Production - Foreign - Russian Oil Industry 1931-1932

Russia's first "Petaletka'' has ended. Technically it did not succeed but practically it has been a great achievement in the petroleum industry. Out of the chaos of revolution and civil war Russia has developed her oil industry to second place in the world's production. For 1932 production of crude oil is estimated at 150,000,000 bbl. and refined products at 145,000,000 barrels. Russia has been able to give the petroleum industry every advantage that a government can extend to a fast growing industry. She has obtained all of her property by confiscation. Under government ownership, operation and control, her petroleum industry is not handicapped in any way by state rulings or by unnecessary competition in production, refining and marketing. There are no damage suits resulting from offsetting, flooding, repressuring, laying of pipe lines, building of docks or other necessary work. Russian oil fields2 have been easy to develop and operate. They lie advantageously to transportation for foreign markets. The chief disadvantages have been a lack of credit and technical cooperation, but the former is being overcome by the sacrifice of the people. They go without the comforts of life that all salable articles may be exported for the imports of modern machinery. Modern machinery is fast replacing the obsolete and worn-out equipment. Technical cooperation has been difficult because it has been necessary to train thousands of adults to do technical and mechanical work. Great quantities of pipe, tools and electrical equipment were necessary for the rapidly developing fields and refineries. The supplies have been inadequate and the quality poor. This lack of equipment, along with the untrained technical supervision, has been the cause of the proposed quota falling short. Fig. 1 shows the production for 1931 and 1932. During 1932 a large percentage of the oil was produced in the proven fields of the Caucasus.