the USSR, particularly in Regions III and V, may cause changes in this pattern by promoting conversion from petroleum to gas. The primary industrial consumers of gas ap- pear to be the electric power stations, heavy metallurgical enter- prises, and, to a lesser extent, plants constructing machinery. The substitution of gas in an industrial fuel for residual fuel oil at these points may serve to reduce the share of petroleum products consumed by industry in Regions III and V. Plans to supply gas to Region VIII are in a state of flux. An unusually large deposit of natural gas discovered late in 1957 near Bukhara, Uzbek SSR, in Region X may become a principal source of gas for Region VIII, but actual deliveries are unlikely before 1965. Preliminary estimates of consumption, both civil and military, of the principal types of petroleum products in the USSR in 1965 are summarized in Table )+.** On the basis of these estimates and of the probable impact of the rapidly expanding natural gas industry on the consumption of petroleum products, increasing quantities of crude oil and petroleum products will be available for export from the USSR during the Seven Year Plan (1959-65). Particularly significant will be the tremendous expansion of the Soviet gas industry. In terms of standard fuel units (7)000 kilo- calories per kilogram -- Kcal/kg), crude oil accounted for nearly 86 percent of Soviet production of petroleum*** in 1957 but is ex- pected to supply only 64+ percent in 1965. Natural gas, however, which accounted for only about 14 percent of Soviet production of petroleum in 1957, is expected to provide nearly 36 percent of such production in 1965. See Tables 11 through 15, pp. 4+9 through 53, below. Table 4+ follows on p. 10. As used in this report, the term petroleum includes both crude oil and natural gas. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Table 4 Estimated Total Consumption of Petroleum Products in the USSR by Major Type of Product a/ 1965 Type of Product Gasoline Kerosine .Diesel fuel Lubricants Residuals and others 39.0 23.0 43.0 7.1 75.4 187.5 a. Including consumption by both the civil and military sec- tors of the economy. It is estimated that in 1965 the USSR will have available for ex- port 45 million tons of crude oil equivalent compared with a total supply estimated to be 246.5 million tons. Published trade agreements for 1965 between the USSR and other countries of the Sino-Soviet Bloc indicate a present intention to export about 20 million tons of crude oil equivalent from the USSR to the Bloc, an amount which ap- pears to be too small to meet requirements in the other Bloc countries if their on industrial production plans are to be met. The residual, 25 million tons, will be available for export to the Free World, principally to Western Europe, unless it is diverted to meet increased intra-Bloc needs. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 A. General. This report has three objectives: (1) to estimate the total civil consumption of petroleum products in the USSR and the distri- bution of this consumption by economic sector and by economic region during the years 1953-57; (2) to estimate the level of consumption of selected major petroleum products in the USSR in 1965; and (3) to de- scribe and analyze the more important trends in the consumption of petroleum products. The major sectors of civil consumption of petroleum products discussed in this report are transport, agriculture, households, con- struction, and industry. The major types of petroleum products dis- cussed are gasoline, kerosine, diesel fuel, lubricants, residual fuel oil, and road oils and asphalts. It has been possible to derive estimates of consumption only for those petroleum products considered to be of prime importance to each sector. Thus for many of the sec- tors, such as the chemical industry, the annual totals given must be considered minimal. Because the primary purpose of this report has been to develop estimates of civil consumption of petroleum products in the USSR, only passing attention has been given to the military sector of the economy. Deducting estimated civil consumption, refinery losses, and stock changes from the total supply of petroleum products in the USSR, how- ever, yields a residual that may be regarded as an estimate of mili- tary consumption of petroleum products. Such an estimate of military consumption will necessarily differ significantly from more precise estimates based on operational requirements of military equipment, largely because the errors in derivation of estimates of civil con- sumption are concentrated in the residual available for the military sector. Nevertheless, to complete the probable disposition of the total supply of petroleum products in the USSR, these imprecise estimates of military consumption of petroleum in the USSR during 1953 are pre- sented in Table 5.* Also presented in Table 5 are estimates of the total supply of petroleum products during these years as well as esti- mates of the quantities of petroleum products lost in handling and in transportation and of allocations to storage and state reserves. During 1953-57, although consumption of petroleum products by the civil sector of the economy increased at the average annual * Table 5 follows on p. 12. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimated Consumption of Petroleum Products in the USSR 1953-57 Million Metric Tons 1953 1954 1955 1956 1957 Total net supply of petroleum products J 51.2 54.6 63.9 74.3 84.8 Losses, storage increments, and. freshening of state reserves c/ 4.6 4.9 5.8 5.9 6.8 Civil consumption 40.1 45.8 51.3 57.0 63.8 military consumption 6.5 6.6 6.8 11.4 14.2 a. Estimates have been rounded to the nearest hundred thousand. b. Data were compiled from Table 24, Appendix A, p. 84, below. c. Calculated to be 9 percent of net supply during 1953-55 and 8 percent during 1956-57. d. Residual, except 1954. The following qualifications to these estimates must be made. First, for all years except 1954, as noted below, estimates of military consumption of petroleum prod- ucts were calculated simply as a residual and only to complete the picture of the total disposition of petroleum products in the USSR. Second, any errors present in the derivation of estimates for the other categories present in this table reside in the military estimate. For example, the estimates of civil consumption of petroleum products are believed to be accurate within plus or minus 10 percent, which for 1957 would yield a range of 57.4 mil- lion tons to 70.2 million tons. Thus the military estimate for this year would have a range of 7.8 million tons to 20.6 million tons. The fallacy of acceptance of these residuals as correct interpretations of the military consumption of petroleum products in the USSR is further demonstrated by the residual derived for 1954. Calculated as a residual, the military consumption of petroleum products in 1954 appears to have been 3.9 million tons. When compared with the residual estimates of 6.5 million tons in 1953 and 6.8 million tons in 1955, however, a rationale cannot be found to justify such an apparently abrupt decline in military requirements. In order that the trend for this category for 1953-57 be smoothed out, a figure of 6.6 million tons has been inserted for 1954, which represents an interpolation between the preceding and succeeding years. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 rate of 12.3 percent, the proportion of the total supply of petroleum products accounted for by civil consumption in the USSR showed a marked decline, from 78 percent in 1953 to 75 percent in 1957. Thus it is apparent that military consumption of petroleum products has in- creased at a much faster rate during the same period of time. These apparently higher rates of growth in consumption of petroleum prod- ucts by the military sector of the Soviet economy are unlikely to be maintained over a lengthy period of time. The gradual integration of missiles and atomic-powered submarines and warships into the Soviet military forces should be reflected in reduced requirements for petro- leum products. The estimates of civil consumption developed in this report are substantiated in most cases by those available in Soviet open sources: the range of error in individual years is believed to be not more than plus or minus 10 percent. Because of the complex methodology and the number of assumptions involved, derivation of ranges of error for the remaining estimates was not considered feas- ible. B. Statement of Methodology.* Most of the estimates are based on Soviet sources. In certain instances, however, the lack of information necessitated the develop- ment of data by means of subjective analysis. With only two exceptions, estimates are given in terms of the quantities of petroleum products consumed per unit of work or per unit of output. Estimates of consumption of kerosine by households are based on state and cooperative retail sales. Estimates of the con- sumption of petroleum products** by the nonferrous metals and manu- facturing industries in the years 1953 and 1955 represent the differ- ence between total consumption and consumption by other consumers. Estimates of consumption in the remaining years were calculated on the basis of (1) the proportions obtaining in 1953 and 1954, (2) an index of the demand for lubricants by the manufacturing industries, and (3) information implying a decrease in consumption of residual fuel oil in 1956 and 1957. For further details, see the Methodology, Appendix B. It is believed that the only petroleum products consumed in sig- nificant quantities by the nonferrous metals and manufacturing indus- tries of the USSR are residual fuel oil and lubricants. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 II. Consumption by Consuming Sector and by Type of Product. Estimates of civil consumption of petroleum products in the USSR, by consuming sector and by type of product, are shown for each of the years 1953-57 in Tables 6 through 10.* A description of the methodology used to derive these estimates is given in Appendix B. A. Transport. The consumption of petroleum fuels by rail transport in the USSR is limited primarily to residual fuel oil and diesel fuel, although small amounts of oil shale mixed with coal are consumed in the Estonian SSR in Region II (West). Lubricants consumed include car axle oil, diesel lubricating oil, steam locomotive cylinder oil, and steam locomotive grease. The consumption of petroleum products by rail transport increased to 5 million tons in 1957, or about twice the level achieved in 1953, to share with households the highest rate of increase in the consumption of petroleum products recorded by any of the consum- ing sectors of the civil economy. Of the individual products, diesel fuel has shown the sharpest gain since 1953, increasing by more than 270 percent to reach 0.8 million tons in 1957. The consumption of residual fuel oil, which amounted to 3.9 million tons in 1957, has shown the largest absolute increase, 1.8 million tons, since 1953. The increment in the consumption of residual fuel oil, in turn, ac- counted for about 75 percent of the increase in total consumption of petroleum products by rail transport during the period under study. Most of the increase in consumption of petroleum products by rail transport was experienced in 1956 and 1957. In these years, consumption increased by 0.8 million tons and 1.2 million tons re- spectively compared with a total increase of only 0.5 million tons from 1953 to 1955. These increases in consumption reflect signifi- cant advances in the volume of rail transport performed by loco- motives consuming petroleum fuel, particularly in Economic Regions I (the Northwest), VII (Central), and X (Kazakhstan and Central Asia). The increases in the consumption of diesel fuel result from the general scheme of dieselization of the railroad system. As yet, however, the consumption of diesel fuel by rail transport is Tables 6 through 10 follow on pp. 33 through 37. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 relatively insignificant in the total civil consumption of diesel fuel, accounting for about 5 percent in 1957. Compared with the consumption of diesel fuel by US railroads, which reached more than 11.4 million tons in 1956, the consumption of diesel fuel by rail- roads in the USSR in 1.960 has been forecast at 2.4 million tons. The demand for diesel fuel in the USSR by rail transport may reach a level of about 6 million tons by 1965, or about one-half of US con- sumption in 1956. The increased consumption of residual fuel oil probably can be attributed to the apparent conversion of large numbers of steam locomotives from coal to oil in the latter half of 1955 and in 1956-57. Instead of reflecting current or anticipated shortages of coal, these conversions probably indicate a greater supply of residual fuel oil. The growing importance of rail transport as a consumer of residual fuel oil is evident in its advance to the posi- tion as the second leading civil consumer in 1956, replacing the steel industry. Rail transport accounted for about 19 percent of the civil consumption of residual fuel oil in 1956 and probably about 22 percent in. 1957. The share of rail transport in the civil consumption of petroleum products has shown only a minor advance, from slightly more than 6 percent in 1953 to about 8 percent in 1957. In spite of evidence of a continued gradual shift from solid fuels to liquid fuels, it is probable that the increase in the consumption of petro- leum products by rail transport will not keep pace with the planned increases in the total consumption of such products. 2. Inland Waterway. For the purposes of this report the consumption of petro- leum products by inland waterway transport includes consumption by all of those river steamship companies formerly subordinate to the All Union Ministry of the River Fleet and now subordinate to the Republic ministries of the river fleet; the Central Asiatic Steamship Company, recently transferred to the Ministry of the Maritime Fleet; and the Republic small river administrations. The noncommon carrier river fleets of certain mining, timber, and other industrial enter- prises are not included. Estimates have been made for residual fuel oil, diesel fuel, and lubricants. The consumption of gasoline by inland water- way transport is insignificant and has been omitted. The estimates represent the amounts of fuel and lubricants consumed in carrying freight and passengers and in performing all other functions neces- sary to maintain service afloat and ashore. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 During 1953-56 the consumption by inland waterway trans- port showed a steady increase, with an average increment of 0.1 mil- lion tons in each year. In 1957, consumption increased by about 0.3 million tons, or by 25 percent, to reach 1.5 million tons. Re- sidual fuel oil, probably reflecting an increased supply of this fuel locally, accounted for two-thirds of the increment. At the end of World War II, inland waterway transport in the USSR consisted largely of steam vessels burning residual fuel oil, coal, or wood. Since that time an increasing emphasis has been placed on dieselization. In 1950, 19 percent of inland waterway transport was diesel-propelled; by 1960, 67-percent dieselization is planned. The effects of the planned dieselization of inland waterway transport are apparent in the period under study. Diesel fuel as a share of the total consumption of petroleum products by the fleet in- creased from about 19 percent in 1953 to more than 33 percent in 1957. During this period the consumption of diesel fuel increased by 170 per- cent, to about 0.5 million tons in 1957. Furthermore, diesel fuel accounted for about 55 percent of the increase in consumption of petro- leum products by inland waterway transport during 1953-57 compared with about 1i5 percent attributable to residual fuel oil. Comparative gains probably will continue to be recorded, possibly through 1965. Residual fuel oil, which accounted for about 75 percent of the total consumption of petroleum products by inland waterway transport in 1953, accounted for less than 65 percent in 1957, in spite of a concurrent estimated increase in the consumption of re- sidual fuel oil of 36 percent, to about 1 million tons. Further de- clines may be expected as the result of dieselization. Under the Sixth Five Year Plan'(1956-60) the consumption of diesel fuel by the river fleet was scheduled to increase about 2.3 times and the consumption of residual fuel oil, 0.7 times. Thus by 1960, inland waterway transport may consume about 1 million tons of diesel fuel and about 1.3 million tons of residual fuel oil. Con- versely, for the other types of fuel consumed by inland waterway transport, coal is to maintain approximately the level of 1955, but a significant decrease in consumption of wood is planned, to about 35 percent of the level of 1955. The share of inland waterway transport in total civil consumption of petroleum products showed only a very slight increase, from 2.3 percent in 1953 to 2.4 percent in 1957. The significance of inland waterway transport as a consumer of petroleum products is not expected to be greatly altered in the long run. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 3. 0ceangoin . Estimates of the consumption of petroleum products in the USSR by oceangoing transport include those estimates of consump- tion by the organizations subordinate to the Ministry of the Maritime Fleet, including all of the maritime steamship companies, and the three companies operating on the Caspian Sea. Estimates have been derived for those fuels and lubricants expended by oceangoing trans- port in carrying cargo and passengers and by the service fleet and shore installations in performing maintenance functions. The consumption of petroleum products by oceangoing transport of the USSR increased to 1.2 million tons in 1957, an in- crease of about 60 percent over the level that was recorded in 1953. Yet as a share of the total civil consumption of petroleum products, oceangoing transport remained at a constant level of about 2 percent during 1953-57. Of the absolute increment of 450,000 tons during this period, diesel fuel accounted for about 49 percent, and residual fuel oil for about 40 percent. The consumption of diesel fuel in- creased. at an average annual rate estimated at about 27 percent com- pared with approximately 8 percent for residual fuel oil. Evidence of the apparent shift to diesel fuel is the in- creasing role attributed to diesel fuel in the total consumption of petroleum products by oceangoing transport. In 1953, diesel fuel accounted for slightly less than 19 percent of the petroleum fuels and lubricants consumed. By 1957 the share had grown to about 30 percent. Thus, although the trend is more pronounced in the case of inland waterway transport, there is also a definite trend toward the dieselization of the maritime fleet. Although future increases in the consumption of both diesel fuel and. residual fuel oil are anticipated, it is probable that increases in the consumption of residual fuel oil will be of lesser proportions. The estimated consumption of petroleum products in the USSR by motor transport represents the consumption of petroleum products by vehicles subordinate to the Republic ministries of motor transport, as well as by those motor vehicles in agriculture and in industry. In addition, estimates of the consumption of petroleum products by privately owned automobiles and motorcycles have been included. Of the individual sectors in the civil economy of the USSR, motor transport has shown the largest absolute increase in consumption of petroleum products since 1953 -- 5.8 million tons, Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 achieved at an average annual rate of 17 percent -- to reach a total of 12.6 million tons in 1957. This sharp increase served not only to raise the share of motor transport in the total civil consumption of petroleum products to 20 percent but also enabled motor transport to challenge agriculture as the leading consumer. Final figures for 1957 may show that motor transport already has replaced agriculture as the leading consumer. Gasoline is the principal primary fuel used by motor transport. The increase in consumption of gasoline by motor trans- port to 11.6 million tons in 1957 represented more than 91 percent of the total increase in consumption of petroleum products by motor transport since 1953. In addition, motor transport accounted for more than 86 percent of the total civil consumption of motor gaso- line in 1957. The consumption of gasoline has kept pace with the growth in the total consumption of petroleum products by motor trans- port. Consequently, throughout the period 1953-57 the share of gaso- line in total consumption has held constant at about 92 percent. Of the several types of gasoline-consuming vehicles within the motor vehicle park of the USSR, freight trucks account for the preponderant share of the estimated consumption of gasoline. This share ranged from more than 85 percent in 1953 to 81 percent in 1957. The slight decline resulted from slight increases in the proportions of privately owned vehicles (automobiles and motorcycles) and of motor buses, which reached 10.3 percent and 6.7 percent, respectively, in 1957. The remainder of consumption of gasoline in. each year has been attributed to passenger and truck taxi. The consumption of diesel fuel by motor transport in the USSR increased to about 170,000 tons in 1957, a gain of about 120 per- cent since 1953. Nevertheless, diesel fuel accounts for only about 1 percent of consumption of petroleum products by motor transport. Plans covering the next 10 to 15 years call for a rapid advance in the transport of freight by diesel-powered trucks. This rate of increase will exceed by three times that of gasoline-powered trucks. It is expected that increases in the consumption of diesel fuel will result from the implementation of this plan, although dieselization of the truck fleet will be limited primarily to those trucks with a carry- ing capacity of more than 4 tons. Trucks with a capacity of 4 tons will be equipped to operate on either motor gasoline or diesel fuel, depending on supplies. Trucks below 4 tons and all passenger cars will operate on motor gasoline. These plans indicate a continuation of the predominant role of motor gasoline in powering'the motor vehicles. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Presently in use in the USSR are two types of motor vehicles powered by diesel fuel, freight trucks and buses. In 1953, freight trucks accounted for less than 79 percent of the diesel fuel consumed by motor transport. By 1957 this share had increased to about 88 percent. Motor transport accounts for a considerable share of the total civil consumption of lubricants in the USSR. In 1953, motor transport accounted for about 450,000 tons of lubricants, or 22 per- cent of the total consumed. In 1957, consumption of lubricants in- creased to about 830,000 tons, or 28 percent of the total. As motor transport assumes the position of leading consumer of petroleum products, a comparable increase in the share of lubricants consumed by motor transport may be anticipated. 5. Civil Air. These estimates include the consumption of (a) aviation gasoline by reciprocating engine aircraft of the DC-3 type (I1-h4, Crate; I1-12, Coach; Li-2, Cab), (b) lubricating oil by such aircraft, and (c) jet fuel (kerosine) by the Tu-104 (Camel) and Tu-101-A aircraft. The consumption of lubricating oil by jet aircraft is considered to be negligible and has not been included. Also considered negligible and not included is the consumption of petroleum products by Special Services and Polar Aviation Operations. Civil air transport accounts for all of the civil consump- tion of aviation gasoline, which increased, at an average annual rate of about 7 percent since 1953 to reach about 0.9 million tons in 1957. The civil consumption of jet fuel in the USSR first be- came apparent in 1957, when civil air transport had in operation about 30 jet aircraft. These aircraft consumed about 150,000 tons of jet fuel, thus accounting for 15 percent of the consumption of all petroleum products by civil air transport in 1957. The development of jet propulsion portends a significant change in the structure of consumption of aviation fuels. Soviet planners have indicated, that this change will be evident particularly in the pattern of the consumption of aviation fuels by civil air transport. Although demand for aviation gasoline will increase some- what, such gasoline will account for a smaller share of the fuels con- sumed by civil aviation because of a considerably higher demand for jet fuel. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 The increasingly important role to be played by jet air- craft is not expected to alter significantly the minor role of civil air transport in the consumption of petroleum products in the USSR. In spite of the introduction of jet aircraft in 1957, the share of civil air transport in the consumption of petroleum products de- clined slightly compared with 1953. Although the increased use of aircraft will serve to reverse this trend, the share of civil air transport probably will remain at about 2 percent of the total civil consumption of petroleum products in the USSR. B. Agriculture. Estimates of the consumption of petroleum products by Soviet agriculture represent consumption by agricultural tractors, by com- bines, and by other types of agricultural machinery which use petro- leum products. Estimates of the consumption of petroleum products by trucks and automobiles of the agricultural sector are included in the estimates derived for motor transport. All tractor field work in the USSR is measured by a standard accounting unit, the soft-plowing unit, into which all work is trans- lated. Similarly, tractor utilization is measured by the average number of soft-plowing units performed per 15-horsepower tractor unit, and fuel consumption is given in terms of the average consumption (in kilograms) per unit of tractor work for each type of work. A lack of information precluded the derivation of precise estimates of consump- tion according to type of tractor. Instead, an estimate was made of the proportion of the Soviet tractor park consuming diesel fuel. Evidence suggests that, for the purposes of this report, tractor kerosine may be considered the primary fuel of tractors not consum- ing diesel fuel. The quantities of gasoline and ligroine consumed by the agricultural tractor park are believed to be negligible, par- ticularly in the later years under study, and have been omitted. All of the combines in use in the USSR consume gasoline as a primary fuel. Productivity and consumption of fuel per hectare varies according to the model of the combine. In recognition of these fluctuations, use has been made of an average fuel consumption factor in terms of kilograms per hectare of area harvested, which was computed on the basis of the annual composition of the combine park, the daily productivity of each combine model, and the consump- tion of fuel per hectare by each model. The consumption of petroleum products by other agricultural machinery reflects the relationship between the total amount of energy developed by tractors and combines and that developed by the other agricultural machinery. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Agriculture, the leading individual consumer during 1953-57, showed. a total increase in consumption of only 3 million tons to reach 12.8 million tons in 1957. The average annual rate of increase, about 7 percent, is considerably below the estimated rate of increase of 12.3 percent in the total civil consumption of petroleum products in the USSR. Consequently, the share of agriculture in such consump- tion declined from more than 24 percent; in 1953 to about 20 percent in 1957 and may have dropped below that of motor transport in 1958. The relatively slower rates of increase in the consumption by agriculture result in general from the program of dieselization of the agricultural tractor park. Of the several distinct advantages that diesel tractors hold over others, probably the most important is the lower rate of consumption of primary fuel per unit of output. For the period 1953-57, it is estimated. that diesel tractors consumed 10 kilograms (kg) of fuel per soft-plowing unit, as compared with an estimated consumption of more than 15 kg by nondiesel tractors. Thus, in the performance of a comparable unit of output, the use of diesel tractors would represent a saving in fuel of more than one-third. The importance of this saving is readily apparent. In 1953, diesel tractors accounted for 53.5 percent of all soft-plowing units in the USSR. By 1957, this share had increased to 79.9 percent. If, however, the share performed by diesel tractors had remained constant throughout the period at 53.5 percent, the total primary fuel consump- tion by tractors in 1957 would have exceeded the amount estimated for that year by about 1 million tons, or by nearly 10 percent. The dieselization of the agricultural tractor park has re- sulted in significant changes in the types of petroleum products consumed by Soviet agriculture. In 1953, consumption of tractor kerosine amounted to 4.6 million tons, or about 47 percent of all such products, and diesel fuel to 3.7 million tons, or only 38 per- cent of the total. By 1957, however, consumption of diesel fuel by agriculture had increased to 8.1 million tons, or more than 63 per- cent of all the petroleum products consumed by agriculture. At the same time, consumption of tractor kerosine declined to 2.9 million tons, accounting for less than 23 percent of the total. Available information indicates that the decline in the demand for tractor kerosine by agriculture will continue at least through 1965. By then, it has been reported that the demand. will have been reduced to 37 percent of the 1955 level, thus suggesting a quantity of about 1.4 million tons. Conversely, a continued rapid r:Lse in the consumption of diesel fuel by Soviet agriculture is foreseen. On the basis of available evidence, the consumption of diesel fuel by agriculture Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 in 1965 may be estimated at about 23 million tons, or almost 3.7 times that in 1955. The fulfillment of plans for the introduction of diesel equipment into other sectors of the economy, particularly in transport, will serve to reduce the share of Soviet agriculture in the total consumption of diesel fuel in the USSR. Of the total military and civil demand for diesel fuel, the agricultural share is expected to decline from about 47.0 percent in 1955 to 38.9 per- cent in 1965. Meanwhile the share of transport is expected to in- crease from about 8.3 percent in 1955 to 24.3 percent in 1965. In addition to diesel fuel, the agricultural sector consumes considerable quantities of gasoline and lubricants. Most of the gasoline is used by combines, the remainder being consumed by other types of agricultural machinery or as a starter fuel for diesel en- gines. Although the consumption of gasoline in 1957 increased to 840,000 tons, a gain of about 15 percent since 1953, there has been a decline since 1955.' The consumption of gasoline by agriculture in 1957 has been estimated at 93.3 percent of the 1955 level, although the estimated number of hectares harvested by combines in 1957 rep- resented an increase, if only minor, compared with 1955. The decrease resulted from a reduction of about 10 percent in the quantity of pri- mary fuel consumed per hectare of area harvested in 1956 and 1957. In each of the years 1953-57, agriculture was the leading individual consumer of lubricants. In 1953, agriculture accounted for 730,000 tons of lubricants, or 36.5 percent of civil consumption. In spite of an increase to 920,000 tons in 1957 the share of agri- culture declined to 30.7 percent of civil consumption of lubricants. This decline is attributable to the dieselization of the agricultural tractor park, because diesel tractors consume a smaller proportion of lubricants than do other tractors. Further declines may be ex- pected, possibly through 1965, but these declines should not effect the position of agriculture as the leading consumer of lubricants. C. Households. Estimates of the consumption of petroleum products by Soviet households have been limited to the consumption of lamp and stove kerosine. The-consumption of other petroleum products, if any, is believed to be negligible and has been omitted. Household consumption of kerosine doubled during 1953-57 to reach about 2.4 million tons. This rate of increase in consumption is equaled by only one other consuming sector, motor transport. During 1953-57 the consumption of kerosine increased at an average annual rate of 18.9 percent, or close to the rate of increase of Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 18.7 percent in consumption of illuminating* kerosine which was reported under the Fifth Five Year Plan (1951-55). By years, a slightly higher rate of increase in consumption. was achieved in 1956 and 1957. In these years, consumption rose by an estimated 25 percent and 20 per-- cent, respectively. The share of households in civil consumption of kerosine in- creased steadily to about 44.4 percent of the total in 1957, reflect- ing the increased supply of kerosine for households because of the decline in the use of tractor kerosine. There is little evidence with which to speculate on future trends in consumption.of kerosine by Soviet households. These trends will be influenced to a large extent by the degree of implementation of plans to increases the delivery of electric power and gas to house- holds. Electric power will play an important role in the more remote areas. Conversely, the delivery of gas will be increased in urban areas, particularly in the European USSR. In 1956, gas was available for domestic use to 12 million people, or 13.8 percent of the urban population of the USSR, and the number of apartments equipped to use natural gas reached 1.3 million. Delivery to rural areas was in- significant. At the end of 1958 the number of apartments using gas exceeded 1.7 million, equivalent to a population of 15.5 million. By 1965, gas is to be supplied to 42 million people, and the total number of apartments furnished with gas-burning stoves and hot water heaters is to rise to 6.7 million. In addition, it has been reported that in 1965 about 13 million people in rural areas will be using gas, chiefly liquefied petroleum gas (LPG). Thus, according to preliminary calcu- lations as reported in Soviet source materials, in 1965 a total of 55 million people will be using gas in some form. It is probable that kerosine will be replaced in certain areas as a household fuel by gas. It is also probable that gas will re- place other household fuels such as coal and fuelwood. The consump- tion of lamp and stove kerosine per capita, in the USSR in 1956 averaged 10 kg, representing an increase of 35 percent above the pre-World War II high of 7.4 kg per capita in 1940,** which in it- self represented only a very small increase over the consumption of 6.5 kg of kerosine per capita in 1913. In, consideration of the * In Soviet sources, mention is made of only two types of kerosine These types are tractor kerosine and illuminating kerosine. It is probable that illuminating kerosine, in addition to its primary pur- pose, is used as a fuel for stoves. ** The slow rate of increase in consumption of kerosine for domestic purposes before World War II can be attributed to (1) the extremely high rates of increase in the demand for kerosine by the tractor park. and (2) a reduction in production of crude oil at the Groznyy fields. Both factors have led to a reduction in the quantities of kerosine available to households. -24- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 estimated increase in production of kerosine,* however, accompanied by a sharp decline in the demand for tractor kerosine, it is believed that the consumption of kerosine by households will continue to increase at the rate exhibited during 1950-57. This rate of increase -- about 19 percent annually -- probably will be continued through 1960 and possi- bly through 1965. The consumption of kerosine by households then would reach about 4 million tons in 1960 and about 10 million tons in 1965. D. Construction. Estimates of the consumption of petroleum products by con- struction in the USSR include consumption by the construction equip- ment park and by the construction materials industry. Also included are estimates of consumption of road oils and asphalts, because all of the production of these items in the USSR is believed to be used in construction. The consumption of petroleum products in construction in- creased to 9.3 million tons in 1957, a gain of about 66 percent above the level of 1953. The increase in consumption has been comparable to that in the total civil consumption of petroleum products, and as a consequence the share of construction in such consumption has re- mained constant at about 1L percent. Construction was the third leading civil consumer of petroleum products during 1954-57 and prob- ably will retain this position. Road oils and asphalts have accounted for most of the petro- leum products used in Soviet construction, averaging about 60 percent during 1953-57. In addition, these products accounted for more than half the total increase in consumption of petroleum products in con- struction during those years. The consumption of road oils and as- phalts increased from about 3.5 million tons in 1953 to about 5.5 mil- lion tons in 1957? On the basis of available information the consump- tion of road oils and asphalts may reach 10 million tons in 1965. Together with diesel fuel, road oils and asphalts accounted for about 95 percent of the total consumption of petroleum products in Soviet construction during each of the years 1953-57. The quan- tity of diesel fuel so consumed in 1957 reached about 3.4 million tons, an increase of about 90 percent compared with 1953 and more than five times the quantity so consumed in 1950. In 1957, construc- tion accounted for 20.9 percent of the total civil consumption of diesel fuel, declining slightly from the level of 22.8 percent reg- istered in 1953. The consumption of diesel fuel probably will con- tinue to grow at the average annual rate of increase of 17.2 percent which was exhibited during 1953-57. Continuation of this rate of in- crease would indicate the consumption of approximately 5.5 million tons of diesel fuel in construction in 1960. * It has been estimated that production of kerosine in 1965 will be 2.4 times that in 1955. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 During 1953-57 the consumption of tractor kerosine and ligroine, in construction virtually ceased. The consumption of kerosine reached negligible proportions in 1956. The consumption of ligroine reached negligible proportions in 1954, and the need for this type of tractor fuel apparently was obviated in 1955. The apparent need for gasoline in Soviet construction also is declining. It is estimated that since World War II such consump- tion reached a peak of 270,000 tons in 1.95+. The consumption of gaso- line in 1957 is estimated at about 81 percent of the 195+ level. Fur- ther declines probably will be recorded as gasoline is supplanted by diesel fuel and electric power. E. Industry. 1. Petroleum. The petroleum industry in the USSR consumes a variety of petroleum products in its crude oil drilling and producing operations in the refining of crude oil, and in the construction and repair of trunk* oil and gas pipelines.** Among these products are gasoline, diesel fuel, lubricants, residual fuel oil, bitumen, bituminous tar, and ligroine. The petroleum industry also consumes as a petroleum product about 1 percent of the indigenous production of crude oil. Of the individual branches of Soviet industry, the petro- leum industry held second place behind the electric power industry as an industrial consumer of petroleum products during 1953-57. The share of the petroleum industry in total civil consumption of petro- leum products advanced from about 7 percent in 1953 to about 8 per- cent in 1957. The rate of increase in consumption of petroleum products by the Soviet petroleum industry has approximated the increase in production of crude oil. It has been estimated that, during 1953-57, about 5 kg of petroleum products were needed to drill for, to produce, and to refine 1 ton of crude oil. * That pipeline in a system of pipelines which performs the central delivery. ** Although responsibility for the construction of crude oil, petro- leum product, and gas pipelines was transferred from the Ministry of the Petroleum Industry, USSR, to the Main Administration for the Gas Industry, attached to the Council of Ministers, USSR (Glavnoye Upravleniye Gazovoy Promyshlennosti pr:i Sovete Ministrov SSSR -- Glavgaz, USSR) in July 1957, for the purposes of this study, the con- sumption of petroleum products in the construction and repair of trunk pipelines during the whole of 1957 is attributed to the petroleum in- dustry. - 26 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Inasmuch as production of crude oil increased by more than 85 percent over that in 1953, the consumption of petroleum prod- ucts by the petroleum industry in 1957 is estimated at 5 million tons. The principal item consumed was residual fuel oil, which accounted for more than 60 percent of the total in each year. Crude oil accounted for nearly 20 percent annually and diesel fuel for about 12 percent. The remainder is attributed to gasoline, lubricants, bitumen, bitu- minous tar, and ligroine. The consumption of the individual petroleum products by the petroleum industry is peculiar to the type of operation per- formed. Crude oil drilling and producing operations account for all of the consumption of gasoline, diesel fuel, lubricants, crude oil, and about 9 percent of the annual consumption of residual fuel oil. All of the remaining residual fuel oil is consumed by the crude oil refineries. In 1957 the crude oil drilling and producing operations accounted for about 42 percent of total consumption by the petroleum industry, and the consumption of residual fuel oil in the process of refining of the crude oil reached about 56 percent of the total for all petroleum products, with the remainder directed to the pipeline construction program. The pipeline construction program in 1957 consumed only 66,000 tons of bitumen and bituminous tar and negli- gible amounts of ligroine, accounting. for about 1 percent of all petroleum products consumed by the petroleum industry. An analysis of available information indicates that a re- duction in the consumption of petroleum products in terms of produc- tion of 1 ton of crude oil is to be expected. Probably most of this reduction will occur during the process of refining, inasmuch as a number of crude oil refineries are scheduled to convert from the burning of residual fuel oil to the burning of natural gas. For example, it has been reported that most of the Baku refineries have already converted to gas. Wider use of available resources of gas in the field by the petroleum industry is also contemplated.* It is also probable, however, that the effect of the planned converpions will not be readily apparent for several years. As late as 1956, none of the field equipment of the industry had been converted to gas as yet. Therefore, with production planned at about 140 million tons of crude oil in 1960, the consumption of petroleum products by the petroleum industry in that year may be estimated at 7 million tons. Production of crude oil in 1965 is scheduled to reach 24-0 mil- lion tons. The consumption of petroleum products by the industry in 1965 may range between 9 million and 10 million tons. * According to the plan for 1957 the consumption of gas by the oil and gas industries of the USSR was to reach 22.1 percent of the total civil consumption of gas. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 2. Chemical. The chemical industry of the USSR uses petroleum, products in process heating in the manufacture of soda ash and caustic soda and as a raw material in production of synthetic rubber, tires, and carbon black. Residual fuel oil is used in certain chemical plants in the calcination of sodium bicarbonate to produce soda ash and to raise the steam required in production of caustic soda. Rubrax, a petroleum alkaline bitumen, is used as a softening agent in produc- tion of tires and rubber technical articles. Green oil, a heavy distillate oil, finds application in production of certain types of carbon blacks produced by burning liquid hydrocarbons in the presence of an insufficient amount of air. The quantities of petroleum products consumed by the chemical industry are negligible. By :L9557 there had been an in- crease of 20 percent compared with 1953, but the total amount so consumed was only 2+0,000 tons. In each of the years 1953-57, residual fuel oil accounted for approximately 50 to 55 percent of the petroleum products consumed by the chemical industry, followed by green oil, which accounted for about 35 to 40 percent. Rubrax accounted for the remainder. Next to the coal industry the chemical industry is the smallest civil consumer of petroleum products in the USSR. The share of the chemical industry in the total civil consumption of petroleum products declined from about 0.5 percent in 1953 to less than 0.4 percent in 1957. With the anticipated development of a large petrochemical industry, the chemical industry is expected to consume much larger quantities of petroleum products. It is unlikely, however, that these quantities will be sufficient to make the indus- try a significant consumer of petroleum products. The coal industry is the smallest civil consumer of petro- leum products in the USSR. The consumption of such products by the industry increased from 170,000 tons in 1953 to 230,000 tons in 1957. The consumption of petroleum products by the coal indus- try is limited to those amounts of diesel fuel consumed in the flota- tion process, to lubricants consumed by surface and underground mining equipment, and to fuel and lubricants expended by the motor vehicle park of the industry. The estimates involving motor vehicles are included in the estimates derived for motor transport.* II, A, V,-p. 18, above. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 The quantities of diesel fuel consumed in the flotation process are insignificant, ranging from 25,000 tons in 1953 to -7,000 tons in 1957. Lubricants consumed by the wide variety of mining equip- ment -- among which are included tunneling combines, drills, excavators, and conveyors -- accounted for about 80 percent of the petroleum products consumed in each year. Lubricants also accounted for two- thirds of the increment in the consumption of such products by the coal industry during 1953-57. The consumption of lubricants by the industry in 1957 is estimated at 180,000 tons. Like the chemical industry, the coal industry has ac- counted for a decreasing share of the civil consumption of petroleum products since 1953. Although it is doubtful that these declines will continue indefinitely, there is little evidence to indicate the likelihood of any substantial relative increase in the consumption of petroleum products by the coal industry. It is believed that the steel industry of the USSR con- sumes substantial quantities of residual fuel oil, lubricants, motor gasoline, and diesel fuel. Except for residual fuel oil, these prod- ucts are used in the performance of transport services and therefore are included in those estimates derived for motor transport.* The major use of residual fuel oil in the steel industry is for firing open-hearth furnaces, soaking pits, and reheating fur- naces. The consumption of residual fuel oil for these purposes has risen from about 2.3 million tons in 1953 to about 3 million tons in 1957. During these years, however, the share of the steel indus- try in the total consumption of residual fuel oil declined from 19.5 percent of the total in 1953 to about 16.6 percent in 1957. Similarly, the share of the industry in the total civil consumption of petroleum products declined from about 6 percent in 1953 to slightly less than 5 percent in 1957. The use of residual fuel oil to fire steelmaking units in the USSR is decidedly secondary to the use of blast furnace and coke oven gas, and this situation is not likely to change greatly within the next few years. The planned conversion of a number of open-hearth furnaces to natural gas will serve to offset, at least in part, any increased use of residual fuel oil. It is probable that the conversion to natural gas or the increased use of residual fuel oil will occur only on a regional basis and will be dictated by considerations of supply. * II, A, , p. 18, above. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 5. Electric Power. Significant quantities of gasoline, diesel fuel, and residual fuel oil are consumed in the USSR in the generation of electric power. Residual fuel oil probably constitutes virtually the entire supply of petroleum fuels consumed by the thermal elec- tric power stations under the authority of the Ministry of Electric Power Stations, USSR. These plants usually have a capacity of 6 megawatts or more. Diesel fuel and other internal combustion engine fuels are used only in installations with a relatively small capac- ity which are not under the Ministry of Electric Power Stations. Soviet consumption of petroleum products in the genera- tion of electric power increased from about 5.6 million tons in 1953 to about 8.2 million tons in 1957, an average annual gain of 10 percent. These totals place the electric power industry as the leading consumer of petroleum products in the industrial sector. In each of the years 1953-57, the electric power industry accounted for about 46 percent of the total consumption of petroleum products by the industrial sector. Consumption of petroleum products by the electric power industry represented about 13 ;percent of total civil consumption in 1957. In relation to other consumers of petroleum products in the civil economy, the electric power industry holds fourth place and is expected to remain in this position. The electric power industry is a major consumer of residual fuel oil in the USSR. In each of the years 1953-57, approximately 30 percent of the civil consumption of residual fuel oil has been in the generation of electric power. At the same time the consumption of this product by the electric power industry increased from about 3.7 million tons in 1953 to about 5.4 million tons in 1957, account- ing for about two-thirds of all the petroleum products consumed by the industry. Considerable quantities of diesel fuel are also consumed by the electric power industry in the USSR. These quantities ranged from about 1.5 million tons in 1953 to about 2.3 million tons in 1957, representing about 19 percent and l4- percent, respectively, of the civil consumption of diesel fuel. This rather sharp decline may be attributed to the more rapid increases in the consumption of diesel fuel by other sectors of the economy. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Gasoline is of relatively minor importance of the electric power industry of the USSR. In 1957, consumption amounted to about 490,000 tons, a gain of 32 percent compared with 1953. Nevertheless, gasoline represented less than 6 percent of the petroleum products consumed in 1957 by the industry. The consumption of lubricants by the electric power indus- try of the USSR is negligible. The estimates, which have been based on analogy with US practice, amount to only 1,000 tons in each of the years 1953-57. Significant increases in Soviet production of electric power are expected. At present, goals are. believed to be as follows: 1960, 300 billion kilowatt-hours (kwh); 1965, 500 billion kwh; and 1972, 900 billion kwh, Relative increases in the consumption of petro- leum products by the electric power industry are unlikely, because the amount of electric power to be generated by stations using petroleum products is not to change substantially. Production of electric power by stations using residual fuel oil in 1972 probably will amount to about 9 billion kwh compared with 8.8 billion kwh generated by such stations in 1955. The generation of electric power by stations using other petroleum products is scheduled to increase from 6.5 billion kwh in 1955 to about 9 billion kwh in 1972, but because of probable reduc- tions in the consumption of fuel per unit of output, significant in- creases in the consumption of these fuels by the industry are not anticipated. Details for implementing Khrushchev's speech at the dedication of the Kuybyshev hydroelectric power station, in which he called for a speed-up in the construction of thermal electric power stations, have not been announced. The implementation of this pro- gram will require an increase in the consumption of fuel by the electric power industry. Much of this increase probably will be pro- vided by natural gas and residual fuel oil. It is believed that the consumption of petroleum products by the electric power industry in the USSR in 1965 may be double the levels that have been estimated for 1957. 6. Nonferrous Metals and Manufacturing. There is little information to indicate the volume of petroleum products consumed by either the nonferrous metals or manu- facturing industries in the USSR. For certain phases of the Soviet economy in which practices are comparable to those in the USSR, fairly reliable estimates of the consumption of petroleum products can be derived by analogy. With regard to the nonferrous metals industry, - 31 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 however, the absence of estimates of Soviet production of the indi- vidual metals precludes such a comparison. Conversely, for the manu- facturing industries, usable data on the consumption of petroleum products by comparable US industries are not available. It is believed that the only petroleum products consumed in any significant quantity by the manufacturing industries of the USSR are lubricants and residual fuel oil. Although the nonferrous metals industry of the USSR probably consumes quantities of several petroleum products in the performance of various operations, such as the exploitation of mining equipment, the principal share would be consumed in transportation. Estimates of consumption in transporta- tion are included bydefinition in those estimates for motor trans- port.* Therefore, the only estimates of consumption that have been derived for the manufacturing and nonferrous metals industries are those involving lubricants and. residual fuel. These estimates for lubricants and residual fuel, indicate that consumption of petroleum products by the nonferrous metals and manufacturing industries in the USSR increased from 900,000 tons in 1953 to a maximum of 1.4 million tons in 1955 but declined to 1.2 mil- lion tons in 1956. In the absence of data to the contrary, it is as- sumed that consumptiDn in 1957.remained at the level of 1956. Such levels of consumption represented insignificant portions of the total civil consumption of petroleum products, averaging about 2 percent in each year. The apparent decline in the consumption of petroleum prod- ucts in the USSR reflects the replacement of residual fuel oil as an industrial fuel by gas. Estimated consumption of residual fuel oil had increased from 7)0,000 tons in 1953 to 1.2 million tons in 1955 but declined sharply to 900,000 tons in 1956. Although further de- clines of 25 percent are unlikely, the use of gas is increasing, es- pecially in the manufacturing industries. In information supplied to the.Economic Commiss:Lon for Europe, the USSR indicated plans for a sharp increase in this allocation of gas to machine-construction plants. In 1960 the consumption of gas in machine construction is scheduled to reach 6.1 billion cubic meters, or nearly 12 times the level of 1956, and to account for about 10 percent of total consumption of gas. The consumption of lubricants by the nonferrous metals and manufacturing industries of the USSR has increased from 200,000 tons in 1953 to 300,000 tons in 1957, accounting for an average of 10 percent of annual civil consumption. It has been reported that by 1965 the consumption of lubricants by the entire industrial sector will account for 53.3 percent of the total consumption. of lubricants in the USSR. Perhaps as much as one-half of this quantity may be directed to the nonferrous metals anc. manufacturing industries.** See II, A, 4, p. 1.8, above. Text continued on p. 39. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SQ1046A000600120008-5 Table 6 Estimated Civil Consumption of Petroleum Products in the USSR by Consuming Sector and by Type of Product 2j' 1953 Inland Ocean- Civil Agri- House- Construe- Petro- C l St el Electric Power Nonferrous Metals and Manufacturing Total wa W t in Motor Air culture hold tion lens Chemical oa e Type of Product Rail er a Gasoline 0 0 0 680 0 0 0 0 0 0 0 0 0 680 800 Aviation 0 1 -__ oar, ? o 05 0 0 N.A. 370 J 7, 6 o 0 N.A. 3 o 8,500 Total b/ 0 0 0 6,300 680 730 0 0 2 22 Ligroine 0 0 0 0 0 c/ 0 4 / n o 0 0 0 4 d stove 0 0 0 0 0 0 1,200 0 0 0 0 0 0 0 0 0 0 J 1,200 4,600 Lamp an Tractor 0 0 0 0 0 4,600 o 8 o o 0 0 0 9. 5,800 2 2 0 2 2 L 1,200 2 220 180 140 76 0 3,700 0 1,800 310 0 25 N.A. 1,500 LI 200 7,900 000 2 Diesel fuel Lubricants 200 60 75 450 4 730 0 96 50 N.A. 140 N.A. 1 , Residuals and others 00 00 700 11 Boo Residual fuel oil 2,100 700 530 0 0 0 0 0 1,700 99 0 0 0 2,3 0 3,7 0 0 , 3,500 Road oils and asphalts 0 0 0 0 0 0 0 0 0 3,500 0 0 22 0 0 0 0 0 22 Bitumen and bituminous tar 0 0 0 0 0 0 14 0 0 0 0 14 ~,r~ 0 0 0 0 0 0 0 0 8 0 0 0 0 85 Green oil 0 0 0 0 0 0 0 0 0 5 00 200 0 2 300 3,700 Z 15,E Total 2,109 70 530 0 o 2 0 3,500 1,7 , Crude oil consumed as a product Grand total / " 94? = l 56oo 2.700 LL 170 ?a3om0 0 9 ~? !W-00 f 10 million or h ose o 000 through 9.9 million, in 2 significant digits; and t those of 10 t di it , g ; a. Estimates of less than 10,000 are expressed in .1 significan more, in 3 significant digits. b. Totals were derived from unrounded data and do not always equal the sums of the rounded components. c. Un~wn. d. Negligible. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Table 7 .Estimated Civil Consumption of Petroleum Products in the USSR by Consuming Sector and by Type of Product 1954 Type of Product Rail Inland Waterway Ocean- going Motor Civil Air Agri- lt House- h Constroc- Petro- Electric Nonferrous Metals and -- __ u ur c e old tlon laud Chemical Coal Steel Power Manuf t i ac ur ng Total Aviation Motor 0 0 0 0 0 0 0 7,600 770 0 0 780 0 0 0 270 0 110 0 0 0 0 0 N. A. 0 402 0 770 9 Total 0 0 0 7,600 X70 0 270 110 0 0 N 4 , .A. 00 / 91900 Liosine Kerosine 0 0 0 0 0 1 0 / df 0 0 0 0 0 A/ Lamp and stove Tractor 0 0 0 0 0 0 1,400 0 0 0 0 0 0 0 0 o o o 4,500 0 6 0 o 0 0 0 0 1,400 4,500 0 2 2 2 2 4,500 1.400 2 2 2 2 2 cI 51900 Diesel fuel Lubricants 280 230 0 17 96 0 4,800 0 2,100 350 0 31 N A 1 700 Residuals and others 200 Rr / -- 110 57 N.A. 150 . . N.A. , 1 c/ 200 9,800 2,200 Residual fuel ou Road oils and asphalts 2,200 0 ,20 0 580 0 0 0 0 0 0 1,900 110 0 2,500 4,300 1 000 300 3 1 Bitumen and bituminous tar 0 0 0 0 0 4,000 0 0 0 0 0 , 0 , 4 000 Rubrax 0 0 0 0 0 0 0 0 0 23 0 0 0 0 0 , 23 Green oil 0 0 0 0 0 0 0 0 15 0 0 0 0 15 T 0 0 0 85 0 0 0 0 85 otal J L 720 580 2 2 0 0 41000 1,900 210 0 2,500 4,300 11000 17,400 Crude oil consumed as a product 0 0 0 0 0 0 0 0 590 0 0 0 G d t t l 0 0 590 ran o a 2,700 1,000 840 8;200 770 10 900 1 40 6 500 4 , 0 , 3,000 jL0 180 Soo 6,400 1,200 4.5,800 a. Estimates of less than 10,000 are expressed in 1 significant digit; those of 10,000 through 9.9 million in 2 signifies more, in 3 significant digits. , nt digits; and those of 10 million or b. Totals were derived from unrounded data and do not always equal the sums of the rounded components. c. Unknown. d. Negligible. - 34 - Approved For Release 1999/09/08 : Cl`A-RDP79301046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Table 8 Estimated Civil Consumption of Petroleum Products in the USSR by Consuming Sector and by Type of Product 1955 Nonferrous Inland Ocean- Civil Agri- House- Construe- Petro- Electric Metals and ~J Type of Product Rail Waterway going motor Air culture hold tion leum Chemical Coal Steel Power Manufacturing Total J Gasoline 0 0 0 0 830 0 0 0 0 0 0 0 0 0 830 Aviation 0 260 130 0 0 N.A. 430 J 10,400 Motor 0 0 0 8,700 0 900 Total J o 0 0 8,700 830 900 0 260 jLO 0 o N.A. 430 J 11,300 Ligroine 0 0 0 0 0 J 0 0 J 0 0 0 0 0 J Kerosine 0 0 0 1,600 0 0 0 0 0 0 0 1,600 Lamp and stove 0 0 0 Tractor 0 0 0 0 0 3,900 0 4 0 0 0 0 0 c 3,900 0 0 0 0 0 X900 1,600 4 0 0 0 0 0 J 51500 Total J "~ 460 300 240 110 0 6,300 0 2,400 420 0 36 N.A. 1,900 -1/ 12,200 Diesel fuel Lubricants 230 68 100 620 5 870 0 130 68 N.A. 160 N.A. 1 200 2,400 Residuals and others Residual fuel oil 2,400 750 630 0 0 0 0 0 2,300 110 0 2,700 4,600 1,200 14,600 Road oils and asphalts 0 0 0 0 0 0 0 4,500 0 0 0 0 0 0 500 42 Bitumen and bituminous tar 0 0 0 0 0 0 0 0 42 0 0 0 0 0 42 Rubrax 0 0 0 0 0 0 0 0 0 17 0 0 0 85 Green oil 0 0 0 0 0 0 0 0 0 85 0 0 0 Total 61 2400 750 630 0 0 0 0 4,500 2,300 220 0 2,700 4,600 1,200 19,200 Crude oil consumed as a 0 0 0 0 0 0 0 0 710 0 0 0 0 0 710 product Grand total J 3r000 1100 970 9 500 830 11,900 1 00 7,300 3,600 220 200 2 700 6,900 1, 3-00 a. Estimates of less than 10,000 are expressed in 1 significant digit, those of 10,000 through 9.9 million, in 2 significant digits; and those of 10 million or more, in 3 significant digits. b. Totals were derived from unrounded data and do not always equal the sums of the rounded components. c. Unlmown. d. Negligible. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Table 9 Estimated Civil Consumption of Petroleum Prodiets It he TT u in Uuc USSR by Consuming Sector and by Type of Product 1956 Type of Product Rail Inland Waterway Ocean- coins rs,r..r Civil na,. A Agri- ..,na House- Construe- .. Petro- _ _ Electric Nonferrous Metals and Aviation Motor 0 0 0 0 840 0 0 0 0 0 0 0 0 0 0 0 10,100 0 890 0 250 150 0 0 N.A. 460 0 840 11,800 0 0 0 10,100 840 890 0 250 9 0 0 N.A. 460 12,700 Ligroine Kerosine 0 0 0 0 0 0 0 1 0 0 0 0 0 Lamp and and stove 0 0 0 0 0 0 0 2,000 0 0 0 0 0 0 0 0 0 0 3,400 0 0 0 0 0 0 0 0 2,000 3, 400 Total J o 0 0 0 0 3,400 2,000 G G o o G o J 5,400 Mewl fuel 580 370 300 140 0 7.200 0 o_mn 500 0 i., 240 72 120 720 5 900 0 - -- 1 X ~ N.A. 2,1w c 14,200 Residuals and others 50 80 N.A. 0 170 N.A. 1 300 2,800 Residual fuel oil Road oils and asphalts 3,000 0 750 0 690 0 0 0 0 0 2,700 120 0 2,900 5,000 900 16 000 Bitumen and bitun nous tar 0 0 0 0 0 0 0 5,000 0 0 4 0 0 0 0 0 , 5,000 Rubrax 0 0 0 0 0 0 0 7 0 0 0 0 0 47 Green oil 0 0 0 0 0 0 0 19 0 0 0 0 19 T t 0 5 0 0 0 0 85 o al J 3,000 2 0 0 0 0 000 5, 2,700 230 2 2,900. 5,000 2 21,200 product 0 0 0 0 0 0 0 0 840 0 0 0 0 0 840 Grand total m_ 1,200 100 10,900 840 12,400 2,00 8.300 4,300 100 2 0 >7.? 1,200 n7Goo a. Estimates of less than 10,000 are expressed in 1 significant digit; those of 10,000 through 9.9 mil-lion, in 2 significant digits; and those of 10 million or b. Totals were derived from unrounded data and do not always equal the sums of the rounded components. C. llnlmrnm. d. Negligible. _36- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 Estimated Consumption of Petroleum Products in the USSR by Consuming Sector and by Type of Product a/ 1957 Nonferrous Inland Ocean- Civil Agri- House- Construe- Petro- Electric Metals and Type of Product Rail Waterway golng Motor Air culture hold tion leum Chemical Coal Steel Power Manufacturing Total Aviation Motor Ligroine Kerosine o 0 0 0 890 0 0 0 0 0 0 0 0 0 890 0 0 0 11,600 0 840 0 220 180 0 0 N.A. 490 cJ 13,400 2 2 2 11,600 890 80 2 220 180 2 0 N.A. 490 14,300 0 0 0 0 0 J 0 0 a/ 0 0 0 0 0 Lamp and stove 0 0 0 0 0 0 2,400 0 0 0 0 0 0 0 2,400 Tractor 0 0 0 0 0 2,900 0 0 0 0 0 0 0 2,900 Jet fuel 0 0 0 0 150 0 0 0 0 0 0 0 0 0 150 Total / 0 0 0 0 150 2900 2, 0 0 0 0 0 0 5,400 Diesel fuel 820 490 360 170 0 8,100 0 3,4- 590 0 47 N.A. 2,300 16,300 Lubricants 260 79 120 830 5 920 0 170 94 N.A. 180 N.A. 1 300 3,000 Residuals and others Residual fuel oil 3,900 950 710 0 0 0 0 0 3,100 130 0 3,0 5,400 900 18,100 Road oils and asphalts 0 0 0 0 0 0 0 5,500 0 0 0 0 0 0 5,500 Bitumen and bituminous tar 0 0 0 0 0 0 0 0 66 0 0 0 0 0 66 Rubrax 0 0 0 0 0 0 0 0 0 21 0 0 0 0 21 Green oil 0 0 0 0 0 0 0 0 0 85 0 0 0 0 85 400 Total bJ 3,900 90 f10 2 2 2 2 5,500 3 240 2 3,000 5, 23 Crude _o31_coe d. as a product 0 0 0 0 0 0 0 0 980 0 0 0 0 0 980 Grand total gJ Wo 1,500 1. 12 1,000 12,800 2.400 91300 2 00 240 230 3,000 s ?3_8 0 _ -112-2 _ 1-200 a. Estimates of less than 10,000 are expressed in 1 significant digit; those of 10,000 through 9.9 million, in 2 significant digits; and those of 10 million or more, in 3 Significant digits. b. Totals were derived from unrounded data and do not always equal the sums of the rounded components. C. Unknown. d. Negligible. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 III. Regional Distribution of Consumption. Tables 11 through 15* show the distribution of the civil con- sumption of petroleum products in the USSR, by economic region and by consuming sector, for the years 1953-57. Data for each year are shown in a separate table. A description of the methodology used to effect the distribution is given in Appendix B. A. General. In each of the years 1953-57, Economic Region VII (Central) -- ~which embraces Moscow and the surrounding industrial complex -- has accounted for the largest share of total civil consumption. In this region, which has almost 22 percent of the population of the USSR but less than 6 percent of total land area, the consumption of petroleum products has increased from about 7 million tons in 1953 to about 10 million tons in 1957. In terms of the total civil consumption of petroleum products, however, the share of Region VII declined slightly during these years, from 17.5 percent to 15.7 percent. The relative decline results from the emergence of the eastern regions (VI, VIII, IX, X, XI, and XII) as important consumers of petroleum products.** The leading consumers in Economic Region VII are agriculture, motor transport, and construction, which have accounted for between 65 and 70 percent of the total consumption in the region in each year. During 1953-55, agriculture was the leading consumer, followed by motor transport. In 1956, however, a slight decline in consumption by agriculture enabled motor transport to assume the leading position. It appears that the consumption of petroleum products in Region VII by agriculture has levelled off, temporarily at least, at between 2.3 million and 2.4 million tons. At the same time, continued in- creases will establish motor transport as the leading consumer. Con- struction has ranked third in each year and has shown a tendency to level off at 1.4 million to 1.5 million tons. The highest average annual increase in consumption of petro- leum products, 22 percent, was achieved in Economic Regions X (Kazakhstan and Central Asia) and XI (East Siberia). In addition, Region X showed the largest absolute increase in consumption of any economic region, from 3.7 million tons in 1953 to 8.1 million tons in 1957. Meanwhile, the share of Region X in civil consumption in- creased from 9.2 percent of the total in 1953 to 12.7 percent in Tables 11 through 15 follow on pp. 49 through 53? For further discussion of this trend, see III, D, p. 76, below. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 1957. The rapid increase in consumption of petroleum products in Region X resulted from the implementation of the new lands program. Consumption by agriculture in Region X reached 2 million tons in 1957, increasing about 135 percent since 1953. Transportation ser- vices and construction in Region X also were increased to support the new lands program, and in certain instances the increase in con- sumption of petroleum products by these sectors has surpassed that of agriculture. For example, consumption by motor transport reached 1.7 million tons in 1957, a gain of 139 percent since 1953, while consumption in construction reached 1.1 million tons, a gain of 206 percent. The consumption of petroleum products in construction in the USSR increased even more :rapidly in Economic Region XI. Since 1953, consumption in construction has accounted for more than one-half of the increase in this region. As consumption in Region XI increased from 1 million tons in 1953 to 2.2 million tons in 1957, a gain of 120 percent, consumption in construction increased from 190,000 tons to 820,000 tons, a gain of more than 331 percent. Thus construction, which had ranked third in 1953, became the leading civil consumer in the region in 1957. Agriculture, which had been the leading civil consumer through 1956, dropped to second place in 1957, with consump- tion declining by nearly 25 percent to 550,000 tons. Consumption by motor transport in Region XI, which ranks third in importance, has made slight but steady advances. The 430,000 tons consumed by motor transport in 1957 accounted for about 20 percent of the total con- sumption of petroleum products in the region. In 1956, Economic Region XII (the Far East) accounted for the smallest share of total civil consumption of petroleum products in the USSR, supplanting Region XI. Civil consumption in Region XII in 1956 represented only 2.8 percent of the total and declined to less than 2.7 percent in 1957 in spite of a slight absolute increase. Only minor increases by any of the consuming sectors within the region have been evident. The most rapid gains have been made by motor transport, followed closely by construction. Compared with an aver- age annual increase in consumption of 9.1 percent for the region as a whole, consumption by motor transport increased annually by about 13.9 percent to reach about 320,000 tons in 1957. Consumption in construction increased 12.1 percent annually to 300,000 tons in 1957. Oceangoing transport, however, has remained the leading consumer in Region XII. Most of the consumption of petroleum products by oceangoing transport has taken place in Region XII, but more rapid increases in such consumption have occurred in Economic Region V (Transcaucasus), indicating that by 1959 most of the consumption by oceangoing transport -40- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 probably will occur in Region V. This apparent regional shift lowered the share of oceangoing transport in the total consumption in Region XII to 27.6 percent in 1957 compared with 30.8 percent in 1953, in spite of an increase in consumption from 370,000 tons in 1953 to 470,000 tons in 1957. Throughout the period 1953-57, most of the consumption of petroleum products by motor transport, agriculture, and construction occurred in Economic Region VII.* In every case Economic Region III (South) ranked second, only slightly behind Region VII. The impres- sive increase in consumption in Region X, which resulted from the new lands program, brought this region into third place in 1957. It is believed that these regions are firmly established as the leading regional consumers of petroleum products. The position of Region X, however, will depend at least in part upon the continued success of the new lands in producing agricultural commodities. B. By Consuming Sector. 1. Transport. a. Rail. The consumption of petroleum fuels and lubricants by rail transport is concentrated principally in four economic regions -- IV (Southeast), V (Transcaucasus), VI (Volga), and X (Kazakhstan and Central Asia) -- which accounted for more than 72 percent of all such consumption in 1957. Of these four, Region X has consistently con- sumed the largest share and also shown the highest rate of increase. In Region X, consumption of petroleum products by railroads increased to about 1.6 million tons in 1957, a gain of almost 130 percent since 1953, and accounted for approximately one-third of the total consump- tion by rail transport. Much of this increase may be attributed to an increase of about 280 percent in the quantities of diesel fuel consumed by rail transport, which in turn resulted from the scarcity and poor quality of water for coal-burning and oil-burning locomotives in Region X. The highest rate of increase in consumption by rail transport, however, was a gain of 154 percent recorded by Region VII. The overwhelming share of this increase was achieved in 1957, when consumption increased by 350,000 tons to reach 610,000 tons. Of the increase, residual fuel oil accounted for 270,000 tons. * In 1957, however, consumption in construction in Region VIII (Urals) equaled that in Region VII. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 b. Inland Waterway. Significant consumption of petroleum products by inland waterway transport is limited to Economic Regions VI (Volga) and VII (Central), with a minor amount in Region I (North and North- west). Region VI includes most of the navigable length of the Volga River and also a portion of the Don River. Within Region VII is found, among other major rivers, the Oka, the Dnieper, the Don, and a portion of the Volga. Most of the freight transported on the rivers by vessels consuming petroleum fuel is moved in Regions VI and VII, and thus these regions account for most of the consumption of petroleum products by inland waterway transport. The share of these regions has been estimated at 85 percent of the total 9+0,000 tons consumed by inland waterway transport in 1953, but declined to 75 percent in the total 1.5 million tons so consumed in 1957 because of increased consumption in Region I. c. Oceangoing. The consumption of petroleum products by oceangoing transport in the USSR is limited to Economic Region I (Northwest and North), V (Transcaucasus), and XII. (the Far East). Arctic and Baltic operations have been considered as being serviced from Region I; Black Sea and Caspian Sea operations, from Region V; and Pacific Ocean operations, from Region XII. In Region XII, which accounted for 49.3 percent of all such. consumption in 1953 and 39.2 percent in 1957, oceangoing transport is the principal con- sumer. The relative decline in such consumption in Region XII has resulted from more rapid increases in the consumption of both diesel fuel and residual fuel oil by oceangoing transport in Region V. It is probable that by 1959 Region V will have replaced Region XII as the principal consumer of petroleum products for oceangoing trans- port. Nevertheless, oceangoing transport should continue for some time to be the principal consumer in the civil economy of Region XII. Consumption of petroleum products by motor transport is centered in Economic Regions III (South) and VII (Central) and, increasingly, in Economic Region X (Kazakhstan and Central Asia). Throughout the period 1953-57, these three regions accounted for more than one-half of the annual consumption by motor transport. The sharpest rate of increase was shown in Region X, where consumption by motor transport in 1957 reached 1.7 million tons, a gain of 139 per- cent compared with 1953, as a result of the new lands program.* * See III, A, p. 39, above. - 42 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Continued success of the new lands program may support a trend toward the increased consumption of petroleum products by motor transport in Region X. In the remaining economic regions, measurable changes in the relative importance of consumption of petroleum products by motor transport are not expected. e. Civil Air. The estimates given in Tables 11 through 15* repre- sent the regional distribution of consumption by aircraft with reciprocating engines and by jet aircraft. The regional distribu- tion of petroleum products consumed by aircraft using reciprocating engines in civil air transport has been based upon a pattern derived for 1955, and thus it was not possible to show changes in consumption by regions from year to year. The largest share -- about one-fourth -- of annual consumption took place in Region VII (Central), reflecting the heavy flight traffic in and out of Moscow. Other significant consumption is in Regions III (South), VI (Volga), VIII (Urals), IX (West Siberia), and X (Kazakhstan and Central Asia), and the share of each of these regions in the annual total averages about 11 percent. The consumption of jet fuel by civil air is apparent only for 1957. Schedules for that year showed jet aircraft operating into Moscow, Tashkent, Tbilisi, Irkutsk, Omsk, and Novosibirsk. The regional distribution of these operations is believed to have been as follows: Region V (Transcaucasus), 5 percent; Region VII, 42 percent; Region IX, 17 percent; Region X, 24 percent; and Region XI (East Siberia), 12 percent. Available information on the consumption of petroleum products both by jet aircraft and by aircraft using recip- rocating engines indicates an approximately equal distribution between the eastern and western regions of the USSR. 2. Agriculture. As previously indicated,** the principal influence upon the regional distribution of consumption of petroleum products by Soviet agriculture has been the new lands program. The increased need for petroleum products resulting from this program has been particularly evident in Economic Region X (Kazakhstan and Central Asia), and to a lesser degree, in Economic Region IX (West Siberia). As the result of sharp increases the share of Region X in total consumption of petroleum products by Soviet agriculture increased * Pp.-~+9 through 53, below. See III, A, p. 39, above. -43- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 from 8.7 percent in 1953 to 15.6 percent in 1957. Significant in- creases, although not so sharp, were :recorded by agriculture in Region IX. Consumption in this region is estimated at 1.2 million tons in 1957, an increase of 50 percent over 1953. In spite of these sharp increases in Economic Regions IX and X, most of the consumption of petroleum products by agri- culture continued to take place in Regions III (South) and VII (Central). In 1953 the consumption in these two regions is estimated at 4.1 million tons, or almost 42 percent of total consump- tion by agriculture. By 1957, however, consumption in these regions had increased only to 11.7 million tons, and the share of these regions in the total consumption by agriculture had dropped to less than 37 percent. Increased consumption in Regions IX and X, coupled with relatively stable consumption in Regions III and VII, has effected a shift to greater emphasis upon the eastern regions (VI, VIII, IX, X, XI, and XII) in the consumption of petroleum products by agri- culture. Compared with less than 110 percent in 1953, the eastern regions furnished almost 46 percent of the total for 1957. Should this trend continue as the result of further successes with the new lands program, the eastern regions may account for as much as one- half of annual consumption of petroleum ;products by agriculture in 196o. 3. Households. The distribution by economic region of the quantities of kerosine consumed by Soviet households has been estimated on. the basis of (a) reported retail sales of kerosine in the various union republics in 1955 and (b) the distribution of population in the RSFSR. A close relationship was shown between the distribution of sales of kerosine and population among the republics, suggesting that distributing sales of kerosine on. the basis of total population within the RSFSR provided a reasonably accurate approach. It is be- lieved that probable changes in the percentage for any region be- tween 1953 and 1955 or between 1955 and 1957 would be within the margin of error of the 1955 percentage for the region. Consumption of kerosine by Soviet households is concen- trated in Economic Eegions III (South) and VII (Central) which ac- count for 21 percent and 22 percent, respectively, of all such consumption. The share of the third ranking region, Region X (Kazakh- stan and Central Asia) is about one-half of that of Region VII. - 44 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Much publicity has been given to plans for significant increases in the delivery of gas to Soviet households. Most of these deliveries will be to major cities such as Moscow, Leningrad, Stalingrad, Kiev, and Baku. In the rural areas, where the use of kerosine prevails, deliveries of gas are insignificant and will not be increased substantially much before 1965. It is believed that increased deliveries of gas to the more densely populated regions, in particular Regions III and VII, will lead to a more equal dis- tribution of consumption of kerosine among the 12 economic regions of the USSR. 4. Construction. Construction in the underdeveloped areas of Economic Regions IX (West Siberia), X (Kazakhstan and Central Asia), and XI (East Siberia), added to a continued high rate of expansion in Region VIII (Urals), served to alter radically the pattern of regional distribution of petroleum products consumed for this pur- pose during 1953-57. In 1953 the eastern regions accounted for about 38 percent of all consumption in construction, and by 1957 their share had risen to more than 57 percent. By contrast, con- sumption in construction in the more fully developed Regions III (South) and VII (Central), which amounted to 2.3 million tons, or more than 41 percent of the total so consumed in 1953, increased only slightly to reach 2.6 million tons in 1957, representing less than 28 percent of all such consumption. Conversely, in Regions VIII (Urals), IX, and X, the major centers of consumption in the eastern regions, the consump- tion of petroleum products in construction increased from 1.3 mil- lion tons in 1953 to 3.5 million tons in 1957, a gain of about 166 percent. In 1957, construction was the largest civil consumer in Region XI and also in Region VIII, where it had shared this position with the petroleum industry in 1956. The consumption of petroleum products in construction seems to have become relatively stable at about 1.2 million tons in Region III and 1.3 million tons in Region VII. The continuation of this trend as part of the shift to the eastern regions will de- pend largely on the successful exploitation of the new lands and on the allocation of capital investments to develop industrial enter- prises. . Industry. It is not possible to ascertain any meaningful pattern of the regional distribution by individual years of the quantities - 45 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 of petroleum products consumed by the industrial sector of the Soviet economy. For certain industries a regional pattern has been derived for one year and has been held constant for the other years because of a :Lack of information. Thus, only a general analysis based on a single year can be made. Of the period 1953-57, basic information is most complete for 1955, and the subsequent analysis of regional distribution is based on data for that year. In essence the regional distribution of consumption of petroleum products by all industries except the nonferrous metals and manufacturing industries has been effected in accordance with the regional distribution of production (or of the capacity to produce) of the major commodity of that branch. In the complete absence of information concerning the regional distribution of petro- leum ;products consumed by the nonferrous metals and manufacturing industries, the pattern for the regional consumption of lubricants and residual fuel oil is analogous to that described by all other consuming sectors of the civil economy. The consumption of petroleum products by the chemical and steel industries appears to be concentrated in Economic Regions III (South), VII (Central), and VIII (Urals). In these regions is consumed an estimated three-quarters of the annual total for the chemical industry and two-thirds of the annual total for the steel industry. Consumption of petroleum products by the coal industry is centered in Regions III and IX (West Siberia) and by the electric power industry in Regions III, V (Transcaucasus), and VIII. In each case about one-half of the total consumption of petroleum products by the industry takes place in these regions. The estimated regional distribution of petroleum products consumed by the nonferrous metals and manufacturing industries indicates some degree of concentration in Regions V and VI (Volga) but also a nearly equal apportionment in the heavier populated areas, with only insignificant shares in the relatively underdeveloped regions, Ib (North), IX, XI (East Siberia), and XII (Far East). Information concerning the petroleum industry is sufficient to develop an annual regional pattern of consumption. This pattern reflects the well-publicized shift in the center of production of crude oil from Economic Region V to the eastern regions of the USSR (VI, VIII, IX, X, XI, and XII), particularly to Regions VI and VIII. Production of crude oil in the eastern. regions has increased from about 29 million tons, or 45 percent of the total, in 1953 to about 67 million tons in 1957, or 76 percent of the total. Of the crude oil produced in the eastern regions, Regions VI and VIII provided about 76 percent in 1953 and about 90 percent in 1957. As a result of this shift in production the consumption of petroleum products by Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 the petroleum industry in the eastern regions has increased from about 45 percent of the total consumed by the industry in 1953 to more than 64 percent in 1957. In 1953, Regions VI and VIII accounted for about 79 percent of the petroleum products consumed by the petro- leum industry in the eastern regions. By 1957, this figure had in- creased to about 87 percent. In 1955, more than 41 percent of all industrial consump- tion of petroleum products in the USSR took place in the eastern regions, and this proportion compares quite closely with the esti- mated 43 percent consumed in the eastern regions by the civil economy as a whole. Yet -- except in Region III, where the comparison is exact -- the regional distribution of industrial consumption of petroleum products differs from the regional distribution of total civil consumption. Region V, for example, accounted for 18.7 per- cent of the industrial consumption of petroleum products, but less than half that proportion of total civil consumption. Region VII, on the other hand, accounted for only 9.3 percent of industrial con- sumption but nearly twice that proportion of total civil consumption. It is apparent that consumption by industry in the less developed areas of Regions IX, X (Kazakhstan and Central Asia), XI, and XII, which embrace the entire land area east of the Urals, has not kept pace with the consumption in these areas by the other sec- tors of the civil economy. In 1955, Regions IX, X, XI, and XII accounted for about 12 percent of the consumption of petroleum products by all industries but more than 18 percent of the total con- sumed by other sectors of the civil economy. The estimates which are given in Tables 11 through 15* point up the concentration of industrial consumption of petroleum products in the relatively highly developed areas of Regions III, V, and VIII. More than one-half of the industrial consumption of such products in 1955 took place in Region V and, to a lesser extent, in Regions III and VIII. During the Seven Year Plan (1959-65), measurable changes in this pattern may take place. These changes will reflect efforts to supply gas in increasing quantities to the industrial centers of the USSR. The industrial enterprises of the Ukrainian USSR in Region III, particularly those located in the Donbas, are to be supplied with gas from the nearby deposits in Khar'kovskaya Oblast and in Krasnodarskiy and Stavropol'skiy Krays. Production of gas in these areas in 1965 may reach to 40 percent of the planned national goal of about 150 billion cubic meters for that year. The primary consumers of gas in these areas appear to be the electric power stations and heavy metal- lurgical enterprises, and the substitution of gas as an industrial * P. 49 through 53, below. 47 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 fuel for residual fuel oil may serve to reduce the relative consump- tion of petroleum products by industry in the Ukrainian SSR. In Region V, exploitation of the vast Karadag deposits of gas in Azerbaydzhan SSR will significantly alter the fuel balance of the republic and also will influence the fuel balance of the Armenian SSR and the Georgian SSR through the construction of a major transmission gas pipeline to transport Karadag gas from Azerbaydzhan to these republics. According to preliminary calculations, the in- creased supply of gas in Azerbaydzhan SSR will serve to reduce the consumption of residual fuel oil from 2.34 million tons in 1956 to about 700,000 tons in 1960. By 1960, gas will provide more than 90 percent of the supply (in units of standard fuel*) of fuel in Azerbaydzhah SSR compared with only 40 percent in 1956. Inasmuch as most of the gas is to be delivered to such major consumers of petroleum products as crude oil refineries, electric power stations, and machine-construction plants, industrial consumption of petroleum products in Region V probably will decline. At present, plans for supplying gas to the industrial enterprises in Region VIII appear to be in a state of flux. Accord- ing to the original directives of the Sixth Five Year Plan (1956-60) the points of origin of gas for the Urals were to be Shkapovo in Bashkirskaya ASSR and Berezovo on the northern reaches of the Ob' River. Gas pipelines from these points were to terminate in Magnito- gorsk and in Sverdlovsk. Since the publication of these plans, dis- covery of an unusually large natural gas deposit near Bukhara in Uzbek SSR in Region X probably has caused the re-examination of these earlier directives. It is planned tentatively to construct a gas pipeline from the Bukhara deposits through the Kustanayskaya and Aktyub:inskaya Oblasts of Kazakh SSR, also in Region X, which probably will. tie in with the gas pipeline between Shkapovo and Magnitogorsk and may continue on to Sverdlovsk. The problems inherent in the construction of this pipeline would be considerable. The length of the pipeline would be about 2,000 kilometers (km) at a minimum, exceeding by 50 percent the longest gas pipeline previously built in the USSR. In addition, the pipeline would pass through 650 km of desert wasteland and then 1,000 km further through sparsely settled areas of Kazakh SSR. Neither the probability of construction of this pipeline nor the effects of the increased supply of gas on in- dustrial consumption of petroleum products in Region VIII can be ascertained at this time. Because only about 25 percent of the planned production of gas in the USSR in 1965 is to be consumed in the eastern regions and because it is doubtful that gas from Bukhara could be delivered to Region VIII before 1965, it is believed that industrial consumption of petroleum products in Region VIII will re- main relatively stable during the 1960's.** Measured in terms of 7,000 Kcal/kg. Text continued on p. 54. -48- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA7RDP79S01046A000600120008-5 Estimated Distribution of Civil Consumption of Petroleum Products in the USSR by Economic Region and by Consuming Sector a/ 1953 Economic Region J Consuming Sector I II III IV V VI VII VIII IX X XI XII Total Rail I l d t 16 6 29 450 400 450 240 180 25 700 15 5 2,500 n an wa erway O i 38 6 12 2 1 480 320 28 18 9 23 4 940 ceango ng Motor 170 4 0 4 0 0 210 0 0 0 0 0 0 370 750 90 00 1,200 340 290 370 1,600 600 430 710 250 190 6 800 Civil air 11 14 76 34 21 76 160 79 62 90 41 21 , 690 720 1,300 830 920 1,400 2,300 820 540 1,500 330 590 11,700 Agriculture H h ld 330 390 2,000 860 160 870 2,100 800 800 850 390 200 9,800 ouse o 61 65 240 64 100 58 250 90 68 130 37 25 1 200 Construction 360 280 1,100 310 320 450 1,200 640 300 360 190 190 , 5,600 Petroleum 18 0 46 450 810 520 100 440 0 210 0 50 2 700 Chemical 2 0 55 22 9 1 45 46 19 0 0 0 , 200 Coal 5 1 68 17 1 8/ 14 16 20 12 10 7 170 Steel 14o 0 810 120 150 200 330 390 34 71 11 36 2 300 Electric power 120 200 84o 660 1,200 440 590 710 210 480 72 63 , 600 5 Nonferrous metals and manufacturing 33 11 120 98 150 120 92 110 24 93 11 29 , 900 Total 1 320 210 1,900 1,400 2,300 1,300 1,200 1,700 310 870 100 180 11,900 Grand total c/ 1,800 1,400 6,'000 3,400 3,800 4,000 7 000 4 100 2000 1,000 1,200 40,100 a. Estimates of less than 10,000 are expressed in 1 significant digit; those of 10,000 through 9.9 million, in--2' significant digits; and those of 10 million or more, in 3 significant digits. b. The economic regions are those defined on Map 13702 (4-55), USSR: Administrative Divisions and Economic Regions January 1955. c. Totals are derived from unrounded data and do not always equal the sums of the rounded components. d. Negligible. -4+9- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimated Distribution of Civil Consumption of Petroleum Products in the USSR by Economic Region and by Consuming Sector a 195+ Economic Region J I 11 III IV V VI VII VIII IX X XI' XII Total c Consuming Sector Transport Rail 17 6 31 510 400 520 140 130 18 890 18 26 6 4 2,700 1 000 Inland waterway 45 6 16 3 1 510 340 31 21 0 10 0 0 400 , 840 Oceangoing 200 0 0 0 240 0 0 0 0 2 220 8 200 Motor 580 500 1,500 390 340 430 1,800 710 510 910 9 46 23 , 770 Civil air 12 15 85 39 23 85 190 89 70 100 5o 0 600 1 44o x 000 1 500 2,500 260 620 1,900 380 650 13,500 Total J L 5 . , , riculture A 340 490 2,000 940 190 930 2,400 900 960 1,100 450 220 10,900 4 g Household 74 78 290 77 120 70 300 no 83 160 45 30 00 1, Construction 400 320 1,300 330 320 580 1,300 710 360 390 230 230 6,500 Industry Petroleum 18 0 54 480 860 640 110 540 0 230 0 55 0 3,000 210 Chemical 2 0 60 22 9 1 46 48 19 0 0 11 180 Coal 6 J 73 18 1 J 15 17 22 13 6 7 500 2 Steel 140 0 910 130 150 210 350 410 36 12 7 81 4 39 2 , 400 6 Electric power 140 220 960 760 1,400 500 660 820 230 8 0 5 7 , 1 200 Nonferrous metals and manufacturing 42 12 160 140 220 170 120 150 2 120 12 39 , 230 200 2 1600 2 600 1500 1300 2 000 340 980 120 210 13,500 Total J , , 2 000 400 7 800 3 4,300 4600 y WO 4,700 2, 4,500 1,200 1,300 45,800 Grand total J , , , a. Estimates of less than 10,000 are expressed in 1 significant digit; those of 10,000 through 9.9 million, in 2 significant digits; and those of 10 million or more, in 3 significant digits. b. The economic regions are those defined on Map 13702 (4-55), USSR: Administrative Divisions and Economic Regions, January 1955. c. Totals are derived from unrounded data and do not always equal the sums of the rounded components. d. Negligible. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA;RDP79S01046A000600120008-5 Table 13 Estimated Distribution of Civil Consumption of Petroleum Products in the USSR by Economic Region and by Consuming Sector a/ 1955 Consuming Sector I II III IV V VI VII VIII Ix X XI XII Total J Rail 18 7 34 570 450 580 90 87 27 1,100 21 6 3,000 Inland waterway 44 5 18 3 1 570 380 33 19 10 26 6 1 100 Oceangoing 230 0 0 0 310 0 0 0 0 0 0 430 , 970 Motor 650 600 1,700 440 380 490 2,100 800 580 1,100 330 250 9 500 Civil air 12 17 92 42 25 91 200 96 75 110 50 25 , 830 950 630 1800 1100 1,200 1,700 2,800 1,000 700 2,300 430 720 15,400 Agriculture 370 530 2,100 990 180 980 2,400 930 1,100 1,500 520 230 11,900 Household 80 89 330 87 140 97 350 120 94 180 51 35 1 600 Construction 470 360 1,300 360 320 750 1,500 780 450 550 280 240 , 7,300 Petroleum 18 0 44 440 820 1,000 94 870 0 250 0 49 3,600 Chemical 3 0 66 22 9 1 47 49 19 0 0 0 220 Coal 6 d1 79 20 1 J 16 19 24 14 12 8 200 Steel 160 0 1,000 11+0 190 220 380 440 39 80 13 43 2,700 Electric power 150 250 1,000 810 1,500 540 730 890 250 590 89 79 6,900 Nonferrous metals and manufacturing 48 13 180 160 260 200 130 180 30 140 12 45 1,400 Total J 380 260 2,400 1,600 2800 2,000 1,400 2,400 360 1100 130 220 15,000 Grand total 2 200 900 8,100 4 100 4,600 5,500 8,400 5,300 2,700 5,700 1,400 1 51,300 a. Estimates of less than 10,000 are expressed in 1 significant digit; those of 10,000 through 9.9 million, in 2 significant digits; and those of 10 million or more, in 3 significant digits. b. The economic regions are those defined on Map 13702 (4-55), USSR: Administrative Divisions and Economic Regions January 1955. c. Totals are derived from unrounded data and do not always equal the sums of the rounded components. d. Negligible. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Table 14 Estimated Distribution of Civil Consumption of Petroleum Products in the USSR by Economic Region and by Consuming Sector J 1956 Economic Re on J S t I II III IV V VI VII VIII IX X XI XII Total 1 ec or Consuming Rail 120 7 36 630 560 650 260 47 28 1,+00 25 6 3,800 Inland waterway 59 6 20 5 1 580 390 43 26 15 33 8 1,200 Oceangoing 260 0 0 0 390 0 0 0 0 0 0 460 1,100 Motor 720 700 2,000 500 410 560 2,400 920 650 1,500 370 280 10,900 Civil air 13 17 93 42 25 93 200 97 76 110 50 25 840 1,200 7M0 2,100 1,200 1,400 1,900 3,200 1,100 L 3,000 480 n 17,800 Agriculture 360 680 2,200 960 210 920 2,300 880 1,100 1,900 720 250 12,400 Household 100 110 390 110 170 96 420 150 110 220 62 42 2,000 Construction 470 270 1,300 360 330 700 1,400 1,100 730 860 580 270 8,300 Petroleum 20 0 55 500 900 1,200 110 1,100 39 280 0 57 4,300 Chemical 3 0 71 22 10 1 48 54 19 0 0 0 230 Coal 6 J 86 21 1 1 ~ 17 20 26 15 13 9 210 Steel 170 0 1,100 140 220 240 390 470 42 80 14 48 2,900 Electric power 160 270 1,100 890 1,600 590 800 970 280 650 98 86 7,600 Nonferrous metals and manufacturing 45 16 160 130 200 160 130 150 34 120 16 41 1,200 t l J 400 290 2600 1 700 2,900 2,200 1.500 2,800 440 1100 140 240 16,400 a To , Grand total c/ 2,500 2,100 4,300 5.100 5,800 8, 5 J 3. LIDO 210 l. 5 a. Estimates of less than 10,000 are expressed in 1 significant digit; those of 10,000 through 9.9 million, in 2 significant digits; and those of 10 million or more, in 3 significant digits. b. The economic regions are those defined on Map 13702 (4-55), USSR: Administrative Divisions and Economic Regions, January 1955. c. Totals are derived from unrounded data and do not always equal the sums of the rounded components. d. Negligible. Approved For Release 1999/09/08 : CIA-RDP79Sd1046A000600120008-5 Approved For Release 1999/09/08 : CIA;RDP79S01046A000600120008-5 Table 15 Estimated Distribution of Civil Consumption of Petroleum Products in the USSR by Economic Region and by Consuming Sector a/ 1957 Economic Region J Consuming Sector I II III IV V VI VII VIII IX X XI XII Total J Rail I l t d 420 9 39 680 600 740 610 200 29 1,600 27 6 5,000 n an wa erway O i 100 11 38 10 1 680 450 76 44 24 59 14 1,500 ceango ng M t 280 0 0 0 440 0 0 0 0 0 0 470 1 200 or o Ci i l 830 810 2,300 580 470 640 2,700 1,100 750 1,700 430 320 , 12,600 vi a r 13 18 98 45 34 98 280 100 110 150 71 27 1,000 Total c/ 1,600 850 2,500 1,300 1,500 2,200 4,000 1,500 930 3,500 590 840 21,300 Agriculture H h ld 380 700 2,300 950 200 940 2,400 910 1,200 2,000 550 240 12,800 ouse o C t ti 120 130 470 130 200 120 500 180 140 270 74 50 2,400 ons ruc on 490 230 1,200 360 310 76o 1,400 1,400 960 1,100 820 300 9,300 Industry Petroleum 30 0 66 560 1 000 1 500 1 20 1 300 4 Chemical , , . , 5 310 0 65 5,000 C 3 0 J 79 22 10 1 49 57 19 0 0 0 240 oal 7 ~ .l 92 23 1 J 18 22 28 16 14 9 230 Steel El t i 180 0 1,100 150 260 250 400 480 43 83 15 51 3,000 ec r c power f N 180 290 1,200 960 1,800 640 870 1,000 300 700 110 93 8,200 on errous metals and manufacturing 45 16 160 130 200 160 130 150 34 120 16 41 1,200 Total J 440 310 2,700 1,800 3,300 2,600 1,600 3000 470 1,200 160 260 17,900 Grand total c/ 3,100 2,200 9 200 4 600 5 500 6,500 10,000 6 900 3 600 8100 2,200 1,700 63,800 a. Estimates of less than 10,000 are expressed in 1 significant digit; those of 10,000 through 9.9 million, in 2 significant digits; and those of 10 million or more, in 3 significant digits. b. The economic regions are those defined on Map 13702 (4-55), USSR: Administrative Divisions and Economic Regions January 1955. c. Totals are derived from unrounded data and do not always equal the sums of the rounded components. d. Negligible. - 53 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 C. By Major Type of Product. Tables 16 through 21* show the estimated distribution of civil consumption of the major types of petroleum products in the USSR, by economic region and by consuming sector, for the years 1953-57. These major products are gasoline, kerosine, diesel fuel, lubricants, re- sidual fuel oil, and road oils and asphalts. Although road oils and asphalts were consumed only in construction, the volume of such con- sumption is of major proportions, exceeding that of lubricants in each year and that of kerosine in 1957. 1. Gasoline.** Because in the USSR gasoline is consumed primarily by motor transport, the pattern of regional distribution is in essence an extension of the pattern of consumption of gasoline by motor trans- port. In 1953, civil consumption of gasoline in Economic Re- gions III (South) and VII (Central) accounted for 3.4 million tons, or 40 percent of the total. In 1957, civil consumption of gasoline in these two regions accounted for about 5.4 million tons, or 37.8 percent of the total. Of the individual regions, Region VII has con- sistently received the largest share, with consumption of gasoline increasing from 1.9 million tons in 1953 to 3 million in 1957. The highest rate of increase, 120 percent, took place in Region X as the result of the development of motor transport in support of the new lands program. In contrast to the apparent general shift in consumption of petroleum products to the eastern regions of the USSR, there has been no perceptible change in the regional distribution of gasoline. Both in 1953 and in 1957 the eastern regions accounted for about 40 percent of the total consumption of gasoline. On the basis of a link relative obtained from a So;tiet source, it can be'estimated that the civil consumption of motor gasoline in the USSR may reach 30 million tons by 1965. Of this quantity, probably 18 million to 19 million tons will be consumed in the European USSR and the remaining 11 million to 12 million tons in the eastern regions. Although data are not sufficient to allow speculation concerning the amount of aviation gasoline to be consumed in 1965, it is probable that the proportion of aviation gasoline Tables 16 through 21 follow on pp. 60 through 75. Data include those amounts of aviation. gasoline consumed by civil air transport. 54 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 consumed in the western regions will be higher than the proportion of motor gasoline. On the basis of a given regional distribution of all petroleum fuels in the USSR in 1965, the share of the eastern regions in the total consumption of motor gasoline will not change significantly from that in 1957. 2. Kerosine. The category kerosine includes illuminating kerosine consumed by households, tractor kerosine, and those quantities of kerosine consumed as a jet fuel by civil air transport in 1957. Kerosine is the only major petroleum product the con- sumptio;i of which apparently has declined in the USSR since 1953. This decline, which averaged about 1.8 percent annually, resulted from the wide-scale replacement of kerosine-burning tractors by more efficient diesel tractors in virtually all phases of the civil economy. The resultant decline in requirements for tractor kerosine more than offset the apparent doubling of consumption of illumi- nating kerosine and the additional quantities of kerosine required by the introduction of jet aircraft. The estimated consumption of kerosine declined from a peak of 5.9 million tons in 1954 to 5.4 million tons in 1957, a reduction of about 8.5 percent. The sharpest absolute declines took place in Economic Regions VII (Central) and VIII (Urals), where the consumption of kerosine declined from a peak of 2.4 million tons in 1954 to 1.8 million tons in 1957. The consumption of tractor kerosine declined from 1.4 million to 1 million tons in Region VII and from 430,000 tons to negligible quantities in Region VIII, but a portion of these declines were offset by increases in the consumption of illuminating kerosine totaling 270,000 tons. Further reductions in the consumption of tractor kero- sine in the USSR are anticipated. It has been estimated that the consumption of tractor kerosine in 1965 will decline to about 1.4 million tons, or only 37 percent of the level in 1955.* Of this quantity, about 30 percent is expected to be consumed in the eastern regions, and thus the pattern of regional consumption of tractor kerosine in 1957 would be continued. The consumption of tractor kerosine in the eastern regions in 1957 reached slightly more than 30.4 percent of the total, a significant decline from the 37.6 per- cent estimated for 1953 and from the 36.8 percent estimated for 1955. Thus it would appear that the pattern of regional distribution of the tractor kerosine consumed in the USSR is to remain stable at least through 1965. 4V-See II, B, p. 21, above. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Two other factors also serve to indicate that the pattern of regional distribution of civil consumption of kerosine in the USSR in 1965 will not differ significantly from that in 1957, when the eastern regions accounted for 33 percent of the total. First, the regional distribution of illuminating kerosine is expected to remain relatively stable. Second, a Soviet source indicates that the pat- tern prevailing in 1957 will continue in 1965 in the regional distri- bution of "other fuels," which are believed to include aviation gaso- line, illuminating kerosine, and jet fuel. 3. Diesel Fuel. The rates of increase estimated for the civil consumption of diesel fuel in the USSR during 1953-57 far exceeded those of any other major petroleum product. Civil consumption of diesel fuel in- creased at an average annual rate estimated at 19.8 percent, reaching 16.3 million tons in 1957. The second highest rate of increase, 12 percent, was estimated for road oils and asphalts. Agriculture not only continued as the leading civil con- sumer of diesel fuel in the USSR but increased its share from 3.7 million tons, or about 4+7 percent of the total, in 1953 to 8.:L mil- lion tons, or almost 50 percent, in 1957. The influence of agriculture on civil consumption of diesel fuel is particularly evident in Economic Regions III (South), VII (Central), and X (Kazakhstan and Central Asia), which together account for more than one-half of the total. In 1957, agriculture accounted for almost two-thirds of the estimated civil consumption of diesel fuel in Economic Region III, a larger share than in any other economic region. In Region VII, agriculture accounted for about one-half of the civil consumption of diesel fuel in 1957. The largest absolute gains in the consumption of diesel fuel by agriculture, however, were shown in Reg:Lon,X, where the new lands program served to increase consumption from 530,000 tons in 1953 to 1.7 million tons in 1957. Inasmuch as total civil consumption of diesel fuel in Region X increased from 1 million tons in 1953 to 2.9 million tons in 1957, agriculture was responsible for more than 60 percent of the increment. If comparable increases continued throughout 1959, Region X probably exceeded Region III in the consump- tion of diesel fuel by agriculture. The sharpest relative increase, however, occurred in Region XI (East Siberia), where consumption of diesel fuel in 1957 represented an increase estimated at 31`5 percent compared with 1953. Most of this increase resulted from new construction and, to a, lesser degree, from the impact of the new lands program on requirements for - 56 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 diesel fuel. Since 1953 the consumption of diesel fuel in construc- tion in Region XI has increased by about 400 percent; consumption by agriculture, by 900 percent; and consumption by transport, by more than 500 percent. Steady gains in the consumption of diesel fuel have been achieved in the eastern regions of the USSR, which accounted for 42 percent of the total in 1953 and 51 percent in 1957. Available information does not imply any change in this pattern, at least through 1965. 4. Lubricants. The estimated distribution by economic region of the civil consumption of lubricants in the USSR parallels closely the patterns of the major primary fuels, gasoline, kerosine, and diesel fuel. Again, civil consumption was concentrated in Economic Regions III (South), VII (Central), and X (Kazakhstan and Central Asia), which together accounted for about 46 percent of the total civil consumption of lubricants. In 1957 the consumption of approximately one-half million tons of lubricants both in Region III and also in Region VII represented an increase of about 34 percent above the level of 1953 in each region. The highest rate of increase, slightly more than 100 percent, occurred in Region X as a result of expansion of agriculture, transport, and construction. The estimates shown in Table 19* indicate that the share of the eastern regions in the civil consumption of lubricants reached a peak in 1956 of about 44 percent of the total and maintained the same level throughout the year 1957. Available information indicates relative reductions in the consumption of lubricants in the eastern regions through 1965. In 1965 the consumption of lubricants in the eastern regions is expected to account for only 40 percent of the total lubricants consumed in the USSR in that year. The principal reason for this decline probably will be the relative increase in consumption of lubricants by industry to 53.3 percent of the total in 1965.** The total consumption of lubricants in the USSR in 1965 may range between 7 million and 8 million tons, of which 3 million tons may be consumed in the eastern regions. 5. Residual Fuel Oil. The USSR consumes more residual fuel oil than any other type of petroleum product. Civil consumption of residual fuel oil , below. See II, E, 6, p. 31, above. - 57 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 increased from 11.8 million tons in 15153 to 18.1 million tons in 1957, a gain of about 53 percent. The principal consumers of residual fuel oil in the USSR are the railroads and the petroleum, steel, and electric power indus- tries. Although consumption of residual fuel oil by these four sec- tors varies in the different economic regions, the total civil con- sumption of residual fuel oil in most of the economic regions is rela- tively stable. In most of the regions, civil consumption of residual fuel oil averaged between 9 to 15 percent. Civil consumption of residual fuel oil in Region V (Transcaucasus) has averaged about 21 percent of the total for the USSR, the largest share of any region, because of the relatively high concentration of electric power sta- tions burning residual fuel oil. Region V also has shown the highest absolute increase in consumption, 1.2 million tons, of which the elec- tric power industry accounted for one-half. Most of the remainder is attributable to increased consumption by transport and by the petro- leum industry. The highest relative gains, however, took place in Region VIII (Urals). Civil consumption of residual fuel oil in Region VIII in 1957 represented a gain of about 67 percent over 1953, largely because of expansion of the petroleum industry. In the same period, Region X (Kazakhstan and Central Asia) showed an increase of 64 percent in such consumption, almost wholly as the result of an unusually sharp increase in the consumption by rail transport. The relative share of the eastern regions in the total civil consumption of residual fuel oil in. the USSR also has remained substantially unchanged during 1953-57 at 41 to 43 percent. In cer- tain sectors, such as the petroleum industry, emphasis on the eastern regions in the consumption of residual fuel oil had been apparent, but these trends have been offset by comparable increases in consump- tion in the European USSR by other sectors, notably the electric power industry. It can be estimated that in 1965 the quantity of residual fuel oil produced from the refining of natural and synthetic crude oils in the USSR may reach to 67 million tons. Because of the rapid development of the gas industry and the trend toward the substitution of gas for residual fuel oil, there may be a sizable surplus of re- sidual fuel oil in the USSR by 1965. In all probability this surplus will be directed primarily to meet the growing needs for residual fuel oil in. the countries of Northern Europe. 6. Road Oils and Asphalts. Construction has accounted for all the consumption of road oils and asphalts in the USSR. The consumption of road oils and - 58 - Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 asphalts has increased since 1953 at an average annual rate estimated at 12 percent, reaching 5.5 million tons in 1957 and representing about 60 percent of all the petroleum products consumed in construc- tion. As in the case of all petroleum products, emphasis on the eastern regions in the consumption of road oils and asphalts has been particularly evident in recent years. In 1953 the consumption in the eastern regions represented about 38 percent of the total and advances were slow through 1955, when the share of the eastern re- gions amounted to about 42 percent of the total. In 1956 and 1957, however, consumption in the eastern regions increased at a consider- ably higher rate than in the European USSR, and the share of the eastern regions in 1957 has been estimated at more than 57 percent of the total. Impressive gains in the consumption of road oils and asphalts have been made in Regions VIII (Urals), IX (West Siberia), and X (Kazakhstan and Central Asia), whereas in Regions III (South) and VII (Central), where requirements for road oils and asphalts are more established, consumption has been relatively stabilized. The level of technology which has been achieved in the USSR in the construction and operation of crude oil refineries is approaching that of the US. Thus, it may be calculated that, with an estimated refinery charge of 200 million tons in 1965, the yield of road oils and asphalts in the USSR may approach 5 percent, or 10 million tons. In the absence of conflicting data the distribution between the eastern regions and the western regions of this amount may parallel that for petroleum products as a whole.* * Text continued on p. 76. - 59 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimated Distribution of Civil Consumption of Gasoline in the USSR by Economic Region and by Consuming Sector a* 1953-57 Year Consuming Sector I 22 III IV V VI VII VIII ix x XI XII Total 8 1953 Transport Motor Civil air Agriculture Construction 450 370 1,100 310 270 340 1,400 550 400 650 230 170 6,300 10 14 75 34 20 75 160 78 61 89 51 20 680 460 380 11,200 340 420 1,60 0 630 460 740 270 190 77,000 15 32 130 65 11 75 160 730 75 76 48 28 8 16 13 51 14 15 21 54 30 14 17 9 9 260 Industry Petroleum d, 1 Electric power 12 Total c/ Grand total 1954 Transport Motor Civil air Agriculture Construction Petroleum J Electric power Total C/ Grand total 0 31 31 460 1 13 28 21 1 18 0 9 0 1 95 89 22 17 20 77 24 22 45 12 5 370 9a 35 45 41 78 42 22 54 12 6 460 1,500 460 360 5m0 L200 780 570 860 320 220 8 Spo 54o 460 1,400 360 310 400 1,700 650 470 840 12 15 85 38 23 85 180 88 69 100 550 480 1,500 400 330 480 1,900 740 540 940 16 34 120 67 9 82 180 85 96 54 17 13 52 14 13 24 56 29 15 17 1 0 1 13 13 34 95 23 14 24- 9? 36 600 560 100 520 27 18 too 29 21 50 640 260 200 7,600 46 23 770 310 220 8,400 33 9 780 9 9 270 1 23 0 10 0 2 110 82 25 23 49 12 5 400 83 48 23 59 12 1 510 22200 900 670 l1,IW 360 250 9,900 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Table 16 Estimated Distribution of Civil Consumption of Gasoline in the USSR by Economic Region and by Consuming Sector a 1953-57 (Continued) Year Consuming Sector I I1 III IV V VI VII VIII IX X XI XII Total 5 1955 Transport Motor 600 560 1,600 410 350 450 1,900 740 530 1,000 300 230 8,700 Civil air 12 17 91 42 25 91 200 95 75 110 50 25 830 Total c/ 610 58 1,700 450 380 5!+0 2,100 840 600 1,100 350 260 9,500 Agriculture 15 43 120 71 12 89 170 93 110 130 37 10 900 Construction 15 12 48 12 11 26 53 28 16 19 10 9 260 Industry Petroleum J 1 0 1 12 27 43 1 29 0 10 0 2 Electric power 14 36 100 25 19 23 88 27 25 52 13 5 Total c/ 1 36 100 37 46 66 89 56 25 62 13 7 Gram total c/ 660 670 1,900 570 440 Igo 2,400 1,000 760 X400 410 280 1956 Transport 130 430 Motor 660 650 1,800 470 380 510 2,200 850 600 1,400 340 260 10,100 Civil air 12 17 92 42 25 92 200 96 75 110 50 25 840 Total J 670 670 X900 510 400 600 2,400 950 680 11,500 390 280 10,900 Agriculture 13 44 110 64 11 83 160 85 110 170 39 10 890 Construction 14 8 38 11 10 21 42 33 22 25 17 8 250 Industry Petroleum J 1 0 1 13 28 55 1 38 0 11 0 2 150 Electric power 15 39 110 27 21 24 94 29 27 56 14 6 460 Total c/ ~2 16 110 4o 72 1 67 27 67 14 8 610 Grand total c 750 21200 620 470 0 2,700 1,100 830 1700 460 310 12,700 61 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimated Distribution of Civil Consumption of Gasoline in the TT.SSR by Economic Region and by Consuming Sector a/ 1953-57 (Continued) Year Consuming Sector I II III IV V VI VII VIII IX X Xi XIS Total 6 1957 Transport Motor 760 750 2,100 540 440 590 2,500 1,000 690 1,600 390 300 11,600 Civil air 13 18 98 44 27 98 210 100 80 120 53 27 890 Total c/ 70 2,200 580 470 m 2,7- 1,100 770 1,700 440 330 12,500 Agriculture 13 41 100 59 10 77 150 80 110 170 28 10 840 Construction 12 5 29 9 7 18 34 32 23 27 ~9 7 220 Industry Petroleum J 2 0 2 13 29 68 1 47 0 12 0 2 180 Electric power 16 41 120 28 22 26 100 31 28 sn 1c c i..... Total 6/ 18 41 120 41 51 9 100 78 28 71 15 8 670 Grand total 6/ 820 850 2, 66 530 880 3,300 _1,300 30 1=30 510 350 14,300 a. Estimates of less than 10,000 are expressed in 1 significant digit; those of 10,000 through 9.9 million, in 2 significant digits; and those of 10 million or more, in 3 significant digits. b. Economic regions are those defined on Yap 13702 (4-55), USSR: Administrative Divisions and Economic Regions, January 1955. c. Totals are derived from unrounded data and do not always equal the sums of the rounded components. d. Data exclude those insignificant quantities consumed in the construction and repair of the trunk pipeline. Approved For Release 1999/09/08 : CIA-RDP79SI31046A000600120008-5 - Approved For Release 1999/09/08 : CIA-RDP79SQ1046A000600120008-5 Estimated Distribution of Civil' Consumption of Kerosine in the USSR by Economic Region and by Consuming Sector a/ 1953-57 Economic Region J V VI VII VIII IX X XI XII Total 9. Year Consuming Sector I II III IV 1953 Agriculture 280 200 390 460 82 460 1,400 420 150 210 320 170 4,600 0 68 130 37 25 1,200 8 2 0 Households 61 65 240 64 9 100 5 5 0 200 5, 700 510 220 3110 35 180 510 1 Total J 3140 260 620 520 , - 1954 Agriculture 280 250 170 460 95 450 1,600 430 130 33 370 190 4,500 00 110 83 160 45 30 1,400 Households 74 78 290 77 120 70 3 4 900 540 210 190 410 220 5,900 0 1 220 5 Total J 360 320 460 0 5 , 2 1955 Agriculture 300 260 58 480 50 460 1,300 250 76 40 420 190 3,900 120 94 180 51 35 1,600 Households 80 89 330 87 140 79 350 Total J 380 350 280 570 W 540 1,600 370 LLO 220 470 230 5,500 1956 Agriculture 300 340 50 420 63 300 1,100 21 27 25 510 210 3,400 0 110 220 62 42 2,000 1 4 Households 100 110 390 110 5 20 170 96 Total cJ 100 ! 440 5 230 3M0 1,600 170 140 ~5-0 570 2 5,400 1957 Civil air transport dJ 0 0 0 0 7 0 62 0 25 35 18 0 150 190 000 1 4 20 6 37 4 Agriculture 1 330 43 0 4 13300 , 00 2, 7 4 500 180 140 270 120 200 Households s 20 7 4 600 200 180 340 460 250 5,4~ o 370 1 2 Total c/ 440 460 2 3-0 , i those it di ; g Estimates of less than 10,000 are expressed in 1 significant onstruction d i a. . n c Data exclude the insignificant amounts consume of 10,000 or more, in 2 significant digits. b. Economic regions are those defined on Map 13702 (4-55), USSR: Administrative Divisions and Economic Regions, January 1955. c. Totals are derived from unrounded data and do not always equal the sums of the rounded components. d. Jet fuel. - 63 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimated. Distribution of Civil Consumption Of Diesel Fue! in the USSR by Economic Region and by Consuming Sector a/* 1953-57 Economic Region J Year Consuming Sector I II III IV V VI VII VIII Di X XI XII Total J 1953 Transport Rail Inland waterway Oceangoing Motor 9 35 o 1 5 3 13 46 1 4 0 39 39 87 4 0 59 17 9 6 7 0 4 5 130 2 8 0 5 3 0 i 720 220 180 176 46 6 16 50 42 130 76 22 9 140 8 73 620 Agriculture Construction ?99 1330 1,300 340 270 6 59 8 7270 340 250 520 530 11 6 700 3 9 9 140 36o 200 93 110 60 60 , 1,800 Petroleum Coal 3 0 2 42 94 72 4 60 0 31 0 5 El t i 1 4 O 1n 3 0 2 2 3 2 2 310 - ec r c power 9 130 360 87 8 79 310 95 87 180 47 1 19 25 1,500 Total / 160 320 160 90 230 49 25 loo Grand total 220 340 2 100 550 360 690 1 100 630 , 710 1000 130 160 7 goo 1954 Transport Rail Inland t 0 0 0 50 0 53 0 10 0 170 3 wa erway Oceangoing 17 41 2 0 6 0 1 0 d/ 9 98 0 66 12 8 4 10 0 2 280 230 Motor 7 6 17 5 4 0 0 0 0 0 83 170 5 21 8 6 10 3 3 96 22 56 53 160 87 30 14 180 16 87 780 Agriculture Const ti 12 170 1,600 340 69 330 390 320 670 900 15 8 4 ruc on 130 110 410 110 110 190 440 230 120 130 74 74 ,800 2,100 - 64 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 - Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 Estimated Distribution of Civil Consumption of Diesel Fuel in the USSR by Economic Region and by Consuming Sector aJ 1953-57 (Continued) Economic Region J V VI VII VIII IX X XI XII Total J Year Consuming Sector I II III N 1954 Industry Petroleum 3 0 2 42 91 96 4 78 0 4 32 0 2 5 1 350 31 Coal 1 0 12 3 J 0 2 3 8 2 21 700 1 Electric power 55 140 400 98 77 89 350 110 9 210 53 , Total c/ 59 140 410 140 130 180 360 1L0 100 2140 55 3 2,100 Grand total c/ 270 430 2,400 650 400 860 1,300 760 1,500 160 200 9,8a 1955 Transport ail F 0 0 0 65 0 68 0 13 0 310 4 0 4 460 00 l nd waterway l I 28 3 11 2 J 110 77 21 12 6 17 3 40 n a oin O 55 0 0 0 76 0 0 0 0 0 0 100 2 ceang g Motor 8 8 20 5 4 6 25 10 7 13 4 3 110 80 190 100 43 is 330 25 ii0 111100 Total J 22 it 31 7 lture i A 17 190 1,800 360 100 350 770 520 860 1,200 23 10 6,300 4 cu gr Construction 140 120 450 120 110 250 490 260 150 180 92 80 00 2, Industry le P t l 39 140 4 98 0 34 0 6 420 vm eum o e ro 0 15 4 d 0 3 3 4 3 2 1 36 Electric power 62 1 160 450 110 86 100 390 120 110 230 59 24 1,900 4 180 240 400 220 110 270 61 31 2,400 Total J 66 160 70 0 48 2 800 10 470 000 800 1 000 1 1.101) 2,000 250 Z30 12,200 Grand total J 320 0 , 1 , , 1956 Transport Rail 0 o 0 62 0 82 37 22 0 360 7 0 580 0 Inland waterway 43 5 15 4 1 130 85 32 19 11 24 6 37 00 oin an O 69 0 0 0 100 0 0 0 0 0 0 120 3 4 g ce g Motor 9 9 25 6 5 7 30 12 8 19 5 4 1 0 110 210 Do 65 27 390 36 130 1,400 Total c/ 120 14 29- 72 - - 65 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimated Distribution of Civil Consumption of Diesel Fuel in the USSR by Economic Region and by Consuming Sector a/ (Continued) Economic Re ion b Year Consuming Sector I II III IV V VI VII VIII IX x xi XII Total 1956 Agriculture Const cti 13 16 240 1,900 400 120 480 820 710 900 1,500 120 12 7 200 ru on 0 93 440 130 110 240 500 390 250 300 200 96 , 2,900 Industry Petroleum 4 0 5 42 93 190 4 130 0 36 0 7 500 Coal 0 17 4 1 0 3 4 5 3 2 2 41 Electric power 68 180 500 120 95 110 430 130 120 250 65 26 2,100 Total 1 71 180 520 170 120 300 440 260 120 230 67 35 ?600 Grand total J 370 G20 2,900 770 530 200 900 1,?00 1_,300 2,500 430 280 1 1957 Transport Rail Inland t 0 64 1 0 71 0 120 110 25 0 490 8 0 820 wa erway Oceangoing 83 7 0 23 0 6 0 1 130 150 0 100 0 47 0 27 0 15 0 36 0 149 490 Motor 11 11 30 8 6 8 36 14 10 22 6 y 4 170 Total 160 18 1 140 280 86 37 530 50 160 11800 Agriculture Co t ti 21 8 280 8 2,000 520 170 550 1,100 750 980 1,700 110 28 8 100 ns ruc on 1 0 2 450 130 110 280 520 500 350 420 300 110 , 3,400 Industry Petroleum Coal 6 1 0 6 42 96 230 5 160 0 39 0 7 590 Electric o 0 19 5 1 0 4 4 6 3 3 2 47 p wer 75 190 540 130 100 120 470 150 130 270 72 29 2,300 Total c/ 82 190 560 180 200 350 480 310 140 310 75 38 2,900 Grand total J 440 570 33,00 920 620 1,500 2,300 1,600 1,500 2,900 540 130 16300 a. Estimates of less than 10,000 are expressed in 1 significant digit; those of 10,000 through 9.9 million, in 2 significant digits; and those of 10 million or more, in 3 significant digits. b. Economic regions are those defined on Map 13702 (4-55), USSR: Administrative Divisions and Economic Regions January 1955. c. Totals are derived from unrounded data and do not always equal the sums of the rounded components. d. Negligible. - 66 - Approved For Release 1999/09/08 : CIA-RDP79Sb1046A000600120008-5 Approved For Release 1999/09/08 : CI4-RDP79SO1046A000600120008-5 Estimated Distribution of Civil Consumption of Lubricants in the USSR by Economic Region and by Consuming Sector a 1953-57 Economic Region E V VI VII VIII IX X XI %II Total c/ Year Consuming Sector I II III IV 1953 Transport Rail 16 6 29 8 3 13 36 21 25 22 15 4 5 1 200 60 Inland waterway 7 1 2 J 20 14 5 3 2 0 37 75 oin an o l7 0 0 0 20 0 0 0 0 0 6 2 450 g g ce Motor 32 26 82 22 19 25 100 39 29 47 1 1 72 33 150 30 43 58 150 66 57 70 L5- 25 790 riculture A 27 29 140 66 12 66 170 61 56 61 6 31 17 3 730 96 g Construction 6 5 19 5 5 8 20 u 5 3 Petroleum 0 J 4 15 ll 1 9 0 5 0 1 6 50 140 coal 58 1 1 J 12 14 17 10 9 Nonferrous metals and manufacturing 12 8 34 13 8 16 37 17 15 21 9 9 200 Total J 16 8 92 34 24 27 50 40 32 36 18 16 390 0 14a 90 160 180 150 170 87 91 2, 000 Grand total J 120 75 35 1954 Transport 6 200 Rail 17 6 31 8 3 14 38 22 18 22 15 4 1 64 Inland waterway 7 1 3 1 dl 22 15 5 4 2 40 85 oceangoing 20 0 0 0 0 0 0 0 o 6 0 1 14 540 Motor 39 33 97 26 22 29 120 47 34 0 9 40 130 35 42 64 180 74 55 84 32 61 890 riculture A 27 37 140 71 14 70 190 67 67 73 36 4 18 4 810 110 g Construction 7 6 22 6 6 10 23 12 6 7 - 67 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Table 19 Estimated Distribution of Civil Consumption of Lubricants in the USSR by Economic Region and by Consuming Sector a E 1953-57 (Continued) Economic Region J Year Consuming Sector V VI VII VIII Ik x XI XII 1954 Industry Petroleum d/ 0 7 15 15 l2 0 5 0 Coal 5 J 15 1 21 12 14 1 Nonferrous metals and manufacturing 12 8 34 13 8 16 37 17 15 21 9 9 Total c/ 95 35 24 31 50 43 33 37 18 16 Grand total c/ 390 iL 93 170 430 200 160 200 97 98 1955 Transport Rail 18 7 34 9 3 15 41 24 27 24 1 6 Inland waterway O 3 1 1 23 16 6 3 2 7 1 ceangoing t 23 L 0 0 0 32 0 0 0 0 0 5 0 4 or Mo 3 ~n llo 29 25 32 140 53 38 74 22 5 17 93 I7 150 61 71 200 83 69 100 43 68 Agriculture Con t ti 30 40 150 75 13 73 180 67 77 110 42 1 s ruc on 7 6 23 6 6 13 26 13 8 9 5 9 4 Industry P etroleum Coal 1 5 0 J 1 64 6 16 15 1 23 1 16 0 5 0 1 Nonferrous metals 13 15 19 11 10 6 and manufacturing 12 8 34 13 8 16 37 17 15 21 9 9 Total c/ 18 99 35 24 39 2-1 3!+ 37 19 16 Grand total 150 100 420 100 200 210 250 110 110 Total J 57 200 410 2,200 230 68 100 620 11000 870 130 Approved For Release 1999/09/08 : CIA-RDP79Sb1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimated Distribution of Civil Consumption of Lubricants in the USSR by Economic Region and by Consuming Sector a 1953-57 (Continued) Economic Region J III IV V VI VII VIII IX X XI XII Total J Year Consuming Sector I II 1956 Transport Rail 19 7 36 9 3 16 4 3 25 28 26 18 6 240 Inland waterway 9 1 3 d 1 6 1 6 4 2 1 4 72 120 Oceangoing 27 0 0 0 40 0 0 0 0 0 0 9 Motor 47 46 130 33 27 37 160 61 43 98 24 19 720 4 1 0 43 68 73 220 92 75 130 47 75 X200 5 7 Agriculture 52 150 72 15 67 170 59 75 130 57 20 900 1 0 Construction 5 22 6 6 12 25 20 13 15 10 5 5 Petroleum 1 0 1 7 15 30 1 20 0 6 o 1 80 170 coal 5 a/ 69 17 1 J 14 16 21 12 10 7 Nonferrous metals and manufacturing 18 13 52 19 13 24 56 26 23 31 13 13 300 Total c/ 24 D- 120 29- 54 71 62 44 49 23 2L 550 t t l J 160 120 460 160 120 210 480 230 210 320 140 120 21800 o a Grand 1957 Transport Rail 21 8 39 9 3 17 46 26 29 28 20 7 260 Inland waterway 9 1 4 1 a1 26 18 7 4 2 5 1 79 Oceangoing 29 0 o 0 16 0 0 0 0 0 0 49 120 8 Motor 55 54 150 38 31 42 180 73 49 110 28 21 30 62 190 49 81 86 240 110 83 140 53 79 11,300 - 69 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Table 19 Estimated Distribution of Civil Consumption of Lubricants in the USSR by Economic Region and by Cons,? ing Sector a 1953-57 (Continued) Economic Region V I II III IV V VI VII VIII DC 1 X XI XII Total 2 1957 Agriculture 32 53 160 70 14 68 180 62 80 140 43 10 920 Construction 9 4 22 6 6 14 26 24 17 21 15 5 170 Petroleum 1 0 Coal 6 J 1 7 94 180 Nonferrous metals and manufacturing 18 13 52 19 13 24 23 31 13 13 300 Total J 13 MO 44 60 68 50 24 21 570 Grand total 180 5a 260 25-0 140 3,000 a. Data exclude those insignificant _ -- quantities consumed by civil air transport and in the generation of electric power. Estimates of less than 14 000 are ex- pressed in 1 significant digit; those of 10,000 more, in 2 significant digits. ' b. Economic regions are those defined on Map 13702 (4-55), USSR: Administrative Divisions and Economic Regions January 1955- c. Totals are derived from unrounded data and do not always equal the sums of the rounded components. d. Negligible. Approved For Release 1999/09/08 : CIA-RDP79Sb1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimated Distribution of Civil Consumption of Residual Fuel Oil in the USSR by Economic Region and by Consuming Sector /* 1953-57 Economic Region 1 Year Consuming Sector II III I3 Y PI V I I VIII a 3 M n, Total 1 1953 Transport Bail 0 0 0 400 400 400 200 150 0 550 0 0 2,100 Inland waterway 23 3 7 1 LI 370 250 17 10 6 13 2 700 Oceangoing 120 0 0 0 150 0 0 0 0 0 0 260 530 i 400 550 7O 450 170 20 560 13 M 3,300 3 - Industry Petroleum 8 0 40 320 520 300 89 260 0 110 0 35 1,700 Chemical 0 0 54 0 0 0 0 45 0 0 0 0 99 'Steel 140 0 810 120 150 200 330 390 34 71 11 36 2,300 Electric power 60 40 390 550 1,100 340 200 600 97 250 14 40 3,700 Nonferrous metals and manufacturing 21 3 84 85 140 110 55 96 8 70 2 21 700 Total c/ 2 10 ~3 11,400 1,100 1,900 M0, 1.400 140 500 2a' 130 8.500 and total J 1 LO - 45 l,4oo 22- 11,100 4~ 400 s~o 1954 Transport Bail 0 0 0 450 4o0 450 100 100 0 700 0 0 2,200 Inland waterway 20 3 7 1 J 390 260 14 10 5 12 2 720 8 Oceangoing 140 0 0 0 170 0 0 0 0 0 0 280 5 0 160 Z !L50 570 840 60 O M MO 12 230 3,Soa Total 1 R Petroleum 9 0 46 350 580 340. 98 300 0 130 0 38 1,900 Chemical 0 0 60 0 0 6 0 46 0 0 0 0 110 - 71 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimated Distribution of Civil Consumption of Residual Fuel Oil in the USSR by Economic Region and by Consuming Sector 1953-57 (Continued) Economic Region J Year Consuming Sector I II III IV V VI VII VIII Tx x J XI X22 Total 1954 Industry (Continued) Steel 140 0 910 130 150 210 350 410 36 76 12 39 2 500 Electric power 69 46 460 640 1,300 390 230 690 110 290 16 46 , 4 300 Nonferrous metals and manufacturing 29 4 120 120 210 160 78 140 12 100 3 30 , 1,000 Total J 250 50 11600 1,200 2,200 1,100 Z60 1,600 160 600 31 150 9 800 Grand total c/ 410 53 1,600 11700 2, 1,900 1,100 1200 MO 1,300 42 440 , 13,300 1955 Transport Rail 0 0 0 500 450 500 50 50 0 800 0 0 2 400 Inland waterway 8 1 3 1 9 430 290 6 4 2 , 750 Oceangoing 150 0 0 0 200 0 0 0 0 n n opt 160 1 3 500 650 930 340 56 4 800 5 280 ~i nn Petroleum 8 0 35 320 530 550 80 560 0 140 0 31 2 300 Chemical 0 0 65 0 0 0 0 48 0 0 0 0 , 110 Steel 160 0 1,000 140 190 220 380 440 39 8o 13 43 2 700 Electric power 74 49 490 680 1,400 420 250 740 120 310 17 49 , 4 600 Nonferrous metals and Manufacturing 35 5 140 150 250 190 93 170 15 120 3 36 , 1,200 Total J 280 54 1,700 1,300 2,400 1,400 800 2,000 170 650 33 160 10,900 Grand total J 430 1,700 1,800 3, 2,300 1100 2,000 180 1 00 38 440 14 600 3 , Approved For Release 1999/09/08 : CI'A-RDP79Sb1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79S91046A000600120008-5 Estimated Distribution of Civil Consumption of Residual Fuel Oil in the USSR by Economic Region and by Consuming Sector a/ 1953-57 (Continued) II IV V VI VII VIII Ix x XI xII Total J Year Consuming Sector I II I 1956 Transport Rail 100 0 0 560 560 550 180 0 0 1,100 0 4 0 1 3,000 750 Inland waterway 7 1 2 1 d/ 4440 290 5 3 2 2 0 690 oceangoing 160 0 0 0 2x10 0 0 0 0 0 0 9 1 2 560 800 920 5 3 11100 4 290 4,400 Total c/ 270 Industry Petroleum 9 0 41 370 610 640 92 660 39 170 0 36 2,700 Chemical 0 0 70 0 0 0 0 53 0 0 0 0 120 Steel 170 0 1,100 140 220 240 390 47o 42 80 14 48 2,900 Electric power 80 54 530 740 1,500 460 270 800 130 340 18 54 5,000 Nonferrous metals and manufacturing 26 3 110 110 190 140 70 120 11 90 2 27 900 Total / 280 3 1800 1, 2,500 1,500 820 200 220 680 34 160 11,600 Grand total / 550 58 800 1,900 3130 1500 1 30 2 100 230 11700 39 460 16,000 1957 Transport Rail 400 0 0 600 600 600 450 150 0 1,100 0 0 3,900 Inland waterway 30 3 11 3 500 330 22 13 7 17 4 8 950 oceangoing 160 0 0 0 260 0 0 0 0 0 0 0 2 710 u 600 860 1 100 780 170 13 1,100 17 280 55,600 Total c/ 590 3 1 Industry Petroleum 11 0 48 430 710 760 110 780 45 190 0 42 3,100 Chemical 0 0 79 0 0 0 0 55 0 0 0 0 130 - 73 - Approved For Release 1999/09/08 : CIA-RDP79SO1046AO00600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimated Distribution of Civil Consumption of Residual Fuel oil in +e USSR by Economic Region and by Consuming Sector a/ 1953-57 (Continued) Economic on f Year Consuming Sector I II III IV V VI VII VIII DC X XI XII Total 19957 Industry (Continued) Steel El ct i 180 8 0 1,100 150 260 250 400 480 43 83 15 51 3 000 e r c power Nonferrous metals and manufacturing 7 26 58 3 580 110 800 110 1,600 190 490 140 290 70 870 120 140 11 360 90 20 2 58 27 , 5,400 900 10-0 61 ,goo 1,5oo 2,800 1600 870 2 300 240 1 7?0 37 180 12,500 00 64 2,000 2,100 2,700 L70 0 8 - 1, 00 V. 460 181100 a. Estimates of less firm -, 10,w are expressed in 1 significant digit; those of 10,000 through 9.9 million, in 2 significant digits; and those of 10 million or more, in 3 significant digits. h. Economic regions are those defined on :'?r '^ 13702 ( USSR: Admi nistrative Jnuary 1955. t4'SSI : -ivisions and Economic Regions, c. Totals are derived from unrounded data and do not always equal the sums of the rounded components. -74+- Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 Estimated Distribution of Civil Consumption of Road Oils and Asphalts in the USSR, by Economic Region aj 1953-57 Thousand Metric Tons Economic Region J I II III IV V VI VII VIII IX X XI XII Total -C/ Year 1953 230 180 680 190 200 280 720 400 190 220 120 120 3,500 4 1954 250 200 770 200 200 360 830 440 220 240 140 140 ,000 4 1955 300 220 830 220 200 460 910 480 280 340 170 150 ,500 1956 280 160 760 220 200 420 860 660 440 520 350 160 5,000 1957 290 140 720 210 180 450 84o 800 570 680 48o 180 5,500 a. Construction accounted for all consumption of road oils and asphalts in the USSR. All estimates are expressed in 2 significant digits. b. Economic regions are those defined on Map 13702 (4-55), USSR: Administrative Divisions and Economic Regions, January 1955- c. Totals are derived from unrounded data and do not always equal the sums of the rounded components. - 75 - Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 D. Increased Role of Eastern Regions.. As indicated by the estimates given in Tables 16 through 21,* most increases in consumption of petroleum products have taken place in the eastern regions of the USSR (VI, VIII, IX, X, XI, and XII). Civil consumption in these regions has been estimated at 29 million tons in 1957 compared with 16 million tons in 1953. This increase represents an average annual rate of 16 percent in the eastern regions compared with 9.6 percent in the western regions. Consumption in the European USSR in 1957 has been estimated at 34.6 million tons, an in- crease of 10.6 million tons compared with 1953. Thus, there is an apparent shift in emphasis to the eastern regions in the civil con- sumption of petroleum products. The increase in consumption of petroleum products in the eastern regions of the USSR has been accompanied by an even higher rate of increase in production of crude oil in these regions. The success of concentrated efforts to develop at a high rate the rich oilfields in Regions VI (Volga) and VIII (Urals) has enabled the eastern regions to provide a constantly larger share of national production of crude oil. As illustrated in the following tabula- tion, production of crude oil in the eastern regions increased from 45 percent of total Soviet production in 1953 to 76 percent in. 1957? 153 - 1957 Consumption Consumption Production of Petro- Production of Petro- of Crude leum of Crude leum Area Oil Products Oil Products Western Regions 55 60 24 54 Eastern Regions 45 40 76 46 Total 100 100 100 100 Concomitant with the shift in the center of production of crude oil, although not so pronounced, has been a shift in the cen- ter of output of petroleum products in the USSR, from Region V (Caucasus) to the eastern regions, especially to Regions VI and VIII. The output of petroleum products in Regions VI and VIII in- creased from about 32 percent of the total in 1953 to more than 47 percent in 1957. At the same time the share produced in Region V declined from about 51 percent to less than 28 percent. Pp. )0 through 75, above. - 76 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 On the other hand, the consumption of petroleum products in the eastern regions increased at a much slower rate than production. In 1957 the eastern regions accounted for 46 percent of the civil consumption of petroleum products in the USSR, a gain of only 15 per- cent compared with 1953. Moreover, although production of crude oil in the western regions had decreased from 55 percent of the total in 1953 to 24 percent in 1957, the estimated consumption of petroleum products in this area declined only from 60 percent of the total in 1953 to 54 percent in 1957. Thus it might appear that the indigenous supply of petroleum products in the western regions during 1953-57 be- came increasingly inadequate to meet requirements for fuels and lubri- cants. Such, however, was not the case; the western regions always have been deficient in fuel. The concentration of the production and re- fining of crude oil in Region V before World War II had necessitated extremely long and costly hauls of petroleum products to the centers of consumption. Implicit in the shift of centers of production and refining of crude oil is the solution at least in part to these critical problems. The oilfields of Regions VI and VIII are more centrally located with respect to centers of consumption. For example, Eco- nomic Region VII (Central), which in 1957 was the largest regional consumer, is located immediately adjacent to Regions VI and VIII. Before World War II, consumers in Region VII were supplied with petroleum products delivered over a route averaging probably between 1,500 and 2,000 km. Today these hauls can be reduced possibly by one- half by shipments from Regions VI and VIII. Moreover, although the problem of supplying the rapidly growing needs for petroleum products in Economic Regions IX, X, XI, and XII is still difficult, Regions VI and VIII are in a better position to do so than Region V. The con- sumption of petroleum products in Regions IX, X, XI, and XII reached about 15.6 million tons in 1957, almost twice the level of 1953. At the same time, the indigenous production of crude oil in these re- gions increased only from 5.1 million tons to about 7.6 million tons, and thus there has arisen a major problem of supply. The solution to this problem is seen in the construction of a trunk pipeline system which will ultimately extend from the oilfields of Regions VI and VIII to the Pacific Ocean and which will supply the eastern regions with both crude oil and petroleum products. In conjunction with this pro- ject, a large-scale program for the construction and expansion of refineries in the eastern regions is also under way. It is estimated that Soviet production of crude oil in 1960 may reach more than 140 million tons,* of which 110 million tons * Compared with 135 million tons as stated in the original directives of the Sixth Five Year Plan (1956-60). - 77 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 will be provided by the oilfields of Regions VI and VIII. Produc- tion of crude oil in the eastern regions may reach 120 million tons in 1960, or more than 83 percent of the Soviet total compared with 76 percent in 1957. Smaller increases in the consumption of petro- leum products in the eastern regions may be expected as the result of Soviet plans to achieve a more equal. and rational distribution of industrial production, of agriculture, and of transport. On the basis of successful implementation of this program, a more equal distribution between the western regions and the eastern regions in the civil consumption of petroleum products may be achieved by 1965 or possibly earlier. - 78 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 IV. Prospects for Exports. As shown in Table 22,* increases are anticipated in the consump- tion** of all of the selected petroleum products except tractor kero- sine, for which an average annual decline of 8.7 percent is estimated. The continued dieselization of several of the sectors of the civil economy will be responsible for sharp increases in the demand for diesel fuel. Comparable increases in the consumption of residual fuel oil will occur not because of increased demands but because a signifi- cant portion of the additions to proved reserves of crude oil in recent years has been characterized by heavy, high-sulfurous, high- tar content. It will be less expensive for the USSR to produce large quantities of residual fuel oil from these crudes than to refine the crudes to yield middle-distillate fuels. It is unlikely that a demand for such quantities of residual fuel oil will exist in the USSR in 1965. The continuing phenomenal growth of the natural gas industry and the probable impact of this expansion on the consumption of petroleum products lends strength to this be- lief. As shown in Table 23,*** natural gas is expected to provide a still larger share of the supply of petroleum and of total mineral fuel**** in the USSR in 1965 than in 1957. Natural gas is to account for more than one-third of the supply of petroleum in the USSR by 1965 compared with only one-seventh in 1957. As a share of the sup- ply of mineral fuel, natural gas is to increase from 1I.2 percent of the total in 1957 to 17.2 percent in 1965. Much of the planned pro- duction of 150 billion cubic meters of natural gas in 1965 will serve to reduce the growth in demand for residual fuel oil by a number of consuming sectors and, in certain instances, will substitute almost entirely for residual fuel oil. A probable supply and demand balance for crude oil and natural gas liquids in the USSR in 1965 is as follows: Table 22 follows on p. 81. These estimates include both military and civil consumption. Table 23 follows on p. 82. Coal, crude oil, natural gas, peat, shale, and fuelwood. - 79 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Amount Type of Product (Million Metric Tons) Supply Crude oil Natural gas liquids Synthetic petroleum products and imports 2+0.0 6.5 Negligible Total supply 2+6.5 Civil and military consumption Losses, storage increments, and 187.5* freshening of state reserves 1!+.0** Exports of crude oil and Petro- leum products to other countries 20.0*** of the Sino-Soviet Bloc Residual exportable surplus 25.0 Total demand 2+6.5 As shown above, it is estimated that civil and military requirements probably will account for 76 percent of the total supply of 2+6.5 million tons in 1965, and losses, storage increments, and freshening of state reserves probably will account for about 6 percent in addi- tion. Thus it is estimated that 45 million tons, or about 18 percent of the total supply in 1965, will be available for export to other countries of the Sino-Soviet Bloc and to the Free World. Of this quantity, about 20 million tons presently appear to be marked for export to countries of the Bloc. The residual, 25 million tons, or approximately one-half million barrels per day, apparently would be available for export to the Free World. Preliminary estimates of the amounts of energy required by the European Satellites to support * Data were compiled from Table 22, p. 81, below. ** Estimated to be 14 million tons, or the equivalent of 6 percent of production of crude oil: losses, 3 percent; increments in storage, 2 percent; and freshening of state reserves, 1 percent. *** Published trade agreements for 1965 between the USSR and other countries of the Sino-Soviet Bloc indicate that the USSR will export a minimum of 16 million tons of crude oil. and products to these other countries. Because agreements are not available for all countries of the Bloc, this sum has been estimated to be roughly 20 million tons. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimated Total Consumption of Petroleum Products in the USSR by Type of Product a/ 1965 Type of Product Amount Motor Aviation 37.0 2.0 39.0 Tractor Lamp, stove, and jet fuel 1.4 21.6 Light 31.8 Heavy 11.2 x+3.0 Lubricants Residuals and others Residual fuel oil 67.0 Petroleum bitumen 6.6 Coke 0.6 Others 1.2 a. Including both military and civil consumption. 82.5 187.5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Table 23 Position of Crude Oil and Natural Gas in Production of Petroleum and Mineral Fuel in the USSR 1957 and 1.965 1957 1965 Fuel Petroleum Mineral Fuel. / Petroleum J Mineral Fuel Crude oil 85.7 25.3 64.4 32.3 Natural gas l4..3 4.2 35.6 17.2 Total 100.0 29.5 100.0 49.5 a. In terms of units of standard fuel. b. The conversion to units of standard, fuel of the reported production of 98.3 million tons of crude oil in 1957 and of the 240 million tons planned for 1965 was effected at the ratio of 1.43 tons of standard fuel per ton of crude oil. The conversion to units of standard fuel of the reported production of 18.5 billion cubic meters of natural gas in the USSR in 1957 and of the 150 billion cubic meters planned for 1965 was effected at the ratio of 1.2 tons of standard fuel per thousand cubic meters of natural gas. c. The mineral fuels which are reported in the Soviet mineral fuel balances are coal, crude oil, natural gas, peat, shale, and fuelwood. the planned industrial growth in these countries through 1965, however, indicate a possible energy deficit which may not be covered by planned imports of petroleum. It is further possible that the USSR may direct a portion of the exportable surplus of 25 million tons to reduce this energy deficit. If so, correspondingly smaller quantities would be available for export to the Free World. Facilities now under construction will allow the USSR to handle its exportable surplus of petroleum. Important among such facilities are the oil base at Klaipeda, on the Baltic, which will be supplied with crude oil and petroleum products by means of pipeline from the prolific Urals-Volga oilfields. Also significant is the proposed USSR-Satellite petroleum pipeline system, which is to deliver Soviet crude oil to new refining centers in Poland, Czechoslovakia, Hungary, and East Germany. A major part of this pipeline system is to be in use by 1963. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 SUPPLEMENTARY STATISTICAL DATA The tables that follow show further details on the total supply and the total consumption of petroleum products in the USSR during 1953-57. Table 24* shows the estimated quantities of petroleum prod- ucts available for consumption. Table 25** shows the estimated yield of petroleum products from the refining of crude oil. * Table 2 follows on p. 84. ** Table 25 follows on p. 85. - 83 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Table 24 Estimated Quantities of Petroleum Products Available for Consumption in the USSR 1953-57 Thousand Metric Tons 1953 1954 1955 1956 1957 Refinery yield 2/ 47,300 52,700 62,500 73,800 85 100 Imports 4,900 4, 80o 4, 4oo 5,100 , 5,500 Exports -1,500 -3,500 -3,700 -5,400 -6,700 Total 50,700 54,000 63,200 73,500 83,800 Crude oil consumed as a petroleum product J 500 600 700 800 1,000 Total supply 51,200 54,600 63,900 74,300 84, 800 a. Data were compiled from Table 25, p. b5, below. b. These estimates were based primarily on information given in Soviet statistical handbooks. It must be borne in mind, however, that these statistics were adjusted to allow for the fact that they include quantities of petroleum products imported for reexport and quantities purchased abroad by Soviet foreign trade organizations for direct shipment to other coun- tries. c. Totals were derived from unrounded data and do not always equal the sums of the rounded components. d. It is estimated that in each year about 1 percent of the indigenous production of crude oil is consumed by the petroleum industry as a petro- leum product. Approved For Release 1999/09/08 : CPA-RDP79S01046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimated Yield of Petroleum Products from the Refining of Crude Oil in the USSR a 1953-57 1953 1954 1955 1956 1957 Indigenous production of crude oil 52,800 59,300 70,800 83,800 98,300 Imports 0 0 35 93 171 Exports / -300 -800 -1,500 -2,000 -4,100 Total crude oil available 52,400 58,400 69,300 81,900 94,400 Losses, storage 1,000 1,200 1,400 1,600 1,900 Charge to refining 51,400 57,300 67,900 80,300 92,500 Refining yield of petroleum products / 47,300 52,700 62,500 73,800 85,100 a. Totals were derived from unrounded data and do not always equal the sums of the rounded components. b. These estimates were based primarily on information given in Soviet statis- tical handbooks. It must be borne in mind, however, that these statistics were adjusted to allow for the fact that they include quantities of crude oil imported for reexport and quantities purchased abroad by Soviet foreign trade organizations for direct shipment to other countries. c. Estimated to be 2 percent of the availability of crude oil. d. Estimated to be 92 percent of the crude oil charge to refineries. - 85 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 The methodology employed to derive the estimates of the civil consumption of petroleum products in the USSR by consuming sector and to distribute these estimates by economic region is of prime importance. Wherever possible, these estimates were based on Soviet open material. In certain instances, however, because of a lack of qualifying information, data developed through subjective analy- sis of the problem were used. It has been considered appropriate to reproduce in this report only a description of the methodology. 1. By Consuming Sector. a. Transport. (1) Rail. Estimates of the consumption of diesel fuel were developed by using the average consumption factors applied to the annual gross ton-kilometers performed by diesel locomotives. The consumption of diesel fuel per 1,000 gross ton-kilometers (tkm) was reported to be 4+ kilograms (kg) in 1953-55 and 3.7 kg in 1956-57. Annual totals were subsequently increased by 5 percent to.include consumption in switching and to allow for building up stocks and for losses. Estimates of the consumption of residual fuel oil were the most difficult to determine and are probably the least accurate. The estimates presented in this report are the midpoints of a series of range estimates. The low range was calculated in each year as 2.6 percent of total standard fuel consumed by the railroads. The high range was derived on the basis of rates of the consumption of residual fuel oil in the form of standard fuel per 1,000 gross tkm. These rates have been reported as follows: 1953, 20.5 kg; 1954, 20.1 kg; 1955, 19.4 kg; 1956, 19.6 kg; and 1957, 19.6 kg. Figures for residual fuel oil in standard fuel units were converted to natural units by applying the conversion factor of 0.93 tons of standard fuel per ton in natural units. Because of the factor of boiler efficiency, the conversion factor for residual fuel oil consumed by railroads is considerably lower than that used for the other consuming sectors (1.)+ tons of standard fuel per ton in natural units). - 87 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 It was estimated that 1 ton of diesel lubricating oil was consumed for every 80 tons of diesel fuel. This proportion of 1 to 80 was derived from the experience of a leading US rail- road. For car axle oil, estimates again were based on US ex- perience. The factor used was 44+.7 kg of car axle oil per million gross tkm. Estimates were subsequently increased by one-third in the belief that Soviet railroads would be considerably more liberal in their use of car axle oil. For steam locomotive cylinder oil and grease, total steam locomotive movement in each year was multiplied by represen- tative factors of usage derived from US practice. Consideration was made of consumption of cylinder oil and grease in double-heading, switching, and deadhead movement. (2) Inland Waterway. First, total standard fuel consumed in each year by in- land waterway transport in the actual transportation of freight was calculated. These totals were then distributed according to type of fuel on the basis of a standard fuel balance for 1953 in which each type of fuel consumed by inland waterway was expressed as a percentage of the total. To this base was applied a graph which portrayed relative changes in the consumption of major types of fuel by inland waterway transport under the Sixth Five Year Plan (1956-60). Standard fuel balances for :1954 and 1955 were derived by the analysis of trends in fuel consumption as indicated in the other years. The percentage distributions thus obtained for each year were applied to the total consumption of standard fuel in that year, which yielded the consumption, among others, of diesel fuel and residual fuel oil in standard fuel units for the period 1953-57. Conversion to natural units was effected by using a fac, tor of 1.45 units of standard fuel per natural unit of diesel fuel and a factor of 1.1+ units of standard fuel per natural unit of residual fuel oil. These totals were then increased by 32.5 per- cent to allow for the composite effect of a 6-percent increase to account for fuel consumed in carrying passengers (based on the ratio of fleet passenger-kilometers to ton-kilometers) and of a 25-percent increase to account for fuel consumed in route main- tenance, by service vessels, by shore installations, and in other nontransport functions, Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Estimates of consumption of lubricants were derived in the following manner: Diesel-powered vessels consume lubricants at the rate of 6.13 percent of the diesel fuel consumed. Vessels powered by steam (both coal-fired and oil-fired) consume lubricants at the rate of 5.25 percent of residual fuel oil consumed in oil- fired vessels. This factor was applied uniformly on a ton-kilometer basis to all inland waterway transport powered by steam on the as- sumption that consumption of lubricants per ton-kilometer was the same for both coal-fired and oil-fired vessels. (3) Oceangoing. The estimates of consumption of petroleum fuels and lubricants by oceangoing transport essentially were based on the volume of work output or net ton-kilometers of freight movement in each of the years, on the portions of the total accomplished by diesel-powered vessels and those powered by residual fuel oil, and on the application to these portions of average consumption factors of diesel fuel and residual fuel oil which had been derived through analysis of a number of sources. For diesel fuel, the factors used were as follows (in kilograms of natural units per 1,000 tkm): 1953, 9.275 kg; 1954, 8.848 kg; 1955, 9.091 kg; 1956, 8.878 kg; and 1957, 8.878 kg. For residual fuel oil the factors were (in kilograms of natural units per thousand tkm): 1953, 38.33 kg; 1954, 36.95 kg; 1955, 34.08 kg; 1956, 32.49 kg; and 1957, 32.49 kg. In each case the basic consumption rate was increased by 32.5 percent to allow for the fuel expended in passenger transport and in nontransport functions. Estimates of consumption of lubricants were obtained by use of the methodology described for inland waterway transport. (4) Motor. The total consumption of petroleum products by motor transport represents an aggregation of the estimated consumption by each type of vehicle in the automotive park. For the purposes of this research aid the automotive park of the USSR was divided into the following types of vehicles: freight trucks, motor buses, passenger taxis, truck taxis, and privately owned automobiles and motorcycles. In addition, freight trucks and buses were divided into those con- suming gasoline and those consuming diesel fuel. The other types of vehicles were considered to consume only gasoline as a primary fuel. The estimates of consumption of primary fuel by each type of vehicle were based on operational movement data and on considera- tion of such regional influences as weather conditions and the type - 89 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 of roads. Operational movement data for freight trucks is the sum of loaded movement plus movement while empty. For the other types of vehicles, operational movement is simply the amount of vehicle travel and has been calculated on either a daily or an annual basis. To operational movement were applied the average consumption norms obtained from numerous Soviet handbooks and expressed in liters of primary fuel per 100 km of movement. These rates, according to type of fuel and to type of vehicle, are as follows: Type of Fuel Type of Vehicle Liters per 100 Km Gasoline Freight truck 34 Bus 35 Truck taxi 30 Passenger taxi 13.5 Private automobile 12.9 Private motorcycle 4 Diesel fuel Freight truck 37 Bus 46 The estimates derived from the operational data were then increased by 5 percent to allow for these amounts of primary fuel consumed in engine warm-up, engine :idling, in movement not apparent in operational data, spillage, and other losses. In the distribution by economic region of these quantities of primary fuel, consideration has been made of above-norm consumption result. ing from adverse weather conditions and inadequate roads. There- fore, to reflect this above-norm consumption, annual totals for Economic Regions I (Northwest and West) through VIII (Urals), and Region X (Kazakhstan and. Central Asia) have been increased by 5 percent; for Economic Regions IX (West Siberia), XI (East Siberia), and XII (the Far East), by 10 percent. The total effect of these increments on the annual consumption of primary fuel in operational movement has been to increase the consumption of gasoline as follows: in 1953, by 9.12 percent; 1954, by 9.21 percent; 1955, by 9.14 per- cent; 1956, by 8.75 percent; and 1957, by 8.62 percent. Annual in- creases in the consumption of diesel fuel were as follows: 1953, 10.30 percent; 1954, 10.53 percent; 1955, 10.52 percent; 1956, 10.22 percent; and 1957, 10.48 percent. Estimates of consumption of lubricants were based on the consumption of primary fuel. An average lubricant consumption factor, as specified in a number of sources, of 6.8 percent of fuel consumed, was considered appropriate. To reflect consumption of lubricants Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 by gas-generator and gas-cylinder vehicles, the total consumption of lubricants by vehicles using liquid fuel was increased by 1+ percent. (5) Civil Air. The number of reciprocating-engine aircraft in operation during the period 1953-57 is estimated at 1,600. Assuming that each aircraft was in the air for an equal length of time in each year and given the hourly rates of primary fuel consumption for each type of aircraft, annual consumption totals can be calculated. These totals were then increased by 2 percent to allow for consumption of fuel in take-offs, in arriving at cruising speed, and in landings. In 1957, the first year of significant use of jet air- craft by civil air transport, it was estimated that 30 jet aircraft were in operation. Assuming that each aircraft was in use 80 hours per month and that each aircraft consumed fuel at the rate of 1,600 gallons per hour, it can be calculated that the consumption of jet fuel (kerosine) by civil air transport reached about 111-6,880 tons in 1957. The consumption of lubricating oil by reciprocating-engine aircraft was calculated at the rate of 2 quarts per aircraft per hour. The consumption of lubricating oil by jet aircraft is considered to be negligible and was omitted. b. Agriculture. For diesel tractors an average consumption rate of 10 kg of diesel fuel per soft-plowing unit was used. An average of 15.031 kg of primary fuel per soft-plowing unit was used for kerosine tractors. The annual amount of soft-plowing units performed by diesel and by kerosine tractors, when multiplied by the appropriate consumption fac- tor, yields the annual consumption of primary fuel by the agricultural tractor park only in field work. The consumption of fuel in both field and nonfield work, including losses, is determined as a factor of consumption in field work. The consumption of diesel fuel in both field and nonfield work is determined as 1.21 times the consumption in field work, and the consumption of kerosine fuel in field and non- field work is determined as 1.135 times consumption in field work. In addition, both types of tractors consume certain amounts of starter gasoline. The consumption of starter gasoline by diesel tractors is estimated at 1 percent of primary fuel consumption; that by kerosine tractors, at 1.93+ percent of such consumption. The consumption of lubricants is expressed as a percentage of primary fuel consumed in field work. The consumption of lubri- cants by diesel tractors is estimated at 9.151+ percent of the fuel Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 consumption in field work; that by kerosine tractors, at 10.5 per- cent of such consumption. All combines in use in the USSR consume gasoline as a pri- mary fuel. Consumption of gasoline by combines was estimated by use of a weighted average rate of consumption of gasoline per hec- tare harvested, which was computed on the basis of the composition of the combine park in. each year, the daily productivity of each combine model, and the consumption of fuel per hectare by each com- bine model. The rate of consumption in each year was as follows: Year Consumption (Kilograms per Hectare) 1953 6.2 195+ 6.3 1955 6.3 1956 6.2 1957 5.7 Annual totals were increased by 5 percent to cover losses incurred in transportation and in storage. Lubricants consumed by combines is considered to be equivalent to 5 percent of the total gasoline consumed by combines, including losses. There is no direct evidence to indicate the amount of petro- leum products consumed in the USSR by agricultural machinery other than tractors and combines. The estimates which are presented for this category were based on the relationship between the amount of energy developed by tractors and combines and that developed by other agricultural machinery. As a percentage of the energy de- veloped by tractors and combines, the energy developed by other agri- cultural machinery was as follows: 1953 7.2 195+ 7.6 1955 8.3 1956 8.3 1957 8.3* 195E relationship held constant. - 92 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 In order to obtain those quantities consumed by other agricultural machinery, these percentages were applied to the total amounts of primary fuel consumed by tractors and combines, to total starter gasoline consumed by tractors, and to lubricants consumed by trac- tors and combines. The total amount of primary fuel for other agri- cultural machinery was proportioned between diesel fuel and kerosine according to the share of diesel fuel in the total amount of primary fuel consumed by tractors, because evidence suggests that most other agricultural equipment is powered by diesel engines. c. Households. Household consumption of kerosine was obtained by dividing total state and cooperative retail sales of kerosine for the re- spective years, in terms of 1955 prices, by the estimated average state and cooperative retail price of kerosine in 1955? Collective farm market sales of kerosine are negligible or zero. The prices for kerosine in 1955 were calculated at 0.81 rubles per kilogram for the urban areas and 1.02 rubles per kilogram for the rural areas. The urban and rural prices of kerosine were then averaged on the basis of the division of the Soviet population between urban and rural areas. The weighted average price per ton of kerosine thus derived was 929 rubles. In terms of 1955 prices, total kerosine sales during 1953-57 were estimated as follows: 1953 1,091 195+ 1,351 1955 1,536 1956 1,859 1957 2,19+ d. Construction. The consumption of petroleum products in construction is essentially an aggregation of annual consumption of primary fuel and lubricants by the individual types of construction equipment, in addition to losses in storage, hauling, and handling. An annual consumption rate of primary fuel for each type of equipment was derived, applying to given hourly fuel requirements an annual equip- ment-use figure of 2,000 hours, and was held constant for the period under study. These types of equipment include tractors, graders, excavators, cranes, and miscellaneous equipment, all of which are Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 powered by diesel engines. The number of units of each type of equipment, calculated on an annual basis from a number of sources, was then multiplied by the appropriate consumption rate, to yield the consumption of diesel fuel according to type of equipment. The consumption of diesel fuel by equipment not elsewhere classified was computed as 5 percent of the quantity consumed by the known types. Losses of diesel fuel were estimated at 2.5 percent of the consumption of diesel fuel by the known types of equipment. The consumption of gasoline by construction equipment was estimated as a percentage of the total consumption of diesel fuel, excluding losses. These percentages were estimated as follows: 1953, 14 per- cent; 1954, 12 percent; 1955, 10 percent; 1956, 8 percent; and 1957, 6 percent. Allowance was made for dieselization of equipment and retirement of old or obsolete gasoline-burning machinery. The con- sumption of lubricants by the equipment park was computed as 5 per- cent of the total diesel fuel requirements and 7 percent of all other petroleum fuel requirements. The consumption of kerosine and ligroine by construction equipment for the period in question is insignificant. Although there is no information on the consumption of petro- leum products by the construction materials industry, it is believed that certain plants, such as those producing cement, use considerable amounts of fuel for heat and power. As a minimum, it is estimated that the diesel fuel consumed by the construction materials industry would amount to 10 percent of the diesel fuel consumed in construc- tion. The gasoline consumed by the industry would amount to 20 per- cent of the gasoline consumed in construction. In addition to the quantities of gasoline, diesel fuel, lubricants, ligroine, and kerosine consumed by construction equip- ment and by the construction materials industry, it is believed that all of the annual production of road oils and asphalts in the USSR is consumed in construction. e. Industry. (1) Petroleum. The consumption of petroleum products in crude oil drill- ing and producing operations was calculated on the basis of the quan- tity of fuels needed to produce one ton of crude oil. Average con- sumption factors were available for 1956 and were held constant for the period under study. These factors are as follows: ?- 94 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Type of Product Kilograms per Ton of Crude Oil Produced Diesel fuel 5.97 Residual fuel oil 2.86 Gasoline 1.79 The consumption of lubricants in crude oil drilling and producing operations is believed to be approximately 9 percent of primary fuel consumption. Because of the lack of qualifying data, the con- sumption of lubricants was limited to that amount consumed by drilling rigs and by engines consuming liquid fuel that are used in the exploitation of oil deposits. The consumption of lubricants by drilling rigs has been reported as 10.2 percent of primary fuel consumption. The consumption of lubricants by the V2-300 diesel engine, the most common engine in use in the oilfields of the USSR, has been reported as 8 percent of primary fuel consumption. The lubricant consumption factor which was used is an average of these rates. It was estimated that the consumption of residual fuel oil during the process of refining crude oil is equivalent to 3 per- cent of the crude oil refinery charge. Under comparable operating conditions, this factor is analogous to US experience. Minor amounts of gasoline, ligroine, bitumen, and bitu- minous tar are consumed in the construction and repair of oil and gas pipelines in the USSR. The total length of pipelines installed was estimated for each year. Average rates of consumption of these products per kilometer of pipeline installed were selected from a Soviet handbook in accordance with the diameter of the pipeline and the degree of insulation applied. A similar approach was taken to determine the consumption of these products in the repair of pipelines. Finally, the consumption of crude oil as a petroleum product by the petroleum industry was estimated as 1 percent of the indigenous production of crude oil. (2) Chemical. The methodology employed in the derivation of estimates of the consumption of petroleum products consumed by the chemical industry involved the use of ratios of petroleum product input to commodity output. In the chemical industry of the USSR, petroleum Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 products find use in process heating in the manufacture of soda ash and caustic soda and as a raw material in production of synthetic rubber, tires, and carbon black. It is estimated that 100 kg of residual fuel oil are consumed for each ton of soda ash produced, and 625 kg for each ton of caustic soda produced. Rubrax, a petroleum alkaline bitumen, is consumed at a ratio of 1 kg per tire produced. In addition, it is estimated that the consumption of rubrax in nontire plants of the chemical industry is two-thirds of that consumed by the tire in- dustry. The yield of carbon black from the raw material green oil, which is a heavy distillate oil, is approximately 50 percent. Thus, about 2 tons of green oil are consumed in producing 1 ton of carbon black. (3) Coal. It is estimated that 20 to 30 percent of the annual production of coal was submitted to the flotation process during the period 1953-57. With a reported 0..36 kg of diesel fuel con- sumed per ton of coal in this process, it can be calculated that the consumption of diesel fuel ranged from about 25,000 tons in 1953 to more than 47,000 tons in 1957. For lubricants, reported inventories of equipment dur- ing 1953-57 and consumption norms per machine per year were avail- able. Equipment inventories in 1956 and 1957 were estimated on the basis of available information. Consumption norms were held constant for the period 1953-57- (4) Steel. The major use of residual fuel oil in the steel indus- try is for firing open hearth furnaces, soaking pits, and reheating furnaces. It is estimated that 113.5 kg of residual fuel oil are required for each ton of steel coming from the open hearth fur- naces, that 50.5 kg for each ton are needed for the soaking pits, and that another 50.5 kg are needed to cover the requirements for reheating the partially rolled product. IC'hus, total residual fuel oil requirements amount to 204.4 kg per ton of crude steel, except in special cases in Economic Regions VII (Central) and VIII (Urals), where certain amounts of steel are produced in electric furnaces or convertors. In these regions, only 90.9 kg of residual fuel are consumed per ton of crude steel. - 96 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 (5) Electric Power. One method of expression of production of electric power in the USSR by thermal electric powerplants is in accordance with the type of fuel consumed during process of generation. For example, in 1955 it was reported that of the total production of electric power 5,574 million kilowatt hours (kwh) were generated by stations equipped with diesel engines. To determine the quantity of diesel fuel consumed in this generation, in the absence of a suitable con- sumption rate of diesel fuel per unit of electric power produced, it was necessary to employ a factor based on experience in US industry. On the basis of US experience and certain basic assumptions, it may be estimated that to generate 5,574 million kwh required 1.9 million tons of diesel fuel, or the equivalent of 2,934 kwh per ton of diesel fuel. This rate of consumption was held constant throughout the period 1953-57. A similar approach was selected in the determination of the consumption of gasoline in the generation of electric power in the USSR. In 1955, 915 million kwh of electric power were generated in internal-combustion engines which consumed fuels other than gas or diesel oil. It was assumed that gasoline constituted virtually the entire supply of these other fuels. Again, on the basis of US experience, it can be estimated that the generation of 915 million kwh consumed 430,000 tons of gasoline, or 1 ton of gasoline for each 2,128 kwh. This rate of consumption was held constant throughout the period 1953-57. With regard to residual fuel oil, the USSR has supplied to the Economic Commission for Europe consumption data which covered the years 1953-56. These data, however, applied only to those power stations under the authority of the Ministry of Electric Power Stations, USSR. Furthermore, these estimates were considered to represent minimum consumption. On the basis of available information, the estimates supplied by the USSR were revised upward by 12 percent in each of the years to cover the consumption of residual fuel oil by powerplants not under the authority of the Ministry. The con- sumption of residual fuel oil in 1957 was estimated on the assumption that consumption would increase over the previous year by approxi- mately 9 percent, as it did in 1956. The consumption of lubricants by the electric power in- dustry has also been based upon US analogy. The rates utilized were 0.009 gallons of lubricating oil per kilowatt of capacity of thermal power plants and 0.004 gallons of lubricating oil per kilowatt of capacity of hydroelectric powerplants. - 97 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 (6) Nonferrous Metals and Manufacturing. Forced balances between the supply and the total civil and military consumption of lubricants and residual fuel oil in 1953 and 1955 were derived by deducting estimates of the total consumption of lubricants and residual fuel oil by all other sectors of the econ- omy, including the military, from the quantities estimated as avail- able for consumption. The remainder for each year was allocated to the nonferrous metals and manufacturing industries, thus establishing an apparent trend in consumption. Estimates of consumption in the remaining years were calculated by use of this trend, as well as an index of demand for lubricants by the manufacturing industries esti- mated for the period 1953-57. There was also information indicating that in the latter years under study a decrease in the consumption of residual fuel oil had resulted from the increased use of gas in machine construction plants and in other similar industrial enter- prises. For 1953 the yield of residual fuel oil was estimated to be 27 percent of the refinery charge, and for 1955 the yield was esti- mated to be 25 percent. The yield of lubricants was estimated to be 4 percent of the refinery charge in each of the 2 years. Military consumption of lubricants, for want of other data, was estimated to be 5 percent of the yield of lubricants, and military consumption of residual fuel oil was estimated to be 10 percent of the yield of residual fuel oil. 2. By Economic Region. a. Transport. (1) Rail. The distribution by economic region of the quantities of diesel fuel and residual fuel oil consumed by railroads in the USSR is a reflection of the regional distribution of ton-kilometers of freight hauled by locomotives powered with diesel fuel and by those powered with residual fuel oil. For car axle oil, regional distri- bution was effected in accordance with the regional pattern of total gross ton-kilometers of all rail movement in 1955. The regional distribution of diesel :Lubricating oil is in direct relation to that of diesel fuel. Steam locomotive cylinder oil and grease were ap- portioned regionally in accordance with the regional pattern of steam locomotive movement. (2) Inland Waterway. In order to provide a basis for distributing petroleum fuel consumption by economic regions, the total ton-kilometer per- formance by inland waterway transport that had been used in the calculation of standard fuel consumption totals was broken down according to type of fuel into performance figures for each of the -98- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 two Volga steamship companies (Volga United SS Company and the Volga Tanker Company) and for each of the union republics. From this pattern, distribution could be made to all those economic regions not within the RSFSR. For the RSFSR, after deducting the ton-kilometer performance of the Volga United and Volga Tanker com- panies, the breakdown of the remaining ton-kilometers was used as a basis for distributing the fuel consumption by other companies among the economic regions within the republic. The regional distribution of lubricating oils consumed by diesel-propelled vessels is in direct relation to the regional distribution of diesel fuel. The distribution of lubricating oils consumed by vessels propelled by steam (both coal-fired and oil- fired) was equated with the regional pattern of ton-kilometers per- formed by steamships. (3) Oceangoing. The regional distribution of fuels consumed by oceangoing vessels corresponds to that of the ton-kilometers performed by the vessels using those fuels. In allocating petroleum fuel consumption by economic region, Arctic Ocean and Baltic Sea operations were con- sidered as being serviced from Economic Region I (Northwest and North), Black Sea and Caspian Sea operations from Region V (Transcaucasus), and Pacific Ocean operations from Region XII (the Far East). The regional pattern of distribution of diesel lubricating oil is that of diesel fuel. For lubricating oils for vessels propelled by steam (both coal-fired and oil-fired), the regional pattern was equated with the regional distribution of ton-kilometers performed by steamships. (1) Motor. The basis used for distribution by economic region of the quantities of primary fuel and lubricants consumed by commercial motor transport in the USSR was the distribution by economic region of the number of workers in the motor transport industry. This basis is not applicable to the consumption of fuels and lubricants by privately owned automobiles and motorcycles. Furthermore, there is available very little information relating directly to the regional distribution of these quantities. In view of this lack of data an index for the distribution of fuels and lubricants consumed by this sector was organized on the basis of the regional distribution of specialists with a higher education for the year 1955. Although Soviet propaganda may claim that private ownership of vehicles in the USSR is found among every category of worker, it is believed that during the period 1953-57 such vehicles were owned primarily by persons having a higher education and presumably a higher income than the average. Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 (5) Civil Air. The regional distribution of the consumption of petro- leum products by the civil air fleet is a reflection of airline activity within each region. The weekly operations at individual air traffic hubs within each region were added to provide to~als for various regions, which in turn were used to derive a national total. The proportionate share of each region in the national total was then derived, and this pattern was used to distribute the total amounts of fuels and lubricants. Separate regional distributions were made for recip- rocating-engine aircraft consumption and for jet aircraft consump- tion. A pattern of reciprocating-engine aircraft activity was derived for 1955 and held constant for the period under study. The pattern utilized was as follows: Region Percent of Total I (Northwest and North) 1.5 II (West) 2.0 III (South) 11.0 IV (Southeast) 5.0 V (Trarbscaucasus) 3.0 VI (Volga) 11.0 VII (Central) 24.0 VIII (Urals) 11.5 IX (West Siberia) 9.0 X (Kazakhstan and Central Asia) 13.0 XI (East Siberia) 6.0 XII (Far East) 3.0 For jet aircraft, schedules for November 1.957 show operations into Moscow, Tashkent,:Tbilisi, Irkutsk, Omsk, and Novosibirsk. The pattern for 1957 was as follows: Region Percent of Total V 5.0 VII 42.0 IX 17.0 Xb 24.0 xi 12.0 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 The regional distribution of lubricants was equated with that of aviation gasoline. b. Agriculture. The annual totals of diesel fuel and kerosine consumed by agricultural tractors were distributed regionally in accordance with the pattern described in the regional allocation of soft- plowing units. Similarly, the regional distribution of petroleum products consumed by combines was equated with the regional dis- tribution of hectares harvested. For both agricultural tractors and combines the regional distribution of lubricants consumed follows the regional pattern of primary fuel. In the absence of data to the contrary, the regional allocation of the quantities of fuel and lubricants consumed by other agricultural machinery has been equated in each year with the regional allocation of pri- mary fuel consumed by agricultural tractors. c. Households. Soviet household consumption of kerosine was distributed among the various union republics on the basis of reported 1955 retail sales of kerosine. Within the RSFSR, no data on sales were available. Therefore the distribution of kerosine consumption among the economic regions within the RSFSR has been based on the distribution of total population among these regions. The close relation between the distributions of kerosine sales and total pop- ulation of the various republics suggests that distributing kero- sine sales on the basis of population within the RSFSR provides a reasonably accurate estimate. Because data on the regional dis- tribution of sales are available only for 1955, the pattern in that year has been held constant for the period under study. d. Construction. In the absence of a more reliable approach to the problem the distribution of petroleum products consumed in construction was made on the basis of cement consumption by economic region. e. Industry. (1) Petroleum. Lack of data precludes the distribution by economic region of the quantities of petroleum products consumed in the construction and repair of trunk pipelines. The distribution by economic region of the consumption of gasoline, diesel fuel, lubri- cants, residual fuel oil, and crude oil by the petroleum industry Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 in crude oil drilling and producing operations was based on the dis- tribution by economic region of annual production of crude oil. The distribution by economic region of residual fuel oil consumed. by the crude oil refineries was based on a pattern believed to be represen- tative of the regional crude oil charge to refineries. (2) Chemical. Estimates of the quantities of petroleum products con- sumed by the Soviet chemical industry were based on the ratio of the consumption of petroleum products to the output of commodities by the chemical industry involving the use of petroleum products. The distribution by economic region of the quantities of petroleum products consumed has been equated with. the estimates of regional production of such commodities. (3) Coal. The general pattern used to distribute the quantities of petroleum products consumed by the coal industry was that of the regional production of coal. Because of the mining conditions and methods peculiar to the Donets Basin in Economic Regions III (South) and IV (Southeast), however, it is estimated that the consumption of petroleum products in these two regions averages about 50 percent of the total consumption by the coal industry, although production in Regions III and IV accounts for only 38 or 39 percent of the total. The balance has been allocated on the basis of approximate regional distribution of production of coal. (4) Steel. The distribution by economic region of the residual fuel oil consumed by the steel industry is in direct correlation with the regional production of crude steel by oil-fired furnaces. It was possible to create such a pattern only for 1956, and this pattern was held constant for the remaining years. (5) Electric Power. The regional distribution of the gasoline and diesel fuel consumed in the generation of electric ;power was made on the basis of the regional distribution of the rural population of the USSR, as reported for April 1956. The consumption of residual fuel oil was distributed regionally on the basis of the regional distribution, of the estimated 1955 capacity of thermal electric powerplants, which consumed mainly residual fuel oil. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 (6) Nonferrous Metals and Manufacturing. In the absence of other data the regional distribution of the lubricants and residual fuel oil consumed by the nonferrous metals and manufacturing industries of the USSR was based on the regional pattern of consumption of lubricants and residual fuel oil established for all other consuming sectors of the civil economy in the year 1955? In view of the relatively short time-span in- volved, as well as the relative insignificance of consumption by these industries, it is believed that the margin of error inherent in the application of the 1955 pattern to the entire period in question would not be appreciable. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 SELECTED BIBLIOGRAPHY Information is abundant on many phases of the petroleum industry of the USSR. The Soviet press in particular gives much attention to drilling practices, to production of crude oil and methods of pro- duction, and to the transportation of crude oil and finished products by pipeline. With regard to the refining of crude oil, output of refined products -- either in percentage yields or in absolute quantities -- and the eventual disposition of annual output, there has been a reluctance to divulge any information since 1940. Yet through a painstaking search of the vast amount of material in the Russian language covering virtually all phases of the Soviet economy, it has been possible to find and fit together pieces of information to form a fairly clear and understandable pattern. A selection of relevant books, periodicals, and newspapers in the Russian language is listed below. These sources, in addition to the vast number of US trade journals, newspapers, and available publi- cations of universities and private research institutions, have pro- vided the basis for the material presented in this report. 1. Bashilov, A., and Kvochkin, A. Kompaundirovaniye motornykh topliv (Compounding of Motor Fuels), Moscow, 1958. 2. Blank, Sh.P. Sebestoimost' rechnykh perevozok (The Cost of River Transport), Moscow, 1956. 3. Bokserman, Yu.I. Razvitiye gazovoy promyshlennosti SSSR (Development of the Gas Industry of the USSR), Moscow, 1958. II. Brenner, M.M. Neft' (Petroleum), Moscow, 1957. 5. Bronshteyn, L.A., et al. Avtotransportnyy spravochnik (Autotransport Hannddbook), Moscow, 1956. 6. Bugayets, T.A., and Vil'chinskiy, V.A. Spravochnik po toplivu i toplivno-skladskomu khozyaystvu zheleznykh dorog (Handbook on the Fuel and Fuel-Storage Economy of the Railroads), Moscow, 1956. Approved For Release 1999/09/08 : CIA-RDP79S01046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 7. Chernov, V.F. Proizvodstvo kaltsinirovannoy sody (Production of Soda Ash), Moscow, 1956. 8. Dunayev, F.F. Ekonomika i planirovaniye neftyanoy promysh- lennosti SSSR (Economics and Planning of the Petroleum Industry of the USSR), Moscow, 1957. 9. Gur'yevich, Ya.D., et al. Neftyanaya promyshlennost' SSSR (The Petroleum Industry of the USSR), Moscow, 1958. 10. Keller, A.A. Neftyanaya i gazovaya promyshlennost' SSSR v poslevoyennyye gody (The Petroleum and Gas Industry of the USSR During the Postwar Years), Moscow, 1958. 11. Lisichkin, S.M. Ocherki razvit:iya neftedobyvayushchey promyshlennosti SSSR (Outline of the Development of the Petroleum Extracting Industry of the USSR), Moscow, 1958. 12. Materialy i oborudovaniye primenyayemyye v ugol'noy promysh- lennosti Materials and Equipment Used in the Coal Industry), vol. 1, pt. 2, Moscow, 1955. 13. Protasov, G.N., and Udanskiy, N.Ya. Bureniye neftyanykh i gazovykh skvazhin (Drilling of Petroleum and Gas Wells), Moscow, 1954. 14. Ryabtsev, N.I. Yestestvennyyei iskusstvennyye_ gazy (Natural and Synthetic Gases), Moscow, 195 . 15. Shimko, K.N. Toplivo dlya vodnogo transporta (Fuel for Water Transport), Moscow, 1954. 16. Spravochnik po transportu gazov (Handbook on the Transport of Gas), Moscow, 195 17. Statisticheskoye Upravleniye RSFSR. Narodnoye khozy4ystvo RSFSR, statisticheskiy sbornik (The National Economy of the RSFSR, Statistical Handbook), Moscow, 1957. 18. Svorykin, A.A., et al. Ekonomika ugol'noy promyshlennosti SSSR (Economics of the Coal Industry of the USSR), Moscow, 1957, 19. Trofimuk, A.A. Uralo-Povolzh'ye - novaya neftyanaya baza SSSR (The Ural-Volga Area - New Petroleum Base of the. USSR), Moscow, 1957. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 20. USSR, Tsentral'noye Statisticheskoye Upravleniye. Narodnoye khozyaystvo SSSR, statisticheskiy.sbornik (The National Economy of the USSR, Statistical Handbook), Moscow, 1956. 21. USSR, Tsentral'noye Statisticheskoye Upravleniye. Narodnoye khozyaystvo SSSR v 1956 godu, statisticheskiy yezhegodnik The National Economy of the USSR in 1956, Statistical Yearbook), Moscow, 1957. 22. USSR, Tsentral'noye Statisticheskoye Upravleniye. Posevnyye ploshchadi SSSR, statisticheskiy sbornik (Sowed Acreage of the USSR, Statistical Handbook),, Moscow, 1957. 23. .USSR, Tsentral'noye Statisticheskoye Upravleniye. Promysh- lennost' SSSR, statisticheskiy sbornik (Industry of the USSR, Statistical Handbook), Moscow, 1957. 24. USSR, Tsentral'noye Statisticheskoye Upravleniye. Transport i svyaz' SSSR, statisticheskiy sbornik (Transportation and Communications of the USSR, Statistical Handbook), Moscow, 1957. 25. UN, ECE. Annual Bulletin of. Electric Energy Statistics for Europe, Geneva, May, 1957. 26. Vneshn a a torgovlya SSSR za 1956 god (Foreign Trade of the USSR) 1956), supplement to Vneshnyaya torgovlya, Moscow, 1958. 27. Vneshn a a torgovlya SSSR za 1957 god (Foreign Trade of the USSR, 1957), supplement to Vneshnyaya torgovlya, Moscow, 1958. 28. Yevseyenko, M.A. Neftyanaya promyshlennost' SSSR v shestoy pyatiletke (The Petroleum Industry of the USSR in the Sixth Five Year Plan), Moscow, 1957. 1. Avtomobil'nyy transport (Automobile Transport) 2. Ekonomika sel'skogo khozyaystva (Economics of Agriculture) 3. Elektricheskiye stantsiy (Electric Power Stations) 4. Energeticheskiy byulleten' (Energy Bulletin). Publication ceased with the last issue of 1958. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 5. Gazovaya promyshlennost' (Gas Industry) 6. Geologiya nefti (Petroleum Geology). Replaced by Geologiya nefti i gaza beginning with the first issue of 1959. 7. Geologiya nefti i gaza (Geology of Petroleum and Gas) 8. Izvestiya vysshikh uchebnykh zavedeniy - neft' i gaz (News from Higher Educational Institutions - Petroleum and Gas) 9. Khimicheskayanauka i promyshlennost' (Chemical Science and Industry) 10. Khimiya i tekhnologiya topliv i masel (Chemistry and Technology of Fuels and Lubricants) 11. Neftyanik (Petroleum Worker) 12. Neftyanoye khozyaystvo (Petroleum Economy) 13. Planovoye khozyaystvo (Planned Economy) 14. Rechnoy transport (River Transport) 15. Stall (Steel) 16. Stroitel'stvopredpriyatiy neftyanoy promyshlennosti (Construc- tion of Enterprises of the Petroleum Industry). Publication ceased 1 Jul 1958, replaced by Stroitel'stvo truboprovodov. 17. Stroitel'stvo truboprobodov (Construction of Pipelines) 18. Teploenergetiki (Thermal Energetics) 19. U gol' (Coal) 20. Vestnik statistiki (News of Statistics) 21. Vneshnyaya torgovlya (Foreign Trade) 22. Vodnyy transport (Water Transport) 23. Voprosy ekonomiki (Questions of Economics) 2-I-. Zemledeliye (Farming) 25. Zheleznodorozhnyy transport (Railroad Transport) Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Newspapers 1. Bakinskiy rabochiy (The Baku Worker) 2. Gudok (Published by the Ministry of Railroad Transport, USSR) 3. Izvestiya 4. Na stroitel'stvo truboprovodov (On the Construction of Pipe- lines). Publication apparently ceased on 1 June 1959. 5. Pravda 6. Promyshlenno-ekonomicheskaya gazeta (The Industrial-Economic Newspaper) 7. Stroitel'naya gazeta (The Construction Newspaper) Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000600120008-5 I North and Narthoo t h NmMwesl 1b N- n Watt u. eatna IR NNOr.asia w boom rv bo.th.aat v rrans.r.a.a v ftV V I Genital IX Weal. tx weal hsI.na X 14zah atannaaao-ai,wa Xa NmkbtMbn Xb an. AM. XI ast F., East XII Far