Production - Foreign - Russian Oil Industry in 1936

During 1936 the Russian oil industry made very satisfactory progress and, while not all difficulties of organization have been ironed out, the country is now assured of a supply of petroleum products in sufficient quantities and of quality demanded by modern motor equipment. The year 1937 promises to better by a wide margin the good showing of 1936. The statistics given in this paper for the first time take into consideration the varying gravities of crude oils of the several Russian oil fields instead of using a flat conversion factor of 7 bbl. per metric ton. It was found from the detailed study that the generally used average conversion factor should be increased from 7 to 7.25 bbl. per metric ton, the figure varying, of course, with the gravity of oil in the individual fields. Crude-oil production during 1936 is estimated at 201,500,000 bbl. as compared with 182,970,000 bbl. produced in 1935, an increase of 9.4 per cent. The greatest increase was again recorded in the Baku district, which increased its production by 10.9 per cent, from 141,257,000 bbl. in 1935 to 158,300,000 in 1936. Grozny district maintained its production at a level of about 23,000,000 bbl., but its old fields continued to decline and production was sustained by the development of newer fields. A great advance was made in drilling speeds and the total footage in 1936 reached 6,694,200 ft. as compared with 4,926,600 ft. drilled in 1935, an increase of 26.4 per cent. In older deep fields, producers were being completed at over 8000 ft.—a great depth for Russian drillers but two years ago. Several major discoveries were made in 1936. Northeast Caucasus.—Izberbash, east from Grozny and on the Caspian Sea, was the outstanding discovery, the initial production of the discovery well being around 3000 bbl. per day from about 5000 ft. The importance of the field is due to the large area of the structure, half of which, however, is under the sea, and also to its strategic location on the shores of the Caspian and near a trunk pipe line to the Grozny refining center. An active development program is being pursued in Izberbash and its 1937 production quota is set at 7,500,000 bbl. Achi-Su field, near Izberbash, also discovered during 1936, while not as prolific as Izberbash, is thought to cover a very large area and the small