SIGNIFICANT DEVELOPMENTS IN THE FUELS AND POWER INDUSTRIES IN THE USSR, 1959 (R

Created: 8/22/1960

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ECONOMIC INTELLIGENCE MEMORANDUM

SIGNIFICANT DEVELOPMENTS IN THE FUELS AND POWER INDUSTRIES IN THE9

CIA/RR20

CENTRAL INTELLIGENCE AGENCY Office of Research and Reports

This memorandum Is designed to summarize developments in the coal, crude oil, natural gas, and electric power industries in the USSR Only passing attention is given to peat, shale, and fuelwood. Soviet trade in coal, coke, crude oil, snd petroleum products isbriefly. Discussion of the development of nuclear energy in the USSR9 has been excluded.

- lli

covnsm

Swrnnary and

I. Energy Balance of the

II. Solid Fuels

Solid

III. Crude oil and Natural

A.

B-

Crude

natural

3- Gas

of Crude

of Petroleum Products and Natural

1 K. Distribution and Storage of Crude Oil and

F- Distribution and Storage of Natural

IV. Electric

V.

Oil and Petroleum

and

i -

Source

To Me s

1. Estimated I'roduction of Primary Energy in the USSR,

by Source of5 Plan .

Page

Production of Coal and Coking Coal in the

,5

Production of Peat, Shale, and Fuelwood in

the5

I*. Estimated Exploratory and Exploitation Drilling for

Crude Oil and Natural Gas in the,

05

Production of Natural Caa ln the USSR,

5

Production of Petroleum Products in the

USSR, by Type of,5

7- Estimated Increments in Refining Capacity ln the USSR,

by Type of9

8. Estimated Balance of Supply and Demand for Petroleum

Products in the9

9- Estimated Construction of Trunk Oil Pipelines in the

USSR, Selected

Production of Electric Power by Thermal

Electric and Hydroelectric Powerplants ln the USSR,

,5

Total Allocation or Electric Power in the

95

Trade in Crude Oil and Petroleum Products

by the USSR, by Destination,

Trade in Coal and Coke by the USSR, by

5 and

- vil;

s-

S1GNIFICANT DEVELOPMENTS IN THE FUELS AND POWER INDUSTRIES

-IN TtE

Sunmary and Conclusions

All goals were achieved by the USSR9 for production ofenergy, except for natural gas. There vere, however, failures tn many of the supporting phases of each of the industries. the major problems that are anticipated for the energy-producing industries during the remaining years of the Seven Yearrobably will be more concerned vith these supportingthan with the achievement of production goals.

9 the shift in the energy balance away from coal toward the liquid and gaseous fuels continued. The share of coal In the output of primary energy declined8 percent82 percents the combined share of crude oil and natural gas Increased1 percent8 percent.

Production of coalillionexceeded the plan andercent above the level of production Of the increment of approximatelyillion tons in production of coal,ercent was provided by coking coal.

A slight improvement in the mechanization of the coal Industry wan achievedut the resultant cost-reducing benefits were more than offset by higher wages resulting from the shift In the coalto the shortened workours) and by the low rate of utilization of the equipment park.

The serious shortcomings prevalent9 in all phases of coal processing in the USSRcleaning, screening, andn inadequate supply of equipment. The deficiencies in coal processing9 contributed to an accumulation of aboutillion tons of surplus low-quality coal dust and, conversely,eficitillion tons in lump coal. The relative importance of peat, shale, and fuelwood in the energy balance of the USSR continued to declinelthough goa-lu for production apparently were met.

* The estimates and conclusions in this memorandum represent the best Judgment of this Office as

** Tonnages are given in metric tons throughout this memorandum.

Little change occurred9 in Import6 and exports of coal and coke by the USSR. The slight increase in deliveries of coal to the Free World uas offsetomparable decline in deliveries to other 8ino-Soviet Bloc* countries.

Production of crude oil in the USSR9 was reported to haveillion tons, an increaseli percent compared Production of crude oil in the Urals-Volga Region (Economic Regions VIII androbably representedercent of the national total. In Azerbaydzhon SSR, the other major area of production of crude oil, the share ln the national total declined6 percent8 to2 percent

For the first time the volume of exploratory drilling exceeded that of exploitation drilling. The shift lo emphasis to exploratory drilling reflects the desire of thc USSR to establish sufficient proved reserves for future increases ln production.

The output of petroleum products from the refining of crude oil Increasedillion tonsrowth4 percent compared Little change in the percentage yield ofproducts was apparent.

All of the increments In refining capacity in the USSR9 are estimated to have taken place at existing refineries. Capacity for primary distillation increased by more thanillion tons, largely through additions at the Omsk, Novo-Gor'kiy, Fergana, and Perm1 refineries.

The quality of Soviet petroleum products continued to decline Thi6 decline may be attributed to the lack of capacities for catalytic secondary refining and to the high sulfur and paraffinof the crude oil charged to refining.

Of theillion tons of petroleum products available forconsumption in the USSR9 million tons,ere directed to meet military needs. Industry probablyfor more thanercent of the civil consumption ofproducts, with transport and agriculture consuming most of the remainder.

The terms Sino-Sovlet Bloc or bloc as used in this memorandumthe following countries: Albania, Bulgaria, Czechoslovakia, East Germany, Hungary, Poland, Rumania, thc USSR, Communist China, North Vietnam, and North Korea.

As defined and numbered on, USSR: Political-Administrative Divisions and Economic Regions,

'Piie Soviet goal for conotruction of trunk oil pipelines9 was not met, reflecting for the mofttack of large-diameter steel pipe. Purchase of steel pipe abroad Increased sharply, andwere made to contract the construction of entire pipelineto Western firms. These efforts ss yet have not proved Available Information points to difficulty9 In theof new storage capacity, although success was realized in the use of washed-out salt strata for this purpose.

Net exports, of crude oil and petroleum products from thc USSR to the Free World9 increased byercent,illion tons, and to other countries of the Soviet Bloc, byercent,tons. Exports of crude oil and petroleum products to the Free World continued to be used to obtain foreign exchange, equipment, and consumer items andeans of penetration of the economy of the purchasing country.

Of all the forms of primary energy ir. the USSRnly the goal for production of natural gast net. Proauctlon of natural gas, estimated5 billion cubic meters* fell far short of the goal2 billion cu m. Both an inability to transport and an inability to consume larger quantities of natural gas were largely responsible for this underfulflllment of plan-Probably thc most dramatic achievement of the natural gasof the USSR9 VQ6 the very sharp increase in proved reserves,illion cu a, an increment of mereillion cu m, which exceeded the plan by almostercent. Almost equallywar.constructionilometers (km) of transmission gas pipeline, approximately equivalent to ul; gas pipeline construction. The major gas pipeline completed for use9 uasn pipeline from Serpukhov to Moscow. Perhaps of more Interest, however, was the initial construction on the WO-inch gas pipeline from Krasnodarskiy Kray to Moscow, the largest gas pipeline In the world (in terms of diameter).

Serious concern was shown iny Nikita S. Khrushchev over current developments In the electric power industry. Thiscentered on the reduced rate of construction of new capacity and thc implied threat of power shortages in trie immediate future. reaffirmed thc priority given to construction of new generating

* Calculations were basedepositsonassoclated natural gas only and do not take into consideration the reserves or natural gai. produced in association with crude oil. Nonassoclated natural gas refers to natural gas produced from gas wells. Associated natural gas is natural kac produced at oil wells In association with crude Oil.

"-9

capacity in tiiormal electric powerpLants as providing the cheapest and most rapid means of achieving additional capacity for generatingpower in thc USSR.

The plan for installation of new generating capacity in the USSR9 was underfulflllcdercent, attributed primarily toin planning und to tne inadequate und untimely delivery of equipment. Nevertheless, through the more intensive use of existing capacity, production of electric power increased9kilowatt hoursrowth of about IP percent comparedfl and slightly above the planned rate of growth ofercent.

Among the major Soviethments9he electric power industry was the initial operation ofolt transmission line from the Stalingrad hydroelectric plant to Moscow, the highest tension transmission line ln the world.

I. Energy Balance of the USSR

Production of primary energy in the USSR9 increased byercent comparedlightly less than the average annual rutcercent needed during the Seven Yearo meet tbe goals The trend toward increased proportions of crude oil and natural gas In the energy balance at the expense or coal, which beganontinued This emphasis onof the more economical liquid and gaseous fuels Is to continue throughout the Seven Year Plan. Estimated production of primary energy Ln the USSR5 andnd that planned5 ore shown in The shore of coal declined8 percent82 percentnd, concomitantly, tho combined share of crude oil and natural gas increased1 percent8 percent.

in

to of

A special commission within Gosplan, USSR, was establishedo analyze and provide solutions to problems Inherent ln the creationnified fuels and energy balance in thc USSR.Although the influence of this commiOBlon was not readilyt is believed that In the coming yearn benefito will accrue the fuels and energy sector of tbe economy through the unification planning for production and consumption.

Table 1

Estimated Production of Primary Energy in the USSR, by Source of,5 Plan

of

of

of

of

of

V

Total

h/

Total

y

Total

b/

Total

oil

gas

4

pover

electric pover

for estimates for hydroelectric and nuclear electric pover, data are free. The term standard fuel referseasure adopted by Soviet authorities for the purpose of comparing fuels on the basis of their calorific values. Standard fuel has beenalorific valuellocalories per kilogram.

hijvr

II. Solid Fuels

A. Coal

Production of coal In the USSR9 Increasedconparedillion tons. 3/ This level ofwasillion tons above the goal of cokingillion tons, also exceeded the plan. It Is estimated thatercent of the increment in production of coal was provided by the increase in production of coking coal. ThcUSSR* (including the Urals) continued as the dominant source of underground mining of coal and of total output of all means of The easternf the USSR continued to provide the larger share of coal produced by strip-mining.

Ho significant change took place9 in the percent of total production of coal In the USSR represented by strip-mining. The share of coking coalercent of total production of coal Increased only slightly,0 percent89 percent The major2 percent, of thc coking coal mined In the USSR9 was mined in tbe European USSR. Estimates of production of coal and coking coal In the USSR, and that planned5 are shown In Table 2.

Table

Estimated Production of Coal and Coking Coal in the, atwlan

Coking Coal

of

Metric Tons) (Mlon Metric Tons) Total Coal

Unleiir. otherwise indicated, the term European USSR, as used in this memorandum, refers to the gcograpnical area formed by Economic Re glons I, II, III, IV, V, VI, and VII. Tr* remaining area Is referred to as the eastern regions.

Excluding Economic Region VIII (Urals).

oal is importanteans of reducing cuSt3 of production,roductivity, andoutput. Setae success was realized in raising the level ofof the coal industry of the USSRarticularly in enefits continue to be offset, however,ow level of utilization of the coal machinery lt is estimated that9 iess thanercent of teecoal combines were actually ir.eflection of the low level of mechanization in the other erases of coai extraction.

Increased yields of low-quality anthracite coal dust for which there Is no market have accompaniedation of the mining of coal in the USSR. uantity of surplus dust amounted, to about II million tons Tests were carried out9ew coal combine,, that, compared with other models,perccnt reduction in coal dust produced. Serial production of6 combine is planned

The current trend in the coal industry of the USSR places more emphasis on raising the quality of coal and less emphasis onroduction. Processes that serve to improve the quality of coal include cleaning, screening, and brlquetting. Serious shortcomings were prevalent9 in all three phases, reflecting for the mostack of equipment. In turn, these shortages of equipment led to an increase in the quantities of unprocessed anthracite coal dust and to shortages of sorted anthracite lump coal, thc latter reachingillion tons.

Although virtually all types of coal produced in the USSR need cleaning,9 only aboutercent was processed. In an attempt to relieve the shortage of capacity for cleaningotal of seven cleaning plants was purcnased abroad by the USSR9wo plants from West Germany and five plants from France. 5/ The lack of cleaning capacity limits the output of coking coal concentrate used in producing coke. Much uncleaned coking coal Is consumed in the generation of electric power. The processing of energy coal and coking coal at cleaning plants in the USSR, and that planned5 is as follows:

EnergyCoal Total Coal Cleaned as a

of

Year (MillionProduction

lan

The capacity for screening coal9 was equivalent to only aboutercent of production, and the amount screened6 million tons, was approximately tlie same aa An analysis of plans for Increments in the capacity foran addition of onlyillion tons.

An increase In the capacity for briquetting vould serve tothe quantities of surplus anthracite dust and would help tothe shortage of lump fuel. Capacity for briquetting9 is estimated atillion tons, includingons of hard cool- Analysis of plans covering tfie remaining years of theYear Plan does not reveal any desire on the part of the USSR for significant additions to capacity for briquetting. 6/

It Is believed that the cost of production of coal increased9 compared8 largely because of tbe increase In wages that resulted from the shift toour workdaythe industry. wage increases'more than offset the negligible influence on reduction of coats that might result from an increase in low-cost strip-mining of coal. In addition, the reduction in costs resultinglightly higher level of mechanization of operations9 were negated by the low rate of utilization of available equipment. Based on trendstnlikely that the desire to reduce the costs of production of coalercent below the level8 will be realized

B. Other Solid Fuels

Other than data that permit derivation of estimates ofof peat, shale, and fuelwood, information Is lacking on general developments In these particular industries ln the USSR As sources of primary energy ln the USSR, theac fuels declined5 percent of total primary energy5ercent0i percent Estimates of production of peat, shale, and fuelwood in the USSR5re shown in

III. Cnxi- Oil and Natural Gas A. Drilling

or the first time, the volume of exploratoryfor crude oil and natural gas in the USSR exceeded that ofdrilling, j/ The shift in emphasis to exploratory drilling reflects the desire of tltc USSR to establish sufficient proved reserves for future increases in production of crude oil and natural gan.

ollows on p. 9-

Estimated Production of Peat, Shale, and Fuelwood in tne5

Tons)

Tons)

Meters)

Estimated exploratory and exploitation drilling for crude oil andgas in the USSR during selected years of there shown in

Although specific data are not available with which to measure tiie growth ln proved reserves of crude oil9eflection for the most part of tbe success of thc exploratory drilling program there is evidence of more than minimum achievements. Additions to proved reserves of nonosoociated natural gas9 measured moreillionercent above the planned goal. Thisto reserveb was accomplished in spite of the plan fordrilling for natural gas being underfill filled byercent. Proved reserves of natural gas at the beginning0 are estimated atillion cu m, an increase of moreercent

Of particular interest9 was the construction andoperation of the first floating drilling platform in tbeThin platform, similar ln construction and purpose to those in use off the Gulf Coast of the US, was designed foreterwells at depthseters. 8/

B. Production

1.

Production of crude oil ln the USS*9 Is reported to haveillion tons, fj on increase ofercent

ollows on

Estimated Exploratory and Exploitation Drilling for Crude Oil and Natural Gas in the,05 Plans

This rate of growth during the first yeor of the Seven Year Plan is well beyond the average ofercent necessary to reach thc midpoint of the control figuresillionillion tons given ln the plan The confidence generated by theof capacity to produce crude oil in the USSR9 IsIn the goal of lW* million tons establishedj/ which exceedsercent thc goalillion tons formulated0 under the abandoned Sixth Five Year.

Thc regional distribution of production of crude oil9 reflects the continuing importance of thc Urals-Volga Region, It is believed that production of crude oil in the Urals-Volga Region, commonly known as the Second Baku, accounted for aboutercent of the national total In Azerbuydzhan SSR, the other major area

of production of crude oil, tne sharehe national tatal declines fronercent8 to2 percent9 in spite of an oQsslut- lncrecent in productionere were noar.gei in production of crude oil in the reste USSR.

It snould be pointed out tnat the average productivity per welle USSR Is relatively ilign. or example, the total yield of crude oil was derived from0 wells, for an average of aboutarrels of crude oil per day for each well. Ir. contrast, average productivity per well in the US9 was snoutarrels per day,otalomestic pro-duclng wells, lg/

In

Tiie relatively high average productivity per well In tiie USSR, in combination with an equally high share of total production provided by free-flowing wells, is reflected in low cost per unit of output. The cost of productionon of crude oil in the USSR9 Is estimatedecline of more thanercent For comparison, the average wellhead price of crude oil the US9 was6 per

2. Natural Gas

Production of natural gas In the USSRhichboth natural gas from gas wells und natural gas produced In association with crude oil. Is estimated5 billion cu m. this level of productionrowth ofomparedhe natural gas industry failed by amargin to achieve the goal2 billionhat had been established The reasons for this underfulfIliment are twofold: ack of gas-consuming equipment andack of large-diameter steel pipe that was needed for expansion of thegas transmission system. To avert another failure by the gas industry to meet production goals, Soviet planners have found It necessary to reduce thc goal for production of natural gas0 by aboutercent, to an5 billion cu a, compared with an earlier goal ofillionor that year. Estimatedof natural gaa in the USSR for selected years of thes shown in*

Production of natural gas in the USSR is centeredelatively small number of producing fields. Of these, by far the most productive9 were the fields of Stavropol'skly Kray, which

Converted at the official rate of exchangeubles to US tl. ** ollows on

and for initial supervision of tne Moscow gas liquefaction plant and the Leningrad liquefied gus regeneration plant.

C. Refining of Crude Oil

otal yield of petroleum products in the USSRillion tons, represented an increaseh percent compared Little change was apparent in the percentage yields of thc individual products except for slight declines ln the yields of gasoline, kerosine, and light diesel fuelrowth in the yield of residual fuel oil and other residual products ofercent. Estimates of the yields of the principal types ofproducts in the USSR, and that planned5 are shown in

Capacities for all types of refinery ln the USSR probably were only barely sufficient Estimates of the increments Infor refining in the USSRy type of process, are shown to* All of the Increments in capacity for refining9 are assumed to have been at existing refineries. Of the totalof1 million tons, probably more thanercent was installed at four of the five major refineries commissioned, as follows:

Thousand Tons of Capacity

Of particular significance9 was the sharp increase in capacity for both catalytic reforming and catalytic hydrotreating, although these capacities as yet log considerably behind the minimum desired. It is not known at what sites these expansions took place.

There haseneral deterioration In the quality ofproducts in the USSR. This deterioration may be attributed to the lack of capacities for secondary catalytic refining and to the high

ollows on p. Ik. ** ollows on

Table 6

estimated production of petroleum products in the ussr, by type of,5 plan

trie

fetal "/

total v

f

in*

'

light

;irt-l

-

..;

anl

t/

j

-

4

outpt* of

lm

toui

-

.c

iages -i-!

b. paaldual mai oil, roadpnalta, mtuncn, sivj bltualnou* tar.

- lb -

content ol" sulfuraraffin in tile cr-ie oil charged to refining. Toe quality, tr* USSR must increase tbe capacities of orocesses sucii as cracking, reforming, ana rvdrotreoting. As shown in Tableig: rates cf growth were achievedncrements ir. capacity for cac: of tuese processes. Ann-al capacity, however,is cor.eicerec insufficient-

Table 7

Estimated Increments in Refining Capacitye USSR, by Type of9

Type of Process

Primary distillation Secondary processes

ncrement

Million Metric

Tons Percent

1

Thermal conversion

cracking

3

reforming

hydrotreatlng

9

processing

D. Disposition of Petroleum Products and Natural Gas

It is estimated that of theillion tons of petroleumavailable* for distribution among thc various consumers in the USSR9 nillionercent) were allocated to meet military needs."* Tne remainingillionercent) were allocated to the civil economy. Estimates of the supply and demand for petroleum products in the USSR9 are shown In Tabic

* Total supply less exports, losses, and increments in storage. ** including consumption of petroleum products by Soviet civil aviation.

*** ollows on p. IT-

The distribution of theillion tons to the civil economy9 may be established roughly as follows:

Tons Percent of Total

household

An increasing disproportion between production andautomobile gasoline and diesel fuel uas evident In the USSR Increased demands for diesel fuelesult of theof the agricultural and transport sectors of thetne capability of the USSR to produce this fuel. increase in production of automobile gasoline exceeded tbeconsumption of automobile gasoline by the national economy. has existed in the USSR for seme time, but the gravityproblem facing the refining industry had not been discussed inpress until recently. Included among numerous measuresto overcome these disproportions are (l) the use byof admixture of'automobile gar.oline and dieselortion of the automobile gasolineiesel fuel,of diesel fuel at below-standard specifications, andn the yield of gasoline accompanied by on increase inof diesel The latter would afford the USSR theapproach but would involve additional capital investmentconstruction of new refining

A larger share of the annual production of natural gas in the

USSR continues to be used by industry. The share of industry inconsumption of natural gas is to be increased from Jkthanercent o preliminary

ri t-:. rn , . distribution In9

supported thio trend, and it is estimated that the shore of industry represented aboutoercent ol tHc total in that year. Thus, all.iougn the amounts of natural gas made available to the public for cooking ond heating continue to increase, toe percentage share or this sector in the national total continues to decline.

The leading consumers of natural gas in the USSR are electric powerplants, which9 probably accounted for more thanercent of the totul natural gas consumed. Other cajor consumers are the ceicent and heavy metallurgical Industrie:..

Estimated Balance of Supply and Demand for Petroleum Produces in the9

Million Metric Tons

Amnunt

Production Imports

Demand

*9

Civil

1

, v/

Losses and increments in0/

From Tablebove, b. Losses were estimated atercent of the total availability. Increments in storage are from.

E. Distribution and Storage ofnd Petroleum Products

The cheapest vay to transport crude oil and petroleumin the USSR ia by trunk pipeline. The average cost ofcrude oil and products by pipeline9 vao reported8er thousand ton-kilometers, compared vitho0) by vater6y26/ Yet the development of the trunk oil pipeline system has lagged behind the general expansion of the crude oil industryhole, and most of the crude oil and products has been moved by the railroads. Although more thanercent of the crude oil isto refineries by pipeline, less thanercent of the light petroleum products are moved to consumers by

Estimated construction of oil pipelines in the USSR foryears during thes shown In Table 9. to achieve planned construction have occurred yearly0 underlining for the most part the lack or large-diameter steel pipe Because of this lack or pipe, the USSR has increased its purchases of pipe from the Free World, particularly Western Europe. Perhaps of more importance, however, the USSR has sought contracts forof entire pipeline systems from Western firms. The latterhave not as yet proved completely successful.

Table 9

Estimated Construction of Trunk Oil Pipelines In the USSR Selected

Kilometers

Period

Installed

Availability

8

2 tl lU.li tl

i

/

e/

data.

22/

As shown in Tablem of trunk pipelines for crude oil and petroleum products were completed for use Host Important of thoHc pipelines completed were tho extension of the Tuymazy-Cmak crude oil pipelineo Sokur,m east of Novosibirsk; the completionroduct pipeline linking Omsk with Novosibirsk and Sokur; and the extension of the Kuybyshev-Syzran' product pipeline to Penza. Available information does not Indicate construction on either the oil pipeline to Klaypeda or the pipeline to the European Satellites The availability of trunk oil pipelines In the USSR at the end9 is estimated0 km.

Considerable difficulty vas encounterede construction of nev storage capacity, particularly of tnose reservoirs for whichconcrete vas to be used. Experiments in Bash;;lrskoya ASSR In trie use of vasiied-out salt strata for tne underground storage of crude oil and petroleum products proved reliable,nd it is probable that some cccaiercial use of SOfiJ facilities vlll be madext fev years -

The Main Administration for Petroleum Sales (Olavneftesbyt) vas dissolved at tne beginning9 and replaced by tne All-Union Hsin Adnlni strati on for Interrepublic Delivery of Petroleum Productsttached to Gosplan, USSR. Jfej e nev mainvas given tne responsibility for establishing plans for interrepublic delivery or petroleum productsncluding thosedesignated for export, for the government reserve, and for ministries and departnents of the USSR. This nev organization also was to have control over the fulfillment of plans for these deliveries by the petroleum marketing organs of the union republics. At the sane time,e entire network of trunk oil pipelines and the bases for transfer and distribution of oil were given to the Council of Ministers of each of tbe union republics.

F. Distribution and Storage of Natural Gas

Except for small quantities of liquefied gas transported by railroad tank car or In cylinders by trunks and barges, the only form of transport used by the natural gas industry is the transmission gas pipeline. The length of the transmission gas pipeline system in the USSR at the beginning00 km, ofm were installed Construction of gas pipeline9 wasequal to all construction of gas pipeline.

Four major transmission gasa pipeline rrom Serpukhov tom pipeline from Shcbellnka tom pipeline from Stavropol* to Gro2nyy,CO-km pipeline from Koradag to Tbilisiere completed for use

In addition to these major projects, and perhaps of morewith respect to an appraisal of Soviet capabilities in theof long-distance pipeline, was initial construction on the WO-inch gas pipeline that Is to deliver natural gas from thc deposits in Krasnodarsxiy Kroy to consumers in Moscow and Leningrad. Repeatedly delayed becauseack of pipe, construction was begun In9 using pipe purchased from West Germany. Apparently enough pipe vas purchased to give the USSR time to expand internal capacity for productionlnch steel pipe.

Transmission gss pipelines1 billionfgaBquivalent to aboutercent of the annual/ Thia underfulfillment, causedack of equipment and deficiencies in planning, may be attributed to failure to achieve planned construction of compressor stations.

IV. Electric Power

Production of electric power ln thc USSR9kwji, exceeding the plan by moreercent androwth in production of aboutercent comparedhis percentage Increase is approximately equivalent to the average annual rate of growth required to achieve the Seven Year Plan goalillion kwh Estimates of production of electric power by thermal electric and hydroelectric powerplants In the USSR5nd that planned5 are shown In

Table 10

Estimated Production of Electric Power by Thermal Electric and Hydroelectric Powerplants in thc,5 Plan

Million Kilowatt Hour

Plan

hydroelectric Total

Type of Powerplant

Thermal electric

isoelectric

spite of the above-plan growth In production, the acccmplish-ocnts of the electric power industry of the USSR9 were admitted to be unsatisfactory. Most of the dissatisfaction was the result of failure to fulfill the plan for installation of newcapacity. Actual installation reachedompared with theillion kw. 4o/ failure to fulfill the plan would have been considerably greater had not the installation of new hydroelectric capacitythc plan byw. Installation of new capacity at hydroelectric powerplants9 is estimated to have beenillion kw, orercent of the total capacity Installed during

-S-S

the year. Thus it oay be calculated that installation of new thermal capacity was below that plannedw, or the equivalent ofercent of9 plan. The planned installation of five new hydroelectric powerplants was carried outut of the six new thermal electric powerplants planned for installation, it is estimated that only four had gone into operation by the end of the year-

The failure to meet the plan for installation of new9 was, inontinuation ofhen the total plan for installation of new electric power capacity was underfulfilled by morew and that for construction of thermal electric powerplants was underfulTilledw. jtl/ The reasons for failure to meet conatruction plans are multiple, but among the more important were too much emphasis on completion in the last quarter of thenadequate and untimely deliveries of equipment,ack of new designs for equipment. Only through the more Intensive use of existing capacity was the USSR able to meet9 plan.for generation of electric power. Average use of existing capacity increased4 hours8ours

Estimates of the capacity of electric powerplants5nd that planned5 are as follows:

Capacity (Thousand Kilowatts^

Year

Powerplants

Plan

Capacity Increase

Above Previous

3

In addition to the failure to achieve planned construction of new generating capacity, considerable difficulty was encountered innew transmission lines, primarily because of shortages of

* It wsb reported thatercent of the additions to capacity9 were to have been Installed In the last* Average annual rate of increase needed during the Seven Year Plan to meet5 goal.

Such exports to the otner countriese Sinc-SovUt Bloc9 underline the increasing dependence of these countries on the USSRa source for crude oil and petroleum products. Increasing energy deficits, particularly in the European Satellites, during the remaining years of the Seven fear Plan are likely to call for aof imports of larger quantities of crude oil and petrolein: products from the USSR.

B. Coal and Coke"

Little change occurred9 in Soviet trade of coal and coke. Exports of coal from the USSR to the Free World increased byons but were offset by an approximately comparablein Soviet deliveries to the European Satellites. Imports of coal Into tne USSR9 remained at the levels Exports or coke to the Free World9 declined by more than one-third, and exports to other countries of the Sino-Soviet Bloc remained Estimates of Soviet trade in coal and coke with the Free World and other countries of the Bloc during the5re summarized In Table

The USSR does not participate fuels other than coal and coke. ** Tableollows on

in international trade in solid

-

s

Table 13

Eatlnated Trade In Coal and Coke by tha USSR by Destination5"

Million Metric Tons

the Free World

Exports

1.8

0.2

3.6

0.4

4-3

0-3

the Sino-Soviet Bloc

Exports

0.2

1.0

2.8

1-3

1.9

1.3

b/

others

Exports

0.2

D

c

negligible

c

b/

total trade b/

studies used In b. Derived from unrounded

construction of data. Net imports

table are those are designated by the

In source UJy useinus sign

SOi/iiCrl itSFERBNCES

Doc lane ntary

Confirmed byource*

-

reiiabi*

Probably

reliable

Possibly

-

reliable

Doubtful

-

* dually reliable

Probably Jul:-.

-

reliable ,

oti/e-

iot otherwise designated are those appearingt ciled document; those designated "HR" are by the aut.ior of this oerac-rondui'. Nc "Rit" evaluation is given when the author agreeshc evaluation on the cited document.

nd Steyngaut, Ye.azrabotke yedinogo

topi ivno-energetlciieskogo tialaniia" (On thc Development uf ft Unified Fuels and Energylanovcye khozyayatvo,fl. U. Eval. RR 2.

Taentral'novo Stotleticheskoye Upravieiiye. Ma rod no ye

khozyaystvo9 godu, statisticheskly yezhcgodnlk (national Economy of the USSRtatistical. U. Eval. Doc. (hereafter referred to a',oncqy )

. U. Eval. Doc.

"Za" u'skorcniyc tekhnicheskogoevysheniye kullurygoi'noy promyimlennosti uickening of the Technical Progressaising ofulture ofIn thc Coolgol',.. U. Eval. RR 2.

- Zl -

T*Tif

UtOtc,. 9- U. Evid. RRort.i. FSO, W. okiy Economico

ii IfcvHR 2.

l ol. usnovy tekiuilche&koguiost: IlSSflcchi.:cc7Ta: Ir.uartrj ol t USSR).cjfc.

U. Eval. KR t. Kalamkarsv, V. A.- ina ! an" Gas9 and Problems, Hezyayatvo, U. Eval. RRaUniW'.iy raoochjy,. 1. U. Eval. RR- Pravda," p. 1. U. Eval. Doc-

Jl. S. "'Resuray prirodnogourvooi godu

semlletke" (Resources of Natural Gas in tbe First Year of the Seven Yearazovaya promysitlennost',. U. Eval. RR 2.

Yu. I. Gaiovyya rcsursy SSSR (Gas Resources of the

U. Eval. RR ?.

- U. Eval. Kalomkarov,bove).

It. tiavneysniycblasti Olkrytiya novykuvelicheniyo razvedochnykh zapasovaza" (Tbe Major Direction ln the Discovery of New Deposits and an Increase in Explored Reserves of Oil ondeftyanoye khozyoyutvo,. U. Eval. RR 2.

15- Keller, A. A.azovaya proayshlennost'he Oil and Gas Industry ofSfi* During lix Postwar. ?C. U. Eval. RR 2.

16. Mustaflnov, A. N. "Zadochl podgotovKi promyshlennykr, zapasov

ovyslienlya effcktivnosti geologorazvedochnykh rabot po RSFSR*' (Problems In the Preparation of Proved Re-nerves of Crude Oil and Natural Gas and Raising theof Geological-Exploratory Work In theeploglyaaza.- U. Eval. HR 2.

17- Pravda, gfl. 1. U. Eval. HR 1.

18. Baklnskly rabochiy,. 2. U. Eval. RR 2.

Oil,. Il8. U. Eval. RR 1.

onazovayaTheCos Industry.ekhrologiya- U. Evol. RR 2.

World Oil, U. Eval. RR 2.

Boksermon, Yu. clt. ,

U. Eval. RH Na stroltoi 'r.tvo truboprovcxlpv,. 1. RR

rnr,yfiiiicnnnEi 1

SSSR AOvosi noncustom pod"yeme" (The Finistry USSRew Powerfulasel. Nov U. S 1.

ji. K'..lurkarcv,p.bove).

27- Toroctlkov, I. M. "Ocoeredoyye zadachinabz:;eniye"

(Alternate Pi-obltfms of Oilzyaystvo. U. Eval. RHnnts, A. D. "Stroitel'stvo Ol Pipelines, Stroitel' stvo truboproyouoy,- U. Eval. RR 2-

26. Torocjik-jv,p-bove).

29. Borisov, V. V. "Vertolet vmeato obkhodchikov magistral1 nykiiHelicopter in Place of Pipe-Walkers of Trunkcftyanik,. U. Eval. RR ?.

JO. Vesi.iiit; V. Eval. RR 1.

Tye-lral'rioyc Stuti stlciieskoye Upravleniye. SSSR v

t&jfr-ak.i, statlS'lctieskiy sbornik (Ttie USSH in Ti.

Eval. Doc.

A. K. "fiashi0 godu" (Our Problems in

troitel'stvo truboprovpeiov,- U. Eval. RR 2.

33- Torocrtkov,p- Cit. conomic, Moscow,

Eval. RR 3.

3?. Hikhaylov, K. M, "Zadachi snabzheniya narcinogo khozysystva

Problems of theof the National Economy with Crude Oil and Petroleum Products, Neftyanoye. Eval. RR 2.

Kortunov,p., above).

Oazovaya prumyshlcnnost',. 0. Eval. RR 2.

Pravda,. 1- U- Eval. Doc

Ibid.

Izvestiya, jl- 1. U. Eval. RR 3.

Pravda,. 1. U. Eval-ational. U. Eval. Doc.

4?. Stroitel'naya gazeta,- 3- U. Eval. PR 2-

Tbid.

Pravda, U. Eval. Doc.

47. Civ. ' Solid Fuels Exports Fro- tne Working Paperadd.2 USSR, Tsentra)'noye Statisticheskoye Upravleniye. Vneshnyaya torgovlya SSSR0 god, statisticheskiy sbornik (Foreign Trade of the USSRtatistical. U. Eval. RH l.

Original document.

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