Foreign Production - Russian Oil Fields, 1926-1927 (with Discussion)

There were no radical changes in the petroleum situation in the Russian Soviet Union during the 1926 to 1927 operating year. The developments of the previous year were continued, but the major undertakings were far from being completed. The pipe lines from Baku to Batum and from Grozny to Touapse, and the large refineries on the Black Sea are delayed in their completion by the insufficient authorizations; until their completion the changes in the general situation will be necessarily of a halfway nature. The marketing situation was subject to much controversy during the past year and, though certain statements are quite true, the bulk of the criticism against the petroleum industry hardly deserves mention. The home market in Russia is steadily growing, with the per capita kerosene consumption already exceeding the prewar figure and fuel oil consumption obviously gaining. The foreign trade is making rapid and well-grounded success, but continues to suffer from low world quotations. There is no apparent sacrifice of home consumers in favor of export trade. The production of all Russian fields increased by 13,750,000 bbl. as compared with the 1925 to 1926 operating year, and next year's program anticipates a further increase of 9,720,000 bbl. (Table 1). The increased and improved refining facilities will make the real gain in production in the next year even larger than these figures indicate.