UBC Theses and Dissertations

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UBC Theses and Dissertations

The Natural gas industry of the U.S.S.R. Dienes, Leslie 1965

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THE NATURAL GAS INDUSTRY OF THE USSR by  L E S L I E DIENES B.A., U n i v e r s i t y  o f M c G i l l , 1963  A THESIS SUBMITTED I N P A R T I A L FULFILMENT OF THE REQUIREMENTS- FOR THE DEGREE OP MASTER OF ARTS'  i n the Department of GEOGRAPHY  We a c c e p t t h i s t h e s i s a s c o n f o r m i n g t o t h e required standard  THE U N I V E R S I T Y OF B R I T I S H COLUMBIA April,  1965  In  presenting  the r e q u i r e m e n t s f o r British  Columbia,  available  for  mission for purposes his  I  agree  extensive  without  this  thesis  my w r i t t e n  Department  that  r e f e r e n c e and  in partial  degree at  the L i b r a r y  study,  copying  may be g r a n t e d  of  thesis  an advanced  representatives.  cation  this  of  I  this  fulfilment  the U n i v e r s i t y shall  make i t  f u r t h e r agree thesis  for  that  for  is  understood  of Columbia,  or  c o p y i n g or  f i n a n c i a l gain shall  permission*  The U n i v e r s i t y o f B r i t i s h V a n c o u v e r 8„ Canada  that  of freely per-  scholarly  by the Head o f my Department  It  of  not be  by publi-  allowed  ii  A B S T R A C T  iii The in  l a s t few y e a r s h a v e w i t n e s s e d  Soviet fuel policy.  momentous d e c i s i o n s  A f t e r l o n g n e g l e c t , a sudden and a l l  o u t p r i o r i t y was g i v e n t o t h e p r o d u c t i o n  o f p e t r o l e u m and n a t -  u r a l g a s , and t h e c r e a t i o n o f a massive p e t r o c h e m i c a l was o r d e r e d .  The o f f i c i a l  support  industry  and t h e e c o n o m i c a l l y  more  r a t i o n a l c l i m a t e o f t h e p o s t - S t a l i n decade proved a tremendous "boon t o t h e g a s , o i l a n d p e t r o c h e m i c a l  industries.  I n compo-  s i t i o n t h e f u e l s t r u c t u r e o f t h e USSR i s f a s t a p p r o a c h i n g o f t h e U n i t e d S t a t e s , and t h e p e t r o c h e m i c a l younger—  i s also vigorous.  build-up—  that  though  The new f u e l p o l i c y h a s a l r e a d y  put  i t s mark on t h e map o f t h e c o u n t r y ,  yet  t o come.  but the f u l l  impact i s  The S o v i e t e n e r g y p i c t u r e , t h e r e f o r e , i s i n a  s t a t e o f f l u x a n d f u r i o u s d e v e l o p m e n t , a n d t h e same g o e s f o r the to  chemical  industry.  The new f u e l s h a v e n o t y e t h a d t i m e  c r e a t e a c r y s t a l l i z e d and mature g e o g r a p h i c p a t t e r n , a s i n  the U n i t e d S t a t e s , b u t s u c h a p a t t e r n i s i n emergence and c a n now be e x a m i n e d . gas  This paper d e a l s w i t h the p o s i t i o n of n a t u r a l  i n t h e new S o v i e t f u e l g e o g r a p h y a n d , i n a d d i t i o n , c o n -  s i d e r s i t s c o n t r i b u t i o n to t h e emerging p e t r o c h e m i c a l  industry  o f t h e USSR. Since  the e a r l y f i f t i e s  was c o m p l e t e l y ienced  the n a t u r a l gas i n d u s t r y , which  undeveloped throughout the S t a l i n era,  a growth, the r a t e o f w h i c h exceeded a l l other  o f t h e f u e l i n d u s t r y o f t h e USSR. fortieth to  experbranches  C o n t r i b u t i n g l e s s t h a n one-  t o t h e f u e l mix a s l a t e a s 1955, i t s s h a r e h a s grown  a n e i g h t h i n 1963 a n d i s c l o s e t o a s i x t h t o d a y .  U n i o n i 3 thought t o have f a r g r e a t e r r e s o u r c e s  The S o v i e t  o f g a s t h a n any  .iv other country still  i n the w o r l d but  only a q u a r t e r of those Over e i g h t y p e r c e n t  i t s f u l l y proved reserves of the U n i t e d  are  States.  of p r o d u c t i o n today  comes f r o m  only  three r e g i o n s , a l l i n European R u s s i a , yet the a r e a l d i s c o r d a n c e b e t w e e n p r o d u c t i o n c e n t e r s and is quite considerable. trial  centers  W i t h one  the major consuming  o r two  o f t h e c o u n t r y h a v e no  e x c e p t i o n s , the  output  and,  consequently,  n a t u r a l gas  over g r e a t d i s t a n c e s are  The and in  the  This a r e a l  i n c r e a s i n g , as the  immense  production.  amount consumed, t h e s h a r e  each economic r e g i o n .  o f gas  However, the share  of e l e c t r i c i t y  f a r more h e a v i l y t h a n  t h e amount consumed and  of  east of the U r a l s , are  i n the f u e l  s e c t o r i a l d i s t r i b u t i o n of consumption d i f f e r  generation and  brought i n t o  and  the l a r g e - s c a l e t r a n s p o r t  r e s e r v e s , b e l i e v e d t o e x i s t s o u t h and p r o v e d and  indus-  on t h e i r own  g e n e r a l l y are l o c a t e d f a r from supplying f i e l d s . discordance  areas  mix,  greatly  of i n d u s t r y (the  i n c l u d e d ) everywhere  predominates,  i n the U n i t e d S t a t e s .  t h e manner o f u t i l i z a t i o n  Variations in lend a  dis-  t i n c t n e s s of c h a r a c t e r t o t h e gas  i n d u s t r y i n each S o v i e t r e -  gion.  i n c e r t a i n areas are  Nevertheless,  enough t o p e r m i t The regional.  essay  similarities  regional  p r o d u c t i o n o f , and  gas  m a i n p a r t s : a g e n e r a l and  e v o l u t i o n of S o v i e t f u e l p o l i c y ,  markets f o r , n a t u r a l gas,  o f S o v i e t r e s e r v e s and, are considered.  groupings.  c o n s i s t s o f two  I n P a r t I the  great  f i n a l l y , the R u s s i a n  the  a the  characteristics  p i p e l i n e network  P a r t I I examines the p r i n c i p a l r e g i o n s where  i s p r o d u c e d and  is utilized,  attempts  an i n t e g r a t e d t r e a t -  ment o f t h e  r o l e o f gas  i n the  interregional variations. that the  v e r y young i n d u s t r y  regional  economy, and  analyses  B e c a u s e t h e r e s e a r c h done so f a r u s u a l l y t r e a t s i t on a n a t i o n a l  on  plane,  a n a l y s i s of r e g i o n a l p r o f i l e , attempted i n P a r t I I , i s con-  sidered  t o be  the major c o n t r i b u t i o n of t h i s  paper.  xiv ACKS'OT/LEDGMENT I w i s h t o e x p r e s s my g r a t i t u d e t o D r . D. J . H o o s o n a n d Dr.  J . D. Chapman f o r t h e i r a d v i c e a n d c r i t i c i s m i n t h e w r i t i n g  and  organization of this thesis.  I am a l s o i n d e b t e d  t o D r . W. i£.  A r m s t r o n g , D e a n o f M e t a l l u r g y , a n d D r . H. M. M c l l r o y , D e p a r t m e n t o f M e c h a n i c a l E n g i n e e r i n g , f o r t h e i r h e l p i n some o f t h e t e c h nical  questions involved.  S p e c i a l thanks  a r e due t o D r . R o b e r t  C a m p b e l l o f I n d i a n a U n i v e r s i t y who made a c h a p t e r  of h i s forth-  c o m i n g b o o k on t h e e c o n o m i c s o f S o v i e t o i l a n d g a s a v a i l a b l e t o me.  Finally,  I am g r a t e f u l t o my w i f e , J e n n i e , who d r e w  m o s t o f my maps a n d a s s i s t e d me t h r o u g h o u t  t h e work.  vi TABLE OF CONTENTS PART I - GENERAL SECTION I  THE EVOLUTION OP SOVIET FUEL POLICY  1  E f f e c t o f t h e New F u e l P o l i c y on t h e N a t u r a l Gas Industry The New F u e l P o l i c y i n W o r l d P e r s p e c t i v e R e g i o n a l D i s t r i b u t i o n o f S o v i e t N a t u r a l Gas Production II  MARKETS  FOR NATURAL GAS  7 10 12 18  I n d u s t r i a l U s e s o f N a t u r a l Gas The U s e o f Gas i n E l e c t r i c S t a t i o n s The U s e o f Gas i n t h e I r o n a n d S t e e l I n d u s t r y N a t u r a l Gas i n t h e C h e m i c a l I n d u s t r y Household and M u n i c i p a l Consumption  22 24 27 32 41  III  RESERVES  44  IV  TRANSPORT  66 PART I I - REGIONAL SECTION  "V  CONSUMING REGIONS The The The  VI  93  C e n t r a l Region Leningrad Region B a l t i c R e p u b l i c s and B y e l o r u s s i a  94 108 115  REGIONS WHICH PRODUCE AND CONSUME The The The  VII  87  126  Greater Ukraine Volga Region Transcaucasus  127 138 150  PRODUCING REGIONS  159  The N o r t h C a u c a s u s Central Asia V I I I POTENTIAL REGION —  160 167 S I B E R I A AND NORTHERN  KAZAKHSTAN  180  vii REGIONAL COST A N A L Y S I S  193  CONCLUSION  216  BIBLIOGRAPHY  225  A P P E N D I X TABLES  235  viii L I S T o f TABLES  Table  I  F u e l P r o d u c t i o n i n R u s s i a and t h e USSR  (1913-1963) Table I I Table I I I T a b l e IV  Table  V  3  P r o d u c t i o n o f Gas i n t h e USSR R e g i o n a l Breakdown o f N a t u r a l Gas P r o d u c t i o n C o n s u m p t i o n o f N a t u r a l Gas by S e c t o r s o f Economy Average Chemical Consumption o f Gases i n the Major S o v i e t Deposits  Table VI  Reserves  Table V I I  Cost of Transporting Various Puels D i s t a n c e o f 1 0 0 0 km.  Table  VIII  Table IX Table  X  Table X I  Table X I I Table  XIII  Table XIV  Table  XV  9  o f N a t u r a l Gas over  Table  XVII  Table  XVIII  40  a 70  Pull 77  S e a s o n a l P l u c t u a t i o n o v e r M a j o r S o v i e t Gas Pipelines o f Moscow C i t y * s P u e l M i x i n 1 9 6 6  The U s e o f N a t u r a l Gas i n t h e B l a s t naces o f the Ukraine — Reduction Consumption  81 104  Furo f Coke 132  C o n s u m p t i o n o f N a t u r a l Gas by S e c t o r s o f Economy i n S a r a t o v O b l a s t  144  Cost o f E t h y l e n e i n the V o l g a R e g i o n Three D i f f e r e n t Sources  146  from  D r i l l i n g f o r Gas and I n c r e a s e o f R e s e r v e s i n t h e U z b e k SSR and i n t h e USSR a s a Ihole  170  P u e l C o n s u m p t i o n by T h e r m a l S t a t i o n s i n Central Asia  Table XVI  21  48  T r a n s p o r t C o s t s o f N a t u r a l Gas o v e r Length o f C e r t a i n Major P i p e l i n e s  Porecast  13  Cost  172  of Various Puels  E x t r a c t i o n Costs Transport Cost Costs of Various Investments i n  UBSR ( 1 9 5 9 )  i n t h e USSR  o f N a t u r a l Gas, i n c l u d i n g by P i e l d G a t h e r i n g S y s t e m P u e l s and R e q u i r e d C a p i t a l the Major Regions o f the  195  196  199  ix Table XIX  Table  XX  Table XXI  Table  XXII  P r o j e c t e d C o s t s o f V a r i o u s P u e l s i n 1965 a t M a j o r Consuming C e n t e r s o f t h e USSR and R e g i o n a l C a p i t a l Investment  200  C o s t o f LPS a n d N a t u r a l G a s o l i n e P r o c e s s i n g P l a n t s o f t h e USSR  203  i n Gas-  T e n t a t i v e C o s t s o f Carbamide and M e t h y l A l c o h o l (from N a t u r a l Gas) i n V a r i o u s Regions  209  C o s t I n d i c e s o f A c e t y l e n e , E t h y l e n e , and P r o p y l e n e i n V a r i o u s R e g i o n s o f t h e USSR  211  X  LIST Table  I  o f APPENDIX TABLES  The F u e l M i x o f t h e U n i t e d S t a t e s f r o m 1880  -  1920  236  Table I I  Gross Consumption of Commercial Sources of Energy i n the World ( 1 9 2 9 - 1 9 5 0 )  23?  Table I I I  T e c h n i c a l I n d i c e s of B l a s t Furnace Operat i o n w i t h a n d w i t h o u t N a t u r a l Gas  238  Table IV  T r a n s p o r t C o s t o f N a t u r a l Gas  239  Table V  C o s t S t r u c t u r e o f N a t u r a l Gas T r a n s p o r t over the K i e v Network  240  Table V I  C o s t S t r u c t u r e o f N a t u r a l Gas E x t r a c t i o n  241  Table V I I  P r o j e c t e d C o s t s o f N a t u r a l Gas and C o a l i n 1 9 6 5 a t M a j o r Consuming C e n t e r s — Investment R e q u i r e d  242  Cost I n d i c e s of V i n y l C h l o r i d e i n Various Regions  243  Table I X  Cost I n d i c e s o f Acetaldehyde Produced from A c e t y l e n e and E t h y l e n e i n V a r i o u s Regions  243  Table  P r o j e c t e d C o s t s and C a p i t a l Investment Acetylene i n Various Regions  244  Table  VIII  X  Table X I Table X I I  Table  XIII  of  Projected Costs of Olefins i n Various Regions  244  P r o j e c t e d C o s t s o f V i n y l C h l o r i d e and V i n y l A c e t a t e f r o m N a t u r a l Gas a n d P e t r o l e u m Products i n Various Regions  245  P r o j e c t e d C o s t s o f Some O t h e r P e t r o c h e m i c a l P r o d u c t s i n Two R e g i o n s  246  xi L I S T OF HAPS Map 1 Map 2 Map 3  i  R e s e r v e s a n d P r o d u c t i o n o f N a t u r a l Gas i n t h e USSR  15 & 4 9  R e s e r v e s a n d P r o d u c t i o n o f N a t u r a l Gas i n t h e E u r o p e a n USSR  16 & 50  R e s e r v e s a n d P r o d u c t i o n o f N a t u r a l Gas i n t h e A s i a t i c USSR  17 & 51  Map 4  P e t r o l i f e r o u s P r o v i n c e s o f t h e USSR  53  Map 5  M a j o r Gas P i p e l i n e s o f t h e USSR  74  Map 6  R e g i o n a l F u e l M i x i n t h e USSR  89  Map 7  The E n e r g y S u p p l y o f t h e C e n t r a l R e g i o n  95  Map 8  The E n e r g y S u p p l y o f t h e L e n i n g r a d a n d B a l t i c Regions  109  Map 9  The U r a l R e g i o n  121  Map 1 0  The G r e a t e r U k r a i n e  128  Map 1 1  The V o l g a R e g i o n  139-  Map 12  The T r a n s c a u c a s u s  151  Map 13  The N o r t h C a u c a s u s  161  Map 14  Central Asia  167  Map 15  S i b e r i a and N o r t h e r n Kazakhstan  182  Map 16  S o u t h e r n S i b e r i a and N o r t h Kazakhstan  183  xii NOTE ON  SOURCES  T h e r e i s e x t e n s i v e and a p p a r e n t l y r e l i a b l e d a t a a v a i l a b l e on t h e S o v i e t f u e l decade the problem  i n d u s t r i e s , and  of a r a t i o n a l f u e l mix has  i n e d b y a s m a l l number o f S o v i e t s c h o l a r s .  statistical over the  a l s o b e e n exam-  The  n a t u r a l gas  i n d u s t ^ , h o w e v e r , i s so y o u n g t h a t most w o r t h w h i l e t i o n on i t i s r e s t r i c t e d  t o the 1960*s.  T o d a y one  informafinds  r e l a t i v e a b u n d a n c e o f m a t e r i a l on d r y n a t u r a l g a s , b u t are s t i l l  extremely  l i q u i d s and  s c a n t y on o i l - w e l l g a s e s ,  sources  Owing t o  o f t h e i n d u s t r y , R u s s i a n t e r m i n o l o g y i s some-  times i n c o n s i s t e n t , e s p e c i a l l y c o n c e r n i n g n a t u r a l gas and  a  n a t u r a l gas  t h e i r use a s p e t r o c h e m i c a l f e e d s t o c k s .  the very youth  petrochemicals.  o c c a s i o n a l l y very  T h i s makes i n t e r p r e t a t i o n and  liquids  comparisons  difficult.  S o v i e t w r i t e r s g e n e r a l l y emphasize p r o d u c t i o n over sumption  i n t h e i r w o r k s , and  statistical  many a s p e c t s o f c o n s u m p t i o n w h i c h i n d u s t r i e s -would be utilization  la.st  a student  i n t e r e s t e d t o know.  of n a t u r a l gas  data i s lacking  i s found  on  of the S o v i e t  What e x i s t s on  almost  con-  fuel  the  e x c l u s i v e l y on  an  a i l - U n i o n b a s i s , a,nd t h e r e g i o n a l p a t t e r n o f c o n s u m p t i o n i s extremely  difficult  to g e t .  l e n d s i t s e l f more e a s i l y alysis.  Por t h i s reason, the m a t e r i a l  to an economic than a g e o g r a p h i c  R e c e n t l y S o v i e t economists  sophistication  i n t h e i r treatment  a l t e r n a t i v e uses f o r gas, but examine the r e g i o n a l p r o f i l e  an-  h a v e shown c o n s i d e r a b l e  of the economic e f f e c t s  l i t t l e has of t h e g a s  b e e n done y e t  of  to  industry i n detail.  xiii The  irrationality  of S o v i e t i n t e r n a l "boundaries  sents the g r e a t e s t d i f f i c u l t y to the l a t t e r .  The  pre-  boundaries  of major economic r e g i o n s f r e q u e n t l y break up economically homogeneous and t i g h t l y - k n i t a r e a s .  Considerable juggling  and t r a n s f o r m i n g of data are f r e q u e n t l y r e q u i r e d i n order to a r r i v e a t reasonably accurate f i g u r e s f o r more  meaningful  regions. In the w r i t i n g of t h i s t h e s i s extensive use had to "be made o f t e c h n i c a l m a t e r i a l s . oil  These i n c l u d e d the c h i e f gas and  j o u r n a l s of the USSR and the U n i t e d S t a t e s ,  chemical  p e r i o d i c a l s and p u b l i c a t i o n s . Much v a l u a b l e i n f o r m a t i o n was gained, mainly f o r the r e g i o n a l s e c t i o n , from economic and geographic  p u b l i c a t i o n s and from newspaper a r t i c l e s .  PART  GENERAL  I  SECTION  la  Chapter I  THE EVOLUTION OF SOVIET FUEL P O L I C Y  D e s p i t e h e r l e s s d e v e l o p e d economy a n d  smaller absolute  p r o d u c t i o n o f e n e r g y , on t h e eve o f t h e F i r s t W o r l d War,  Tsarist  R u s s i a c o u l d i n some ways b o a s t a more "modern" f u e l m i x  than  the U n i t e d S t a t e s .  While i n the l a t t e r  country coal  f o r 80 p e r c e n t o f a l l e n e r g y p r o d u c t i o n a n d 1 8 per cent, c e n t and  accounted  o i l and g a s  i n R u s s i a the share of c o a l stood a t about  t h a t of o i l about  30 p e r c e n t .  still  supplied  close  to a f i f t h  of a l l  50  per  B o t h n a t i o n s were  a l r e a d y m o v i n g away f r o m wood a t a s w i f t p a c e , t h o u g h it  merely  i n Russia  energy, a share twice  as l a r g e as i n the U n i t e d S t a t e s .  F o l l o w i n g the recovery from  the r a v a g e s of war,  civil  c a p i t a l i s t i c Hew  r e v o l u t i o n and  Economic P o l i c y f u r t h e r  z a t i o n o f more e f f e c t i v e again reached c l o s e  fuels.  I n 1928,  t o o n e - t h i r d , and  strife,  the  semi-  s t i m u l a t e d the  utili-  the share of o i l  the p r o d u c t i o n of n a t u r a l  2 gas a l s o s t a r t e d .  B e f o r e 1900,  o f R u s s i a ' s o i l was  e x p o r t e d and d i d n o t e n t e r i n t o  f u e l mix.  By  perhaps  the  domestic  the l a s t decade o f T s a r i s t r u l e , however, o n l y  a s m a l l s h a r e of the o u t p u t went abroad: 3 and a b o u t a t e n t h i n 1 9 1 3 . was  the g r e a t e r p o r t i o n  8 per cent i n  Most of the o u t p u t ,  1908  therefore,  consumed a t home.  1  Sam H. S c h u r r and B r u c e C. N e t s c h e r t : E n e r g y i n t h e A m e r i c a n Economy. J o h n H o p k i n s P r e s s , B a l t i m o r e , I 9 6 0 , p. 497 Table I I . 2 F o r s o u r c e s , see T a b l e I . 3 N a r o d n o y e K h o z y a y s t v o SSSR v 1958 g o d u . S t a t i s t i c h e s k i y e z h e g o d n i k , M o s k v a , 1 9 5 9 , p. 208 and 8 0 2 ; S.D. P e l d : E d i n y y E n e r g e t i c h e s k i y B a l a n s Narodnogo K h o z y a y s t v o . Izdatel'stvo ' E k o n o m i k a ' , M o s k v a , 1 9 6 4 , p. 2 8 3 . r  3. Table  I  F u e l P r o d u c t i o n i n R u s s i a a n d t h e USSR ( a l l f u e l s a r e converted to "nominal f u e l " : 1 t o n = 7 0 0 0 C a l o r i e s ) Year  A l l fuels Coal  Oil  Million 1913(within 48.2 present boundaries) 1913(within .45.9 inter-war boundaries) 1940 237.7 1945 185.0 1950 311.2 1955 479.9 1958 616.4 1960 692.8 1963 845.3  S h a l e Wood  tons  23.1  14.7  0.7  9.7  23.1  13.2  0.7  8.9  140.5 115.0 205.7 310.8 362.1 373.1 388.5  44.5 27.8 54.2 101.2 161.9 211.4 294.7  Percent 1913(within 100 present boundaries) 1913(within 100 inter-war boundaries) 1 9 2 8 ( i n t e r - w a r 100 boundaries) 1940 100 1950 100 1955 100 1958 100 1960 100 1963 100  Natural Peat gas ( i n c l u d ing o i l w e l l gases)  of  4.4 4.2 7.3 11.4 33.9 54.4 105.1  13.6 9.2 14.8 20.8 21.1 20.4 21.8  0.6 0.4 1.3 3.3 4.5 4.8 6.5  34.1 28.4 27.9 32.4 32.9 28.7 28.7  •»  20.1  total  48  30.5  50.3  28.8  52.0  30.8  0.6  4.1  59.1 66.1 64.8 58.8 53.9 46.0  18.7 17.4 21.1 26.3 30.5 34.9  1.9 2.3 2.4 5.5 7.9 12.4  5.7 4.8 4.3 3.4 2.9 2.5  •* • tm  1.4k 1.5  »  •» «• mm  19.4 12.5  0.3 0.4 0.7 0.7 0.7 0.8  14.3 9.0 6.7 5.3 4.1 3.4  Sources: Promyshlennost* SSSR. 1 9 6 3 . T s e n t r a l ' n o y e S t a t i s t i c h e s k o y e U p r a v l e n i y e , M o s k v a , 1964, p . 191; N a r o d n o y e K h o z y a y s t v o SSSR v 1958 godu.» p . 200. P o r 1928: S. P e l d : "Ob ekonomicheskom b a l a n s e n a r o d n o g o k h o z y a y s t v a , " V o p r o s y E k o n o m i k i , No. 3, 1960, T a b l e 6.  4.  I t i s , of course,  p o s s i b l e t h a t the q u i c k e n i n g pace  i n d u s t r i a l d e v e l o p m e n t and  a sharp  still  t e r m s — w o u l d h a v e r a i s e d somewhat  the  v e r y low  share  i n absolute  of c o a l , r e l a t i v e  n a t i o n ' s energy supply. a peak i n the f i r s t  increase i n fuel  of  to petroleum  and  Indeed, the output  f i v e years  n o t r e a c h a g a i n u n t i l 1927.  of the  But  gas,  consumption--  i n the  of o i l had  reached  century, which i t did  the growth of c o a l p r o d u c t i o n 4  was  r a p i d and,  i n a d d i t i o n , unbroken u n t i l  the R e v o l u t i o n .  Y e t , t h e r a p i d g r o w t h o f t h e o i l i n d u s t r y and of l i q u i d striking It  the h i g h  f u e l s i n t h e n a t i o n ' s e n e r g y s u p p l y was t o be  share  just  too  dismissed as a f l a s h - i n - t h e - p a n development.  seems t h a t R u s s i a b e g a n i t s b e l a t e d I n d u s t r i a l  w i t h an a l r e a d y  "modern" f u e l m i x ,  equal-- would p e r s i s t .  I t was  which—  Revolution  other things  a f u e l structure which  U n i t e d S t a t e s w o u l d r e a c h - - t h o u g h On a n  remaining  the  enormously g r e a t e r  ab-  s o l u t e s c a l e — o n l y i n t h e l a t e 1 9 2 0 ' s and W e s t e r n E u r o p e i n the l a s t  only  decade.  T h i s s u r p r i s i n g l y modern e a r l y energy s t r u c t u r e o f Russia d i d not questionable solid  fuels.  continue  set-back Although  gradually rising, than  i n the  _  unbroken.  The  f o r l i q u i d and output  Stalin  of petroleum  s h a l e and  an  gaseous as compared and  t h e g r o w t h o f p r o d u c t i o n was  case of c o a l ,  e r a was  peat.  N a r o d n o y e K h o z y a y s t v o SSSR v 1958  As  unto  n a t u r a l gas much  was  slower  a result,  g o d u . p. 201  i n the and  208.  5. f u e l mix  o f t h e USSR, t h e s h a r e  than a f i f t h  of the t o t a l  of o i l and  gas  comprised  i n 1 9 5 0 - - a n a l l - t i m e l o w e v e n i f one  i n c l u d e s t h e y e a r s o f t h e C i v i l War.  Especially after  S t a l i n a l s o f o r c e d t h e p r o d u c t i o n o f low q u a l i t y lignites, and  p e a t and  lignites  The  output  of v e r y e x p e n s i v e , low  B a s i n s soared, w h i l e throughout continued i n the Syzran regions.  The  importance, energy  fuels"—  was  quality  e s p e c i a l l y , Moscow  the 1950's the m i n i n g of s h a l e  ( V o l g a ) and S t a v r o p o l ' ( N o r t h C a u c a s u s )  combined share o f l o c a l f u e l s r o s e i n r e l a t i v e  and  balance.  have been  "local  o f o i l a n d / o r gas  from the U r a l i a n , C e n t r a l A s i a n and,  5  1935,  s h a l e — i n a r e a s f a r from major c o a l "basins,  even i n r e g i o n s where t h e p r e s e n c e  a l r e a d y known.  less  6  i n 1950  c o n s t i t u t e d a seventh of the n a t i o n ' s  Yet these f u e l s — 7  n o t a b l y p e a t - - appear  to  subsidized.  T h i s o u t d a t e d f u e l m i x was  n o t due  to ignorance  about  the p o t e n t i a l i t i e s  o f t h e c o u n t r y ' s p e t r o l e u m and g a s r e s e r v e s .  A l t h o u g h t h e r e was  pessimism  i n c e r t a i n q u a r t e r s , many  leading  g e o l o g i s t s e x h i b i t e d an e a r l y awareness about the r i c h e s  of  the S o v i e t sedimentary  gravi-  metric of  basins.  studies identified  E x c e l l e n t g e o l o g i c a l and  t h e s u b t e r r a n e a n s t r u c t u r e s o f most  European R u s s i a , M i d d l e A s i a , even p a r t of Western  5  Siberia,  S. L i s i c h k i n & L . T o m a s h p o l ' s k y t " N e k o t o r y e m e t o d o l o g i c h e s k i y e voprosy t o p l i v n o - e n e r g e t i c h e s k i k h balansov, * Voprosy E k o n o m i k i , 1 9 6 2 , No. 1 1 , p p . 4 8 - 4 9 . 6 D. B. S h i m k i n : S o v i e t M i n e r a l - F u e l I n d u s t r i e s . U. S. D e p t . o f Commerce, W a s h i n g t o n , 1962, p . 8 2 , T a b l e I I I ; p. 8 5 , T a b l e V I I and p. 33. 7 I b i d . , pp. 43-45.  6. and  the p r o b a b l e  oil  and  Yet  t h i s d i d not  gas  e x i s t e n c e and  a p p r o x i m a t e w h e r e a b o u t s o f huge  d e p o s i t s were g e n e r a l l y known by lead  to  the  mid-thirties.  q u i c k s e i s m i c m a p p i n g and  vigorous 8  exploratory d r i l l i n g terrible  f o r l a c k of o f f i c i a l  World  lessons of  War  support.  I I quickened,  finally,  o f p r o s p e c t i n g , t h o u g h even i n t h e m i d - f i f t i e s drilling  was  s m a l l by A m e r i c a n  T h i s t r e n d was  f i f t e e n years l a t e r , large. 1928  The  and  not  that prevailing  F i r s t W o r l d War were b a s e d  early  twenties  a t a slower  resembled  the  I).  d e v e l o p m e n t o f f e r r o u s m e t a l l u r g y , and  The g r o u n d s and  failure  i n d u s t r i e s was in  1955  produced average  and  t r e n d i n the t h e end  of  Soviet fuel  calorific  i n t h e USSR was i n 1913), w h i l e  reflect  United  the  policies and  the f o r c e d  the b u r e a u c r a t i c  on g e n u i n e l y  the growth o f the p e t r o l e u m  dearly paid f o r .  the average  at  o v e r - c e n t r a l i z e d economy.  to base f u e l p o l i c y  thus f a v o u r  by  p r o d u c t i o n between  contemporary  between 1880  the w o r l d  s u c h a s r e g i o n a l a u t a r k y and  i n an  of  some  on n o n - e c o n o m i c c o n s i d e r a t i o n s - - on p o l i t i c a l  frequent  pace  followed  onward, and  p a c e , even by  (see Appendix, T a b l e  ideological beliefs,  blunders  the  standards.  development of S o v i e t energy  1955  S t a t e s , but  the  the  the amount  c o n t r a r y t o t h a t w h i c h was  the U n i t e d S t a t e s from  Only  Even i f firewood  content  and  is  average  than  i n 1953  the was  gas  excluded,  o f a k i l o g r a m of  o n l y 5608 C a l . ( l e s s the w o r l d  economic  fuel world 7520  _ I b i d . , p . 36; A . P r o b s t : " V o p r o s y r a z v i t i y a t o p l i v n o g o k h o z y a y s t v a SSSR, V o p r o s y E k o n o m i k i , No. 1, 1956, p . 25. tt  7. Cal.  Prom 1913 t o 1955, R u s s i a e x p e r i e n c e d m e r e l y  6 per cent  ( f r o m 1928 t o 1955 o n l y 1 p e r c e n t ) i n c r e a s e i n t h e c a l o r i f i c content per kg. of f u e l produced. a s a w h o l e was a l m o s t weight  The i n c r e a s e f o r t h e w o r l d  30 p e r c e n t .  O v e r t h e same p e r i o d , t h e  o f f u e l e q u i v a l e n t p e r 100 kwh i n t h e U n i t e d S t a t e s  d e c l i n e d b y 35 k g . i n R u s s i a b y o n l y 10 k g .  The  average  number o f k i l o g r a m s r e q u i r e d t o p r o d u c e 1 0 0 0 kwh o f e l e c t r i c i t y i n t h e USSR was much more i n e x c e s s o f t h a t r e q u i r e d i n 9 t h e U n i t e d S t a t e s i n t h e y e a r 1953 t h a n i t was i n 1 9 1 3 . outdated f u e l  The  s t r u c t u r e a l s o l e d t o i n j u r i o u s e f f e c t s upon  p r o d u c t i v i t y i n f u e l e x t r a c t i o n and r e f i n i n g .  O u t p u t o f raw  m i n e r a l f u e l s p e r e x t r a c t i o n worker d i d n o t even double 1928 a n d 1 9 5 0 , a n d o u t p u t o f r e f i n e d p r o d u c t s — products e t c . —  coke,  between petroleum  p e r r e f i n i n g worker a c t u a l l y d e c l i n e d .  I t has  a l s o b u r d e n e d t h e S o v i e t economy w i t h e x c e s s i v e t r a n s p o r t a n d h a n d l i n g c o s t s and d e p r i v e d i t o f a wide range o f b y - p r o d u c t s . "EFFECT Off THE MEW FUEL P O L I C Y ON THE NATURAL GAS INDUSTRY Only a f t e r S t a l i n ' s death c o u l d the q u e s t i o n of f u e l p r i o r i t i e s be s u b j e c t e d t o s e r i o u s c r i t i c a l obsolete nature of the country's  energy  examination.  structure  became e v i d e n t a n d t h e w i d e r u s e o f l i q u i d  The  quickly  and gaseous  fuels  9 S. P e l d : "Ob e k o n o m i c h e s k o m b a l a n s e n a r o d n o g o k h o z y a y s t v a , " V o p r o s y E k o n o m i k i , N o . 3, 1 9 6 0 , p. 2 3 ; S. P e l d : op. c i t . ( 1 9 6 4 ) , p. 4 8 - 5 3 . 10 D. M. S h i m k i n : o p . c i t . , T a b l e I , p . 8 0 .  10  was  strongly urged.  i n c r e a s i n g degree  11  8. The new,  of economic  s t i m u l u s f o r the growth  post-Stalin climate, with i t s r a t i o n a l i t y , provided a powerful  of the n a t u r a l gas  i n c r e a s e d t e n f o l d b e t w e e n 1955 billion  cubic meters  o f 1965.  Output  from l e s s than 9  t o o v e r 90 b i l l i o n , a n d 12  r e a c h 128 b i l l i o n by t h e e n d the  and 1963,  industry.  i s expected to  As Table I I i n d i c a t e s ,  p r o d u c t i o n of f r e e gases has been i n c r e a s i n g  considerably  f a s t e r t h a n t h a t o f o i l - w e l l g a s e s , w h i l e t h e volume o f t h o s e manufactured  f r o m c o a l and  of n e g l i g i b l e  importance.  s h a l e has remained N a t u r a l gas  stationary  and  i s taking a progress-  i v e l y g r e a t e r s h a r e i n t h e f u e l m i x o f t h e USSR, a c c o u n t i n g for  o v e r 12 p e r c e n t i n 1 9 6 3 ,  a f i g u r e which i s to r i s e 13  17 p e r c e n t by t h e end o f 1 9 6 5 .  O i l and gas  s u p p l y more t h a n h a l f o f a l l f u e l  r e q u i r e m e n t and  will  continue to r i s e  striving  i n the f u t u r e .  in  their  share  The S o v i e t U n i o n i s  I n a l l p r o b a b i l i t y , g i v e n a dozen y e a r s , the  shares of the t h r e e main f o s s i l two  j o i n t l y already  t o a c h i e v e an e n e r g y - b a l a n c e r e s e m b l i n g t h a t o f t h e  United States.  the  to  countries.  the d i r e c t i o n  f u e l s w i l l match c l o s e l y i n  The p r e s e n t c h e m i c a l d r i v e — • a n o t h e r move  of g r e a t e r r a t i o n a l i t y  i s a l s o i n t i m a t e l y connected w i t h the 11 A. P r o b s t : op. c i t . , V o p r o s y p. 27. 12 T a b l e I and Theodore Shabad: G e o g r a p h y , F e b . , 1964, p . 5 9 . 13 O i l a n d Gas J o u r n a l , J a n . 6, P r o m y s h l e n n o s t ' SSSR, 1 9 6 3 , p . 1 9 1 .  i n the Soviet  development  o f o i l and  E k o n o m i k i , No. "News N o t e s , * 1  1964,  p.  economy—  48;  1,  1956,  Soviet  9. TABLE  Production YEAR  II  o f Gas i n t h e USSR ( m i l l i o n  PROM GAS WELLS  cu.meters)  PROM O I L WELLS MANUFACTURED' TOTAL  1950  3997.4  1763.5  419.6  6180.5  1955  5897.6  3083.3  1375.2  10356.1  1956  8408.1  3661.8  1613.0  13682.9  1957  14256.0  4327.1  1646.5  20229.6  1958  22674.9  5409.7  1807.5  29892.1  1959  28858.5  6532.5  1876.4  37267.4  1960  37596.9  7706.3  1910.9  47214.1  1961  50383.5  8597.8  1916.1  60897.4  1962  63511.4  10013.5  1718.7  75243.6  1963  77678.6  12145.7  1627.0  91451.3  Source: Y u . I . B o k s e r m a n : P u t i R a z v i t i y a Novoy T e k h n i k i v Gazovoy P r o m y s h l e n n o s t i , I z d a t . N e d r a , Moskva, 1964, p . 5. n  t t  gas  e x t r a c t i o n and r e f i n i n g ,  are  t h e most i m p o r t a n t a s w e l l a s t h e c h e a p e s t  for  the chemical industry.  provides the least  Stalin  e r a proved  chemical the  was b a s e d  energy  fuel  a n d power-  The n e g l e c t o f t h e s e f u e l s d u r i n g t h e t o t h e development  i n d u s t r y , w h i c h was p r a c t i c a l l y  on c o a l a n d - - t o a l a r g e  o p e r a t i o n s backward.  of the  non-existent despite  of Russian chemistry.  raw m a t e r i a l s , wood a n d a n i m a l and  f o r that  exceedingly harmful  strong t r a d i t i o n  raw m a t e r i a l s  I n most a r e a s , n a t u r a l g a s a l s o  expensive  intensive activity.  s i n c e p e t r o l e u m and n a t u r a l gas  What l i t t l e  existed  e x t e n t - - even on v e g e t a b l e  fat.  C o s t s were e x t r e m e l y  high  The p r e s e n t c r a s h p r o g r a m t o d e v e l o p  10. a large-scale petrochemical and  e l i m i n a t e the  not  be  i n the  THE It chemical  United  not  r e v o l u t i o n s only crucial  and  last  an  which  i n t h e i r narrow n a t i o n a l i n the  and  the  and  context  economic r a c e w i t h  the  p e c u l i a r to the  Soviet policy  change i s b e s t  I I shows a r a p i d r i s e  i n the  i s particularly long  case  i l l u m i n a t i n g , f o r here  reached a h i g h  w e l l d e v e l o p e d and  The  share  the  level,  the  economy was  energy  chemical  by  from t h a t  time o i l consumption has  a t a much f a s t e r  rate.  to the  of economic a u t a r k y  in  principle  defeat.  countries clearly  The  Since  has  now  i s not  t r e n d , h o w e v e r , was  s u c h a s Sweden, H o l l a n d ,  evident  of l i q u i d  This  and  this  f u e l s i n the  after in  1945  o n e - t h i r d , and,  dedicated prostrate  coal-hungry  P r a n c e sjid I t a l y , B r i t a i n by  t r e n d became a r e v o l u t i o n . energy mix  and 1950. The  of Western Europe as  in Italy  and  peak  been i n c r e a s i n g  o f Germany,  strong  even i n c o a l - r i c h Great  1950,  reached  true  in-  essentially  I n most c o u n t r i e s , h o w e v e r , c o a l r e a c h e d a  and  of  of  coal-based. 1930,  two  i n t e r n a t i o n a l background.  consumption has d u s t r y was  •would  policy  the S o v i e t f u e l  gaseous f u e l s a l l over the w o r l d .  Western Europe  coal  decade.  These r e v o l u t i o n s are not  Appendix, Table liquid  to regard  step  superpowers a l o n e ,  seen a g a i n s t  of  FUEL POLICY IN WORLD PERSPECTIVE  i s important  States.  share  animal sources,  the.:, change i n t h e f u e l  second h a l f of the  MEW  or as merely a  great  r e l i a n c e on p l a n t and  p o s s i b l e without  took place  i n d u s t r y , reduce the  Sweden h a s  share a whole well  11. 14 surpassed with  the share  of o i l i n the United  States.  Coupled  i t came t h e phenomenal u p s u r g e o f p e t r o c h e m i c a l  e v e n i n such a t r a d i t i o n a l Ruhr.  citadel  industry  o f coke c h e m i s t r y  I n 1961-62, o v e r h a l f o f a l l o r g a n i c  i n West Germany came f r o m p e t r o l e u m , 15  as the  chemical  i n Great  production  Britain  nearly  two-thirds. The  fuel  were a l m o s t  and c h e m i c a l  e x c l u s i v e l y "based on i m p o r t e d  small r e s e r v e s — role.  n a t u r a l gas a s y e t has p l a y e d  o f huge g a s d e p o s i t s a r o u n d  becoming e v i d e n t .  Europe could a marked  petrochemical  States  and—  a very  due t o minor  only,  and under the Worth Sea  Although i t i s u n l i k e l y that  rival  Western  the S o v i e t Union i n n a t u r a l gas  i n the consumption of t h a t f u e l  i t i s c l e a r t h a t w i t h h e r new f u e l  seems  output, certain.  p o l i c y and  d r i v e , t h e S o v i e t U n i o n i s n o t t r e a d i n g any  or extraordinary  followed little  ever  increase  I n any c a s e ,  novel  crude,  T h i s s i t u a t i o n , h o w e v e r , i s a b o u t t o change a s t h e  presence are  r e v o l u t i o n s i n Western Europe  path  but has simply  p e c u l i a r t o h e r and t h e U n i t e d j o i n e d i n a world-wide  trend,  e v e n by s u c h E u r o p e a n c o u n t r i e s w h i c h h a v e no o i l ,  g a s , and a r e r i c h  i n coal.  14 U.N. S t a t i s t i c a l P a p e r s . S e r i e s G. No. 6, p . 8; P e t e r R. O d e l l : A n E c o n o m i c G e o g r a p h y o f O i l . L o n d o n : G. B e l l & S o n s , 1963, p . 8 6 . 15 G. R. P e e t : The L o c a t i o n o f P e t r o c h e m i c a l Industry. M a s t e r T h e s i s , 1963, U n i v e r s i t y o f B r i t i s h C o l u m b i a , p . 31-32 and 62-64.  12. REGIONAL DISTRIBUTION OP NATURAL GAS PRODUCTION Table  I I I , Maps?l;  2. and, % s u p p l y  of n a t u r a l gas i n the c h i e f  regions  data about  o f t h e USSR.  At present, •  production i s sharply concentrated  i n three areas--  the N o r t h  which together  for  over  C a u c a s u s and t h e V o l g a - 80^ of a l l output  meters out o f a t o t a l are  situated  consumed 97 p e r c e n t  would warrant, Siberia.  than  p r o d u c e much l e s s  while  61.4 b i l l i o n A l l three  cubic  regions  o f a l l g a s a t t h e above  A t t h e same t i m e ,  i n reserves. III).  mere two b i l l i o n billion  the shares  o f the V o l g a  (Fora detailed  The l a s t  f o r a sharp  than  their  vast  reserves  p r o d u c t i o n h a s n o t y e t begun i n W e s t e r n  C a u c a s u s and most  Chapter call  accounted  A s Map 3 shows, t h e C e n t r a l A s i a n r e p u b l i c s and  Kazakhstan s t i l l  North  o f 73.5 b i l l i o n ) .  the Ukraine,  i n European R u s s i a which-- together w i t h the  Transcaucasus— 16 date.  i n 1962 ( a b o u t  the output  years  of the Ukraine, the  are higher  i n production  a n a l y s i s o f r e s e r v e s , see  o f t h e c u r r e n t S e v e n Year:. P l a n .  i n c r e a s e i n output  i n Central Asia.  c u b i c m e t e r s i n 1962, i t i s t o r i s e  by t h e end o f 1965, 17 b i l l i o n  Prom a t o 19  of t h i s from the  Uzbek R e p u b l i c . Over t h e l a s t  decade important  c h a n g e s have  place  i n t h e gas i n d u s t r y o f the Ukraine  Until  the early  fifties,  most  taken  and t h e N o r t h  of the U k r a i n i a n output  from the o l d Carpathian  fields,  volume, p r o d u c t i o n f r o m  these  Caucasus. came  and t h o u g h s m a l l i n a b s o l u t e  deposits represented  over  a  16 Derived from production data of p i p e l i n e network i n 1962.  and t h e d i s t r i b u t i o n  13. Table I I I R e g i o n a l Breakdown of N a t u r a l Gas P r o d u c t i o n ( b i l l i o n cubic meters)  REGIONS  1958 Free O i l W e l l gases gases  USSR  22.67  5.40  63.5  10.01  RSFSR  10.16  3.58  31.5  6.78  4.22  3.00  9.9  5.50  Volga-Urals Kuybyshev Ob. Orenburg Ob. S a r a t o v Ob. B a s h k i r ASSR Volgograd Ob. Astrakhan Ob. & Kalmyk ASSR N o r t h Caucasus  a  0.65  1962 1965(plan) Free O i l W e l l Free Gases gases gases (except f o r t o t a l USSR)  1.57 2.00  4.93  0.47a  20.8  Komi ASSR West S i b e r i a East Siberia S a k h a l i n Ob.  1.03  0.8  0.10  0.06  U k r a i n i a n SSR West Ukraine E a s t Ukraine  9.10 0.398 4.95° 0.398 5.05C  Azerbaydzhan SSR  3.33  Central Asia Uzbek SSR Turkmen SSR K i r g i z SSR Kazakh SSR  26.5©  0.2  9.4 11.3 n.a n.a  1  a  0.7 0.7 5.2 1.1 2.7  0.53 4.30 0.09 0.01  Krasnodar Kray S t a v r o p o l Kray Chechen-Ing.ASSR Dagestan ASSR  128.0*  0.8?a  38.7-40  d  19.7-21.0 19.0 negligible negligible  d  3.10 n.a 3.656  25.3 7.9C 17.45°  0.851 0.851  1.115  4.6  1.990  0.08  0.271  2.0  0.342  18.05-19.3  0.08  0.045 0.224 0.002  1.9  0.086 0.238 0.018  16.3-17.0 1.0-1.6 0.75  0.042  0.1  0.046  38.0 11.4C 26.6°  d  0.06  d  14. quarter  of the  t o t a l f o r t h e w h o l e USSR i n 1950  third  i f o i l - w e l l gases are  excluded.  chief  c e n t e r o f p r o d u c t i o n i n the U k r a i n e  n e w l y d i s c o v e r e d huge S h e b e l i n k a that year, Shebelinka  field  By  1958, has  and  over  however,  shifted  to  a the the  i n Kharkov Oblast' •  a l r e a d y accounted  f o r 55  per  cent  of  In the  Notes f o r Table I I I : a) Approximate. C a l c u l a t e d by a s s u m i n g t h e same g a s - o i l r a t i o f o r t h e N o r t h C a u c a s u s a s i n A z e r b a y d z h a n , where o i l - f i e l d s a r e i n s i m i l a r d e p t h and have b e e n e x p l o i t e d f o r a b o u t t h e same l e n g t h o f t i m e . D a t a f o r t h e V o l g a R e g i o n was o b t a i n e d by s u b t r a c t i n g p r o d u c t i o n i n t h e N o r t h C a u c a s u s f r o m t h e t o t a l f o r t h e RSFSR and a s s i g n i n g 110,000 c u b i c m e t e r s f o r t h e o t h e r ( v e r y m i n o r ) r e g i o n s i n 1958 and 410,000 c u b i c m e t e r s i n 1962. F o r d a t a on o i l p r o d u c t i o n i n t h e N o r t h C a u c a s u s , see f o o t n o t e 6, p> ~ 1 6 2 ( C h a p t e r V I I ) . b)  Includes  oil-well  gases.  e) Approximate. C a l c u l a t e d by t a k i n g the m i d - v a l u e b e t w e e n t h e 1961 and 1963 p r o d u c t i o n a t S h e b e l i n k a , t h e n s u b t r a c t i n g i t from t o t a l U k r a i n i a n p r o d u c t i o n to o b t a i n output i n the W e s t e r n U k r a i n e . 1965 p r o d u c t i o n was c a l c u l a t e d by a s s u m i n g t h e same r e l a t i o n s h i p b e t w e e n t h e o u t p u t o f t h e two U k r a i n i a n r e g i o n s t h a t e x i s t e d i n 1963. d) clear  R a n g e s a r e due  to discrepancy  among  e) T h e s e p l a n s were f o r m u l a t e d i n 1959 t h a t t h e y w i l l be f a r f r o m r e a l i z e d .  sources. and  i t is  now  S o u r c e s : P a u l E . L y d o l p h & T h e o d o r e S h a b a d : " O i l and Gas I n d u s t r i e s i n t h e USSR, " A n n a l s o f t h e A s s o c i a t i o n o f A m e r i c a n G e o g r a p h e r s , " ' D e c . 1960, p . 7, T a b l e 7; U.S. C e n t r a l I n t e l l i g e n c e A g e n c y : USSR A t l a s o f T r a n s m i s s i o n P i p e l i n e s f o r N a t u r a l Gas, 1963, p. 2; T h e o d o r e S h a b a d : "News N o t e s " , S o v i e t G e o g r a p h y , F e b . 1964, p . 57; R o b e r t E . K i n g : " E x p l o r a t i o n and P r o d u c t i o n i n E u r o p e i n 1963", A m e r i c a n A s s o c . o f P e t r o l e u m G e o l o g i s t , B u l l e t i n . Aug., 1964, p . 1342; Y u . I . B o k s e r m a n : op. c i t . , p . 5, T a b l e 2, p . 7, T a b l e 5, and p . 29, T a b l e 19; V.T. B o r i s o v : " P r o i z v o d i t e l * n o s t t r u d a . . . . v d o b y c h e g a z a , " "Gazovoye D e l o . No. 10, 1963, p . 68. 1  AZERBAIDZHAN  CENTRAL ASIA  \ y  A+B+C+C,  ( LOGARITHMIC  SCALE)  RESERVES AND  PRODUCTION OF NATURAL GAS IN THE EUROPEAN  SCALE OF PRODUCTION = ° * SCALE OF RESERVES 2  20  PRODUCTION RESERVES'-  O i l w e l l gases are excluded from production data.  USSR  &  The f u l l extent of these reserves i s not yet known.  17. output 17  o f t h e U k r a i n e , w h i l e by 1963,  !§•%•  In the N o r t h Caucasus,  n a t u r a l g a s b e g a n i n 1953 field,  the l a r g e  Due  from the l a r g e N o r t h  to the development  equal As  rate  and  explained  C e n t r a l A s i a and  At  the p r e s e n t i n the  S t a v r o p o l ' Kray i s  i n more d e t a i l  i n Chapter  taxing  I I I , the p r e s e n t  t h e r e s o u r c e s i n many  t h e same t i m e , t h e l a r g e r e s e r v e s o f  As  output from the o l d f i e l d s , cannot  s u b s t a n t i a l l y be  increased  i n here are l e s s  likely  shift  Transcaucasus  t h e Lower Ob V a l l e y a r e u s e d v e r y i n a d e q u a t e l y  or not a t a l l today.  the  and  of European R u s s i a , such as the V o l g a , the  the U k r a i n e .  gradual  until  today.  of production i s severely  regions  Stavropol'  of s e v e r a l d e p o s i t s  Kuban, h o w e v e r , o u t p u t i n K r a s n o d a r  nearly  scale p r o d u c t i o n of  Krasnodar Kray remaining unimportant  decade.  about  i t s s h a r e was  any  further,  t h a n s o u t h and  and new east  i n p r o d u c t i o n c e n t e r s c o u l d be  discoveries  of the U r a l s ,  a  expected i n  future.  17 P r o m y s h l e n n o s t ' SSSR ,.1965;, p . 214-217; V.M. V o l ' p e & V.S. K l u p t : L e k t s i i po E k o n o m i c h e s k o y G e o g r a f i i . , L e n i n g r a d s k o g o U n i v e r s i t e t a , 1964, p . 18-19 and R o b e r t E . K i n g : " E x p l o r a t i o n and P r o d u c t i o n i n E u r o p e i n 1963," A m e r i c a n A s s o c i a t i o n o f P e t r o l e u m G e o l o g i s t , B u l l e t i n , A u g . 1964, p.1342.  18.  Chapter I I  MARKETS FOR NATURAL GAS  19. Since  1955, n a t u r a l gas i s p l a y i n g a p r o g r e s s i v e l y  greater r o l e i n the Soviet v a r i e t y of users increases standing  economy.  I t i s consumed b y a  a n d i t s s h a r e i n t h e f u e l m i x o f t h e USSR  steadily.  To a n a l y z e  of i t s terminology  i t s v a r i o u s uses, an under-  and b a s i c c a t e g o r i e s  N a t u r a l g a s may b e d e r i v e d  i s necessary.  from d i s t i n c t gas d e p o s i t s  as w e l l as f r o m o i l f i e l d s , where t h e gas forms a cap o v e r l y i n g the crude.  Both categories a r e included i n the term  'natural gas' (prirodnyy gaz i n Russian), literature  t h e term can a l s o be r e s t r i c t e d  although  i n Russian  t o mean f r e e g a s  o n l y , t o d i s t i n g u i s h i t f r o m o i l - w e l l gas w h i c h has a name, p o p y t n y y .  I n i t s broadest meaning, however, n a t u r a l gas  a l s o i n c l u d e s n a t u r a l gas l i q u i d s - -  l i q u i d ' petroleum gases  (LPGr's), n a t u r a l g a s o l i n e , and c o n d e n s a t e s —  progressively  heavier hydrocarbons, which are generally separated ane  to analyze  economy, one i s h i n d e r e d  are  f r o m meth-  t h e c h i e f component o f n a t u r a l g a s , i n g a s - p r o c e s s i n g In trying  It  separate  t h e use of gas i n t h e S o v i e t  by t h e i n c o n s i s t e n c i e s i n S o v i e t  i s not always c l e a r i n Soviet l i t e r a t u r e which included  plants.  i n the term ' n a t u r a l (prirodnyy)  data.  categories  gas'.  Production  f i g u r e s g e n e r a l l y i n c l u d e output of o i l - w e l l gases ( t h i s  fact  i s n e a r l y a l w a y s i n d i c a t e d ) , a n d . i t i s e a s y t o s e e when t h e y do  not.  Output data  n a t u r a l gas l i q u i d s , output.  r e f e r s t o gas before  therefore, a r e not treated as a d d i t i o n a l  Manufactured gases a r e c l e a r l y  statistics  i ti s processed;  separated  that r e f e r to natural (prirodnyy)  hand, consumption f i g u r e s f o r v a r i o u s  gas.  i n production On t h e o t h e r  s e c t o r s o f t h e economy,  20. e s p e c i a l l y when t h e y a r e g i v e n  i n percentages, are  frequently  to determine which  categories  ambiguous, f o r i t i s o f t e n hard o f gas  are  included  i n the  T a b l e I V shows t h e  data. c o n s u m p t i o n o f n a t u r a l gas  o f economy i n t h e USSR and  the U n i t e d  provide  data  consumption, a l l showing  ments.  Two  on S o v i e t g a s  have been s e l e c t e d below, the  g i v i n g the breakdown only and  Bokserman, p r o b a b l y ,  f i g u r e s , but  gas  i n percentages.  output,  their  the a l l o c a t i o n p a t t e r n .  f r o m w h i c h n a t u r a l gas  c a n n o t be  n a t u r a l gas simply  t a k e n as  n a t u r a l gas total  countries.  The  US  gas  liquids  d e r i v e d raw data given  raw  disagree-  expressedly,  per  greatly processed  Soviet figures.  h e r e 100  per  o f c o n s u m p t i o n c a n be  ( s i n c e U.S.  i t i s not  wet  cent i s  compared  possible  t o t a l i s used  statistics  case, excluded  to  as  treat natural  f a r the g r e a t e s t p a r t of  m a t e r i a l s a r e , i n any  These  processing.  In particular,  s e p a r a t e l y , by  l e s s t h a n two  i s used between  l i q u i d s , and  output before  material  the  t o t a l r e f e r s to  d e t e r m i n e a c c u r a t e l y what p o r t i o n of the petrochemical  Novikov  i n c l u d e d i n the  Only c e r t a i n c a t e g o r i e s i n t h e two  sources  (Bokserman)  i n c l u s i o n does not  d e t e r m i n e d what c o n v e r s i o n and  second  sectors  l i q u i d s have been e x t r a c t e d .  l i q u i d s , h o w e v e r , seem t o be It  Several  i n c l u d e manufactured gases i n  since these gases represent  c e n t of S o v i e t gas affect  States.  by  gas-  from the  below).  1 I am i n d e b t e d t o D r . R o b e r t W. C a m p b e l l o f I n d i a n a U n i v e r s i t y f o r c a l l i n g my a t t e n t i o n t o t h e a b o v e p r o b l e m .  U.S.  21. Table IV Consumption  o f N a t u r a l Gas by S e c t o r s o f Economy  s 0 V I E T U N After  Household. & municipal Chemical i n d . E n e r g y needs of i n d u s t r y ( e x c e p t power stations) Of w h i c h : a) m e t a l l u r g y b ) cement cjmachine b l d g . & m e t a l work. d)other  branches  Electric stations P i p e l i n e need & losses plus export  TOTAL  A AA  £  19  6 1  Bill. cu.m.  Per cent  7.4  12.2 3.6  2.2  32.9  54.0  7.3  12.0  3.8  6.3  5.2  8.5  16.6  27.2  16.4  26.9  2.0  3.3  60.9  S T A T E S  A f t e r Bokserman  Novikov  19  U N I T E D  I O N  6 2  19  Bill. cu.m.  Per cent  7.5  10.0  46.0  61.2  4.7 6.6 11.0  6.2 8.8 14.7  d)building .material  8.4  11.2  e)machine b l d g • & m e t a l work  7.8  10.4  2.9  3.9  4.5  6.0  20.5  27.0  Transport  1.3  Agriculture  Household. & municipal Industry (exc e p t power stations) Of w h i c h : a ) c h e m i c a l AA b ) o i l & gas c) m e t a l l u r g y  f)food g)other branches Electric stations  100.0  Household municipal Carbon  Field  &  black  use  Oil refining Iron & s t e e l Portland cement  ^^  k  6 2  Bill. cu.m.  Per cent  132.1  33.4  3.8  1.0  56.5  14.3  22.2 10.0  tS". 8  Electric stations  56.0  14.1  1.7  Pipeline fuel  13.5  3.4  0.7  0.1  All  76.0  100.0  other  fuel  111.6  Included  i n " A l l other  fuel".  28.1  392.7 100.0  U s e d , a p p a r e n t l y , o n l y a s raw m a t e r i a l . Used a s f u e l and raw m a t e r i a l . Approximatev  5.6 2.5  S h o u l d n o t be i n c l u d e d i n t o t a l .  22. As  i s evident  f r o m t h e t a b l e , t h e p a t t e r n of  c o n s u m p t i o n i n t h e USSR d i f f e r s in  the U n i t e d S t a t e s .  municipal users while thermal Russia  I n the l a t t e r  take a f u l l  electric  significantly  third  country,  gas  from that  found  household  and  o f t h e t o t a l gas  supply,  s t a t i o n s burn only one-seventh.  t h e opposite i s t r u e .  In  Power s t a t i o n s r e p r e s e n t  the  l a r g e s t s i n g l e consumer g r o u p , u s i n g w e l l o v e r a q u a r t e r a l l gas, w h i l e  t h e h o u s e h o l d and  only a tenth.  The  of e l e c t r i c i t y )  completely  Union, accounting percent  industrial  p a p e r e x a m i n e s t h e r o l e o f gas  of the  The  a s raw By  Soviet  t o t a l , against  63  f o l l o w i n g s e c t i o n of  i n three  t r e a t s i t s use  by  important  this  branches  the household  of  and  sectors. INDUSTRIAL USES OP NATURAL  Gas  generation  dominates consumption i n the  i n the United S t a t e s .  municipal  s e c t o r s consume  s e c t o r ( i n c l u d i n g the  f o r 88 p e r c e n t  i n d u s t r y then b r i e f l y  municipal  of  GAS  i n i n d u s t r y i s consumed i n two w a y s :  m a t e r i a l i n the manufacturing  f a r the g r e a t e r p o r t i o n of gas  petrochemical  as f u e l  of petrochemical  i s used as f u e l .  and  products.  Even  i n d u s t r y burns perhaps the l a r g e r p a r t of  the the  Note to Table IV: The d i f f e r e n c e s b e t w e e n t h e d a t a f o r t h e USSR a r e n o t due m e r e l y t o t h e d i f f e r e n c e i n y e a r s . Both a u t h o r s g i v e b r e a k d o w n f o r 1960 w i t h a p p r e c i a b l e v a r i a t i o n . Sources I N. I . N o v i k o v : "Nekotorye tekhniko-ekonomic h e s k i y e p o k a z a t e l i g a z o v o y p r o m y s h l e n n o s t i SSSR, " G a z o v o y e D e l o , No. 5, 1 9 6 3 , p. 5; Y u . I . B o k s e r m a n : op. c i t . , p. 14; U.S. M i n e r a l Y e a r b o o k . 1962. B u r e a u o f M i n e s , p . 337; Sam H. S c h u r r : op. c i t . . p . 5 6 4 - 5 6 5 , T a b l e A - l l a n d T a b l e A - 1 3 ; A. M. L e e s t o n e t a l . : The D y n a m i c N a t u r a l Gas I n d u s t r y , U n i v e r s i t y o f O k l a h o m a P r e s s , Norman, O k l a h o m a , 1963, p. 198.  23. amount consumed t o p r o d u c e t h e r m a l  energy.  g o r i e s of g a s , however, a r e u t i l i z e d natural g a s —  composed m a i n l y  The v a r i o u s c a t e -  i n d i f f e r e n t ways.  o f methane, a paraffin*,  to c r a c k - - i s l e s s s i g n i f i c a n t as a p e t r o c h e m i c a l and  i s used overwhelmingly  of n a t u r a l gas l i q u i d s ,  t o produce heat.  Dry  expensive  feedstock  A large portion  on t h e o t h e r h a n d , i s consumed a s raw  material. Although  d r y n a t u r a l gas i s used p r i n c i p a l l y  purpose, the production of thermal tages  over  other f u e l s .  the producer the consumer.  f o r one  e n e r g y , i t h a s many a d v a n -  I t requires l i t t l e  processing  from  arid i m p o s e s no h a n d l i n g o r s t o r a g e p r o b l e m s on I t i s c l e a n and easy t o c o n t r o l d u r i n g  combus-  t i o n , l e a v e s no w a s t e m a t e r i a l s , a n d h a s b e e n g e n e r a l l y c h e a p e r than other f u e l s .  Due t o i t s s p e c i a l q u a l i t i e s ,  i n d u s t r i e s i t can improve t h e q u a l i t y — v a l u e -- o f t h e p r o d u c t  i n most  metal  and t h e r e f o r e t h e  a t no g r e a t e r c o s t .  t h a t s i n c e t h e w a r g a s h a d made s u c h r a p i d  I t i s no w o n d e r i n r o a d s i n most  i n d u s t r i e s i n N o r t h A m e r i c a a n d i s now d o i n g  t h e same i n t h e  USSR a n d W e s t e r n E u r o p e . As  i n d u s t r i a l f u e l , gas i s u t i l i z e d  b o i l e r s and i n ovens ( f u r n a c e s ) .  i n two w a y s : u n d e r  T h e r m a l power p l a n t s , t h e  chemical, l e a t h e r , t e x t i l e and food  i n d u s t r i e s burn gas  c h i e f l y under b o i l e r s t o produce steam, w h i l e t h e m e t a l l u r g i c a l , b u i l d i n g m a t e r i a l s and e n g i n e e r i n g i n d u s t r i e s b u r n i t in  furnaces.  24. THE  USE  OF  GAS  I N E L E C T R I C STATIONS  In fuel-power p l a n t s thermal energy i s u t i l i z e d produce e l e c t r i c i t y . (steam or v a r i o u s ing.  Heat i s s u p p l i e d  gases) w h i c h d r i v e s the  Almost a l l thermal e l e c t r i c i t y  steam produced i n b o i l e r s , w h i c h can from peat to n a t u r a l gas. t i o n of gas t h e USSR.  by  electric  fluid"'  t u r b i n e by  expand-  today i s generated be h e a t e d by any  s t a t i o n s b o t h i n the U n i t e d  t i o n than t h e i r counterparts p l a n t s b u r n e d 56 b i l l i o n  "working  by  fuel  T a b l e I V shows t h e h e a v y consump-  Though a c c o u n t i n g  f e e t ) i n 1962, 1 meters.  to a  to  States  f o r a lower share of t o t a l i n t h e S o v i e t U n i o n , US  c u b i c m e t e r s (1965  billion  w h i l e R u s s i a n p l a n t s b u r n e d 20 b i l l i o n  and  consump-  power cubic cubic  A  I n r e c e n t y e a r s t h e gas t u r b i n e h a s become f u l l y comp e t i t i v e w i t h t h e s t e a m t u r b i n e i n t h e r m a l power p l a n t s and f u r t h e r i m p r o v e m e n t i n i t s p o s i t i o n c a n be e x p e c t e d . GaB t u r b i n e s r e q u i r e no b o i l e r and t h o s e w h i c h o p e r a t e on a n open c y c l e - - d i s c h a r g i n g the exhaust g a s e s i n t o the a t m o s p h e r e n e e d no c o n d e n s e r s o r c o o l i n g a p p a r a t u s e i t h e r . This s i g n i f i c a n t l y r e d u c e s c o n s t r u c t i o n and m a i n t e n a n c e c o s t s and f o r t h e open c y c l e p l a n t s c o m p l e t e l y e l i m i n a t e s t h e n e e d f o r w a t e r . S u c h p l a n t s a r e i d e a l i n a d e s e r t e n v i r o n m e n t and a number o f them a r e under c o n s t r u c t i o n i n S o v i e t C e n t r a l A s i a . I n f o r m a t i o n on t h e t e c h n o l o g y and e c o n o m i c a d v a n t a g e s o f s t e a m and gas t u r b i n e power p l a n t s may be f o u n d i n : J. K e n n e t h S a l i s b u r y : S t e a m T u r b i n e s and T h e i r C y c l e s . New Y o r k , J o h n W i l e y & S o n s , I n c . , 1950, e s p e c i a l l y C h a p t e r s 1,2,4 and 1 4 ; D. G. S h e p h e r d : I n t r o d u c t i o n t o t h e Gas T u r b i n e . L o n d o n , C o n s t a b l e & Co. L t d . , 1960, e s p e c i a l l y C h a p t e r s 1,2,3, t o 1 1 ; K.P. R o d d a t i s : " I s p o l z o v a n i f e P r i r o d n o g o G a z a v E n e r g e t i k e , " I s p o l z o v a n i y e Gaza v . P r o m y s h l e n n o s t i , Tashkent,1963,p.176-182. 1  1  1  See  sources f o r Table  IV.  25. The  r e l a t i v e l y l o w p r i c e - e s p e c i a l l y d u r i n g t h e summer  p e r i o d - i s no d o u b t  the c h i e f reason f o r such massive  N e v e r t h e l e s s , t h e s p e c i a l f e a t u r e s of n a t u r a l gas still  additional benefits.  produce  S i n c e no h a n d l i n g , p u l v e r i z a t i o n  or d r y i n g of f u e l i s n e c e s s a r y as i s the case w i t h lignite  coal,  o r p e a t , l a b o u r c o s t s i n g a s - f i r e d p l a n t s may  be  much a s 20 p e r c e n t l o w e r t h a n i n c o a l o r p e a t - f i r e d of comparable  capacity.  Because  n a t u r a l gas f u r t h e r improves highly efficient boiler. ratio  of b e t t e r flame  Boiler  e f f i c i e n c y , d e f i n e d as  c a n r e a c h 92 p e r c e n t when g a s 2 m o s t 85^ p e r c e n t i f c o a l i s u s e d .  I  the  content  i s burned but a t  of thermal s t a t i o n s , both i n the U n i t e d  t h e S o v i e t U n i o n , p u r c h a s e n a t u r a l g a s on a n  ruptible basis.  The  extreme  versatility  e n a b l e s t h e m t o b u r n p r a c t i c a l l y any in their efficiency. full  stations  the o p e r a t i o n of the a l r e a d y  of the .fuel,  S t a t e s and  as  control,  o f t h e h e a t a b s o r b e d by t h e w a t e r t o t h e h e a t  The m a j o r i t y  use.  inter-  o f modern steam  fuel with l i t t l e  plants  change  To k e e p p i p e l i n e s f u n c t i o n i n g a s  near  c a p a c i t y a s p o s s i b l e d u r i n g t h e summer m o n t h s , n a t u r a l  g a s i s made a v a i l a b l e v e r y low p r i c e s .  to e l e c t r i c p l a n t s i n t h i s period  S a l e s a r e i n t e r r u p t e d once c o l d e r  p r o v i d e s more l u c r a t i v e m a r k e t s f o r t h e g a s .  These  at  weather inter-  L. Smyshlyayeva: "Razvitfte Gazovoy P r o m y s h l e n n o s t i i I s p o l * z o v a n i y e Gaza v SSSR,"Voprosy E k o n o m i k i , S e p t . 1960, p. 116;, Y u . I . B o k s e r m a n e t . a l : " N e k o t o r y e v o p r o s y g a z o v o g o s n a b z h e n i y a Narodnomu K h o z y a y s t v u , Planovoye Khozyaystvo, M a r c h , 1 9 6 0 , p. 3 1 ; K.P. R o d d a t i s : op. c i t . , p . 1 7 6 . t t  2.6. ' ruptible and  s a l e s are g e n e r a l l y a t p r i c e s below the  production  t r a n s p o r t c o s t of the f u e l , y e t , because they a r e  v o l u m e s and  go  f a r towards evening  i n demand, t h e y a r e p r o f i t a b l e  Committee f o r N a t u r a l Gas, s t a t i o n s two  seasonal  f o r t h e gas  n a t u r a l l y , f o r t h e power p l a n t s . s y s t e m ( e f f e c t i v e s i n c e 1964)  out  fluctuations  industry  According  and,  t o t h e new  t h e USSR S t a t e  price  Production  f o r i n s t a n c e , s e l l s gas  r u b l e s below the p r i c e l e v e l ,  i n large  t o power  d u r i n g the  summer  3  period. I n s e v e r a l r e g i o n s o f t h e USSR, h o w e v e r , many electric  s t a t i o n s b u r n or w i l l b u r n n a t u r a l gas  around.  Switching  possible  economically  Region,  Moldavia. greatly  The  use  i n absolute  a l l year  to other f u e l s i n winter i 3 often  the B a l t i c ,  thermal  not  a t a number o f p l a n t s i n t h e Moscow  the U r a l s , M i d d l e A s i a , the Caucasus o f n a t u r a l gas t e r m s , and  as b o i l e r f u e l has  the  share  of that  and  increased  consumption 4  was  b e t w e e n 27 and  However, t h e r e  i s now  d i s c r i m i n a t e use areas, notably  28 p e r  c e n t f r o m 1959  t o t h e end  of  1962.  considerable c r i t i c i s m against the i n -  of t h a t q u a l i t y f u e l under b o i l e r s i n c e r t a i n  the Ukraine  special characteristics,  and  the V o l g a .  i t s use  Because of i t s  i n furnaces  and  as  chemical  3  T. A. B r e n t s : . "Novye o p t o v y e t s e n y n a g a z , D e l o , No. 8, 1963, p . 47.  "Gazovoye  4  Y u . I . B o k s e r m a n : op. c i t . , p. 14 and N. I . N o v i k o v : "Nekotorye tekhniko-ekonomicheskiye p o k a z a t e l i gazovoy p r o m y s h l e n n o s t i SSSR, " G a z o v o y e D e l o , No. 5, 1963, page 5, T a b l e 3.  27.  5 raw  material  could  result  Therefore, a r e l a t i v e stations ning  is likely  on g a s , may  winter period.  i n g r e a t e r g a i n s to the  d e c r e a s e i n the gas  i n the future  be The  and  will  consumption  by  a number o f p l a n t s ,  thermal run-  switched to other f u e l s at l e a s t  f o r the  wider  sales,  e x t e n s i o n of i n t e r r u p t i b l e  h o w e v e r , i s c o n t i n u e d t o be u r g e d , and electricity  economy.  result  the r i s i n g  i n an a b s o l u t e i n c r e a s e  demand f o r  i n the use  of  6 n a t u r a l g a s by power THE  plants.  USE  Off NATURAL GAS  The  metallurgical  IH THE  IRON AND  industries  consume g a s  f u r n a c e s , where i t s s p e c i a l f e a t u r e s y i e l d A  pure f l a m e , the absence  distribution  designed  f o r good  In the l a s t become t h e s e c o n d in  and  quality  great  easy r e g u l a t i n g  in  benefits.  of  even combustion  i m p e r a t i v e i n modern f u r n a c e s  metals.  decade,  t h e S o v i e t U n i o n and  and  often  largest  chiefly  o f h a r m f u l p r o d u c t s , an  of temperature  are h i g h l y d e s i r a b l e  S T E E L INDUSTRY  the i r o n and industrial  the t h i r d  steel  industry  has  consumer o f n a t u r a l  largest  gas  i n the U n i t e d S t a t e s .  5 See f o r i n s t a n c e : V. S l u y s a r e n k o : "Khimicheskaya Promyshlennost' S o v i e t s k o y K a r p a t i i , " Ekonomicheskaya Gazeta, D e c . 7, 1963; B. J a r a m c h i s h i n : " P e r s p e k t i v i r o z v i t k u z a k h i d n o u k r a i n s k o y e n e r g o s i s t e m i , "Ekonomika R a d i a n s k o y U k r a i n e , No. 1, 1963, p . 72; Mi- S i d o r e n k o ; " G a z - s o y u z n i k k h i a i k o v , " E k o n o m i c h e s k a y a G a z e t a . No. 9, 1963, p . 8. 6 K.  P. R o d d a t i s :  op. c i t . ,  pp.  176-177,  181.  28. In both  c o u n t r i e s , gas  quirement  iron,  differ  holds  the  but  the r o l e  and  (the ore)  i s reduced  slow b u r n i n g  this and  transfer  reason,  N a t u r a l gas the p r i n c i p a l  of r e d u c t i o n : i r o n during  and  operation.  rate  For  the  ore  - thus  permitting a  r e t a i n e d i t s supremacy i n  iron. therefore, w i l l  not  i n the s m e l t i n g of i r o n  coke p r o d u c t i o n f r o m However, t h e  particularly  as  i n w h i c h coke i s i n t e r m i n g l e d  - has  (or o i l ) ,  fuel  f o r such an  furnace  transfer  a process  Very h i g h temperatures  contact with  the p r o d u c t i o n of p i g  feasible.  coal.  of i t s u t i l i z a t i o n  carbon monoxide produced  i s necessary  the b l a s t  i s in direct  since  o n l y by  re-  processes.  by  of a f u e l .  h i g h r a t e of heat  as  exceeded  significance  considerably i n their  of heat  p l a c e i n the f u e l  i s consumed i n t h e p r o d u c t i o n o f s t e e l a s w e l l  I r o n making i s e s s e n t i a l l y oxide  second  of f e r r o u s m e t a l l u r g y , b e i n g  N a t u r a l gas pig  now  poorer  injection  i f enriched with  quality o f gas  oust  ore,  especially  coals i s into  coal  now  the  furnace  -  oxygen - can reduce  greatly  the  amount o f coke n e e d e d f o r t h e p r o c e s s , and  a coke  consumption  7 rate Table by  o f 0.3  ton per  ton of p i g i r o n  i s now  I I I i n the A p p e n d i x i l l u s t r a t e s  anticipated.  the advantages  gained  gas-injection. Over h a l f  used  n a t u r a l gas  of a l l b l a s t i n 1963  and  furnaces smelted  60  i n the S o v i e t Union per  cent  of a l l S o v i e t  7 See f o r i n s t a n c e : H.R. Brown and W.R. Hesp: "Metall u r g i c a l Coke f r o m S u b s t i t u t e G o a l s , " J o u r n a l o f M e t a l s , A p r i l , 1964, p . 346; Y u . I . B o k s e r m a n : op. c i t . , p . 230-35.  29. 8 pig  iron.  T h i s share  i s soon t o r i s e  r e a c h a l l the major U r a l m i l l s . the Ukraine  have e x p e r i e n c e d  coke consumption though they 9  sharply as p i p e l i n e s  Ten o f t h e l a r g e s t works i n  a 10 t o 20 p e r c e n t r e d u c t i o n i n  s i n c e they began t o b l a s t w i t h g a s , even  still  do n o t t a k e  full  advantage  o f t h e new t e c h -  niques. If  i t g a i n s widespread  pre-reduction  of ore w i l l  acceptance,  further  i n c r e a s e the consumption o f  n a t u r a l gas i n p i g i r o n p r o d u c t i o n . which the ore i s p a r t i a l l y the b l a s t  reduced  furnace, are f i r e d  The r o t a r y k i l n s , i n before being loaded  e i t h e r by l i q u i d  Since rotary furnaces are r e l a t i v e l y c o n s t r u c t , and a s t h e y a wide a p p l i c a t i o n  t h e new p r o c e s s o f  c a n save  easy  into  or gaseous  and i n e x p e n s i v e t o  much coke f o r t h e b l a s t  o f the technique  fuels.  furnace,  i n t h e f u t u r e may be ex-  pected. In  c o n t r a s t t o p i g i r o n p r o d u c t i o n , where c o a l  king,  steel-making  1910,  most  i s now t h e d o m a i n o f g a s a n d o i l .  of the world's  (85 p e r c e n t  steel  i s made i n o p e n - h e a r t h  is still Since furnaces  of the t o t a l  output i n both the S o v i e t U n i o n and 10 the U n i t e d S t a t e s t o d a y ) , a l t h o u g h new methods a r e b e g i n n i n g 8 Promyshlennost  9  1  SSSR,,1963;, p . 1 7 6 .  Y u . I . B o k s e r m a n : op. c i t . , p . 232; Z . I . N e k r a s o v : " I s p o l * z o v a i n y e p r i r o d n o g o g a z a domennom p r o i z v o d s t v e , I s p o l ' z o v a n i y e G a z a v P r o m y s h l e n n o s t i . A k a d . Nauk. USSR, T a s h k e n t , 1963, p . 97-101. 10 P r o m y s h l e n n o s t ' SSSR.'1963;, p . 167; U.N. E c o n o m i c Commission f o r E u r o p e : Comparison o f Steel-making P r o c e s s e s . New Y o r k , 1962, F i g u r e 3, p . 4.  30. to  challenge  metallic process  t h i s monopoly.  charge  ( s c r a p and  g a s e o u s and  liquid  fuels  steel-making  process.  i s p o o r and  fuel  o i l furnish slightly  Although  different  flames  a p p r e c i a b l e d i f f e r e n c e i n the working  furnace  or t h e  quality  interchangeably U.S.A. now gas  utilize  cheaply  period  on an  o f low  the w i n t e r  as  of the  both  fuels  this  the  switch  provides  may  be  used the  purchasing summer to o i l d u r i n g  instances, blending  the w h o l e , h o w e v e r , n a t u r a l g a s  produces  open-hearth  furnaces,  and  and  companies i n  basis during  demand f o r n a t u r a l gas I n a few  but  costs  replaced  n a t u r a l gas  o f the  Most  in their  interruptible  months.  labour  s t e e l p r o d u c e d , and  economy d i c t a t e s .  the  onto i t .  f u e l s have n e a r l y c o m p l e t e l y  i n the  On  solid  the  through  o f o x i d i z a t i o n "by a f l a m e b l o w n d i r e c t l y  coal  no  open-hearth furnace  pig iron) i s purified  Because flame c o n t r o l with high,  In the  i s practised.  a higher  percen-  11 tage  of t o t a l  calories  than  I n t h e USSR, t h e in  open-hearth furnaces  great bulk  fuel o i l .  relative may  significance  of n a t u r a l  s o o n become e v e n g r e a t e r .  o f S o v i e t o i l i s h i g h l y s u l f u r o u s , and  impurities,  sulfur  steel.  high  The  i s t h e most h a r m f u l  quality  Caucasian  demand i n t h e m e t a l l u r g i c a l c e n t e r s the U r a l s .  But  At  the m a j o r i t y  present,  on a m i x t u r e  i t is relatively  to both  o i l has of  The  of a l l  pig iron  and  been i n g r e a t  the E a s t e r n U k r a i n e  s c a r c e as w e l l as  of open-hearth f u r n a c e s  o f c o k e - o v e n and  gas  and  expensive.  still  operate  b l a s t - f u r n a c e g a s e s , w h i c h have  11 A m e r i c a n I r o n and S t e e l I n s t i t u t e : R e p o r t o f T e c h n i c a l Committee on O p e n - H e a r t h and B a s i c Oxygen S t e e l M a k i n g . 1964, passim  31. 12 low  heat  value.  Considerable attention  t h e more i n t e n s i v e furnaces  u t i l i z a t i o n of n a t u r a l gas 13  throughout  The  the  i n the  h o w e v e r , t h a t due open-hearth  of s t e e l  already  from  steel-making to sheer  output  now  on.  over  suggested. will  i n e r t i a and continue  The  future i s 14  fuel.  be  One  The  cannot  Finally, unable  be  must  the  ruled  for  investment  dominant  d e c a d e o r two. i n oxygen  tech-  remember,  high capital  to p r o v i d e  the next  the  n o t many open-  the b e s t f e a t u r e s of b o t h  converter process, 15  n a t u r a l gas  process.  of using e x t e r n a l heat  w h i c h w o u l d combine the  built  furnaces w i l l  the p o s s i b i l i t y  and  be  and  longer  d e v e l o p m e n t , t h e r e f o r e , seems t o bode i l l  n a t u r a l gas  share  of steel-making,  o x y g e n c o n v e r t e r , w h i c h r e q u i r e s no  nological  open-hearth  o p e r a t i o n , however, i s no  process  hearth furnaces w i l l for  in  to  t h e USSR.  open-hearth  most e f f i c i e n t  i s therefore paid  Moreover,  converters  the  o u t , and  open-hearth indeed  was  i f f o r t e c h n o l o g i c a l reasons,  to g a i n a market  i n the  newest  s t e e l m i12 l l s and e v e n t u a l l y l o s e some o f i t i n t h e o l d o n e s , V.F. Andreyev et a l : Ekonomika Chernoy M e t a l l u r g i i SSSR. M e t a l l u r g i z d a t , M o s k v a , 1963, p . 160 and 191. 13 See f o r i n s t a n c e : V.B. K a r b i v n i c h i y - K u z n e t s o v : " U l u c h s h e n i y e I s p o l ' z o v a n i y a P r i r o d n o g o Gaza p r i O t o p l e n i i M a r t e n o v s k i k h Pechey, " I s p o l z o v a n i y e Gaza v P r o m y s h l e n n o s t i , T a s h k e n t , 1963, p . 102-130 and Yu. I . B o k s e r m a n : op. c i t . , p . 235-242; V.P. A n d r e y e v e t a l : op. c i t . , p . 191-92. 14 U.N. E c o n o m i c C o m m i s s i o n f o r E u r o p e : C o m p a r i s o n o f S t e e l - m a k i n g P r o c e s s e s , New Y o r k , 1962, p . 12, 54. 15 I b i d . , p . 82. 1  32. it  may  find  production vessels  compensation i n i t s i n c r e a s i n g a p p l i c a t i o n f o r of p i g i r o n .  utilize  furnaces  are  i t t o an  immensely  i n c r e a s i n g demand by new  and'  i n c r e a s i n g degree.  Because b l a s t  expensive,  i r o n w o r k s hope t o meet  as  IN  THE  The  chemical industry  raw  material.  in natural  must be  gas,  extracted.  CHEMICAL INDUSTRY  utilizes  n a t u r a l gas  I t a l s o makes use  of the  fuel,  may  be  gas  i s used  replaced  by  fuel  great  of t h e r m a l energy which - t o g e t h e r  c o n s t i t u t e h a l f the natural  gas  those c o u n t r i e s  serves  as  the  has  most i m p o r t a n t  i n many r e s p e c t s  raw  material,  energy  often which  under b o i l e r s as  industry  economy  require  with  a  electricity  of a p a r t i c u l a r product.  producer  fuel,  cheaper than other  of  fuels,  thermal energy  i t s r o l e i s simple  under b o i l e r s ,  of e l e c t r i c i t y .  more i m p o r t a n t ,  e s p e c i a l l y since  i t almost  also.  As  chiefly  production  and  feedstock,  fuel  where i t i s a v a i l a b l e i n l a r g e amounts, i t  because i t i s burned i n the  cost  been g e n e r a l l y  the. c h e m i c a l i n d u s t r y .  played  total  chemical  any  Most branches of the  Since  sulfur,  chiefly  dictates. deal  b o t h as  c o n s t i t u t i n g a harmful impurity  As  t o p r o d u c e s t e a m and  in  than  construction.  found  may  pre-reducing  t e c h n o l o g i c a l improvement r a t h e r  NATURAL GAS  and  Both b l a s t furnaces  the  and,  i s s i m i l a r to  that  More i n t e r e s t i n g ,  i s i t s r o l e as  once i t i s u s e d a s  i n v a r i a b l y provides  for  the  a  a  chemical  chemical  necessary  thermal  -  33.  N a t u r a l G-as a a Raw M a t e r i a l The u t i l i z a t i o n of n a t u r a l gas and n a t u r a l gas l i q u i d s as chemical raw m a t e r i a l s cannot be understood without some knowledge of technology, a l l the more so since they can be r e a d i l y replaced by r e f i n e r y products, derived from crude oil.  N a t u r a l gas, as w e l l as crude o i l , i s a mixture of  hydrocarbon molecules and, i n a d d i t i o n , f r e q u e n t l y contain impurities.  A hydrocarbon molecule i s made up of carbon and  hydrogen atoms i n various arrangements.  By f a r the most impor-  tant i s the open chain s e r i e s known as p a r a f f i n s which, together w i t h some i m p u r i t i e s , compose n a t u r a l gas, l i q u i d petroleum gases, as w e l l as the l a r g e s t f r a c t i o n of most petroleum, condensates and n a t u r a l g a s o l i n e . s e r i e s c o n s i s t s of methane (CH^), ethane {G^Q)  The p a r a f f i n t propane  (C^HQ), butane (C^H^Q) and pentane p l u s ( O ^ H ^ to CgH-]_g). N a t u r a l gas i s "dry", when composed overwhelmingly of methane, and "wet *, when propane, butane, pentane, make up a 1  l a r g e percentage. When the gas i s processed, the propane, butane, pentane and, t o some extent, ethane f r a c t i o n s are extracted from the gas and l i q u e f i e d .  L i q u e f i e d petroleum  gases, e s p e c i a l l y propane and butane, are the most important raw m a t e r i a l s f o r the manufacturing of organic petrochemicals. (The term "petrochemical" r e f e r s to chemical elements and compounds produced from o i l and n a t u r a l gas hydrocarbons and sold f o r chemical uses.  Organic chemicals g e n e r a l l y contain carbon  molecules w h i l e inorganics do not.  Organic petrochemicals  serve as c h i e f raw m a t e r i a l s f o r the s y n t h e t i c i n d u s t r i e s ,  34. w h i l e i n o r g a n i c p e t r o c h e m i c a l s are used mainly as  fertilizers.)  The p r o d u c t i o n of p e t r o c h e m i c a l s i n v o l v e a l a r g e number of complicated p r o c e s s e s , which i n essence arrange the hydrocarbon elements and  molecules,  each o t h e r .  change and r e -  combine them w i t h other  P a r a f f i n s , the most important  hydro-  carbon f e e d s t o c k s , however, are by nature u n r e a c t i v e and do combine w i t h other elements.  not  To make them r e a c t i v e t h e r e f o r e ,  they are made to l o s e some hydrogen atoms:  ethane thus turns  i n t o e t h y l e n e , propane i n t o propylene, butane i n t o b u t y l e n e , and  so on.  Such hydrocarbon  are very r e a c t i v e .  molecules are c a l l e d o l e f i n s  Methane, the s i m p l e s t hydrocarbon  main c o n s t i t u e n t of n a t u r a l gas c o n t a i n s only one and does not, t h e r e f o r e , have an o l e f i n .  Two  account  of the t r i p l e bond.  temperatures  and  energy  and  the  carbon atom  methane mole-  c u l e s , however, as w e l l as the other p a r a f f i n s , may i n t o a c e t y l e n e ( H - C S C - H ) , which i s extremely  and  be  reactive  turned on  But t h i s process r e q u i r e s h i g h e r  i n p u t s than the forming of o l e f i n s .  O l e f i n s are the c h i e f b a s i c chemicals used i n organic synthesis. & Por H H H—C  II  —  II  T h e i r major source i s LPG's (from wet n a t u r a l gas) example: H  C—H  H H ethane  \ /  H  C=  C  / \  ethylene  H  H H H  III  H— C — C — C — H H  III  H H H propane  H  H  1  1  H-C—C=C  I  H  H /  \  H  propylene  E t h y l e n e i s a l s o made from propane by the more d r a s t i c (but cheaper) method of knocking o f f one C and four H atoms.  35. and  petroleum  feedstocks.  I n the United S t a t e s , f o r instance,  h a l f o f a l l e t h y l e n e i s d e r i v e d f r o m wet n a t u r a l g a s a n d some 45 p e r c e n t f r o m ( o i l ) r e f i n e r y g a s e s . ethylene as w e l l as propylene 16 oil.  I n E u r o p e , most  and b u t y l e n e , i s produced  from  T h u s , w e t n a t u r a l g a s h a s t o compete w i t h p e t r o l e u m i n  t h e p r o d u c t i o n o f t h e s e "basic c h e m i c a l s a n d l o c a l c o n d i t i o n s determine utilized  which source  i s used.  D r y n a t u r a l gas cannot be  e c o n o m i c a l l y f o r t h i s purpose because the r e q u i r e d  f e e d s t o c k s , ethane,  propane, butane, a r e present  i n very low  concentration. B e c a u s e methane h a s no o l e f i n s ,  i ti s less useful i n  o r g a n i c s y n t h e s i s t h a n t h e above f r a c t i o n s , a l t h o u g h a few highly  important  organic chemicals  (e.g. methyl  a l c o h o l and  f o r m a l d e h y d e ) a r e made f r o m i t on a l a r g e s c a l e .  It i s ,  however, a b a s i c f e e d s t o c k f o r the p r o d u c t i o n o f i n o r g a n i c s , s u c h a s ammonia, u r e a a n d o t h e r n i t r i c c a n a l s o be c r a c k e d  of organic  Because i t s g r e a t e r investment,  c i t y requirements,  Methane  to form acetylene which v i e s w i t h  a s a v e r s a t i l e raw m a t e r i a l f o r a h o s t chemicals.  fertilizers.  compete w i t h e t h y l e n e .  petro-  f u e l and  however, a c e t y l e n e always found  ethylene  electri-  i t hard to  I n 1961, the United S t a t e s produced  o v e r f i v e and a h a l f b i l l i o n pounds o f e t h y l e n e ( t h e most important  o l e f i n ) a g a i n s t some 200 m i l l i o n p o u n d s o f a c e t y l e n e  d e r i v e d from n a t u r a l gas. ylene  (Only about a q u a r t e r of a l l a c e t -  i s d e r i v e d from hydrocarbon  sources; almost  a l l of i t  R i c h a r d F. G o l d s t e i n : The P e t r o l e u m C h e m i c a l I n d u s t r y . 2nd e d i t i o n , L o n d o n , E . & P.M. S p o n , 1 9 5 8 , p . 1 0 7 ; D e p t . o f Commerce a n d I n d u s t r y , O k l a h o m a : The M a n u f a c t u r e o f E t h y l e n e and i t s M a j o r D e r i v a t i v e s i n Oklahoma, p a m p h l e t , p . I l l - 1.  36. f r o m methane t h e r e s t The is  i s made f r o m c o a l v i a c a l c i u m  disadvantageous p o s i t i o n the chief  gas  reason  f o r organic  of acetylene,  f o rthe r e l a t i v e l y  versus  synthesis.  d r y n a t u r a l g a s - may become c o m p e t i t i v e of s y n t h e t i c m a t e r i a l s .  By u s i n g  ( r e a c t i o n o f methane w i t h  acetylene  i s combined w i t h  of acetylene,  During  thousand  of  It  cubic meters of  To o b t a i n a u n i t  by t h i s p r o c e s s  by t h e m e t h a n e - s t e a m p r o c e s s  which i s the cheapest  amount  r e q u i r e s only a  a s raw m a t e r i a l a n d f u e l -  (also v i a synthesis 19  way t o p r o d u c e ammonia a l o n e .  or thermal  o f one  enough t o make 4.2 t o n s o f  more n a t u r a l g a s - u s e d b o t h  the e l e c t r i c  the manufacturing  of methyl a l c o h o l .  o f ammonia p l u s a c e t y l e n e  by  pro-  p r o d u c t i o n b y t h e above method  t e n to eleven  ammonia o r 3.4 t o n s  than  combustion  oxygen), t h e manufacturing  s y n t h e t i c gas i s a l s o obtained,  little  the p a r t i a l  enough where ammonia o r m e t h y l a l c o h o l c a n  a l s o be p r o f i t a b l y m a r k e t e d . ton  f o r the production  ammonia a n d m e t h y l a l c o h o l .  e a s y t o see t h a t a c e t y l e n e  appears a t t r a c t i v e  - and t h e r e f o r e  t h a t o f s y n t h e s i s g a s (G0fHo)» t h e 18  c h i e f raw m a t e r i a l f o r b o t h is  ethylene  meager u s e o f d r y n a t u r a l  However, i n c e r t a i n r e g i o n s a c e t y l e n e  cess  17 carbide.)  gas), Acetylene  c r a c k i n g o f methane i s more ex-  p e n s i v e , b u t may p r o v e e c o n o m i c i n a r e a s w h i c h do n o t h a v e 17 The O i l a n d Gas J o u r n a l , J a n . 1 3 , 1964, p . 4 7 . 18 R i c h a r d F . G o l d s t e i n : o p . c i t . , p p . 3846 a n d 262-67. 19 V y s s t a v k a D o s t i z h e n i y N a r o d n o g o K h o z y a y s t v a SSSR,Nov., 1963, p. T r a n s l a t e d i n U.S. JPSS 22744, p . 79; N.A. S i m u l i n : " R a z v i t i y e azotnoy promyshlennosti, K h i m i c h e s k a y a P r o m y s h l e n n o s t * , No. 1, 1964, p . 8. M  37. access gas  t o cheap IPG's or r e f i n e r y  and l o w - c o s t The  in  power - e i t h e r  production  t h e USSR i s s t i l l  minology  from gas o r o t h e r  o f IPG's and indeed very undeveloped.  i s often confusing  "szhizhennye  gases hut possess  sources.  of a l l l i q u i d  Russian  on t h a t s u b j e c t .  gazy" i s sometimes b e i n g  dry natural  used  gases  d a t a and t e r -  The t e r m  to refer  to l i q u i f i e d  p r o p a n e and b u t a n e , s o m e t i m e s t o a l l n a t u r a l g a s l i q u i d s a n d sometimes t o a l l l i q u i d g a s i n c l u d i n g well.  Be t h i s  "szhizhennye cent  gazy"  l i q u i d gases as  i n 1962, t o t a l p r o d u c t i o n o f  i n t h e USSR amounted  to less  than  1 per  o f l i q u i d g a s e s p r o d u c e d by g a s - p r o c e s 3 i n g p l a n t s i n t h e  United tons  a s i t may,  refinery  States.  (Output  i n t h e S o v i e t U n i o n was 1.3  a g a i n s t n e a r l y 39.5 m i l l i o n  country,  an a d d i t i o n a l  produced  i n petroleum  refineries  produced  tons  13.3 m i l l i o n refineries,  i n t h e U.S.  tons  while  million In the l a t t e r  of l i q u i f i e d  g a s was  i n the S o v i e t Union  o n l y a b o u t 160,000 t o n s . )  I n 1963 t h e 20  Soviet  plan called Oil-well  f o r 1.8 m i l l i o n  gases represent  tons  from both  t h e most v a l u a b l e s o u r c e o f  n a t u r a l gas l i q u i d s , b u t the u t i l i z a t i o n of these t h e USSR i s p r o c e e d i n g complaints, leased rest  very  inadequately.  o n l y some 60 p e r c e n t  during petroleum  i s flared  Despite  gases i n constant  o f a s s o c i a t e d gases, r e -  production,  or vented.  sources.  And only  i s u t i l i z e d today, the t w o - f i f t h s of the p o r t i o n  20 " G a z o v a y a p r o m y s h l e n n o s t * - moshchnaya b a s a r a z v i t i y a B o l s h o y K h i m i i , " G a z o v a y a P r o m y s h l e n n o s t * , Ho. 1, 1964, p . 28; D.A. T s v e t k o v : " I s p o l ' z o v a n i y e s z h i z h e n n y k h g a z o v v narodnom K h o z y a y s t v e SSSR," G a z o v o y e D e l o , No. 1 1 , 1963, p . 42; L . P . G a s , A p r i l , No. 4, 1963, p . 36; B u t a n e - P r o p a n e News, No. 10, 1962, p . 53. P r o d u c t i o n by r e f i n e r i e s i n t h e USSR was o b t a i n e d b y s u b t r a c t i n g p r o d u c t i o n by g a s - p r o c e s s i n g p l a n t s g i v e n i n G.P. f r o m t o t a l f i g u r e , g i v e n i n G.D.  38. n o t wasted cessed,  —  some 4 b i l l i o n  the g r e a t e r part  i n 1963 — i s p r o 21 as f u e l . An acute shortage  cubic meters  i s burned  o f g a s p r o c e s s i n g p l a n t s h o l d s up t h e d e v e l o p m e n t industry.  o f t h e LPG  A t t h e b e g i n n i n g o f 1964, t h e USSR h a d , a t most, a  dozen  s u c h p l a n t s a n d some o f them s t i l l work f a r below f u l l 22 capacity. The S e v e n Y e a r P l a n h a d f o r e c a s t t h e c o n s t r u c t i o n o f 20 g a s - p r o c e s s i n g w o r k s , objective w i l l  b u t i t i s now c e r t a i n  budding petrochemical industry  for  of this  larger  synthesis.  portion  of l i q u i d  stock but as f u e l .  shortage i s that the  i n t h e USSR i s l a r g e l y  t h e most c o n v e n i e n t and p e r h a p s organic  deprived  t h e c h e a p e s t raw m a t e r i a l s  T h i s i s a l l t h e more t r u e  since the  gases i s n o t used a s c h e m i c a l f e e d -  (Propane and butane  a r e very important i n  r u r a l households while heavier hydrocarbons r e a d i l y motor  this  n o t be r e a c h e d f o r a n o t h e r few y e a r s .  One i m p o r t a n t c o n s e q u e n c e  of  that 23  serve as  fuel). In t r y i n g  to divine  i n t h e development  the r o l e  of Soviet  t h a t n a t u r a l gas w i l l  petrochemical industry,  play  one must  remember t h a t wet o i l - w e l l g a s e s - t h e m a i n s o u r c e o f LPG's represent  less  t h a n 20 p e r c e n t o f t h e t o t a l  n a t u r a l gas output  21 S.A. O r u d z h e v : op. c i t . , H e f t y a n o y e . .Khozyaystvo, No. 3, 1964, p . 3; D.A. T s v e t k o v ; op. c i t . , G a z o v o y e D e l o , No. 11, 1963, p . 4 3 ; M. S i d o r e n k o : " G a z - s o y u z n i k k h i m i k o v , " E k o n o m i c h e s k a y a G a z e t a , No. 9, 1963, p . 8. 22 E k o n o m i c h e s k a y a G a z e t a , E e b . 1, 1964, p . a n d Nov. 9, 1963, p . 8; V . I . L i z i n : " N e k o t o r y e e k o n o m i c h e s k i y e p o k a z a t e l i p o l u c h e n i y a z h i d k i k h p r o d u k t o v i z nefyanogo g a z a , " Gazovoye D e l o , No. 8, 1963, p . 50; A . S . S h a p o s h n i k o v : " S r e d n y e - V o l z h s k i y e k o n o m i c h e s k i y r a y o n - f o r p o s t k h i m i i , " V e s t n i k Moskovskogo U n i v e r s i t e t a , No. 2, 1964, p . 6; G a z o v a y a P r o m y s h l e n n o s t , No.11, 1963, p . 4. 23 "Poputnye n e f y a n y e gazy, "Gazovaya P r o m y s h l e n n o s t , No. 5, 1959, p . 1.  39. of  t h e USSR.  cent the  (Though t h e i r  c o u l d "be r a i s e d  i f a l l amounts r e l e a s e d -were u t i l i z e d . ) chemical  ciated.  composition  I t c a n be  are very dry. d e p o s i t s , and ethane  of S o v i e t gases,  observed  t h a t most  T a b l e "V p r e s e n t s  b o t h f r e e and  are d e r i v e d from  Associated  surprisingly  o i l wells.  gases produced  Only  that gases from  significant  gas  why  and  fractions.  a c e t y l e n e , e s p e c i a l l y when combined w i t h t h e  of  ammonia, u r e a , and  same t i m e ,  these  fertilizers,  combined w i t h S i n c e LPG  rich  Krasnodar negligible  importance  manufacturing The  same r e g i o n s a r e  the m a n u f a c t u r i n g  t h a t o f a c e t y l e n e as  i n d i r e need  of which can outlined  production i s increasing  shipped  t o most r e g i o n s by  principal  resources of n a t u r a l  t h e l a c k o f g a s - p r o c e s s i n g p l a n t s , and  h a v e t o be new  in  or have l o n g - d i s t a n c e p i p e l i n e s p a s s i n g through  nitric  to  fertilizers.  regions possess  however,  I t i s , t h e r e f o r e , easy  to  other n i t r i c  they  quantities,  S o v i e t p l a n n e r s a t t a c h so g r e a t  Soviet agricultural  those  Volga,  w e l l s c o n t a i n more t h a n a  understand  be  condensate  although  to  the  gases  ( o i l -well) g a s e s  i n the Middle  in really  amount o f h e a v i e r p a r a f f i n  At  asso-  "dry" considering that  w h i l e a g a i n i t i s o n l y i n the V o l g a R e g i o n  gas,  free  even i n the  ethane to pentane f r a c t i o n s ,  of Azerbaydzhan are  Kray  per  b e s i d e s methane many o f them c o n t a i n o n l y  i n the  "wet"  t o 30  of Russia's  Methane i s p r e p o n d e r a n t  i n appreciable quantities.  are r i c h  are  share  them. of  profitably  above.  rather slowly s i n c e they  rail,  would  i n many a r e a s  o r g a n i c p e t r o c h e m i c a l p l a n t s seem t o be b e t t e r b a s e d  d r y n a t u r a l gas  ( v i a acetylene) than  on  due  "imported"  the on  LPG's ( v i a  40. Table Average  V  C h e m i c a l C o m p o s i t i o n of Gases i n the Major S o v i e t D e p o s i t s Prom Gas  Deposits  Wells  C o m p o s i t i o n o f gas ( p e r c e n t o f t o t a l volume) CH C H C H C4H10 5HT.2 0 0 HgS' N2+ r a r e &hger. elements c  4  .  2  6  0.40 6.00 0.25 2.60 0.96 6.20 6.00 1.60  3  0.14 0.50 0.20 1.10 1.19 1.94 1.70 0.03  S t a v r o p o l ' Kray Krasnodar Kray Western Ukraine Saratov Oblast' Volgagrad Oblast' Kuybyshev O b l a s t ' Orenburg O b l a s t * . Gazli  98.6 92.9 98.5 92.2 96.7 75.3 73.6 98.1  Shebelinka Stepnoye (Saratov Oblast')  92.9 4.5  0.8  95.1 2.3 88.8 4.8  Kanevskoye (Krasnodar Busskiy  Kray)  Khutor  Karadag (Az e r b a y d zhan)  8  2  0. 06  —  --  --  0.50  --  0.05 0.11 0.80 1.10 0.05  0.10 0.70 0.09 0.01 — — . 0.80 0.10 0.28 3.37 0.25 1.70 0.58 0.37 13.96 0.28 0.28 16.50 -0.10 0.12  0. 6  0.6  0.1  __  0.5  0.7  0. 4  0.8  0.2  —  0.5  1.4  0. 5  1.8  0.2  ——  2.5  69.1 11.3 3.3  1.7  8.6  2.7  —  3.3  93.4 2.2  1. 1  1.2  0.5  ——  0.5  0.81 2.90 3.20 2.50 6.50  0.20  1.4  0. 15 0. 40 0. 09 0. 90 0. 52  From O i l W e l l s Azerbaydzhan T a t a r ASSR B a s h k i r ASSR Kuybyshev O b l a s t ' Krasnodar Kray Western Ukraine (approx*)  91.8 4.49 1.62 1. 08 48.0 16.6 1 6 . 1 7. 30 41.0 19.7 17.0 7. 30 68.5 12.5 5.5 4. 00 65.5 10.3 9.4 6. 80 30-45 51-76  --  —  —-  9.10 11.60 0.20 1.50 3.00 1.50 — 0.50 1.00  --  not; g i v e n  Source; Y u . I . B o k s e r m a n : op. c i t . , p . 53-54 ( T a b l e s 2 1 , 2 2 , 2 3 ) ; V. B a y e v i c h : " D e v e l o p i n g gas and o i l p r o d u c t i o n i n t n e U k r a i n e , " R a b o c h a y a G a z e t a , Nov. 2 7 , 1 9 6 3 ; t r a n s l a t e d i n US JPRS 2 2 7 8 5 , p . 1 7 ; Y a . D. S a v v i n a : " K o n d e n z a t y i z g a z o k o n d e n z a t n y k h z a l e z h e y m e s t o r o z h d e n i y a "Russky K h u t o r " , " G a z o v o y e D e l o , No. 9, 1 9 6 3 , p . 1 5 .  41.  olefins).  P a r t s of the U k r a i n e and  the whole of Middle that category.  o f the N o r t h C a u c a s u s ,  A s i a , the C e n t r a l R e g i o n c o u l d f a l l  In regions  such as E a s t  e x t r e m e l y cheap energy, a c e t y l e n e  into  S i b e r i a , w h i c h "boast  production  f r o m methane  could  24  become e c o n o m i c e v e n by It  electric  cracking  seems, t h e r e f o r e , t h a t b o t h wet  p r o v e e s s e n t i a l a s raw chemical  the  materials  i n d u s t r y o f t h e USSR.  d r y n a t u r a l gas  to the developing Due  States.  g a s e s , however, have advantages i n very i n f l u e n c e of technology  utilization  great  i n that energy-hungry  n a t u r a l gas  versus  municipal  one-third i s s t i l l  As  kinds  of  fuels,  due their  intensive  industry.  The  consumption  of  S t a t e s a p p e a r s i n the s m a l l share of  more a p p a r e n t when one  one-tenth  considers  f i g u r e seems t o i n c l u d e b o t t l e d p r o p a n e t o r u r a l and  Consumption of b o t t l e d gas  separately  hydrocarbon  d i f f e r e n t regions  transport.  the United  sectors.  butane d e l i v e r e d mainly  holds.  two  econ-  MUNICIPAL CONSUMPTION  i n t h e USSR and  the f a c t t h a t the S o v i e t and  The  most s t r i k i n g d i f f e r e n c e between the  h o u s e h o l d and  petro-  i n an  convenience guarantees t h e i r  HOUSEHOLD AND The  and  v/ill  to f o r c e s of l o c a t i o n ,  p o s i t i o n v i s a v i s other  s o u r c e s than i t i s i n the U n i t e d  c h e a p n e s s and  dry gases  i n t h e S o v i e t U n i o n seems t o be  o m i c a l l y more f a v o u r a b l e  t o the  and  process.  i n US  from that of n a t u r a l gas,  24  but  s m a l l town h o u s e statistics o v e r 40  per  i s treated cent  of  N. P e d o r e n k o and A. V a y n : K problems r a z m e s h c h e n i y a khimicheskoy i n d u s t r i i , P l a n o v o y e - K h o z y a y s t v o , No. 5, 1964, p. 3 0 . n  n  42. the  very  considerable  propane-butane p r o d u c t i o n  (176 m i l l i o n  25 tons  i n 1962) i s consumed b y t h e d o m e s t i c At  living  the beginning  quarters  o f 1963, a f u l l  i n t h e USSR  sector.  30 p e r c e n t  of a l l  (1,637,800 o u t o f a t o t a l o f  26 5,398,500) r e c e i v e d g a s n o t t h r o u g h p i p e l i n e s b u t i n c y l i n d e r s . Assuming f i v e included—  people per household, n a t u r a l gas-- b o t t l e d gas  was a v a i l a b l e t o o n l y  population.  According  12 p e r c e n t  of the Soviet  t o the t a r g e t o f the Seven Y e a r  w h i c h may n o t be r e a c h e d ,  only a quarter  Plan,  of the Soviet  popu-  27 l a t i o n was h o p e d t o be s u p p l i e d b y t h e end o f 1965. general  neglect  importance length that  o f the r e s i d e n t i a l  o f the t r a n s m i s s i o n  1962), w h i l e bution  s e c t o r and t h e r e l a t i v e  o f b o t t l e d gas a r e r e f l e c t e d  of the Soviet d i s t r i b u t i o n network  i n the U n i t e d  lines  by t h e f a c t  that the  i s much s m a l l e r  than  (17,600 km. v s . 25,300 i n  States,  s y s t e m i s more t h a n t w i c e  The  the length  that  of the d i s t r i -  o f the t r a n s m i s s i o n  28 lines  (427,600 m i l e s It  i s fair  v s . 200,200 m i l e s  to point  h o u s e h o l d and m u n i c i p a l gas  i n t h e same y e a r ) .  o u t , however, t h a t  the share  of  s e c t o r s i n the consumption o f n a t u r a l  i s somewhat u n d e r s t a t e d .  The m a j o r i t y  of Soviet  thermal  25  s t a t i o n s , L .a nP. d nG e aarsl,y A pa rli ll ,o f(No. them 64), i n la r g e up r b.a n c e nB tu etrasn,e -aPrr e 1963, 36; opane News, No. 10, 1962, p . 53. .  26  "Gazovaya p r o m y s h l e n n o 3 t * l e n n o s t , No. 10, 1963, p . 55.  v 1962 g.," G a z o v a y a Promysh-  27  Y u . I . B o k s e r m a n , op. c i t . , P i a n o v o y e M a r c h , 1960, p . 31.  Khozyaystvo,  28  p.  N . I . N o v i k o v : op. c i t . , G a z o v o y e D e l o , No. 5, 1963, 5, U.S. M i n e r a l Y e a r b o o k , 1962, p . 332.  43. so-called  thermal e l e c t r i c  only e l e c t r i c i t y factories.  c e n t e r s (TETs) w h i c h produce n o t  b u t a l s o b y - p r o d u c t h e a t f o r h o u s e h o l d s and  Pages 1 0 3 - 1 0 4 , G h a p t e r V, shows t h e i r i m p o r t a n c e i n  the C e n t r a l Region and t h e C i t y toplifikatsiya,  o f Moscow.  This practice,  called  undoubtedly r a i s e s the share of the domestic  s e c t o r i n the consumption  o f n a t u r a l g a s t o some d e g r e e .  f u r t h e r q u a l i f i c a t i o n s , h o w e v e r , must be made.  Pirst,  p r a c t i c e a l s o r a i s e s the share of the i n d u s t r i a l  Two  this  sector.  Since  much o f t h e s t e a m r e q u i r e d i n i n d u s t r y i s a l s o p r o v i d e d o r 29 p l a n n e d t o be p r o v i d e d by T E T s ' s ,  the i n c r e a s e i n the share  o f c e r t a i n i n d u s t r i a l s e c t o r s may.be e v e n g r e a t e r . much n a t u r a l g a s i n t h e U.S. homes i s u t i l i z e d much more t h a n i n S o v i e t h o u s e h o l d s .  Secondly,  via electricity,  I f i n d i r e c t uses o f gas,  such as t o p l i f i k a t s i y a , a r e a l l o w e d f o r i n the case o f the USSR, i n d i r e c t u s e s t h r o u g h e l e c t r i c i t y  s h o u l d a l s o be c o n -  sidered f o r the United S t a t e s .  29 S e e , f o r i n s t a n c e , N. N e k r a s o v : E k o n o m i k i , Ho. 3, 1 9 6 4 , p . 3 1 - 3 2 .  op. c i t . ,  Yoprosy  44.  Chapter I I I  RESERVES  45.  Hydrocarbon reserves are n o t o r i o u s l y d i f f i c u l t to e s t i mate; they can be proved only by the d r i l l i n g of w e l l s .  Natural  gas reserves can be r e l i a b l y appraised even from one w e l l , provided that i t had produced enough to make a measurable d e c l i n e 1 i n the r e s e r v o i r pressure.  This l a t t e r , however, i s a c r u c i a l  l i m i t a t i o n f o r i t r e s t r i c t s trustworthy estimates to areas and e s s e n t i a l l y to producing f i e l d s .  developed  In a d d i t i o n , the  "proved reserves" concept, used by the gas i n d u s t r y , l i m i t s reserves to those recoverable under present operating practices.  Thus, i n the l a s t a n a l y s i s , i t i s a f u n c t i o n of pro-  duction.  I t s r o l e i s c r u c i a l f o r the immediate f u t u r e and  d i s t r i b u t i o n of the industry but i s obviously inadequate f o r any long-term f o r e c a s t . Any other estimates, however, are u n c e r t a i n . u s u a l l y based on g e o l o g i c a l s t u d i e s of sedimentary  They are  basins and  on past and present production of known p e t r o l i f e r o u s provinces. E s p e c i a l l y d i f f i c u l t i s the evaluation of gas reserves contained i n petroleum r e s e r v o i r s : these are g e n e r a l l y c a l c u l a t e d 2  from g a s - o i l r a t i o s a p p l i e d to c r u d e - o i l estimates. Soviet categories of reserves are only p a r t l y comparable to those used i n the United States or Canada.  The main cate-  g o r i e s used by the Soviet o i l and gas i n d u s t r i e s are A,  B,  C-j_ and C£» to which two extremely u n c e r t a i n f u r t h e r d i v i s i o n s  1962, p. 2  Kenneth K. Landes. Petroleum Geology, Wiley, New York, 237.  Sam H. Schurr and Bruce C. Netschert: op. c i t . , pp. 391-92 and pp. 401-410.  46. are  sometimes added.  "proved recoverable a t i o n s are stands  Category A roughly  reserves' , though S o v i e t recovery  set higher  than the A m e r i c a n , w h i l e C a t e g o r y  f o r reserves which are f u l l y  s u r v e y e d as t o  strata.  In published  B a r e u s u a l l y combined under the  reserves". reserves"  term  both i n Soviet  sources  "industrial  and  though i t i s c l e a r t h a t v i s a v i s the American the S o v i e t f i g u r e s are C a t e g o r y C^ by  reconnaissance  posits.  A,  B and  somewhat  C^  mates of the r e s e r v e s resents  estimates  l o g i c a l and  c o m b i n e d and  paper,  classification  t o d a t e and  de-  reserves"  a p p r o x i m a t e US Category C  2  of f u t u r e d i s c o v e r i e s upon f a v o u r a b l e evidences  only  i n older  c a l l e d "balance  o f known r e s e r v o i r s .  geo-physical  l i f e r o u s areas.  in this  f i e l d s covered  or s u c h h o r i z o n s  embrace a l l f i e l d s d i s c o v e r e d  "proved  inflated.  g e n e r a l l y i n c l u d e s new  prospecting  exact  statistics  They a r e u s e d i n c o m p a r i s o n s w i t h US estimates  B  quantity  as t o q u a l i t y , r e c o v e r a b i l i t y a n d  d i s t r i b u t i o n of p r o d u c t i v e and  US expect-  1  though incompletely  A  corresponds to  i n already  surveyed  estirepgeo-  petro-  Though u n c e r t a i n , t h e y m u s t be d i s t i n g u i s h e d  from " p r e d i c t e d " or " u l t i m a t e r e s e r v e s " , which are c a l c u l a t e d only from the  e x t e n t o f s e d i m e n t a r y b a s i n s , most o f w h i c h a r e 3 y e t u n t o u c h e d . S l i g h t l y o v e r t h r e e - q u a r t e r s o£ a l l n a t u r a l gas  known t o d a y i n t h e USSR i s f o u n d i n d i s t i n c t g a s  while  the r e s t i s c o n t a i n e d 4  o v e r l y i n g the  deposits,  i n o i l r e s e r v o i r s , as a g a s - c a p  crude.  _ Yu.  D m i t r i B. S h i m k i n : op. c i t . , p. 153-54 and I . B o k s e r m a n : op. c i t . , p. 1 9 - 2 0 . 4 I b i d ( B o k s e r m a n ) : p. 27  p.  157j  47. At  the beginning  of 1 9 6 3 , t o t a l i n d u s t r i a l r e s e r v e s of  n a t u r a l gas i n the USSR amounted to n e a r l y two  trillion  (2,000,000,000,000) cubic meters, or w e l l over twice the proved r e s e r v e s of Canada and c l o s e to a q u a r t e r of t h a t of 5  the U n i t e d S t a t e s .  U n l i k e c o a l , where n i n e - t e n t h s  of the  r e s e r v e s a r e l o c a t e d east of the U r a l s , the d i s t r i b u t i o n of n a t u r a l gas i s more f a v o u r a b l e .  More than t w o - t h i r d s  of proved  r e s e r v e s and c l o s e to a t h i r d of a l l p o t e n t i a l ones a r e found 6 i n European R u s s i a ,  where -- i f the U r a l s are i n c l u d e d --  f o u r - f i f t h s of a l l f u e l and energy consumption i s c o n c e n t r a t e d . Mapsllj 2and 3 and Table V I show the d e t a i l e d d i s t r i b u t i o n of i n d u s t r i a l reserves  (Category A & B ) , and of r e s e r v e s i n  Category C.^ and Cg. I t i s worth n o t i c i n g t h a t n e a r l y n i n e - t e n t h s  of a l l  n a t u r a l gas known today i s found i n only f o u r a r e a s : the N o r t h Caucasus, the Ukraine, f i e l d s alone  Uzbekistan  -- G a z l i , S h e b e l i n k a  and the V o l g a .  Three g i a n t  and N o r t h - S t a v r o p o l  —  1  7 account f o r n e a r l y h a l f of a l l gas d i s c o v e r e d to d a t e . l a r g e extent  The  of sedimentary b a s i n s i n S i b e r i a , where the  presence of gas has a l r e a d y been proved, however, a l s o deserves notice.  With the c o n t i n u i n g a t t e n t i o n g i v e n to the develop-  ment of the southern  p a r t of S i b e r i a , the d i s c o v e r y and ex-  p l o i t a t i o n of l a r g e f i e l d s c o u l d be expected.  -I b i d . . p .  Western S i b e r i a i s i n a b e t t e r geographic 6  In a d d i t i o n ,  p o s i t i o n to provide  17 and.28.  7 I b i d i , p . 24 and 28. Yu. I . Bokserman; op. c i t . , p. 27  48. Table V I Reserves  o f N a t u r a l Gas  A  per cent  B + Ci bill. per cent cu.m.  A  1942.1  100.0  2786.5  100.0  6091.3  100.0  RSESR  930.1  48.0  1315.4  46.4  2002.6  33.0  Volga-Urals  217.3  11.2  279.6  10.0  732.8  12.1  4.9 19.1 70.4 1.9 105.1  _--  8.3 26.7 88.2 13.2 114.9  REGIONS  +B bill. cu.m.  USSR  K u y b y s h e v Ob. O r e n b u r g Ob. S a r a t o v Ob. B a s h k i r ASSR V o l g o g r a d Ob. A s t r a k h a n Ob. & Kalmyk ASSR  15.7  North Caucasus Krasnodar' Kray S t a v r o p o l ' Kray Chechen-Ing.ASSR D a g e s t a n ASSR Rostov Oblast K.-Balkar & S . - O c e t i n ASSR's Komi ASSR West S i b e r i a East Siberia S a k h a l i n Ob. U k r a i n i a n SSR West U k r a i n e l a s t Ukraine Azerbaydzhan Central  SSR  Asia  U z b e k SSR Turkmen SSR K i r g i z SSR T a d z h i k SSR K a z a k h SSR  and  '  A+  ... --—-  27.9  + B + C1 + C2 bill. per cu.m. cent  35.6 187.8 138.7 69.1 211.4  ---  -  90.2  634.S  32.7  842.7  29.9  376.1 252.2  —__ —-—  508.2 323.8  __ _  «•» » mm-  -—  1072.3  17o8 _  548.2 505.8 11.4 0.1 5.2 1.6  10.2 49.3  .6 2.5  16.5 130.1  0.5 4.5  17.5 130.1  .15 2.1  18 .5  1.0  46.5  1.5  46'. 7  .75  373.4  19.2  529.9 179.9 350.0  20.0 6.5 12.5  689.0  11.3  37.2  1.9  57.4  2.0  101.3 •  1.6  594.4  30.6  866.2  30.9  3262.1  53.6  518.6 71.2 4.2 1.4''  26.5 3.7  633.2 219.0 9.9 4.1  22.6 7.8  969.6 2246.9 39.0 6.6  15.9 37.0  .3  17.6  0.7  36.4  .6'  6.0  Source: Y u . I . Bokserman: op. c i t . , T a b l e 18, p . 28.  —  T a b l e 15, p . .22-24  AZERBAIDZHAN  CENTRAL ASIA  -100  1965  ^37  A+B+C+C,  ( LOGARITHMIC  SCALE)  ^3000  O i l w e l l gases are excluded from production data.  &  The f u l l extent of these reserves i s not yet known.  52. gas  f o r the U r a l s t h a n  w i t h the l a t t e r It that  the  as  two  total  line  richest  supplier  the S o v i e t The  and  Caucasus  cent  of  Next i n  the V o l g a - U r a l , a c c o u n t i n g  a t e n t h of a l l gas  Caucasian  Terek  deposits are  deeper-lying  reserves.  VI  respec-  d i s c o v e r e d to  date  Union.  North  s i o n of the  per  region.  Table  the N o r t h  f o r some t h i r t y  petroliferous area consists  A z o v o - K u b a n downwarp, t h e S t a v r o p o l  The  of that i n d u s t r i a l  i n d u s t r i a l as w e l l as balance and  eventually vie  t h e maps (Maps. 1,,2 & 3) and  each a c c o u n t i n g  for a fifth  should  provinces at present are  come t h e U k r a i n e  tively in  the c h i e f  i s evident from  and M i d d l e A s i a , the  C e n t r a l A s i a and  i n Cretaceous  J u r a s s i c and  the c l o s e r  promise.  Most o f the proved  Krasnodar  Kray,  especially  Very  the Terek  Valley,  but  and  Tertiary  the a r e a  gas has  Lowland. the  b e d s show g r e a t  concentrated  the western  the  depres-  the C a s p i a n  i n i t s north-western  little  the  l a y e r s , but both  reserves are  the S t a v r o p o l * P l a t f o r m , occupying Kray.  anticline  V a l l e y w h i c h merges i n t o found  Stavropol*  1  of  in  p a r t , and  in  p o r t i o n of  y e t been d i s c o v e r e d i n  i s thought  t o have g r e a t  po-  8 tentials. Girdling  the  shores  of the Caspian Sea  of recent d e p o s i t i o n extending of the Tienshan.  on t h e  i s a huge  e a s t t o the  foothills  I t i s u n d e r l a i n by M e s o z o i e f o r m a t i o n s  a number o f f o l d s a n d  uplifts  8 Ibid.-, p. 28  -  31.  on whose f l a n k s v e r y  area  with  promising.  A f t e r F.J. F O H S , A M . A S S O C . O F P E T R O L E U M G E O L O G I S T S , B U L L E T I N , V O L . 4 6 . 1962 , p. 1978-9  54. 9 petroliferous potentially Union. shores  richest  Small  of  province  T h i s may p r o v e  t o be t h e  f o r n a t u r a l gas i n the Soviet  amounts o f o i l and g a s h a v e b e e n p r o d u c e d  of the Caspian  especially surge  structures occur.  o f gas —  and i n the F e r g a n a B a s i n were i n s i g n i f i c a n t .  of prospecting  i n the m i d - f i f t i e s ,  on t h e  but reserves  Then, w i t h  —  t h e up-  came t h e d i s c o v e r y  t h e B u k h a r a d e p o s i t s , n e a r t h e p l a c e where t h e Z e r a v s h a n  River  peters  Bukhara area industrial C^.  This  field  o u t i n t h e sand now c o n t a i n s  reserves  of the southern  over h a l f a b i l l i o n  Gazli,  The  cubic meters o f  and a n a d d i t i o n a l 170 b i l l i o n  i s n o t f a r f r o m t h e known r e s e r v e s  alone,  K y z y l Kum.  i n Category  of Alberta.  a c c o u n t s f o r o v e r 450 b i l l i o n  cubic  One meters  in  C a t e g o r i e s A , B and G-,, t h a t i s , h a l f a s much a s t h e g i g a n t i e 10 Hugoton i n the Texas Panhandle. The two l a r g e Mubarek d e p o s i t s x  southeast  of Gazli,  c o n t a i n 30 b i l l i o n 11  cubic meters each i n  t h e A , B and C]_ c a t e g o r i e s . The in The  p r e s e n c e o f g a s i n M i d d l e A s i a h a s now b e e n  numerous p l a c e s  to j u s t i f y hopes o f other  similar  K a r a Kum P l a t f o r m a n d t h e a d j o i n i n g P r e k o p e t D a g  proved  finds. Depression  9 P. J u l i u s P o h s : " P e t r o l i f e r o u s P r o v i n c e s o f t h e USSR A Revision, * B u l l e t i n o f the American A s s o c i a t i o n o f Petroleum G e o l o g i s t s . No. 11, 1962, V o l . 4 6 , p . 1982; Y u . I . B o k s e r m a n , op. c i t . , p . 44-46. 10 Y u . I . B o k s e r m a n ; op. c i t . , p . 44; A.M. L e e s t o n . e t a l ; The D y n a m i c N a t u r a l Gas I n d u s t r y , U n i v . o f Oklahoma P r e s s , 1 9 6 3 , p . 30, 43, 3 3 9 . 11 Kh. T. T u l y a g a n o v ; " S o s t o y a n i y e i p e r s p e k t i v y g e o l o g o r a z v e d o c h n y k h r a b o t n a g a z i n e f t * v U z b e k s k o y SSR," G a z o v o y e D e l o . No. 1, 1963, p . 9. 1  55. to  the south are e s p e c i a l l y a t t r a c t i n g a t t e n t i o n .  1964  a very promising  s t r i k e was  pected  i n the Cretaceous  early  made a t D a r v a z y , i n t h e  o f t h e Turkmen SSR,and t h e f i e l d 50 " b i l l i o n c u b i c m e t e r s .  In  i s now  thought  t o c o n t a i n some  E s p e c i a l l y large deposits are and  center  J u r a s s i c b e d s on t h e  sus-  southern  f l a n k o f t h e P l a t f o r m b u t r e m o t e n e s s and d i f f i c u l t p h y s i c a l c o n 12 ditions hinder exploration. Because of the metamorphism o f t h e P a l e o z o i c b e d s , t e s t s b e l o w 2000 - 4700 m e t e r s a p p e a r 13 warranted  i n Middle A s i a .  may  limit  somewhat t h e p o t e n t i a l i t i e s  for  gas  T h i s h e l p s to reduce c o s t s , but of the r e g i o n .  r e s e r v e s a r e v e r y good a l s o i n the C a s p i a n  Prac-  t h e e n t i r e L o w l a n d i s d o t t e d w i t h u n d e r g r o u n d s a l t domes  analogous i n s t r u c t u r e to those and  Prospects  Lowland,  w h e r e a s y e t o n l y t h e s m a l l Emba r e g i o n i s e x p l o r e d . tically  un-  Texas.  of the G u l f C o a s t i n L o u i s i a n a  T h e s e , however, o f t e n l i e a t g r e a t d e p t h s and 14  have  h a r d l y been s t u d i e d . The  U k r a i n i a n d e p o s i t s a r e l o c a t e d i n two  p e t r o l i f e r o u s a r e a s , s e p a r a t e d by  distinct  the c r y s t a l l i n e r o c k s of  the  Podolian Massif. The W e s t U k r a i n i a n f i e l d s a r e much o l d e r . 12 I z v e s t i y a , M a r c h 2 9 , 1 9 6 4 , p. 5; P r a v d a , May 3, 1 9 6 4 , p . 4.; Y u . I . B o k s e r m a n i op. c i t . , p. 4 5 . 13 E. J u l i u s E o h s ; op. c i t . , p. 1 9 8 2 ; A t l a s SSSR, M o s k v a , 1 9 6 2 , p. 7 2 . 14 K.V. D o l g o p o l o v e t a l g H e f t i G a z y SSSR, M o s k v a , 1 9 6 0 , p. 1 5 4 ; Y u . I . B o k s e r m a n : op. c i t . , p. 3 5 ; F. Julius P o h s : o p . c i t . , p. 977. 1  56. Together w i t h minor o i l d e p o s i t s , they a r e found i n the former Habsburg p r o v i n c e of G a l i c i a .  Many of them were known even  b e f o r e World War I , although only some o f the o i l f i e l d s were producing.  Reserves  of gas a r e not very l a r g e and they have  been e x p l o i t e d l o n g e r than most S o v i e t d e p o s i t s .  The combined  balance r e s e r v e s (A, B and C^} o f some dozen f i e l d s , found i n J u r a s s i c and Upper T e r t i a r y beds, a r e a p p r a i s e d as 180 b i l l i o n 15 c u b i c meters. Hemmed i n between the Carpathians and the P o d o l i a n B l o c k , t h i s p e t r o l i f e r o u s p r o v i n c e extends, however, all  the way to the B l a c k Sea and the Balkan Mountains,  a l s o h a l f of Rumania.  covering  The presence of gas has a l r e a d y been  proved i n the Crimea, n o r t h of the Y a i l a Range, and g e o l o g i s t s c o n s i d e r the whole o f M o l d a v i a a promising a r e a .  In a d d i t i o n ,  the shallow sea of Azov and the Bay of Odessa may become scenes 16 of p r o s p e c t i n g i n the f u t u r e . The E a s t - U k r a i n i a n gas p r o v i n c e i s a l o n g , f a i r l y narrow s y n c l i n e , wedged between the P o d o l i a n and Voronezh M a s s i f s . D e s p i t e i t s e x c e l l e n t l o c a t i o n , i t was not c a r e f u l l y prospected u n t i l the m i d - f i f t i e s .  S m a l l amounts of gas have been found  i n ffiesozoie and Late P a l e o z o i c formations a t over a dozen p l a c e s 15  V. Y a . Klimenko: N a f t a Ta P r i r o d n i y Goryuchniy Gaz Ukrainskoy RSR. Akademiya Nauk URSR, K i e v , 1957, p. 13-17 and 30-37; Robert E . K i n g : " E x p l o r a t i o n and p r o d u c t i o n i n Europe i n 1963," American A s s o c i a t i o n of Petroleum G e o l o g i s t s , B u l l e t i n , p. 1342,. 16 V. Y a . Klimenko; op. c i t . , p . 49-50; Robert E . K i n g : op. c i t . . American A s s o c i a t i o n of Petroleum G e o l o g i s t s B u l l e t i n , August 1964, p . 1342; A t l a s SSSR. p . 72.  57. and It  one g i a n t f i e l d  at Shebelinka,  i s the second l a r g e s t  balance  reserves  most p r o d u c t i v e  pressure  field  the c i t y  o f Kharkov.  d e p o s i t i n the S o v i e t Union  o f 350 b i l l i o n  location, high f i e l d  near  with  cubic meters; i t s p r o p i t i o u s  a n d r i c h n e s s h a v e made i t t h e  i n the country.  The p o s s i b i l i t i e s o f  t h i s E a s t - U k r a i n i a n downwarp a r e b y no means e x h a u s t e d . cently  a high-pressure  w e l l was b l o w n i n D o n e t s O b l a s t a n d  g e o l o g i c a l e x p l o r a t i o n i n d i c a t e s t h a t the gas-bearing may e x t e n d the V o l g a  a s f a r e a s t as t h e Don Bend, j o i n i n g 17  strata  the r e g i o n to  Basin.  The  Volga  and P e c h o r a p r o v i n c e s a r e now c o n s i d e r e d t o  be  one enormous p e t r o l i f e r o u s a r e a ,  to  the Kara  Its  Re-  stretching  from the Caspian  S e a between t h e U r a l s and t h e R u s s i a n  northern part i s l i t t l e  now w e l l e x p l o r e d .  Platform.  known y e t , b u t t h e V o l g a B a s i n i s  The r e g i o n i s famous m a i n l y  foritso i l  d e p o s i t s , y e t i t s gas reserves a r e a l s o quite c o n s i d e r a b l e . D i s t i n c t i o n must be made b e t w e e n t h e n o r t h e r n region,  comprised  part of the  o f Kuybyshev and Orenburg O b l a s t s and t h e  T a t a r a n d B a s h k i r Autonomous R e p u b l i c s , a n d i t s s o u t h e r n t i o n , made up o f S a r a t o v  and Volgograd  a r e a most o f t h e g a s e s a r e a u x i l i a r y wells, while gas-oil  ratio  i n the l a t t e r i n the Middle  they  Oblasts.  I n the former  gases a s s o c i a t e d w i t h o i l  are mainly  Volga  por-  i sfairly  free gases. low—  The  o n l y 40-50  c u b i c m e t e r s p e r t o n o f o i l compared t o 100 c u b i c m e t e r s f o r 17 op.  V. Y a . K l i m e n k o : op. c i t . , c i t . . p . 42-43.  p . 37-48; Y u . I . B o k s e r m a n ,  58, 18 t h e USSR a v e r a g e o r 340 c u b i c m e t e r s f o r t h e U n i t e d  States,  —  n e v e r t h e l e s s , t h e t o t a l amount o f o i l - w e l l g a s e s r e p r e s e n t s very  large resource.  Volga  a r e a w e r e known e v e n b e f o r e  deposits USSR. the  of Saratov  Y e t , here  1950*s.  three  the Revolution,  most  of the f i e l d s  a r e o f modest  each.  located i n Cretateous  of S o v i e t gas d e p o s i t s which  and J u r a s s i c beds, those  i n Paleozoic formations,  of the Volga  o f t e n i n the deep-  l y i n g D e v o n i a n , w h i c h a l s o p r o d u c e s most o f R u s s i a ' s a r e a s s o c i a t e d w i t h numerous u p l i f t s 20 the Caspian but  a northward  vince, of  —  is still  Emba D e p r e s s i o n . extension very  paralleling  oil.  The P e c h o r a a r e a , w h i c h i s  o f the V o l g a - U r a l  inadequately  the Revolution.  Proved  They  the U r a l s and  p e t r o l i f e r o u s pro-  prospected,  t h o u g h i t i s one  t h e few a r e a s w h e r e g a s d e p o s i t s were known to e x i s t  before  size,  c o n s i d e r a b l e r e s e r v e s , between 20 a n d 30 19  contrast to the majority  B a s i n a r e found  and t h e  a r e some o f t h e o l d e s t e x p l o i t e d i n t h e  Although  cubic meters In  o f f r e e g a s e s i n t h e Lower  t o o , l a r g e - s c a l e p r o s p e c t i n g began o n l y i n  o f them b o a s t  billion  are  The p r e s e n c e  a  even  r e s e r v e s d o n o t e x c e e d 20 b i l l i o n  18 I b i d ( B o k s e r m a n ) : p . 65; D. M. S h i m k i n : o p . c i t . , 1 3 1 ; I r a H. C r a i n : "Impact o f S o v i e t O i l , " A m e r i c a n A s s o c . P e t r o l e u m G e o l o g i s t s . B u l l e t i n . J u l y 1961, p . 1 0 2 3 . 19 I b i d . ( B o k s e r m a n ) : p . 31-39, e s p . p . 34; G.S. U r i n s o n et a l : " R a z v i t i y e gazovoy p r o m y s h l e n n o s t i S a r a t o v i k o y O b l a s t i , " G a z o v o y e D e l o , No. 4, 1963, p . 3. p. of  20  I b i d . ( B o k s e r m a n ) : p . 31-39.  !  59. c u b i c meters  and  more c o m p l e t e  there i s l i t t l e  geological  and  hope o f a u g m e n t i n g them  gravimetric  until  s t u d i e s h a v e "been c a r -  21 ried  out. Like  t h e M i d d l e V o l g a , t h e T r a i n s C a u c a s u s , t o o , i s famous  more f o r i t s p e t r o l e u m t h a n n a t u r a l g a s . is  found  that and  i n o i l w e l l s and  region.  a r e two  Z y r y a , w i t h combined  meters. the  There  their  Here,  i n d u s t r i a l use  condensate  industrial  gas  t o o , much gas first  fields  began i n  —  Karadag  r e s e r v e s o f 20 b i l l i o n  They b o t h l i e i n U p p e r T e r t i a r y b e d s a t t h e b a s e  Apsheron  untouched  Peninsula.  Mesozoic  n a t u r a l gas, but  The Lower T e r t i a r y  and  l a y e r s h o l d g r e a t promise  t h e i r great depth  the  cubic of  still  b o t h f o r o i l and  (3-5000 m e t e r s )  makes  22 special  drilling  Transcaucasus b a s i n s and As  techniques necessary.  i s petroliferous.  their c a n be  Armenia  A l l but  the e a s t e r n  c o n t a i n s no  s e e n f r o m Map  3,  s u b s t a n t i a l r e s e r v e s of  two  i n S i b e r i a and  of these d e p o s i t s are l o c a t e d  t a c i o u s b e d s o f t h e West S i b e r i a n L o w l a n d , a huge province which along  rivals  the A r c t i c  sedimentary  e x t e n t i n the G e o r g i a n R e p u b l i c i s m i n u s c u l e .  n a t u r a l gas have a l r e a d y been p r o v e d East.  Only  the Volga-Pechora  to include  in size,  the  i n the  Par Cre-  petroliferous extending  the Khatanga B a s i n i n the  Taymyr  23 P e n i n s u l a and  into Kazakhstan  t o embrace t h e T u r g a y  Lowland.  21 I b i d . , p . 28; A . P. A n u f r i y e v : E n e r g e t i c h e s k i y e R e s u r s y Komi ASSR; A k a d e m i y a Mauk SSSR, M o s k v a , 1963, p . 1 5 .  22  Yu.  I . B o k s e r m a n : op. c i t . , p .  46.  23 P.  J . P o h s : op.  c i t . , p.  1978-79.  60. To few  date,  o v e r 20  o f them a r e  category  to  reserves.  fields,  reserves  o f 100  p r o p i t i o u s l o c a t i o n s --  to  the  Most  one  included  of these d e p o s i t s  exceptions,  complicated Punga and  billion  i n this area  enough t o be  W i t h few  e x p l o i t due  a l t h o u g h two  estimated  carefully  t h e Lower Ob.  expensive  tures  explored  of i n d u s t r i a l  found along and  f i e l d s h a v e "been d i s c o v e r e d  they are  but in  the  are small  geological struc-  the  Taz,  boast  cubic meters each.  near the U r a l s , the  with  Their  other  near  24 N o r i l s k -- w i l l By  reckoning  U r a l area ultimate  assure  them a n  o f many S o v i e t  i s fabulously gas  and  important r o l e  endowed and  o i l reserves.  In  i n the  future.  g e o l o g i s t s , t h i s huge may the  contain opinion  a third  Transof a l l  o f some w e s t e r n  g e o l o g i s t s , however, the r e l a t i v e s h a l l o w n e s s of the b a s i n t h e m e t a m o r p h o s i s o f P a l e o z o i c basement r o c k s may r e s t r i c t 25 its  yield.  The  severe climate,  facilities  Prospecting  i n this area  impassable  swamps, and  c r e a t e major problems.  and  p r o v i s i o n h a v e t o he  ing  r i g s weighing  and  and  slow.  transport  a l l equipment  flown i n , i n c l u d i n g the  h e l i c o p t e r s are  over hundreds of m i l e s ,  l a c k of  Practically  o f t e n more t h a n f o u r  types of twin-turbine  is difficult  and  clumsy  thousand pounds.  drillSpecial  employed t o move t h e  wherever p o s s i b l e extensive  use  rigs is  24 I . I. N e s t e r o v e t a l t N e f t ' S i b i r i , p . 26, 27; P r a v d a , J a n . 26, 1964, p . 2; Y u . I . B o k s e r m a n : op. c i t . , p . 39; R o b e r t E . K i n g : op. c i t . , A m e r i c a n A s s o c i a t i o n o f P e t r o l e u m G e o l o g i s t s , B u l l e t i n . A u g . 1964, p . 1342. 25 O i l and Gas J o u r n a l " , June 8, 1964, p . 113; P . J . P o h s , op. c i t . , p . 1974; A t l a s SSSR,- p . 72.  61. made o f t h e The little  rivers. great  prospect  sedimentary the  26  shield area  f o r n a t u r a l gas.  b a s i n s w h i c h must be  T u n g u s k a , L e n a and  o t h e r s , however, are  Vilyuy was  considered. are  areal  Three of too  extent  of g r e a t e r v a l u e .  materially  affect  centers  ago  the  a t Tas-Tumus.  national picture.  to  i s quite large.  In the  small deposit  Though t h i s g a s  will  i t s remoteness  from  economy o f Y a k u t i a ,  of production renders  few  them,  shallow  s y n c l i n e b a s i n , which a d j o i n s the Lena, a r i c h  opened some y e a r s  all  their  holds  However, i t c o n t a i n s a  Kolyma-Indigirka  show much p r o m i s e , a l t h o u g h Two  of n o r t h - c e n t r a l S i b e r i a  i t insignificant  Much b e t t e r l o c a t e d i s t h e  i n the  long Angara-Lena  downwarp, s q u e e z e d b e t w e e n the C e n t r a l S i b e r i a n M a s s i f and Baykal Mountains. good  The  o i l w e l l was  proves  b a s i n i s somewhat s h a l l o w ,  blown h e r e  that t h i s formation  P a l e o z o i c beds —  a  very  r e c e n t l y from the Cambrian.  --  c a n n o t be  but  together with  ruled  out as  the  It  o t h e r Lower  petroleum  possibil-  27 ities, gas  has  although  been d i s c o v e r e d y e t , but  significant Kuzbass and of  i t produces very  to  little such  Lake B a y k a l .  estimated  cubic meters.  finds  Very  little  c o u l d be h i g h l y  the r a p i d l y g r o w i n g i n d u s t r i a l b e l t between Very  recently, appreciable  n a t u r a l g a s h a v e b e e n d i s c o v e r e d on  Sakhalin,  elsewhere.  The  t o be  reserves  the n o r t h e r n p a r t  i n the neighbourhood  g e o l o g i c a l formations  the  o f 50  of  billion  h o l d promise f o r  an  26 Oil  and  Gas  Journals  J u n e 8,  1964,  p.  112.  27 ]?. A t l a s SSSRi  J . P o h s : op. p . 73.  cit.,  p . 1975  and  Map  on pp.  1978-79;  62. a d d i t i o n a l 50 b i l l i o n .  T h e i r r e l a t i v e p r o x i m i t y t o Komsomol'sk  a n d K h a b a r o v s k , "which l a c k c h e a p s o u r c e s  of energy, w i l l 27a  render  them h i g h l y i m p o r t a n t a l r e a d y i n t h e c u r r e n t d e c a d e . At present rate of production, t o t a l i n d u s t r i a l  reserves  (A + B ) a r e s u f f i c i e n t t o l a s t f o r n e a r l y a q u a r t e r o f a c e n tury.  A twenty-year  supply i s considered  the usual safety  l i m i t , b o t h i n t h e S o v i e t U n i o n and t h e U n i t e d S t a t e s .  One  f i n d s , h o w e v e r , g r e a t d i f f e r e n c e s among t h e i n d i v i d u a l r e g i o n s . While  t h e enormous U z b e k d e p o s i t s c a n l a s t  over a century a t  t h e p r e s e n t r a t e o f p r o d u c t i o n a n d o v e r 80 y e a r s e v e n a t t h e planned  1965 l e v e l ,  t h e r e s e r v e s o f t h e N o r t h Caucasus a r e  s u f f i c i e n t f o r l e s s t h a n two d e c a d e s a n d t h o s e for  l e s s than a dozen y e a r s .  of Azerbaidzhan  The  The d e p o s i t s o f t h e V o l g a a n d  a r e taxed t h e most:  o n l y 10 y e a r s a n d 8 y e a r s  of the Ukraine  their l i f e 28  expectancy  i3  respectively.  large extent of promising p e t r o l i f e r o u s  therefore, gains great importance,  and t h e p r e s e n t  b u t i o n o f r e s e r v e s may c h a n g e s i g n i f i c a n t l y  areas, distri-  i n the near f u t u r e .  S o v i e t g e o l o g i s t s p u t t h e maximum e x t e n t o f h o p e f u l  sedimen-  t a r y b a s i n s , i n c l u d i n g o f f s h o r e a r e a s , a s n e a r 12 m i l l i o n square k i l o m e t e r s ( f o u r and a h a l f m i l l i o n square m i l e s ) - a territory  twice the size of s i m i l a r areas  i n the United States,  A l a s k a i n c l u d e d . The more p r o m i s i n g a r e a , h o w e v e r , i s p e r h a p s 27a Yu. I . Bokserman: op. c i t . , p. 39; R o b e r t E. K i n g : op. c i t . , p. 1 3 4 2 . 28 Y u . I . B o k s e r m a n : o p . c i t . , p . 2 8 , 29 ( T a b l e s 18 a n d 1 9 ) ; T h e o d o r e S h a b a d : News N o t e s , S o v i e t G e o g r a p h y , R e v i e w and T r a n s l a t i o n s , Eeb. 1964, p. 59.  63. closer  to three  million  square m i l e s .  The g r e a t  v a r i e t y and  number o f s t r a t i g r a p h i c and s t r u c t u r a l a n o m a l i e s bode f o r f u t u r e d i s c o v e r i e s and t h e r e  well  i s e v e r y r e a s o n f o r t h e op-  29 timism of Soviet The  geologists.  present  shown e a r l i e r ,  p a t t e r n , however, i s l i k e l y  over h a l f o f a l l r e s e r v e s  t o change.  As  today a r e l o c a t e d i n  t h e N o r t h C a u c a s u s and t h e U k r a i n e , a l t h o u g h t h e combined e x tent  of p e t r o l i f e r o u s t e r r i t o r y  4 p e r cent ered  i n these  o f t h e enormous t r a c t  promising  f o r gas f i n d s .  p r o d u c e some t h r e e - q u a r t e r s  two r e g i o n s  form but  of sedimentary areas  In a d d i t i o n , these  consid-  regions  of a l l f r e e gases extracted  i n the  30 USSR, w h i c h p l a c e s a g r e a t s t r a i n on t h e i r d e p o s i t s . It i s o b v i o u s t h a t i f o u t p u t i s t o i n c r e a s e a s p l a n n e d -- t o o v e r 300 1980  billion  it  c u b i c m e t e r s by 1970 a n d c i r c a  700 b i l l i o n by  — many new f i e l d s w i l l h a v e t o be opened i n h i t h e r t o  prospected  areas.  Lately authoritative articles  little  i n the S o v i e t  & These f i g u r e s i n c l u d e o i l - w e l l gases u t i l i z e d i n the c o u r s e o f p e t r o l e u m e x t r a c t i o n . However, a s s o c i a t e d g a s e s t o d a y compose b u t 1 5 p e r c e n t o f S o v i e t n a t u r a l g a s p r o d u c t i o n and 2 5 p e r c e n t o f t h e t o t a l g a s w i t h d r a w a l ( t o t a l w i t h d r a w a l f i g u r e s i n c l u d e gas f l a r e d , vented or r e c y c l e d ) . I n t h e more m a t u r e g a s i n d u s t r y o f t h e U n i t e d S t a t e s , o i l - w e l l g a s e s make up 30 p e r c e n t o f t h e t o t a l w i t h d r a w a l and much o f i t i s r e cycled. I t seems r e a s o n a b l e t o assume, t h e r e f o r e , t h a t t h e p r o p o r t i o n o f a s s o c i a t e d gases i n the t o t a l u t i l i z e d output n a t u r a l g a s i n t h e S o v i e t U n i o n w i l l n o t be a b o v e t h i s f i g u r e . See: Y u . I . B o k s e r m a n : o p . c i t . , p . 5, T a b l e 1 ; I.M. Z l o t n i k o v : K v o p r o s u ob i s p o l * z o v a n i i n e f t y a n o g o g a z a , " G-azovoye D e l o , N o . 1 2 , 1 9 6 3 , p . 3; S.H. S c h u r r e t a l : op. c i t . , p . 4 1 4 , T a b l e 1 1 3 . n  .  29 Yu. I . Bokserman: op. c i t . , p . 22 ( T a b l e Cram: o p . c i t . , p . 1 0 2 0 - 2 1 .  15);  I r a H.  30  (Table  Y u . I . B o k s e r m a n : o p . c i t . , p . 22-24 ( T a b l e 1 5 ) , p.29 1 9 ) and p . 5 ( T a b l e 2 ) ; Theodore Shabad, op. c i t . , p . 5 9 .  64. press  have b e e n c r i t i c i s i n g  promising sive  regions  prospecting  expected called other  i n the  upon t o parts  ten years  later  reserves.  The  Depression as  and  powerful  low  work i n t h e s e future.  supply  —  The  country  the  provinces  by  1970  the  tioned before,  regions  geographic pattern some f i n d s a r e  on  n a t u r a l gas are  too  i s not  an  important  in  the  a t i o n s here  Lowland w i l l  cost  play a  in drilling  technology  depth.  The  reach  the  the  role and  only a  op.  after  reduction  p e t r o l i f e r o u s form-  begun i n 1961,  in this  c i t , , p.  307.  32 King:  too  However, t h e much p u b l i c i z e d  bodes i l l f o r s u c c e s s f u l p r o s p e c t i n g  R o b e r t B.  in  and  d e s i r e d d e p t h o f 7000 m e t e r s ,  I . B o k s e r m a n : op.  urgency  much b e t t e r  32  Yu.  of  search  areas  The  men-  part  concentration  e x p l o r a t o r y w e l l near A r a s o r ,  could not  other  significant  o f deep d r i l l i n g .  l i e at great  As  a r e s u l t , of a  The  also.  affect  southern  for intensive prospecting.  improvement  present  present.  of  act  i n t h i s area  Central Siberia,  remote f r o m p o p u l a t i o n  climatically Caspian  really  should  u n l i k e l y to  as  billion,  the West S i b e r i a n  the U r a l s  i n the  to  increase  of g a s - r e s e r v e s .  chiefly  for  ently  to  are  likely  o i l , since i n energy-saturated  ultra-deep  over a hundred  achieved  for  located  and  be  is  c u b i c m e t e r s o f gas  proximity  t h e A n g a r a - L e n a Downwarp, b u t  harsh  in particular  incentives for future prospecting  appreciably  therefore,  requires a drastic  already  region's  exploration i n  could,  former r e g i o n  a plan that  successes  of  West S i b e r i a ; more i n t e n -  o v e r 40 b i l l i o n  D i s c o v e r i e s i n other  Siberia  level  o f M i d d l e A s i a and  of the  31  the  c i t . , p.  1341.  area.  apparwhich  65. A l t h o u g h , t h e marked c o n c e n t r a t i o n likely  t o change a s e x p l o r a t i o n  general  westerly  assume t h a t  area  s p r e a d s i n t o new a r e a s , t h e  orientation w i l l  remain.  f o r t h e n e x t 20 y e a r s ,  l e a s t nine-tenths covering  of a giant  of a l l Soviet  a third  circle,  One may  gas w i l l  be o b t a i n e d  Very n e a r l y  While the older basins  southwestern s e c t i o n w i l l share of the t o t a l , Asia will This  probably  border  populated  an important  t h e West S i b e r i a n D e p r e s s i o n and C e n t r a l succeed t o t h e dominant p o s i t i o n by 1975.  i n the 1950's.  which g r e a t l y  improved  to that which overtook the o i l  In contrast  t o p e t r o l e u m , however,  i t s p o s i t i o n by t h e m a s s i v e  shift  from  C a u c a s u s t o t h e M i d d l e V o l g a , a s i m i l a r move t o C e n t r a l  A s i a and north-west S i b e r i a w i l l industry.  port  sector  e x p e c t e d change i n t h e g e o g r a p h i c d i s t r i b u t i o n o f  industry  the  a  converging  i n the densely  continue to represent  n a t u r a l g a s may be compared  the  i n an  i s bounded by t h e S o v i e t  f r o m L ' v o v t o t h e P a m i r a n d b y two s t r a i g h t l i n e s on N o r i l ' s k .  confidently  perhaps even l o n g e r , a t  o f t h e U.S.S.R.  t h i s area  o f gas reserves i s  As European Russia  create  problems f o r the gas  and the U r a l s w i l l  surely  c h i e f consumers o f n a t u r a l g a s , t h e l o n g - d i s t a n c e of this  fuel  on a n e v e r l a r g e r s c a l e w i l l  remain  trans-  be n e c e s s a r y .  66  Chapter IV*  TRANSPORT  67. In  t h e modern i n d u s t r i a l  e n e r g y h a v e t o move o v e r l o n g and  set f o r a while the  even whole c o u n t r i e s . monument t o t h e reliable  and  sovereign  great  on  one  f u e l s are  that  transport  to  take advantage  h a n d i c a p p e d by  i n i t s mode o f  rigidity  Shipment  technically quantities  may  i s at  example o f  upon a f u e l While  - i s to  solved can  must be  ruled  embark on  cabotage—  be  - seems t o be d e l i v e r e d , but out.  by  large-scale  conveyance.  solid  As  energy-hungry  of  the  transextent  is  by  while  large  o n l y where t r a n s p o r t  ocean shipment of f r o z e n  and  yet  methane t a n k e r s -  marine shipment between p o r t s  that which  some  p r o f i t a b l e i f very  Thus, w h i l e  a  efficient,  of a v a r i e t y of  electricity  o f f r o z e n gas  or  once  c o m m e r c i a l l y p r a c t i c e d mode o f t r a n s p o r t a t i o n  pipeline.  line  an  can h o l d  - like  only  and  of  can  of r e g i o n s  o f modern t e c h n o l o g y —  p o r t m e d i a , n a t u r a l gas  its  i m p o r t a n c e and  u n i q u e mode o f c o n v e y a n c e .  able  quantities  cost, f l e x i b i l i t y  Long distance/y t r a n s p o r t  achievement  influence  low  energy p a t t e r n gas  increasingly economical—  dependent  liquid  when l a r g e  distances,  ease of t r a n s p o r t a t i o n a c q u i r e  decisively  is  age,  by  pipe-  continents gas,  same  country—  1 will  not  Soviet  be  practiced  i n the  near f u t u r e .  U n i o n s u c h p r a c t i c e w o u l d be Large-scale  thinkable  -  transport A.  n a t u r a l gas  In  the  land-locked  especially d i f f i c u l t .  production  therefore,  w i t h o u t a d e v e l o p e d p i p e l i n e s y s t e m , and  is  un-  pipeline  p o s s e s s e s a number o f u n i q u e c h a r a c t e r i s t i c s n o t M.  Leeston,  op.  c i t . , p.  256.  68. shared  by  freight  and  tinuous, great  any  other  t r a n s p o r t media.  t h e r e a r e no  one  way  movement f a c i l i t a t e s  t h e end  t r u s t s must r e s o r t s e a s o n a l and  of the  This  a u t o m a t i o n and  con-  leads  to  i t a l s o demands u n i n t e r r u p t e d  line.  Pipeline  t o a number o f t e c h n i q u e s  diurnal  involve return  intermissions in delivery.  economies of l a b o u r , but  absorption at  I t does not  fluctuations  companies  or  to counteract  i n consumption.  the  Interruptible  s a l e s a r e made d u r i n g p e r i o d s  o f weak demand t o power s t a t i o n s  and,  o c c a s i o n a l l y , to c e r t a i n  i n d u s t r i e s , which replace  with  other  lucrative  f u e l s d u r i n g peak seasons, uses.  methane may  f r e e i n g gas  M a n u f a c t u r e d g a s e s and--  be u t i l i z e d  f o r short-time  peaking,  increasing  extent underground  the  d i s c r e p a n c y between h i g h w i n t e r  severe  storage  i n the  f o r more f u t u r e — frozen  and  i s employed and  gas  low  t o an  to  ever  rectify  summer  con-  sumption. The outlay.  t r a n s p o r t of n a t u r a l gas  capital  S i n c e l a r g e - c a p a c i t y t r u n k l i n e s must have l a r g e  m e t e r s , minimum w a l l t h i c k n e s s and p i p e s must be  produced  loses pressure, pression. on  r e q u i r e s massive  every  stitute  of s p e c i a l  tencil  steel.  As  t h e d r o p must be made good by  Modern, e f f i c i e n t 60  high  t o 100  about h a l f  strength,  the moving periodic  the gas  com-  t r u n k l i n e s have compressor s t a t i o n s  m i l e s and  i n the S o v i e t U n i o n they  the  capital  total  dia-  c o s t s of the  con-  transmission  2 network.  2 M. S i d o r e n k o and K. I . T e n k i n : " E n e r g o p r i v o d k o m p r e s s o r n y k h s t a n t s i i , " G a z o v a y a P r o m y s h l e n n o s t ' , No. 7, 1963, p . 43.  69. Natural parisons  i s expensive  of t r a n s p o r t  however, can that  gas  be  depend on  various  costs  of f i x e d  due  and  in different  Transport  things,  variable costs,  charges, e t c . , a l l of which vary  General  com-  forms,  t o a number o f v a r i a b l e s  circumstances.  f o r m s , among many o t h e r  portions  transport.  f o r energy  quite misleading local  to  of  energy  in  involves different handling  differently  and  pro-  storage  from place  to  place.  and  V.  It  i s not  K.  Savelev  surprising, therefore, i n the  conclusions  about  the  transport.  According  that  U.S.S.R. h a v e a r r i v e d a t  r e l a t i o n s h i p of v a r i o u s to Davis,  e q u i v a l e n t . ) i s about h a l f as  n a t u r a l gas  expensive to  is  that hard  coal—  transported  c h e a p e r , a l t h o u g h brown c o a l and  S a v e l e v s f i g u r e s are 1  Campbell's  corrections  (Since Savelev  does not  extremely  important  Professor  Campbell  trary  given  interest rate  rail.  electrified  lignite  i n c l u d e any case  capital  of t r a n s p o r t operating  to a  coal 34  railway--  a r e more with  energy  Savelev  expensive.  Robert  column) f o r o p e r a t i n g  c o r r e c t s the of  forms of  t r a n s p o r t by 3  below, t o g e t h e r  (third  i n the  by  different  (converted  i n c h d i a m e t e r p i p e l i n e as b i t u m i n o u s c o a l by claims  J . D a v i s i n Canada  costs.  charge, which i s by p i p e l i n e ,  costs with  an  arbi-  10%).  3 J. Davis: C a n a d i a n E n e r g y P r o s p e c t s , 1957, p . 366. Q u o t e d f r o m H. V. W a r r e n : "Some P e r t i n e n t F a c t o r s i n E n e r g y S t u d i e s , " C a n a d i a n G e o g r a p h e r , 1961, p . 17.  70. Table Cost of T r a n s p o r t i n g D i s t a n c e o f 1000 km.  YII Various F u e l s over a (per ton of nominal f u e l )  C a p i t a l Costs (rubles)  Operating Costs without i n t e r est (rubles)  Operating Costs,with interest at 10% (kopeks per ton/km)  35 35 46  4.0 4.0 5.4  C o a l by e l e c t r i f i e d r a i l r o a d s of C l a s s I 7,000 C a l / t o n 5,000 C a l / t o n 3,000 C a l / t o n  81 113 189  13.3 18.6 31.0  2.1 3.0 5.0  Natural 1020  136  16.2  3.0  E l e c t r i c power t r a n s m i s s i o n DC a t 600 KV 200  13.7  C r u d e o i l by p i p e l i n e 720 mm 630 mm  gas p i p e l i n e mm d i a m e t e r  .75 .75 1.0  of  3.4  Sourcesi R o b e r t IT. C a m p b e l l : The E c o n o m i c s o f S o v i e t O i l and Gas, U n p u b l i s h e d p r e l i m i n a r y d r a f t , p . X I - 24. The a u t h o r q u o t e s V. K. S a v e l e v : S r a v n i t e l * n a y a Ekonomicheskaya Effektivnost Transporta Topliva i Peredachi E l e k t r o e n e r g i i , M o s k v a , 1961, p . 221. 1  The as  the  Soviet pipeline  industry  itself.  n e t w o r k f o r n a t u r a l gas  A l t h o u g h t h e r e were s m a l l l o c a l  w o r k s f o r c o a l - d e r i v e d town gas first  two  were b u i l t  even b e f o r e  o f any  importance which c a r r i e d n a t u r a l  only  i n the  1940"s.  a diameter  Saratov o f 300  t o Moscow. mm  (12  They r a n f r o m B u g u r u s l a n Completed  inches).  new net-  the R e v o l u t i o n ,  lines  K u y b y s h e v and had  i s as  i n 1946,  Construction  the  the  gas to latter  proceeded  71. very for  slowly at f i r s t . n a t u r a l gas s t i l l  Ten y e a r s  later  the l e n g t h 4 t o t a l e d h u t 5000 km. Since  h o w e v e r , g r o w t h h a s "been more r a p i d . l i n e s h a s r e a c h e d 28.5 them c a r r i e d uled  t h o u s a n d km  The l e n g t h  i n 1963  of p i p e l i n e s that of  time,  transmission  ( o v e r 26000 km o f  n a t u r a l g a s ) , and f u r t h e r 8 t o 9 t h o u s a n d 5  f o r completion  i s sched-  by t h e end o f 1965.  The g r e a t e s t d i f f e r e n c e b e t w e e n t h e S o v i e t a n d U.S. work i s t h e r a d i c a l l y of transmission  r e l a t i o n s h i p between t h e l e n g t h  and d i s t r i b u t i n g  n e t w o r k h a d 25,300 km of d i s t r i b u t i o n  different  lines.  of transmission  lines*  a ratio  net-  I n 1962,  the S o v i e t  l i n e s against  17,600  o f n e a r l y 3 t o 2, w h i l e  km  i n the  U.S. t h e l e n g t h o f t r a n s m i s s i o n l i n e s r e a c h e d 200,200 m i l e s , b u t t h a t o f d i s t r i b u t i n g l i n e s 427,600 m i l e s , a r a t i o o f l e s s 6 t h a n one t o two. C o m p a r i n g t h e t r a n s m i s s i o n n e t w o r k o f t h e two one f i n d s a s i g n i f i c a n t meter p i p e l i n e s . of a l l S o v i e t while  d i f f e r e n c e i n the share  A t the b e g i n n i n g  of l a r g e  o f 1963, n e a r l y h a l f  t r u n k l i n e s h a d d i a m e t e r s o f 28 t o 42  i n the U n i t e d  States  m e t e r s o f 25 t o 30 i n c h e s .  only  countries,  a fifth  The l e n g t h  dia(48^)  inches,  (27^) o f them h a d  dia-  o f S o v i e t network i n the  4 Y u . I . Boksejeman: op. c i t . , p . 68 and 92-97; K. D o l g o p o l o v e t a l : op. c i t . . p . 110  V.  5  Yu. I . Bokserman: S e r v i c e , F e b . 1962, p . 59  6  p.  op. c i t . , p . 68; P e t r o l e u m (1965 p l a n c a l c u l a t e d ) .  ET. I . H o v i k o v : op. c i t . , G a z o v o y e D e l o , F o . 5, 5; U.S. M i n e r a l Y e a r b o o k , 1962, p . 332.  Press 1963,  72. 28  t o 42  i n c h category  work i n t h e ever,  that  30  i n c h and  S t a t e s had  as  the  l o n g as The  on  west and  o v e r 82  entire Soviet  long distance  and  and  30  o f U.S.  i n d u s t r y i s p e r h a p s e v e n more  i s destined  reach  (and  successfully attracted industry.  o f the  to i n c r e a s e their  I t i s worth n o t i c i n g that  consumption of n a t u r a l gas.  Probably  less  areas  than a f i f t h  once full  i n the  consumed i n t h e r e g i o n and  is  negligible.  production  i s destined  very  use  slowly  to  the  South-  industrial gas  Caucasus  i n the Western U k r a i n e  t h e U r a l s , and  o f the  Uzbek  Central Asia 9  c a n n o t hope t o r e c e i v e much more t h a n a q u a r t e r . c i r c u m s t7a n c e s ,  United  i n t h e USSR.  of the N o r t h  some t h r e e - q u a r t e r s  t o go  pro-  o f i n d u s t r y to the  output  local  the  T e x a s , Oklahoma, A r k a n s a s  i s proceeding of the  United  of o i l ) i n the  Such s h i f t  is  Similarly,  times  netv^ork.  the abundance of n a t u r a l gas  o i l ) producing  alone,  more t h a n t h r e e  L o u i s i a n a account f o r almost h a l f of the n a t i o n ' s 8  (and  net-  must remember, howinch diameters  t h o u s a n d km, 7  West S i b e r i a n f i e l d s  capacities.  We  length  t r a n s p o r t than that  t h i s dependency  Central Asian  States  than the  over category.  S o v i e t n a t u r a l gas  S t a t e s , and  duction  greater  o f p i p e l i n e s b e t w e e n 25  the U n i t e d  dependent  was  proximate l o c a t i o n of the N o r t h  Under  such  Caucasian  Y u . I . B o k s e r m a n : op. c i t . , p . 70 and U.S. Federal Power C o m m i s s i o n , S t a t i s t i c s o f N a t u r a l Gas C o m p a n i e s , 1962, p. x i x . 8  A.  M.  Leeston:  op.  c i t . . p.  105.  9 A . K. K o r t u n o v : " G a z o v a y a P r o m y s h l e n n o s t * n a r u b e z h e 1963," G a z o v a y a P r o m y s h l e n n o s t * . No. 1, 1963, p . 2; N. P. Mun'ko: G a z o v a y a P r o m y s h l e n n o s t U z b e k i s t a n a , G o s i z d a t USSR. T a s h k e n t , 1963, p . 33. 1  73. and  Shebelinka d e p o s i t s to the h i g h l y  populated Donets-Dnieper ization  of gases  slowly.  industrialized  area i s very p r o p i t i o u s  i n the Volga r e g i o n i s also  The w a s t e f u l f l a r i n g  c a n he e x p l a i n e d b y t h e f a c t  indeed.  proceeding  of o i l - w e l l gases that  and d e n s e l y  i n that  Utilvery area  these wet-gases, c o n t a i n i n g  a h i g h p r o p o r t i o n of heavier hydrocarbons,  cannot  without  i s p r o o f o f the l a c k  previous treatment.  of s u f f i c i e n t  industrial  This situation near  c a p a c i t y on t h e V o l g a .  i s unlikely  f u t u r e except, perhaps,  distance  Their flaring  t o improve g r e a t l y  i n the Volga area.  e v e n more t h a n  Map 5 shows t h e p r i n c i p a l  trunklines,  u n d e r c o n s t r u c t i o n , and i n d i c a t e s vergence  existing,  their  diameters.  l i n e s b e t w e e n Moscow and t h e N o r t h supplier  A 3 2 - i n c h p i p e l i n e n e c k l a c e now  capital.  the converging  supply l i n e s . two f r o m  to the B a l t i c ;  branch  to Leningrad not y e t completed),  Caucasus which branches o f Moscow.  pipeline,  the B a l t i c  vaulting  highway, l i n k s  the c i t y  tentacles ( i t s eastern  from  the North  Serpukhov,  s u p p l i e s the e a s t e r n and  the S o v i e t c a p i t a l and —  as w e l l .  the Great  and the  of the S o v i e t  a n d one f r o m  o f f t o t h e above c i t y  southern parts of the Ukraine, the f u t u r e —  long  con-  Caucasus  the Western Ukraine  Shebelinka  Their  surrounds  Three  extend  north-west  p r o j e c t e d , and  i s noteworthy,  show w h i c h r e g i o n i s t h e c h i e f  military  The l o n g  i n the United S t a t e s .  on Moscow f r o m a l l d i r e c t i o n s  three p a r a l l e l  joining  i n the  p i p e l i n e s , must, t h e r e f o r e , be c o n s i d e r e d t h e l i f e b l o o d  of t h e i n d u s t r y perhaps  clearly  be t r a n s p o r t e d  in  The O r d z h o n i k i d z e - T b i l i s i  Caucasus a l o n g the o l d Georgian  the T r a n s c a u c a s i a n network t o t h a t o f  MAJOR GAS PIPELINES of the U S S R  I  TALIN_  VvfTU  '  '  RIGA  NORILSK  Diameter  of 40  pipelines: inches  28 Inches 20 inches or less existing under construction proposed major producing  fields  minor  fields  producing  speculative field  75. the r e s t  of the country.  the g i a n t  42-inch Bukhara-Ural  "being d o u b l e d . through  The p r i d e  Along  o f t h e USSR, however, i s  t r u n k l i n e , which i s c u r r e n t l y  i t s nearly  2000 km c o u r s e , i t b o r e s  s a n d y d e s e r t s , b a r r e n l i m e s t o n e p l a t e a u s and t h e maze  of i r r i g a t i o n  ditches  o f t h e Amu D a r y a  delta.  I f the l a r g e -  s c a l e d i s c o v e r i e s hoped f o r i n C e n t r a l A s i a m a t e r i a l i z e , s u p e r g a s - m a i n f r o m t h i s a r e a t o t h e Moscow r e g i o n may  a  also  10 come i n t o b e i n g w i t h i n As  y e t almost  to European  Russia.  decade.  the e n t i r e  p i p e l i n e network i s c o n f i n e d  Middle A s i a has but a s i n g l e  Bukhara t o T a s h k e n t — extend  the next  and a modest b u i l d i n g  i t to t h e n o r t h e r n f o o t h i l l s  Fergana V a l l e y Inside  o f the Tien-Shan,  and t o K a r a g a n d a w i t h i n  from Bukhara, from  another  40-inch p i p e l i n e  the p r e s e n t decade.  another  one f r o m  now a d v a n c i n g  the V o l g a  from  three  trunkline w i l l from  (Orenburg  the Volga. meet  t h e Lower Ob.  much s m a l l e r one a l r e a d y s u p p l i e s M a g n i t o g o r s k and  to the  t h e Lower Ob a n d f r o m  A t S v e r d l o v s k , the g i a n t Bukhara-Ural  from  program p l a n s to  two y e a r s , t h e U r a l s a r e t o be s u p p l i e d  directions:  line—  from  A  Bashkiria,  Oblast) w i l l  j o i n the  twin g i a n t s from U z b e k i s t a n . Apart line,  from  the s l o w l y advancing  Berezovo-Serov-Sverdlovsk  p r o p e r l y b e l o n g i n g t o t h e U r a l network, S i b e r i a  yet boast a s i n g l e  gas p i p e l i n e .  and  p r e l i m i n a r y work h a s a l r e a d y begun.  on two o f . t h e m  A few a r e p l a n n e d ,  cannot however, The  —  "V gazprome SSSR," G a z o v a y a P r o m y s h l e n n o s t " , No. 3, 1964, p . 44; I z v e s t i y a , M a r c h 29, 1964, p . 5, and M a r c h 1 5 , 1965, p. 4 .  76.  first with  of these w i l l the  hardship  capital  the  the  cold  will  Taz  One  estuary  pole  o f the  line,  alleviate  earth.  the Par E a s t e r n  The  other  would d e l i v e r  to N o r i l s k and  lems of t h i s amazing A r c t i c tant  should  run p a r a l l e l  Tartar S t r a i t .  projects.  and  Bestyak  to  two gas  thus  isolated  second w i l l  join  industrial  center  existing  o i l line  the  the  of across  p i p e l i n e s a r e more d i s t a n t f r o m the  put  city.  however, would run  The  deposits  somewhat  i n the backward, h o p e l e s s l y  Sakhalin with  Komsomolsk and  t h e Taas-Tumus and  of Y a k u t i a  of existence  r e g i o n near Northern  connect  an  large f i e l d  end  The  to t h e  fuel  l o n g e s t and  from Okhteure,  at  the  prob-  most  impor-  i n the middle  of  11 t h e West S i b e r i a n w i l d e r n e s s , I t must be the  last  one  noticed that  will  be  would g r e a t l y reduce  sizable  of l o c a l their  of these  four p i p e l i n e s only If built, i t  the  steel  chemical  cost  o f p i g i r o n and  of the  industry.  country The  immediate a r e a s .  The  supplying  from the Y a k u t i a n  d e p o s i t s does not  appear  likely  and  the  of other  and  present  i n spite  to  of p o p u l a t i o n  supply If  c o n c e n t r a t i o n , the  the S i b e r i a n c i t i e s w i l l  be  merely  of  West S i b e r i a n  the  proposals.  southern  c o n s t r u c t i o n of  the hopes i n h i g h l y p r o m i s i n g  creation  outside  cities  of c e r t a i n  be h i g h l y  the  a i d i n the  economy  However, i n e a s e o f s u c c e s s f u l s t r i k e s n e a r e r belt  in  other l i n e s w i l l  significance, hardly affecting  Southern S i b e r i a  Basin.  of n a t i o n a l importance.  t h i r d m e t a l l u r g i c a l center of a  to the Kuznetsk  gas-mains  probable.  C e n t r a l A s i a and  north-  __ page 247.  Eor sources about the S o v i e t p i p e l i n e network, ( S o u r c e s f o r Map 5)  ^Preliminary  c o n s t r u c t i o n work i s r e p o r t e d  see  on t h i s  pipeline.  77 Table  VIII  T r a n s p o r t C o s t s o f N a t u r a l Gas o v e r P u l l L e n g t h o f C e r t a i n M a j o r P i p e l i n e s ( i n r u b l e s p e r 1G00 c u . m.)  Pipeline  Diameter .  Length (km}  1959  i960  720 mm 800 mm  1296.0  3.35  3.01  2.08  S a r a t o v-Mo s c ow  300 mm  840.0  5.22  5.35  5.56  Dashava-Minsk  700 mm  656.0  —  —  2.63  Serpukhov-Leningrad  700 mm  803.0  —  3.63  2.30  Shebelinka-BelgorodBryansk  700 mmft 300 mm  541.0  0.42  0.92  0.99  195.0  0.31  0.42  0.45  900.0  2.66  2.57  2.06 1.92  Stavropol*  - Moscow  S h e b e l i n k a - D n i e p r o p e t r o v s k 700 mm Dashava-Kiev-Bryansk  700 mm  Stavropol* -Gorkiy  800 mm  601.0  —  —  Stavropol' -  700 mm  446.0  —  mm  —  —  0.71  Groznyy  &&  1961  Rostov-Taganrog-Slavyansk  mm  1.47  Karadag-Akstafa-TbilisiYerevan  700 mmfc  611.0  --  3.55  3.06  Dzharkak-Bukhara-Tashkent  720 mm  756.0  —  —  3.76  2.23  2.21  2.07  Average  f o r USSR &  One  branch varying diameter along i t s length  Aafc A p p r o x i m a t e l y S o u r c e : N . I . N o v i k o v : o p . c i t . , G a z o v o y e D e l o , No. 5, 1 9 6 3 , p . 9; N.K. Nam: 0b i s p o l * z o v a n i i p r o p u s k n o y s p o s o b n o s t i m a g i s t r a l * n y k h gazoprovodov, G a z o v o y e D e l o , No. 5, 1 9 6 3 , p . 4 0 - 4 2 ; O.C. K h a n i n o v : " G a z i f i k a t s i y a p r o m y s h l e n n y k h p r e d p r i y a t i y i g o r o d o v U z b e k s k o y SSR," G a z o v o y e D e l o , No. 1, 1 9 6 3 , p. 4 2 . tt  rt  78. w e s t S i b e r i a m a t e r i a l i z e , h o w e v e r , t h e most i m p o r t a n t n a t u r a l gas  i n the f u t u r e w i l l  S o v i e t E u r o p e and  the U r a l s .  and  areally  the  r a p i d l y g r o w i n g demand.  be westward and The  s m a l l E u r o p e a n gas  levels  into  Transport  and  vary g r e a t l y  c o s t s over  of to  prospected  f o r long  c o a l and  to s t e p  northward,  well  cannot  satisfy  electricity,  the  various S o v i e t t r u n k l i n e s operate  of e f f i c i e n c y  lengths.  regions  As w i t h  e a s t e r n t e r r i t o r i e s w i l l have The  relatively  flow  breach.  on v e r y  in their  them f r o m f i e l d  the  different  diameters  and  to market,  t h e r e f o r e , appear h i g h l y d i s s i m i l a r as T a b l e V I I I p l a i n l y  shows.  It  gas  i s more t h a n  twice as  t o Moscow f r o m S a r a t o v  expensive,  f o r instance, to ship  than from S t a v r o p o l , although 1  city  i s twice as  lies  i n the advantage of u s i n g l a r g e - d i a m e t e r p i p e l i n e s  Table of  XV),  and  f a r away.  here  such l i n e s have  the  The  c h i e f reason  the  strenuous  clearly  efforts  f o r such  work h a d  operated.  o n l y 42  (Appendix, length  paid o f f .  The  compressor  anomalies  to i n c r e a s e the  Many o f t h e S o v i e t p i p e l i n e s , however, a r e inefficiently  latter  28.5  thousand  km  still  rather  long Soviet  s t a t i o n s w i t h an a g g r e g a t e  net-  capacity  12 of l e s s tances  t h a n 1.3  m i l l i o n horsepower i n January  between s t a t i o n s ,  the p i p e l i n e s  therefore, are  operate with r e l a t i v e l y  1963.  Dis-  sometimes t o o l a r g e ,  low  p r e s s u r e s and  and  high 13  resistance  c o e f f i c i e n t s which impair t h e i r  carrying  capacities.  12 Yu.  I . B o k s e r m a n : op.  cit.,  p.  144.  13 A . L. K o z l o v e t a l : S e v e r o - S t a v r o p o l * s k i y gazovogo P r o m y s h l e n n o s t ' . Ho. 11, 1963, G a z o v o y e D e l o , Ho. 5, 1963, p j  Ekonomicheskiy analiz razrabotki mestorozhdeniya, Gazovaya p . 8; H.K. Ham: op. c i t . , 40 and 45.  tt  0  79. Due  t o t h e low l e v e l  the Soviet  lines  of automation,  i s extremely  poor.  p r o v e m e n t , t h e number o f p e r s o n s seems t o e x c e e d  labour productivity In spite  e n t i r e T r a n s G a n a d a i s r u n by 102 w o r k e r s , 14 km. T h i s d i f f e r e n c e i s i n f a c t so l a r g e additional  factor  Soviet petroleum staffed  partly  a t i o n may e x i s t The  cost  ities The  is  i s 2.8 p e r 100  that  t h e r e may be a n The  over-  A similar  situ-  here. structure  constitutes  of transportation markedly  expenditure  from  that  of n a t u r a l gas i n i n the United  country, the a m o r t i z a t i o n of f a c i l -  the l a r g e s t  one s i g n i f i c a n t  s h a r e and may r e a c h 70 p e r c e n t . i n the S o v i e t Union,  however,  d i f f e r e n c e : a very h i g h share f o r  (wages and s a l a r i e s ) 16  small i n North America. Since  that  i n order to t r a i n personnel.  incomplete mechanization  labour  By c o m p a r i s o n , t h e  i n d u s t r y , f o r i n s t a n c e , i s v e r y much 15  As i n the l a t t e r  produces  pipelines  p r e s e n t , making the d a t a non-comparable.  t h e USSR d o e s n o t d i f f e r States.  o f g r a d u a l im-  o p e r a t i n g the major  50 p e r 100 km e v e n t o d a y .  over  every p i p e l i n e  —  (See A p p e n d i x ,  a cost  item which  T a b l e V.)  represents a fixed,  invariable  c a r r y i n g c a p a c i t y on w h i c h c a p i t a l c h a r g e s l i e h e a v y , p e r i o d i c 14 M e z h u z h o v s k a y a N a u c h n a y a K o n f e r e n t i y a po V o p r o s a m Gazovoy P r o m y s h l e n n o s t i , R a z v i t i y a Gazovoy P r o m y s h l e n n o s t i SSSR, M o s k v a , 1960, p . 402; V . S . C h e r n o v o l : " P u t i s n i z h e n i y a s e b e s t o i m o s t i t r a n s p o r t a gaza v Kievskom u p r a z h n e n i i magist r a l ' n y k h g a z o p r o v o d o v . " G a z o v a y a P r o m y s h l e n n o s t . No. 1 2 , 1963, p . 4 2 . 15 Robert E . E b e l : The P e t r o l e u m I n d u s t r y o f t h e S o v i e t U n i o n . A m e r i c a n P e t r o l e u m I n s t i t u t e , 1961, p . 28-30, e s p . p . 2 9 . 16 V.S. C h e r n o v o l ; op. c i t . , G a z o v o y a P r o m y s h l e n n o s t ' No. 12, 1963, p . 4 2 . 1  80.  drops i n demand mean underutilization and huge losses.  Seasonal  imbalances over the Soviet network are quite considerable desp i t e the very high share of i n d u s t r i a l consumption of natural gas which always fluctuates less than r e s i d e n t i a l consumption. Table IX shows the variation between the volume of transported gas i n January and June of 1961 and 1962 over eight major pipel i n e s i n the USSR. Between 1959 and 1963,  the major l i n e s delivered, i n  toto, 12 to 16 per cent more gas to consumers during the f i r s t and fourth quarters than during the warmer h a l f of the year. In none of these years was  the actual difference very f a r from  a tenth of the t o t a l output of non-associated gases (e.g. 4 17  b i l l i o n cubic meters i n 1963; 6.2 b i l l i o n i n 1962). The problem of seasonality i s p a r t i c u l a r l y acute i n the big c i t i e s where the large and highly variable domestic market accentuates the f l u c t u a t i o n .  Moscow, f o r instance, consumes  23 per cent and Leningrad 11 per cent more natural gas during the s i x winter months than during the summer h a l f of the year. And much of that summer consumption represents i n t e r r u p t i b l e sales to e l e c t r i c stations i n these c i t i e s , which use gas from  18 March to September i n order to reduce the imbalance  i n demand.  At present, the USSR has very limited underground storage f a c i l i t i e s for natural gas, and construction i s proceeding  _  P. 4.  18  N. I. Novikov: op. c i t . , Gazovoye Delo, No. 5, Yu. I. Boksermans op. c i t . , p. 277-78  1963,  81. Table IX Seasonal F l u c t u a t i o n over Major S o v i e t Gas P i p e l i n e s Transport of gas: m i l l i o n cu. meters  Coefficient of f l u e tuation Jan.consump, June "  Transport of gas: million cu.meters J a n . June 1 9 6 2  Coefficient of f l u c tuation Jan. cons. June  Jan. 1 9  June 6 1  1009  781  1.29  1493  918  1.63  Krasnodar Kr aySerpukhov  446  341  1.31  654  567  1.15  ShebelinkaBelgorodBryansk  526  435  1.21  697  502  1.39  Da s h a v a - K i e v Bryansk  211  182  1.16  272  181  1.50  Stavropol' Groznyy  134  62  2.16  177  177  1.00  Da s h a v a - M i n s k  91  84  1.08  176  168  1.05  KrasnodarTbilisiYerevan  79  66  1.20  106  97  1.09  SaratovMoscow  55  48  1.15  53  49  1.08  Stavropol'Moscow ( d o u b l e line)  1963,  Sources p . 4.  N. I . N o v i k o v : o p . c i t . , Gazovoye D e l o , No. 5,  82. rather  slowly.  o f one  billion  Two  large reservoirs with  a combined  capacity  c u b i c m e t e r s were c o m p l e t e d n e a r Moscow  during  1963  and more modest ones a r e b e i n g p r e p a r e d n e a r L e n i n g r a d and 19 Ryazan. O n l y p a r t o f t h e volume s t o r e d up i n any r e s e r v o i r can  be  used, however, s i n c e  gas  must be  the  C e n t r a l R e g i o n and  one-third  permanently kept  there  i n operation,  near Kiev,  T a s h k e n t and  one-half  to m a i n t a i n  the L e n i n g r a d  reservoirs  to  area  of a l l the  pressure.  seem t o h a v e  Only  such  t h o u g h c o n s t r u c t i o n h a s b e g u n on o t h e r s 20 the U r a l s . Total active capacity,  t h e r e f o r e , a p p e a r s to be b e t w e e n two and t h r e e b i l l i o n c u b i c 21 meters, or l e s s than a t h i r t i e t h of the annual p r o d u c t i o n of t h e USSSR. billion  In the  United  cubic meters, Because the  States,  active capacity  or a q u a r t e r  number o f o l d d e p l e t e d  Union i s l i m i t e d , porous a q u i f e r o u s l e a d i n g r o l e i n gas sidering  that  b e t w e e n two cost is  the  fairly  storage,  net  cost  high,  wells  formations  but w i l l  also  1000  according  i n the will  to  Soviet  play  increase  the  projected  the most  the  costs.  transport  cubic meters,  i n e x i s t i n g as w e l l a s  running—  production.  of e x t r a c t i o n p l u s  to s i x r u b l e s per  of s t o r a g e —  of y e a r l y  e x c e e d s 100 22  Con-  ranges  relative  reservoirs—  favourable 23  estimates--  f r o m one  h a l f to  two  rubles  per  1000  cubic  meters.  19 "Gazovaya Promyshlennost" k 4 6 - i y godovschchine O k t y a b r y a . G a z o v a y a P r o m y s h l e n n o s t , " No. 11, 1963, p . 2. 20 Y u . I . B o k s e r m a n : op. c i t . , p . 285 21 G a z o v a y a P r o m y s h l e n n o s t , No. 12, 1962, and No. 1963, p . 2. 22 A . M. L e e s t o n : op. c i t . , p . 242-243. 23 V. S. C h e r n o v o l , op. c i t . , p . 40. 1  Velikogo  11,  83.  There i s a f a i r amount of discussion i n Soviet sources about underground storage  i n the USSR and i t appears that the problems  are many. Liquefied petroleum gases and other gas l i q u i d s i n the Soviet Union are transported almost exclusively by r a i l , whereas i n the United States truck and pipeline transport overtook the 24 entire industry i n the l a s t decade. In the USSR, pipeline transport of natural gas l i q u i d s i s limited to a few very short l i n e s , almost e n t i r e l y i n the Volga region, supplying 25 chemical  work3  from gas-benzine f a c t o r i e s .  most c e r t a i n l y under a dozen.  petro-  Their number i s  Truck transport i s r e s t r i c t e d  to the d i s t r i b u t i o n of cylinders for households within a limited radius.  Most LPG,  tank-car,  as well as natural gasoline, moves by  rail  sometimes over a great distance, the longest large-  scale shipment being the supplying of Murmansk from Bashkiria 26 3300 km away. As w i t h pipeline transport of dry gases, shipments of NGL's (natural gas l i q u i d s ) today are confined almost entirely to European Russia and the Urals.  Between 1963  and 1966,  however,  several populated points i n the V i r g i n Land Kray hope to receive l i q u e f i e d gas and natural gasoline. On a small scale, i t i s 24 O i l and Gas Journal. March 16, 1964, p. 111. 25 See for instance: A. E. Zinovyev ejt als "Osnovnye napravleniya ispol*zovaniya prirodnykh I poputnykh gazov v khimicheskoy promyshlennosti," Gazovaya Promyshlennost*. No. 4, 1960, p. 32. 26 K.V. Dolgopolov et a l : op. c i t . , p. 126.  84. already being u t i l i z e d i n tractors and other a g r i c u l t u r a l mach27 inery.  A small amount of these gases i s also consumed i n r u r a l  Middle A s i a .  The V i r g i n Lands are, and w i l l be, supplied mainly  from the Middle Volga, Central A s i a from the Cheleken peninsula. The great Bukhara deposits contain very dry gases, which do not lend themselves to l i q u e f i c a t i o n .  Their role i n supplying  these areas with natural gas l i q u i d s , therefore, w i l l be negligible. The geographic significance of long-distance gas transport may  be compared to that of high voltage transmission of  electricity.  Although the former represents movement of energy  i n an o r i g i n a l state, while the l a t t e r implies transformation, the s i m i l a r i t i e s are unmistakable.  In the USSR, the ultimate  aim i n both cases i s the tapping of distant energy reserves for the energy-hungry c i t i e s of the Urals and European Russia. At present, 85 per cent of a l l natural gas i s produced  i n the  Ukraine, the North Caucasus and the Volga, i n well-populated 28 regions, with long established or developing industry.  Yet  the bulk of the gas leaves these areas to be consumed i n the Central Region, Leningrad and the B a l t i c , hundreds of miles away. As Chapter I showed, however, Central A s i a and the West Siberian Depression w i l l almost certainly succeed to a dominant 27 D.A. Tsvetkov: "Ispol"zovaniye szhizhennykh gazov v narodnom khozyaistve SSSR," Gazovoye Delo, No. 11, 1963, p.43; 0. Yu. Kulinyak: "Ispol'zovaniye gaza v Kazakhstane," Gazovoye Delo, No. 1, 1963, p. 46. 28 Calculated from: Theodore Shabad: "News Notes," Soviet Geography, Feb. 1964, p. 57 and Y. I. Bokserman: op. c i t . , Table 19, p. 29.  85. p o s i t i o n i n reserves sometime during the 1970*s.  At the same  time, the very high rate of production w i l l considerably deplete the Ukrainian and Caucasian deposits: the two eastern regions, therefore, w i l l surely catch up and may  even overtake, i n output.  As with e l e c t r i c i t y , where both i n potentials and soon i n production, remote easterly regions hold sway, so i t w i l l be with  If anything, however, large-scale shipments of gas to European Russia w i l l be an even more extreme case, reflected i n the geographic pattern.  The proposed high-voltage l i n k be-  tween S i b e r i a and the Urals w i l l neither originate i n , nor pass through,economically  unresponsive  territories.  I t w i l l begin  i n the fast-developing Kuznets-Angara region and follow the grain of Soviet economic a c t i v i t y through the true "Heartland" 29 of the USSR, to use David Hooson's phrase.  S i m i l a r l y , en  route to major centers of people and industry, the pipelines of European Russia span established, populated areas, d i s t r i buting f u e l a l l along the  way.  It i s otherwise with pipelines tapping the infant, but apparently fabulous gas-regions of the East.  In our l i f e t i m e ,  neither the swampy wilderness of north-west S i b e r i a , nor the deserts and barren plateaus of Middle A s i a w i l l be anything but economic vacuums.  On their way  to the major consuming  centers of Soviet Europe, these trunklines w i l l have to pass 29  David J . M. Hooson: A Hew Hostrand Co., Hew York, 1964.  Soviet Heartland?  Van  86.  through s i m i l a r country or at best through very sparsely peopled, u n i n d u s t r i a l i z e d areas of the V i r g i n Lands and Lower Volga V a l l e y .  These l i n e s , t h e r e f o r e , as the already e x i s t i n g  Bukhara-Ural unquestionably i s , w i l l be but g i a n t siphons., which w i l l pump energy out of otherwise useless wastelands to the i n d u s t r i a l hearts of the country.  They w i l l not be meant t o ,  or be able t o , f i l l the economic hollows, decreed to be more or l e s s permanent by nature.  87.  PART. I I  REGIONAL SECTION  88. F u e l c o n s u m p t i o n i n t h e U.S.S.R. i s h i g h l y Three r e g i o n s , i n roughly  concentrated.  equal p r o p o r t i o n , account f o r h a l f  a l l non-renewable energy consumption i n the c o u n t r y . the Center  ( i n c l u d i n g the G o r ' k i y  a r e a ) , t h e U r a l s , and  the It  two  regions  c a n be  are  greater than 5 percent:  the r e s t of the U k r a i n e i n S o u t h e r n S i b e r i a and  o b s e r v e d f r o m Map  f o u n d i n E u r o p e a n R u s s i a and  Northern two  t h a t more t h a n  of a l l f u e l i s u t i l i z e d west of C h e l y a b i n s k , p a r a l l e l and Yet  -the  i t i s the  p o w e r b a s e , and  Northand 1  Kazakhstan.  of these  regions  three-fourths  between the  60°N  supreme f a c t o f S o v i e t e c o n o m i c g e o g r a p h y  i n two  i n t h i s a r e a have a s u f f i c i e n t of these  - the Volga  and  only r e c e n t l y .  Until after  local  the North  f a r the g r e a t e r part of the r i c h f u e l resources  discovered  Five  the Caucasus range.  t h a t o n l y 'three r e g i o n s  - by  region.  (with Moldavia),  6 t h a t a l l but  are:  the C e n t r a l Chernozem  the D o n e t s - P r i d n i e p e r - R o s t o v  other r e g i o n s have shares West, the V o l g a ,  c o m p l e x and  These  of  Caucasus  have been  t h e S e c o n d W o r l d War  -  1 "Statisticheskiye Materialy": Vestnik S t a t i s t i k i , No.5, 1 9 6 2 , p. 9 1 . Some e s t i m a t i n g was n e c e s s a r y s i n c e my r e g i o n s do n o t e x a c t l y c o r r e s p o n d t o t h e o f f i c i a l S o v i e t e c o n o m i c r e g i o n s . The R o s t o v O h l a s t was d e t a c h e d f r o m t h e N o r t h C a u c a s u s and a d d e d t o the D o n e t s - P r i d n i e p e r r e g i o n , w h i l e the Northwest ( L e n i n g r a d R e g i o n ) i n t h i s s t u d y e x c l u d e s a l l l a n d s e a s t o f V o l o g d a and n o r t h o f L a k e Onega. S o u t h e r n K a z a k h s t a n was a d d e d t o C e n t r a l A s i a and two r e g i o n s , n o t e x i s t i n g i n S o v i e t c l a s s i f i c a t i o n , w e r e d e f i n e d i n t h e N o r t h K a z a k h s t a n -- S o u t h S i b e r i a n b e l t west of Lake B a y k a l . The p r o c e d u r e s o f c a l c u l a t i n g , o r a d j u s t i n g , f u e l consumption i n these r e g i o n s are e x p l a i n e d i n the appropriate chapters.  90. aside from the remote and frozen Pechora province - only the Eastern Ukraine could be considered a f f l u e n t i n energy i n the whole of European Russia.  At the end of the 1920's, the  de-  c l i n i n g o i l wells of the North Caucasus s t i l l supplied a tenth of a l l f u e l , but by 1940  t h i s share has f a l l e n to 2£ percent. 2  The Volga contributed a mere 1 percent even at the l a t t e r  date.  It has only been i n the l a s t decade that the l a t t e r region attained true prominence and the North Caucasus acquired a  new  v i t a l role i n the national energy supply. Except i n the Donets Basin, modern industry i n Russia has grown up on distant supplies of coal and on such expensive low-quality f u e l s as ashy l i g n i t e , peat and shale. from C a r d i f f and Newcastle to St. Petersburg may  Coal import  be substituted  by "imports" from the Donets and the Pechora during Soviet  times,  but the e s s e n t i a l dependence of much of European Russia on f a r away sources of power has remained.  The Urals, too, i n d u s t r i a l  giant of Soviet power, was b u i l t up very l a r g e l y on coal brought i n from 1500 miles, and i n absolute terms i t s energy import s t i l l increases every year. The present s h i f t i n the f u e l mix does not change that imbalance i n Soviet i n d u s t r i a l geography; most of Soviet Europe ~2  These figures were calculated from D. Shimkin: The Soviet Mineral-Fuel Industries. Table 5, p. 31 and Table VI, p . 85; 1940 figures were checked against Table XIV, p. 90. Figures for t o t a l f u e l production were taken from: Narodnoye Khozyaystvo 1958 g. p. 200 (for 1940) and J.P. Cole and F.C. German: A Geography of the U.S.S.R.,.Table 22a, p. I l l (for  year 19207*  91. is  still  a deficit  regions, ity.  a r e a and  o f t e n over  The  use  the  supply  of energy  l o n g d i s t a n c e s , i s more t h a n  of m o b i l e  hydrocarbon  l i g h t e n e d t h a t tremendous b u r d e n on  ible  a greater d i v e r s i f i c a t i o n chemical In  region  this  section,  i s examined  regional fits  industry with  d e r i v e d from  context  the  p l a y e d by  The  its utilization  Strictly  Leningrad Region,  economy, made  n a t u r a l gas  are analyzed  a r e a s and  i n the  greatly  the V o l g a from  and  t h i s new  and  on  of energy,  are  producing  a  regions—  t h e N o r t h C a u c a s u s and  menia)» S i b e r i a , separate  completely  Greater  a l l have  rich, with  of t h e i r  Essenoutput--  ( U z b e k i s t a n and  Kazakhstan,  the  substan-  to other a r e a s .  Central Asia  economy—  tradition-  benefiting  Turk-  i s treated i n  H e r e - - e x c e p t i n g the Lower Ob  to the U r a l i a n  • 7  they  " e x p o r t i n g " most  including Northern  chapter.  While  the  the  are a b l e to export a output  charac-  fuels.  s u p p l i e s o f o t h e r f u e l s and--  p a r t o f t h e i r n a t u r a l gas  tially  bene-  individual  They a r e  "imported*  the T r a n s c a u c a s u s .  e x c e p t i o n of the T r a n s c a u c a s u s — tial  the  the C e n t e r ,  the U r a l s .  have t o depend  source  t h o u g h more e x p e n s i v e ,  the  three categories:  P r o v i n c e s of consumption as w e l l as p r o d u c t i o n a r e Ukraine,  to  r e g i o n s w i t h both  consuming r e g i o n s a r e  and  furnished  division.  the B a l t i c  poor i n energy  poss-  i n each  c o n t r i b u t i o n o f gas  economic r e g i o n s a r e grouped i n t o  teristics.  consider-  t h e p a t t e r n o f i t s c o n s u m p t i o n , and  consuming a r e a s , p r o d u c i n g  ally  the  necess-  i n power c o n s u m p t i o n , and  role  of each t e r r i t o r i a l The  ever a  i n e x p e n s i v e raw m a t e r i a l s .  in detail.  f u e l mix,  parasitic  f u e l s however, has  ably  the  to  t h e n a t u r a l gas  Valley,  tied  industry i s  92.  e n t i r e l y undeveloped  or i s i n an extremely rudimentary stage.  I t s future s i g n i f i c a n c e can be assessed only t e n t a t i v e l y .  93  Chapter V  CONSUMING REGIONS  94. THE CENTRAL REGION The Central Region occupies the middle of the East European P l a i n .  Its strategic position, the presence of the  c a p i t a l and largest metropolis and the radiating railways have given the region a commanding position i n Soviet Europe.  Though  i t s "boundaries are very uncertain and underwent frequent adminis t r a t i v e changes, no other economic area i n the U.S.S.R. has such a prominent core.  In t h i s analysis, the Center includes  the Gorkiy Oblast, belonging o f f i c i a l l y to another d i v i s i o n , and the Central Chernozem region, which i s often made into a separate economic u n i t . This i s a large region, three times the size of Great B r i t a i n , and i t accounts for over 17 percent of the country's population, 16 percent of i t s f u e l consumption and perhaps a 1 f i f t h of i t s i n d u s t r i a l capacity. Within t h i s region, however, one can witness a sharp concentration of economic a c t i v i t y . Three-fifths of the Center's population, most of i t s c i t i e s and almost a l l i t s manufacturing,  i s found i n a r e l a t i v e l y small  quadrangular area, less than a quarter of the t o t a l , with 1 Narodnoye Khozyaistvo SSSR, 1962, p. 20-21f S t a t i s t i cheskiye Materialy," Vestnik S t a t i s t i k i , No. 5, 1962, p. 91. Por an estimate of i n d u s t r i a l capacity, see figures f o r number of workers, f o r fixed c a p i t a l and f o r various branches of i n dustry i n J . P. Cole and P. C. German: A Geography of the USSR, Table 21, p. 107 and Table 38, p. 238-9. See also R.E. Lonsdale and J . H. Thompson: A Map of the USSR's Manufacturing, Economic Geography, I960,.p. 36-52 and V. V. Pokshishevskiy: "Prospects of Population Migration i n the USSR," Transl. i n Soviet Geography , Jan. 1963, p. 13-25. 1  95  Map 7  THE  ENERGY SUPPLY of the CENTRAL REG.  JRW  o  • •  Hydroelectric Thermal  Stations Stations  @  Coo /  Produc  ft  Peof  Product  Coal  t  ion  1 on  Gas  60 s  Peat  Pipeline Coal  8  60s  Peat  8  60s  —  OK  LO.  /965  96.  2  K a l i n i n , Rybinsk, Gorkiy and Tula as i t s corners.  And i t i s i n  t h i s core area that probably 80 percent of a l l f u e l consumed i n 3 the Central Region i s u t i l i z e d .  Outside t h i s i n d u s t r i a l core,  only one single complex i s destined to use large quantities of f u e l i n the near future, Lipetsk, where a very large integrated iron and s t e e l work i s now nearing completion.  Attention,  therefore, w i l l be focused primarily on t h i s inner i n d u s t r i a l center described above. Excepting the Urals, the Center i s the oldest i n d u s t r i a l region i n Russia.  In addition, i t contains the largest  conur-  bation i n the country, the seat of the government and a d i s proportionately high share of s c i e n t i f i c and c u l t u r a l i n s t i tutions - a l l of which were important even during the time when St. Petersburg served as the c a p i t a l of the Russian Empire.  The  development of manufacturing was based e n t i r e l y on the advantages of location that had already given the region prominence i n poli t i c a l development and trade.  The Center has never been able  to supply more than h a l f of i t s energy needs even by the strenuous and very costly exploitation of i t s l o c a l resources.  Gen-  e r a l l y , the share of "imported" f u e l s f a r exceeded that of the l o c a l l y produced ones i n the region* s energy mix and was 2  espec-  These figures were calculated or estimated on the basis of data supplied by Narodnoye Khozyaystvo RSPSR v 1962 g, p. 8 and p. 12 and Akademiya Nauk, I n s t i t u t Geografii: Taentral'nyy Rayon, Gosisdat, Moskva 1962. 3 Estimated on basis of data from "Statisticheskiye Materialy," Vestnik S t a t i s t i k i , No. 5, 1962, p. 9 1 .  97.  i a l l y dominant i n the f u e l supply of the Moscow i n d u s t r i a l core.  4  In every respect, therefore, the Central Region appears to be an area where the u t i l i z a t i o n of clean and mobile hydrocarbon f u e l s could produce especially great b e n e f i t s .  Although  natural gas has entered the Soviet fuel-mix only recently, i t i s notable that i t s f i r s t contribution (aside from f i e l d uses of o i l - w e l l gases) was made i n the Central Region.  The f i r s t  gas-pipeline b u i l t i n the USSR (excepting a short one i n the Middle Volga) was constructed from Saratov to Moscow (1949). The second, too, though i t reached Kiev f i r s t , was quickly pushed on to the c a p i t a l (Dashava-Kiev-Moscow).  Since that time,  the above region has continued to receive the l i o n ' s share of pipe-line construction, u n t i l today i t i s supplied through f i v e 4 In 1908, f o r instance, three-quarters of a l l f u e l consumed i n the v i c i n i t y of Moscow was brought i n from distant regions (Akademiya Nauk: Tsentral'nyy Rayon, p. 95). Even during the Eive Year Plans, despite f e v e r i s h e x p l o i t a t i o n of Moscow l i g n i t e and peat, the increase i n f u e l output could not keep up with i n d u s t r i a l growth (Tsentral'nyy Rayon, p. 166) and l o c a l fuels seem to have furnished only about a f i f t h of the energy consumed i n the i n d u s t r i a l core and perhaps double that share i n the entire Center. (Since only some ^ percent of f u e l produced i n 1938 was exported and the amount i n inventory i n the t h i r t i e s i s not l i k e l y to have been great, t o t a l production for the USSR as a whole can be roughly equated with t o t a l consumption. The share of the Center i n t o t a l f u e l consumption could not have been smaller during the t h i r t i e s and early f i f t i e s than i n 1960, and i t was probably l a r g e r . Most f u e l produced i n the Central Region must have been consumed l o c a l l y , since Moscow coal and peat are not transportable. Assuming these, above figures have been calculated from: "Statistieheskiye Materialy," Vestnik S t a t i s t i k i , No. 5, 1962, p. 91 (share of various regions i n t o t a l f u e l consumption); D. Shimkin: op. c i t . , Table 5, p. 31 (share of various regions in t o t a l f u e l production i n 1928, 1940 and 1955) and Narodnoye Khozyaystvo v 1962 g, p. 152 ( t o t a l f u e l production i n 1940).  98. trunklines, with two more projected, linked by a large capacity pipeline ring just inside the boundary of Moscow Oblast. (See Map 5)  Consumption has been increasing by leaps and bounds:  i t was 4 b i l l i o n cubic meters i n 1958, about 8.4 b i l l i o n i n 1960, 5 and between 25 and 30 b i l l i o n i n 1962-63. In 1962, the city of Moscow alone used as much natural gas as the whole Central 6 Region two years e a r l i e r (8.4 b i l l i o n cubic meters), and by the  end of 1965, the c a p i t a l i s to receive some 12-g- - 13 b i l l i o n 7 cubic meters, the equivalent of 15 m i l l i o n tons of hard coal. It can be seen, therefore, that the c a p i t a l i s much more heavily supplied than the Central Region as a whole.  By 1961,  natural gas accounted f o r h a l f of Moscow's f u e l balance, a f r a c t i o n which i s to grow to nearly nine-tenths by the end of 8 the Seven Years Plan (1965). In the Region as a whole, however, 5  These figures were calculated from shares of t o t a l f u e l consumption with the conversion factor: 1 ton of nominal f u e l (7000 Cal) =1.21 thousand cu. m. of gas. Data taken JT.P. Cole and P.C. German: op. c i t . , p. 160 - (for year 1958); Narodnoye Khozyaystvo v 1962 g, p. 152 and 545; Vestnik S t a t i s t i k i , No. 5, 1962, p. 87 and 91. (Total f u e l consumption was obtained by taking t o t a l production and subtracting export. Inventory was ignored. Conversion factor for o i l : 1 ton of nominal f u e l = 1.43 tons of o i l and o i l products). Pigure f o r 1962-63 taken from Gazovaya Promyshlennost", No. 5, 1963, p. 10 for import of gas to Central Region from the North Caucasus. Imports from other regions were estimated. 6 Yu. I. Bokserman: op. c i t . , p. 277, Table 106. 7  1964.  Referativhyy Zhurnal, No. 3E56, 1962 and No. 5E32,  8 Referativnyy Zhurnal, No. 3E56, 1962.  99.  gas supplied only eight and a h a l f percent of the t o t a l f u e l requirement,  and even i n the i n d u s t r i a l quadrangle i t s share 9 was probably below 15 percent. It i s to exceed a quarter by 10 1966. The chief supplier i s the Horth Caucasus: i t sent to the Center 20 b i l l i o n cubic meters i n 1962 and was to raise t h i s 11 amount to 30 b i l l i o n by t h i s year. The Ukraine can spare only a f r a c t i o n of that amount, since i t also supplies the B a l t i c and, besides, i t s own fuel needs are very great.  Due  to the  small capacity of the Saratov-Moscow l i n e , Saratov Oblast 12 p l i e s only up to 600 m i l l i o n cubic meters per year. 32-ineh diameter Saratov-Gorkiy  sup-  The  trunkline i s of much greater  capacity and would be able to f u r n i s h 6 b i l l i o n cubic meters per year to the l a t t e r c i t y .  At present, however, the resources of  Saratov Oblast' cannot guarantee such massive d e l i v e r i e s , and 13 Gorkiy receives only about h a l f that amount.  The Center, i n  f a c t , could use much more gas than i t receives from a l l i t s suppliers but without new discoveries these reserves cannot be depleted much f a s t e r . 9 Calculated from "Statisticheskiye Materialy," Yestnik S t a t i s t i k i . Ho. 5, 1962, p. 87 and 91. 10 Referativnyy Zhurnal, Ho. 3E56, 1962. 11 A. K. Kortunov: "Gazovaya promyshlennost* na rubezhe 1963 g.," Gazovaya Promyshlennost* Ho. 1, 1963, p. 2. 12 G. S. Urinson _et a l : "Razvitiye gazovoy promyshlennosti Saratovskoy o b l a s t i , " Gazovoye Delo, Ho. 4, 1963, p. 5. 13 Ibid., p. 5 and p. 7.  100. The Seven Year Plan (1958-65) envisaged a massive subs t i t u t i o n of gas for the high-cost Moscow l i g n i t e and peat.  It  i s clear, however, that t h i s substitution i s being r e s t r i c t e d very largely to the i n d u s t r i a l quadrangle.  Except by way  of  some e l e c t r i c i t y , transmitted from stations on the coal f i e l d , and through limited underground g a s i f i c a t i o n , l o c a l l i g n i t e w i l l not contribute to the f u e l economy of Moscow Oblast .  Even i n  1  power stations the extensive use of this coal i s a debatable 14 matter. In Tula Oblast', where more than nine-tenths of the production of Moscow l i g n i t e i s concentrated, and where coal supplied 87 percent of a l l f u e l requirement  i n 1958,  output i s  being greatly reduced, and the share of coal i n the f u e l mix of the Oblast' w i l l drop to 40 percent by the end of 1965. reduction i s being effected i n Ryazan Oblast'.  Similar  The difference  i n energy need i s being supplied by gas and o i l , the former being generally more important, and much more so near the c a p i t a l . contrast to the manufacturing  core, coal (and peat) production  i s being expanded i n the less i n d u s t r i a l i z e d oblasts (e. g. 15 Smolensk and Kaluga). 14  Z. Chukhanov: "Ob e f f e k t i v n o s t i r a z v i t i y a podmoskovnogo ugol*nogo basseyna," Voprosy Ekonomiki, No. 1, 1958, p. 39-48; and Akademiya Nauk: Geograficheskiye Problemy Razv i t i y a Krupnykh Ekonomicheskikh Rayonov SSSR, Izdatel'stvo Mysl*, Moskva, 1964, p. 67. 15 Ibid., (Geograficheskiye Problemy), p. 68 and Tsentral'nw Rayon, p. 172.  In  101. It seems that i n t h i s area no large-scale substitution of gas f o r coal i s l i k e l y to take place i n the near future. Neither are Yaroslavl' and Ivanovo Oblasts supplied adequately yet with natural gas, although the former i s second only to Moscow Oblast  1  i n i n d u s t r i a l output, while the l a t t e r boast the 16  greatest concentration of t e x t i l e manufacturing  i n the country.  One large-diameter pipeline (32 inches) from the Volga reaches these d i s t r i c t s , but i t works only at h a l f capacity, transmit17 ting about 3 b i l l i o n cubic meters per year. serves Gorkiy and Cherepovets,  Since i t also  i t i s not l i k e l y to have much  gas available f o r Ivanovo and Yaroslavl'.  (These c i t i e s are  crossed by an o i l pipeline, too, from the p r o l i f i c Al'met'evsk f i e l d , and o i l i s l i k e l y to make a greater contribution to their f u e l economy than natural gas.) The d i s t r i b u t i o n of natural gas among the sectors of economy i n the Central Region d i f f e r s somewhat from the national pattern, owing to very high consumption by power plants. 1960,  In  e l e c t r i c power stations took 34 percent, i n d u s t r i a l enter18  prises nearly 40 percent and domestic consumers 11 percent. By that year a l l power stations within the c a p i t a l were changed to gas 16 though some used coal and f u e l o i l during the winter Tsentral'nyy Rayon, p. 379 and 480-81. 17 G. S. Urinson e_t a l : "Rasvitiye gazovoy promyshlenn o s t i Saratovskoy o b l a s t i , " Gazovoye Delo, No. 4, 1963, p. 5-7. 18 Referativnyy Zhurnal. No. 3E56, 1962.  102. 19 months. South of Moscow, e l e c t r i c stations u t i l i z e the  local  l i g n i t e to a considerable extent (e.g. Kashira and Stupino), 20 while others work on peat.  Natural gas, however, can be pro-  f i t a b l y u t i l i z e d even by these stations during the summer period. As i n any large mid-latitude c i t y , seasonal f l u c t u a t i o n of gas consumption i n Moscow i s very considerable, demand i n January 21 being almost twice as great as i n July.  Other urban centers  i n the Region should exhibit a similar pattern.  At the same  time, underground storage capacity i n the Soviet Union i s very l i m i t e d due to lack of exhausted natural r e s e r v o i r s . Presently, storage capacity i n the Center seems to be only about one  bil-  l i o n cubic meters, but active capacity-- the amount that can be 22 withdrawn-- i s only about h a l f that much.  The Russians are,  therefore, forced to dump large quantities of gas to power stations during the warm season i n spite of frequent  criticism  against the excessive use of natural gas as b o i l e r f u e l . the new  price system, e f f e c t i v e since January 1964,  In  such stations  receive gas two rubles below the regional price l e v e l  (per  1000  19 cubic meter) which indicates that the Russians have resigned D. G. Zhimerin: I s t o r i y a E l e k t r i f i k a t s i i SSSR. Izdatel'stvo Sotsial'no-Ekonomicheskoy L i t e r a t u r y , Moskva, 1962, p. 401 and Yu. I. Bokserman: op. c i t . , p. 254. 20 Tsentral'nyy Rayon, p. 175. 21 Yu. I. Bokserman, op. c i t . , p. 277, Table 106. 22 Gazovaya Promyshlennost', No. 11, 1963, p. 2 and No. 12, 1962.  103. 23 themselves  to the p r a c t i c e .  Of a l l regions, such i n t e r r u p t i h l e  sales appear most common i n the Center. The p o s i t i o n of domestic and municipal consumption i n Moscow i s very illuminating.  The energy needs of t h i s sector  are almost exclusively supplied by gas, and yet t h i s accounts for  a mere 11 percent of t o t a l gas consumption i n the Soviet  c a p i t a l - - hardly more than the national average. six  Por a c i t y of  and a h a l f m i l l i o n , which provides a greater degree of com-  f o r t than any other i n the USSR and i s , i n addition, by f a r the leading s c i e n t i f i c and c u l t u r a l center, t h i s i s a remarkably low f i g u r e .  This share, however, would appear s i g n i f i c a n t l y  higher-- although i t would s t i l l be f a r below the North American level—  i f the gas used for t o p l i f i k a t s i y a were included (see  page 43).  Space heating by t h i s method i s practised on a very  large scale i n the i n d u s t r i a l core of the Central Region, and by 1965 t o p l i f i k a t s i y a i s to account f o r close to f o u r - f i f t h s 24 of  a l l space-heating.  (Stations providing by-product heat f o r  space-heating are called TETs's - Thermal E l e c t r i c Centers. t h e i r importance  Por  i n Moscow, see also Table X as follows.)  In  industry, the share of gas was higher than that of 25 any other f u e l i n 1960, except f o r the Gorkiy area. Three  26 years before, coal s t i l l dominated even i n the c i t y of Moscow. 23 T.A. Brents: "Novye optovye tseny na gaz," Gazovoye Delo. No. 8, 1963, p. 47. 24 Tsentral'nyy Rayon, p. 174. 25 A. Riznik and S. Litvak, op. c i t . , Vestnik S t a t i s t i k i , No. 6, 1962, p. 24. 26 Tsentral'nyy Rayon, p. 273.  104 Table X Forecast of Moscow City's Fuel Mix i n 1966 (in 1000 tons of nominal fuel) Coal & Coke  Consumer Sectors  Natural Gas  Domestic  635  49  Municipal  577  1  137  300  10  Industrial  4863  4  590  129  20  TETs's  7009  Other E l e c t r i c Stations  1915  3  250  14999  57  1698  Total Source:  LPG  Fuel Oil  Wood  Kerosene 10  721 45  429  10  75  Referativnyy Zhurnal, No. 5, E31, 1964.  The metal working, engineering, b u i l d i n g material, p r i n t i n g , leather-wear  and some h a l f of the t e x t i l e i n d u s t r y —  concentrated  c h i e f l y i n Moscow O b l a s t * — now almost exclusively u t i l i z e gas for their thermal energy need.  Textile manufacturing i n Ivan-  ovo, however, seems to be much more inadequately  supplied.  When  the great iron and s t e e l complex at Novo-Lipetsk i s completed, ferrous metallurgy w i l l also become a major consumer of natural gas i n the Central Region.  The cost figures f o r the Lipetsk  m i l l are very good regarding the iron ore (high grade K M A ore), but are very high with respect to coal, which w i l l have to be 27 hauled from the expensive Donets mines 600 kilometers away. 27 I.P. Bardin and P.A. Shiryayev: Tretya M e t a l l u r g i cheskaya Basa SSSR, Izdatel'stvo "Znaniye", Moskva, 1959.  105. Every e f f o r t w i l l be made, therefore, to reduce coke expenditure, and the m i l l could be expected to use more gas than any other of comparative size i n the USSR.  I t i s very conveniently located  regarding p i p e l i n e s , for the three trunklines from the North Caucasus pass very near.  The large amount of scrap available  in the Center means that many open-hearth furnaces w i l l be used 28 despite increasing reliance on oxygen converters.  And open-  hearth steel making, as shown i n Chapter I I ) i s dominated  by  natural gas. The Central Region also accounts f o r the bulk of the Soviet chemical output.  Approximately h a l f of a l l p l a s t i c s ,  synthetic rubber and chemical f i b e r s , and nearly a f i f t h of a l l 29 f e r t i l i z e r s are produced here.  Up u n t i l now,  coal and vege-  table f a t s , starches, etc. were the chief raw materials.  Even  in 1962-63, one-third of a l l vegetable f a t s and two-thirds of a l l starch produced i n the USSR as a whole was used as chemical 30 raw materials, a very high share of that i n the Center. At the same time, the coal-based chemical industry had to u t i l i z e imported Donets coal.  Only i n 1958 was natural gas f i r s t  for  used,  instance, to manufacture f e r t i l i z e r s - at the Novomoskovsk 31 Chemical combine. Today, the combine i s producing ammonia, 28 R.S. L i v s h i t s : Sebestoimost' Produktsii v Tyazheloy Promyshlennosti SSSR. Akademiya Nauk SSSR, Moskva, 1961, p. 164. 29 Pravda, Jan. 5, 1964, p. 2; N. Nekrasov: Zonal*noye razmeshcheniye khimicheskoy i n d u s t r i i , " Voprosy Ekonomiki, No.3, 1964, p. 25. 30 Ekonomicheskaya Gazeta, Dec. 14, 1963. 31 Gazovaya Promyshlennost , No. 3, 1964, p. 1. M  1  106. urea, ammonium n i t r a t e , s u l f u r i c acid, etc.  It i s planned to  extend i t s range of products to include methane-based organic chemicals, such as methyl alcohol, chloromethanes and their 32 derivatives. ing  U n t i l 1959 the plant worked at a d e f i c i t , reach-  350,000 rubles i n 1958, due mainly to the high cost of raw  material and f u e l . did  Only since the changeover to natural gas  i t begin to register p r o f i t .  The cost of production of  methyl alcohol and ammonia were reduced— i n comparison to pre33 vious costs from coke-- by 40 percent.  A smaller plant, pro-  ducing ammonia and l i q u i d nitrogen f e r t i l i z e r s has recently 34 gone on stream at Shchekinsk.  However, since these seem to  be the only ones working on natural gas, and since the Center produces probably two m i l l i o n tons of n i t r i c f e r t i l i z e r s , at least 60 percent of t h e i r output i n t h i s region must s t i l l be 35 based on c o a l . The organic chemical industry, too, i s s t i l l very l a r g e l y dependent  on "imported" coal and plant alcohols.  Regional data  i s not available, but the Center, with i t s very high share of organic 32capacity, seems to conform closely to the national Ekonomicheskaya Gazeta, Dec. 7, 1963, p. 6; Digest of Soviet Press. V o l . 15, Ho. 51, p. 24-25. 33 Ibid. (Ekon. Gazeta), p. 6; P. Sheyenkov: "Pod'em proizvodstva mineral'nykh udobreniy," Ekonomicheskiye Hauki, Izdat. Vysshaya Shkola, Moskva, Ho. 1, 1964, p. 6. 34 Ibid., (Ekonomicheskaya Gazeta), p. 6. 35 Estimated from: Promyshlennost SSSR. 1963, p. 142; H. Hekrasov, op. c i t . , Yoprosy Ekonomiki, Ho. 3, 1964, p. 25; Gudok, Hov. 13, 1963, p. 3. Trans, i n US JPRS, Eeb. 4, 1964, 23053, p. 45; Gazovaya Promyshlennost 1963, Ho. 11, p. 3. 1  1  107. pattern.  Thus some h a l f of the p l a s t i c plants appear to use  coke-chemical  Intermediates and a f i f t h of the large synthetic  rubber industry uses grain and -wood derived ethyl alcohol as 36 i t s major raw material.  Aside from acetylene p r o d u c t i o n -  associated with the manufacturing Novomoskovsk and Shchekinsk—  of ammonia production at  natural gas hardly contributes  yet to the organic chemical industry of the region. It i s a moot point, however, whether the construction of large petrochemical plants to supply the p l a s t i c rubber and f i b e r industries of the Center i s economically j u s t i f i e d . region would have to receive LPG or s t i l l s u f f i c i e n t l y  The  "wet"  natural gas from the Volga at costs no less (and often greater) than those of petrochemical intermediates. manufacturing  In addition, the  of these intermediates require high f u e l and  energy but low labour inputs i n contrast to the  manufacturing  of p l a s t i c s and synthetic f i b e r s where the opposite s i t u a t i o n applies.  As shown before, the Center excels i n labour but i s  badly d e f i c i e n t i n energy.  Many s p e c i a l i s t s , therefore, advise  a separate location for the production of petrochemical i n t e r mediates near sources of raw material, f u e l and e l e c t r i c power as i n fact exist i n the United States.  Some petrochemical  industry i s being developed i n the Center, but i t i s largely linked with the recently b u i l t r e f i n e r i e s at Ryazan, Yaroslavl" 37 and Gor'kiy. 36  Ekonomicheskaya Gazeta, Dec. 14, 1963, p. 20 and Aug. 10 , p. 18. 37 Geograficheskiye Problemy R a z v i t i y a Krupnykh Ekonomicheskikh Rayonov SSSR, p. 74-75.  108. THE LENINGRAD REGION The Leningrad Region i n t h i s analysis includes the ring of  ohlasts around the second metropolis of the USSR.  Besides  Leningrad O b l a s t , i t embraces Pskov, Novgorod and the western 1  part of Vologda O b l a s t , as well as the southern quarter of the 1  Karelian ASSR.  The size of Germany (both East and West), the  region i s inhabited by a l i t t l e over 8 m i l l i o n people, three and a h a l f m i l l i o n of whom l i v e i n the c i t y of Leningrad.  No  other region, not even the Center, i s so thoroughly dominated by one metropolis.  Outside Leningrad and i t s s a t e l l i t e towns,  l i t t l e industry i s found aside from saw m i l l i n g and food processing.  Cherepovets, with i t s ferrous metallurgy, i s the only  exception, but i t s large, integrated iron and s t e e l m i l l , too, 38 was  established f o r the purpose of supplying Leningrad. The Leningrad Region holds a p o s i t i o n of importance i n  the national economy out of a l l proportion to i t s population and natural resources.  The Leningrad Oblast' alone contributes  about 6 percent to the gross i n d u s t r i a l production of the USSR, and the whole region, as outlined above, accounts for roughly 39 the same share of t o t a l f u e l consumption. I t s l o c a l energy 38  Akademiya Nauk SSSR and Leningradskiy U n i v e r s i t e t : Severo-Zanad RSESR, Izdatel'stvo "Mysl"', Moskva 1964, p.424. 39 Ibid., p. 336 and "Statisticheskiye Materialy," Vestnik S t a t i s t i k i . No.5, 1962, p.91. The table gives 6.8 percent as the share of the whole North-West Economic Region, which includes, i n addition to the above area, Murmansk and Arkhangelsk Oblasts, the Komi ASSR and the rest of the Karelian ASSR. The population of these outer d i s t r i c t s , however, i s only a sixth of the whole NorthWest, and with the exception of Murmansk Oblast',the area i s no more urbanized than the r e s t . Its f u e l consumption, therefore, i s not l i k e l y to exceed a s i x t h of that of the whole North-West, e s p e c i a l l y , since the share of h y d r o - e l e c t r i c i t y i n the energy mix of Murmansk i s very high.  109  Map 8  ENERGY  SUPPLY  AND  OF  BALTIC  THE  LENINGRAD  REGIONS  110. base, however, could hardly be less s a t i s f a c t o r y .  Aside from  moderate resources of peat and shale no l o c a l f u e l i s available and the hydroelectric potentials of the region have now been almost f u l l y developed. For most of i t s energy needs, Leningrad has had to depend on fuels brought i n from great distances.  Industry i n the c i t y  has grown up during T s a r i s t periods, based e n t i r e l y on foreign coal (and metal), which could be imported cheaply by sea.  Im-  ports of foreign coal gradually ceased a f t e r the Revolution (by 1926), but despite careful u t i l i z a t i o n of l o c a l peat and shale, the great bulk of f u e l consumed i n the region had to be brought i n from a f a r .  Donets and l a t e r Pechora coal has supplied  the greater part of the f u e l required, while the southern section of the region (Pskov Oblast) has received l i g n i t e —  even as late  as 1960— from the western end of the Moscow Basin, where ex-  40 t r a c t i o n i s the c o s t l i e s t . The Leningrad Region, therefore, i 3 an area where an increase i n the contribution of hydrocarbon f u e l s appear highly significant.  However, the d i f f i c u l t i e s are great, especially  for natural gas.  Of a l l regions of European Russia, the above  one l i e s farthest from the major gas (and o i l ) deposits:  the  North Caucasus i s over 2000 kilometers away, the Eastern and the f/estern Ukraine are each over 1200, while the Volga i s about 1500.  Because of such distances, Leningrad i s reached by only  one natural gas pipeline today, which branches off from the  __  Geograficheskiye Problemy Krupnykh Rayonov SSSR. p. 69.  111.  N o r t h Caucasus  - Moscow system a t Serpukhov.  (Leningrad a l s o  r e c e i v e s shale gas through two s h o r t p i p e l i n e s from E s t o n i a and from the c i t y o f S l a n t s y ) .  The c i t y of Cherepovets, i n the  e a s t e r n extremity of the r e g i o n , i s reached by a l i n e from S a r a t o v O b l a s t ' on the V o l g a .  The p i p e l i n e from Serpukhov may be doubled,  w h i l e another from Bryansk and Minsk i s a p o s s i b i l i t y  through  which both Dashava and S h e b e l i n k a gas could go to the head o f the  F i n n i s h Bay. Because of remoteness  from the gas f i e l d s and the c o s t -  l i n e s s of t r a n s p o r t i n g n a t u r a l gas, consumers i n Leningrad must purchase t h i s f u e l a t a h i g h e r p r i c e than i n any other r e g i o n 41 of  the USSR, two r u b l e s h i g h e r , f o r i n s t a n c e , than i n the C e n t e r .  I t must be remembered, however, t h a t Leningrad has been r e c e i v ing  c o a l from f i e l d s j u s t as f a r away.  C o a l t r a n s p o r t by r a i l  i s not much cheaper than the t r a n s p o r t of gas, and c o a l e x t r a c t i o n c o s t s a r e s e v e r a l times h i g h e r (see Table VII,Appendix)• Due to i t s l e s s f a v o r a b l e l o c a t i o n , however, Leningrad i s r e c e i v i n g the b e n e f i t s o f n a t u r a l gas much more s l o w l y than Moscow.  ¥/hile L e n i n g r a d burned only 1.8 b i l l i o n  cubic  meters  of gas i n 1961, Moscow - l e s s than twice the s i z e o f the former 42 c i t y - burned four times as much. still  Two y e a r s l a t e r , L e n i n g r a d  r e c e i v e d only about a t h i r d as much n a t u r a l gas as the  Soviet c a p i t a l .  I n that year, i t consumed 2.9 b i l l i o n  cubic  41  T. A . B r e n t s : "Novye optovye tseny na gaz," G-azovoye D e l o , No. 8, 1963, p. 46-47. 42 Severo Zapad RSFSR, p . 174 and Yu. I . Bokserman, op. c i t . , - p. 275, Table 105.  112. meters, while an additional 600 odd m i l l i o n cubic meters of 43 shale gas was brought i n from Estonia.  Under these circum-  stances gas contributes much less to the f u e l mix of the c i t y than i n Moscow. Although for domestic and municipal consumpt i o n , gas was available for nearly the entire population, i n the t o t a l fuel, balance of Leningrad i t s share (shale gas includ44 ed) was below a quarter.  Although Donets coal would s t i l l be  imported i n f a i r l y large quantities, by the end of 1965  the  planners hope to replace with natural gas the even more expensive coal from the Pechora Basin - which at present supplies 45 over h a l f of a l l coal consumed i n the c i t y . E a r l i e r i t was hoped that the share of gas i n the f u e l mix of Leningrad could 46 be raised to 80 - 90 percent during the present plan  but t h i s  does not seem possible any more. Because, r e l a t i v e to i t s population, Leningrad receives much less gas than Moscow, seasonal fluctuations are less severe i n the former c i t y than i n the l a t t e r .  If an interesting plan  materializes, Leningrad would actually receive more gas during the warmer h a l f than during the colder h a l f of the year.  This  would be43 done i n order to increase the flow over the North . Yu. I. Bokserman, op. c i t . , p. 279, Table 107. 44 Geograficheskiye Problemy Razvitiya Krupnykh Ekonomicheskikh Rayonov SSSR. P. 141, footnote 2. 45 Severo-Zapad RSPSR, p. 171 and 177. 46 K.V. Dolgopolov et a l : op. c i t . , p. 126.  113. Caucasus - Moscow pipelines, which are greatly underutilized 47 from May to October. Since the trunkline to Leningrad i s not working at f u l l capacity at any time of the year, i t could easily transmit the extra amount. It w i l l not be easy, however, to increase greatly the amount of natural gas sent to Leningrad, and new  deposits w i l l 48  have to be tapped by about 1970  i n order to s a t i s f y demands.  Aside from the chief metropolis and i t s s a t e l l i t e towns, Novgorod and Cherepovets are the only sizable c i t i e s today i n the entire region that are supplied by natural gas.  Consumption outside  Leningrad i s certain to be under a b i l l i o n cubic meters per year. The share of various industries i n the consumption of gas i s not known, but certain c h a r a c t e r i s t i c s of this breakdown are possible to discern.  Machine building and metal working,  which accounts for over h a l f of a l l the industry i n Leningrad Oblast' are probably the largest consumers. on the other hand, burn r e l a t i v e l y l i t t l e —  E l e c t r i c stations, a fact partly  due  to the high share of h y d r o e l e c t r i c i t y i n the region (over h a l f of a l l e l e c t r i c i t y consumed i n the Leningrad conurbation, for 49 instance, i s generated by hydroplants). As yet a l l large thermal stations seem to be running on coal, peat and shale the year 50 around, and due to the general shortage of gas i n every branch 47 Yu. I. Bokserman: op. c i t . , p. 277 (Table 106), 279 and Table 107. 48 Severo-Zapad RSFSR, p. 174. 49 Geograficheskiye Problemy Krupnykh Rayonov SSSR, p.141. 50 Severo-Zapad RSFSR, p. 172.  114. of industry, i t i s doubtful that gas w i l l be used - at least i n the near future - on a large scale f o r power generation even i n Leningrad. The chemical industry of the region does not u t i l i z e natural gas as raw material nor - i t seems - f o r power, though may use i t f o r space-heating.  Synthetic material production i s  s t i l l based e n t i r e l y on coal and plant alcohol, and the future petrochemical  industry w i l l be linked with the big o i l r e f i n e r y 51  under construction at K i r i s h i .  Natural gas, reaching Leningrad  over a distance of 2000 kilometers, i s f a r too dry f o r the production of o l e f i n e s , and the manufacturing of acetylene would not be economic i n a region which i s short of f u e l and not r i c h i n e l e c t r i c power.  Gas could be used i n the production  of much  needed n i t r i c f e r t i l i z e r s , as i t may soon be i n the recently completed Novgorod chemical plant.  However, experience has  shown that ammonia, urea, etc. can be manufactured from shale 52 at no greater cost than from natural gas.  I t i s possible,  therefore, that the use of gas i n the manufacturing of n i t r i c f e r t i l i z e r s w i l l be limited i n the region, especially 3ince i t i s so short of f u e l . Ferrous metallurgy  consumes natural gas at the large  integrated iron and s t e e l complex at Cherepovets.  The m i l l i s  the most expensive producer i n the whole of the USSR due to the remoteness and high cost of both ore (from the Kola Peninsula) —  Vechernyy Leningrad, March 26, 1963, Trans, i n US JPRS 21250 and Severo-Zapad RSFSR, p. 174. 52 Severo-Zapad RSFSR, p. 202.  115. and  c o a l (from the Pechora B a s i n ) .  p i g i r o n and  the ready a v a i l a b i l i t y  Because of the h i g h c o s t of of scrap (from Leningrad  "well as from the C e n t e r ) , open-hearth and  f u r n a c e s are economic, 53  t h e i r c a p a c i t y w i l l be s u b s t a n t i a l l y i n c r e a s e d .  Both i r o n  s m e l t i n g and s t e e l making, t h e r e f o r e , b e n e f i t s g r e a t l y from u t i l i z a t i o n of n a t u r a l gas.  These b e n e f i t s , however, are  e r e l y l i m i t e d by the modest amount of gas a v a i l a b l e . o s i t s of Saratov O b l a s t ' , which a l s o serve G o r k i y  and  The  (fifth  c i t y of the USSR) Ivanovo and Y a r o s l a v l , are unable much f o r the c i t y of Cherepovets,  the  sevdeplargest  to spare  i t i s significant 54 p i p e l i n e works f a r below f u l l c a p a c i t y . THE BALTIC REPUBLICS AMD  as  that the  BYELORUSSIA  B y e l o r u s s i a , the three B a l t i c R e p u b l i c s and  the a d j o i n -  i n g K a l i n i n g r a d O b l a s t ' of the RSPSR form the poorest economic r e g i o n of the i n h a b i t e d p o r t i o n of the USSR. than the L e n i n g r a d Region,  but w i t h 15 and a h a l f m i l l i o n i n 55  h a b i t a n t s - only 44 percent of them urban both the raw  m a t e r i a l and  Somewhat l a r g e r  energy  - t h i s area l a c k s  r e s o u r c e s as w e l l as the  p o p u l a t i o n necessary f o r i n d u s t r i a l development.  skilled  In c o n t r a s t  to the Leningrad Region which can a t l e a s t p r o f i t from having c l o s e to a q u a r t e r of the h y d r o - p o t e n t i a l s of European R u s s i a 53 54  1963, and  Severo-Zapad RSPSR, p.  191.  G.S. U r i n s o n et a l : op. c i t . , Gazovoye Delo, Ho. 4, p. 5-7. 55 Harodnoye Khozyaistvo SSSR v 1962 g, p. 10, 20, 33 34.  116. nearby ( i n K a r e l i a , Murmansk Oblast', Arkhangelsk the B a l t i c , B y e l o r u s s i a , and the neighbouring deficient al30  in this  56 Oblast', etc.*),  areas are very  resource.  Even though manufacturing  c a p a c i t y i s l i m i t e d and  plans  f o r i n d u s t r i a l development emphasize l a b o u r - i n t e n s i v e i n d u s t r i e s , the c h r o n i c poverty major problem.  i n energy has been and  continues to be a  More than 60 percent of the f u e l needs of both  L a t v i a and L i t h u a n i a are s u p p l i e d by f u e l s brought i n from other r e g i o n s , w h i l e i n E s t o n i a - - which r e l i e s e x t e n s i v e l y on i t s 57 shale r e s o u r c e s — the f i g u r e i s about 27 p e r c e n t .  Byelorussia  has leaned e x t e n s i v e l y on i t s very s u b s t a n t i a l , though uneconomic, peat r e s o u r c e s and  on f i r e w o o d .  These two m a t e r i a l s made  up n e a r l y 60 percent of the f u e l mix as l a t e as 1958. Almost 40 percent was s u p p l i e d by Donets, L'vov and even by Moscow 58 Basin coal.  The B a l t i c and B y e l o r u s s i a , t h e r e f o r e , r e p r e s e n t s  a r e g i o n where the s u b s t i t u t i o n of hydrocarbon f u e l s f o r s o l i d f u e l s ( e s p e c i a l l y c o a l and peat) i s very e c o n o m i c — a l l the more so s i n c e i t i s c l o s e r to gas, though not to o i l , the L e n i n g r a d a r e a .  fields  Prom Dashava (Western Ukraine)  than  to Minsk  the d i s t a n c e i s only 600 k i l o m e t e r s , w h i l e V i l n i u s and R i g a are an a d d i t i o n a l 100 and 350 k i l o m e t e r s away. 56 57 58  D i s t a n c e s from the  G e o g r a f i c h e s k i y e Problemy Krupnykh Rayonov SSSR, p.141. I b i d . , p.  162.  Mi. L . P o l o n s k i y and M. SSR, Uchpedgizdat, Moskva 1964, Problemy, p. 69.  I . Rostovtsev: B y e l o r u s s k a y a p. 158 and G e o g r a f i c h e s k i y e  117. large Shebelinka f i e l d i n the Eastern Ukraine are only s l i g h t l y greater.  Dashava gas i s 1.5 to 2 times cheaper even than Volga 59 f u e l o i l and several times cheaper than coal (see also page200). The region i s supplied -with natural gas today through a three-pronged pipeline from the Dashava deposits-- one prong  leading to Minsk, another to Riga through V i l n i u s , the t h i r d to Grodno on the P o l i s h border.  Aside from the Grodno branch l i n e  which i s probably smaller, these are large diameter lines of 28 and 32 inches.  Once a l l f i v e compressor  stations are completed,  d a i l y capacity on the Dashava-Minsk section w i l l exceed 22 m i l l i o n cubic meters, or 5.6 b i l l i o n cubic meters per year, 60 assuming a 70 percent load-factor.  By the end of 1965, the  B a l t i c Republics and Byelorussia are to receive annually s i x b i l l i o n cubic meters of gas from the West-Ukrainian f i e l d s . Lithuania w i l l take approximately 1.8 b i l l i o n , L a t v i a 1.2 l i o n and Byelorussia about 3 b i l l i o n .  bil-  I f the plan i s f u l f i l l e d ,  natural gas w i l l account f o r some 30 percent of the fuel mix 61 i n both L a t v i a and Lithuania and f o r 24 percent i n Byelorussia. It i s a proof of the lingering idea of regional autarky and of the "marginal  11  importance of the B a l t i c Republics that  i t i s not planned to introduce natural gas to Estonia i n the near future. The exploitation of o i l - s h a l e — which at present 59 Referativnvy Zhurnal, No. 7, E43, 1963. 60 Yu. I. Bokserman: op. c i t . , p. 126. 61 Referativnvy Zhurnal. No. 3, E52, 1962, and M. L. Polonskiy and M. I. Rostovtsev: op. c i t . , p. 158.  118. supplies close to three-fourths of a l l f u e l consumed— -will he intensified.  As today, demand for gas i n the Republic w i l l con-  tinue to he s a t i s f i e d from shale, even though shale gas i s four to f i v e times more expensive to produce than natural gas.  It  i s planned to reduce gradually the export of shale gas to Len62 ingrad and u t i l i z e the amount at home. Eventually, Estonia may  receive natural gas from Leningrad through the existing 63 pipeline f o r shale-gas — a course of action much doubted by the writer.  However, the price of gas at present  i s fixed i n  such a way  that even i n that case gas would be much more expen64 sive i n Estonia than i n the other B a l t i c Republics. Compared to more c r u c i a l areas of the European USSR, the  region i s s t i l l very poorly supplied. received natural gas i n 1963  Only 242,000 apartments  or 1.2 m i l l i o n people i f we assume  five persons per l i v i n g quarters.  This i s merely 8 percent  of  the region's population, f a r below the average for Soviet Europe 65 (16 percent) or even for the whole of the USSSR. two-thirds  More than  of the apartments which consume gas i n the region  receive their supply not through the Dashava-Baltic  pipeline  system but by r a i l from gas processing plants (liquefied propane 62 63 64 65  Geograficheskiye Ibid., p.  Problemy Krupnykh Rayonov SSSR, p.163.  163.  T. Brents: op. c i t . , Gazovoye Delo, No. 8, 1963,  Gazovaya Promyshlennost", No. 10, 1963, Narodnoye Khozyaistvo SSSR v 1962 g, p. 20-24.  p. 55  and  p.  46.  119. and butane).  66  This indicates that the greater part of the  i s not considered  area  v i t a l enough to j u s t i f y the construction of  branch p i p e l i n e s . In the production  of e l e c t r i c a l energy per capita the  B a l t i c lags behind most regions of the USSR. A l l Republics generate l e s s than the national average - Byelorussia less than 67 one-third as much.  Map  8 shows the d i s t r i b u t i o n of power  stations and the modest share of natural gas i n the of e l e c t r i c i t y .  Only a few  production  stations are running on gas and  of these are not yet f u l l y completed.  two  The one serving Minsk  i s a thermal e l e c t r i c center, providing not only e l e c t r i c i t y but also by-product heating  ( t o p l i f i k a t s i y a ) for the c i t y .  The  most important, however, i s the very large station t h i r t y miles west of V i l n i u s .  Its f i r s t  section, with a capacity of  m i l l i o n kilowatts, w i l l start functioning i n 1965. 68  1.2  Its u l t i -  mate capacity, however, w i l l be double that. Natural gas i s not going to play a major role i n the chemical industry e i t h e r . duction of f e r t i l i z e r s .  Its only contribution i s i n the pro-  A large plant producing ammonia and i t s 69 derivatives now uses gas at Grodno, while another one i s under 70 construction i n Lithuania. As i n the Leningrad Region, however, 66 Ibid., (Gazovaya Promyshlennost'), p. 55. 6 7 Geograficheskiye Problemy Krupnykh Rayonov SSSR. p. 164 and 181. 68 New York Times, June 24, 1962, p. 60. 69 M.L. Polonskiy and M.I. Rostovtsev: op. c i t . , p. 74. 70 Geograficheskiye Problemy, p. 168.  120. much, of the planned production of n i t r i c f e r t i l i z e r s i s to be based on the hydrogen gases of o i l shales, which are actually claimed to be simpler and more economic raw materials than 71 natural gas. The l a t t e r w i l l be used primarily as f u e l .  THE URAL REGION The U r a l Economic Region r i v a l s the Eastern Ukraine as major center of heavy industry.  It accounts f o r a t h i r d of  s t e e l smelting and r o l l e d steel output and up to 30 percent of 72 heavy machine b u i l d i n g .  In addition, a large portion of the  nonferrous metallurgical capacity of the USSR i s concentrated within i t s boundaries.  Despite i t s i n d u s t r i a l pre-eminence and  large area (the size of Spain), the region s t i l l contains only 14 m i l l i o n people.  Two thirds of these, however, l i v e i n c i t i e s , 73  which have grown very fast over the l a s t quarter of a century. The Urals received the l i o n ' s share of people and industry transfered from European Russia during the war and maintained i t s momentum up to the present day. This region accounts for about a s i x t h of a l l f u e l consumed i n the USSR, roughly the same share as i t s r i v a l , the 74 Donets-Dnieper. Unlike the l a t t e r , however, the Urals has been 71 Ibid., p. 167-69. 72 Geograficheskiye Problemy Krupnykh Rayonov SSSR, p.294 73 Narodnoye Khozyaistvo RSPSR v 1962 godu. p. 9,10,13; and Narodnoye Khozyaistvo SSSR. v 1958 godu, p. 20-30. 74 D.I. Maslakov: Toplivnyy Balans SSSR. Gosplanizdat, Moskva, 1960, p. 160 and "Statisticheskiye Materialy," Yestnik S t a t i s t i k i , No. 5, 1962, p. 91.  121  Map 9  THE  A  Oil field  •  Bituminous  •  Lignite  *  station  Hydroelectric station (under c o n s t r u c t i o n ) Thermal  station  Thermal (under  station construction)  Iron  steel  and Gas  -o-  REGION  coal  Hydroelectric . "  URAL  plant  pipeline  Gas  pipeline (under construction)  Oil  pipeline  from "Gazli  Scale; I cm.  6 0 km.  122. perpetually handicapped "by f u e l and power shortage and today probably imports more f u e l than any other region of the USSR. Coal has been the mainstay of the Uralian economy, accounting f o r 80 percent of a l l f u e l consumed i n 1958.  Forty-one m i l l i o n  tons of that coal, however, comprising close to a h a l f of the t o t a l by weight but two-thirds by c a l o r i f i c content, had to be brought i n from the Kuzbass and from the Karaganda-Ekibaztuz f i e l d s 1500 and 800 miles away.  The burden of such "imports*  by r a i l , and the high cost of the Ural l i g n i t e s themselves, makes i t imperative to raise the share of natural gas and f u e l o i l i n the energy-balance of the region. While the U r a l i s conveniently situated with respect to the major oil-producing region of the country, the Volga, i t l i e s f a r away from the p r i n c i p a l proved reserves of natural gas.  The only deposits that can spare large amounts are i n  Middle A s i a and i n the Lower Ob Valley, 1400 and 900 miles from Sverdlovsk respectively.  The f i r s t branch of the Bukhara-  Ural 42-inch trunkline was completed i n the autumn of 1963 and i s currently being doubled.  Another 42-inch l i n e i s under con-  struction from the Berezovo (Lower Ob) area, where the recent discovery of the large Punga f i e l d guarantees adequate supplies. By the end of 1965, the Urals were to use over 25 b i l l i o n cubic meters of natural gas, accounting f o r over 30 percent of  75 D. I. Maslakov: op. c i t . , p. 160.  123. 76 f u e l requirement. There appears to be some delay i n t h i s plan, however.  The Middle Asian pipeline transported, at most, seven  b i l l i o n cubic meters i n 1964, planned output for 1965 i n Uzbek77 istan has been scaled down to 17 b i l l i o n , and the Berezovo l i n e i s but h a l f finished today.  Yet there i s no doubt that  very large quantities of gas w i l l soon reach the Urals.  The twin  l i n e s from Bukhara are to transport 21 b i l l i o n cubic meters, while 78 the  l i n e from the Lower Ob could e a s i l y handle 10 b i l l i o n .  Besides these two areas, the Urals also receive gas from the Volga.  Over some years now, two small l i n e s , from Bashkiria and  from Orenburg Oblast  1  have been supplying a few hundred thousand  cubic meters to the metallurgical works of Magnitogorsk and Orsk, and are now connected to the trunkline from Central A s i a . As i n the Eastern Ukraine, the major consumers of gas are,  and w i l l be, the metallurgical plants.  Of the 21 b i l l i o n  cubic meters, f o r instance, to be sent north from G a z l i , over 12 b i l l i o n w i l l be used by metallurgical plants, four and a h a l f b i l l i o n by power stations and roughly a b i l l i o n by the domestic 76  N. P. Mun'ko: Gazovaya Promyshlennost Uzbekistana, Gosizdat Uz SSR Tashkent, 1963, p. 84; Yu. I . Bokserman et a l : "•Nekotorye Voprosy Gazovogo Snabzheniya Narodnomu Khozyaistvu, '* Panovoye Khozyaistvo, March, 1960, p. 29; K.V. Dolgopolov: op. c i t . , p. 101. There i s some disagreement a r i s i n g between the authors. Mun'ko, writing i n 1963, places the share of gas as 35^, the l a t t e r two authors, writing i n 1959-60, put i t as 27 and 28%. 77 Theodore Shabad: News Notes, Soviet Geography, Peb. 1964, p. 59 and 60. 78 Yu. I . Bokserman: op. c i t . , p.136 and Table 54,p.143.  124. and municipal sector.  1.8 b i l l i o n w i l l be needed to run the 79  compressor stations of the pipeline i t s e l f .  Gas w i l l have a  v i r t u a l monopoly i n furnaces (except, of course, i n blast furnaces), while the highly sulfurous f u e l o i l and l o c a l l i g n i t e w i l l be (and are) used almost exclusively under b o i l e r s .  Save  for coking coal, "imports" of coal w i l l nearly come to an end 80 and production from l o c a l basins w i l l be reduced. SUMMARY The four regions treated i n t h i s chapter are characterized by varying degrees of poverty i n f u e l resources, and they a l l import large quantities of natural gas from distant producing areas.  Since gas i s a quality f u e l , the delivery of  which, i n addition, requires massive c a p i t a l outlay, the amount consumed i n each region depends primarily on the r e l a t i v e importance of that region to the national economy.  Thus both the  Industrial Center and the Urals (even today and certainly i n the future) consume much more than the Leningrad area, Byelor u s s i a and the B a l t i c combined.  The contribution gas makes to  the f u e l balance i s also considerably higher i n the former two regions than i n the l a t t e r ones. 79  While, thanks to t h i s f u e l ,  P. Galonskiy: "Neftyannaya i gazovaya promyshlennost* SSSR," Neftyannoye Khozyaystvo, No. 11, 1963; N.P. Mun'ko, op. c i t . ; p. 30 and Yu. I. Bokserman: op. c i t . , Planovoye Khozyaistvo, March 1960, p. 30. D.I. Maslakov (op. c i t . , p.162) writing somewhat e a r l i e r , gives s l i g h t l y d i f f e r e n t figures. 80 D. I. Maslakov: op. c i t . , p. 162.  125. the output of l i g n i t e and peat i s being reduced i n the Center and i n the Urals, the output of shale and peat i s increased i n the l e s s v i t a l western areas. Though the i n d u s t r i a l sector predominates everywhere, the pattern of consumption varies greatly according c h a r a c t e r i s t i c s of each i n d i v i d u a l region.  to the  Thus i n the Center  power stations account for a disproportionately high share, due largely to heavy i n t e r r u p t i b l e sales during the season of low demand.  In the Urals, some t h r e e - f i f t h s of a l l gas i s to  be used i n metallurgical works.  Since these are very stable  consumers, exhibiting a minimum of seasonal f l u c t u a t i o n , large summer sales to power plants are unnecessary. Leningrad and the B a l t i c also"have t h e i r own tion patterns.  Similarly,  d i s t i n c t consump-  126  Chapter V I  REGIONS WHICH PRODUCE AND CONSUME  127. THE GREATER UKRAINE Second i n population and third i n area, the Ukrainian SSR plays a decisive role i n the economy of the Soviet Union. The industry of the Republic, however*: i s almost wholly concentrated i n f i v e oblasts (out of a t o t a l of 25) i n the eastern extremity of the Ukraine.  Less than a quarter of i t s area,  t h i s Dnieper-Donets Region contains 35 percent of the popul a t i o n and over h a l f of a l l urban dwellers of the Republic. The adjoining western portion of Rostov Oblast  1  i n the R3ESR  i s l o g i c a l l y part of the Dnieper-Donets Region, and i s so treated here.  The rest of the Ukraine - together with the small Mol-  davian SSR i s very highly r u r a l (63 percent), contains no i n dustry aside from Kiev and two or three other c i t i e s , and 1 consumes l i t t l e energy.  These two, very d i f f e r e n t , parts of  the Greater Ukraine, therefore, are dealt with separately. The Donets-Dnieper Region Though r e l a t i v e l y less important than before the war, the Donets-Dnieper area i s s t i l l v i t a l to the Soviet economy, especially i n the sphere of heavy industry.  Despite wartime  devastation and slower growth, i t s t i l l matches the much larger Ural Region i n output of iron and s t e e l , while i n f u e l product i o n i t i s but s l i g h t l y behind the Volga. of  With about 17 percent  the t o t a l , i t i s the largest f u e l consumer i n the USSR,  Narodnoye Khozyaystvo SSSR v 1962 g, p. 22 and 40; "Statisticheskiye Materialy," Vestnik S t a t i s t i k i . No. 5, 1962, p. 91.  THE GREATER  UKRAINE  Lvov ®  A*  \Borislav  Khar'kov  Y%.v:v:-V.-// ':\^V-v.  :  :  Poltavaf. ^V-^ebel'i'nk^^  •"f^tn n^''-i^\  Dashava  Lisichansk ©  ••• Lugansk  :  ^Dnepropetrovsk _ XJorlovkal^... , . 1  Krivoy^jog Coal  &  Brown Coal  •  Oil  A  Gas  #  Iron and Steel Plants  :  oil Pipelines  O O O -  Gas Pipelines  Gas Pipelines (under construction) • ••0-"0— Gas Pipelines (projected)  X  Kishinev  ®-o.  m 9 9  \Zaporozhye •;.  ...jfll /T-." Donetsk^  Mmyyy&0 ^  MOLDAVIA •  v  4  " —  ^  m  • ';V::;::;:;/:V:;-^.-.v :  ZhdanpS  O.. 70dess  O  Dneiper-Donets-Rostov Industrial Region Scale: 1cm.  60 K m .  ^o-.....o- o0  0  .0  0  "O—o  o-o-  129.  2  exceeding the Urals by a small margin.  Coal and natural gas are the two fuels produced i n that i n d u s t r i a l heartland of the Ukraine. important.  Coal i s by f a r the most  Out of a t o t a l of 203 m i l l i o n tons of hard coal  equivalent (7000 Cal per ton) produced i n 1961, accounted for only  percent  natural gas  (16.8 m i l l i o n tons of coal equiv3  alent or 13.9 b i l l i o n cubic meters).  Yet t h i s region i s the  second largest producer of natural gas i n the Soviet Union (after the North Caucasus) and, moreover, a l l t h i s production comes from one single f i e l d , Shebelinka.  In addition to gas,  the Shebelinka deposit also contains condensates, and  although  s t i l l only p a r t i a l l y extracted, the amount produced i s surpassed only by Krasnodar Kray. On account of the predominance of heavy industry i n the economy, the Donets-Dnieper region i s an exceptionally heavy consumer of f u e l .  As with production, the share of gas i s much  below that of coal, and, moreover, t h i s share has been increasing more slowly, than, for instance, i n the Central Region. 1960,  In  the Donets-Dnieper region seems to have consumed between  eleven and twelve b i l l i o n cubic meters of natural gas, matching 2  "Statisticheskiye Materialy," Vestnik S t a t i s t i k i , No. 5, 1962, p. 91; 16 percent i s given for the Donets-Dnieper region excluding the Rostov-Shakhty area. 3 Narodnoye Khozyaystvo SSSR v 1961 g. p. 205 and V. T. Borisov: "Proizvoditel'nost'truda i puti yeye povysheniya v dobyche gaza," G-azovoye Delo, No. 10, 1963, p. 68.  130.  4 the amount u t i l i z e d i n the Center. Recent l i t e r a t u r e , however, complains of the slow growth of gas supply to the industries of the Eastern Ukraine and i t i s unlikely that more than 15 b i l l i o n cubic meters are used today, even though 9 b i l l i o n were planned to be u t i l i z e d i n Donets and Lugansk Oblasts alone by the end 5 of 1965. Because of proximity to the Donets coal b a s i n — which, however, produces very expensive c o a l — the price of gas i s fixed higher than warranted by the presence of the p r o l i f i c Shebelinka f i e l d and the nearness of the North Caucasian de6 posits.  While not s i g n i f i c a n t as a deterrent to use i n an econ-  omy where planned a l l o c a t i o n i s s t i l l the general r u l e , the decision i l l u s t r a t e s the problems of planning organs, which both want to increase consumption and also conserve gas for regions without alternative s o l i d f u e l s . 4  Calculations from data supplied by Vestnik S t a t i s t i k i , No. 5, 1962, p. 91 and 87, give 13.8 b i l l i o n cubic meters f o r the region without the Rostov-Shakhty area. Referativnyy Zhurnal, No. 5, 1962, E15, gives 18.5 b i l l i o n cubic meters for the Ukrainian SSR, from which the three southern oblasts plus Zakarpatiya must be excluded since they were not yet receiving gas. Bokserman claims that 3.5 b i l l i o n cubic meters were consumed by the nondomestic and municipal sectors of Donets and Lugansk oblasts and 2.3 b i l l i o n by those of Kharkov sovnarkhoz (essentially Kharkov Oblast) i n 1962 (Yu. I . Bokserman: "Za dal'neyshey uluchsheniye ispol'zovaniya prirodnogo gaza, "Gazovaya Promyshlennost', No. 3, 1963, p . l and Puti Razvitiya Novoy Tekhn i k i ... p. 240. 5 Geograficheskaya Problemy ... p. 191-92 and Yu. I . Bokserman: op. c i t . , Gazovaya Promyshlennost', No.3, 1963, p. 1. 6 T. Brents: op. c i t . , Gazovoye Delo, No. 8, 1963, p. 46.  131. One may note that the Donets-Dnieper Region i s both an exporter and an importer of natural gas.  Shebelinka as yet  supplies only Kharkov Oblast', the Dnieper Bend and Odessa and exports part of i t s production to the Center and even to Leningrad.  The Rostov area, the Donets Basin and Zhdanov receive  gas e n t i r e l y from the North Caucasus, although a pipeline i s planned from Shebelinka to Lisichansk.  By the end of 1965,  the Ukraine as a whole i s supposed to take 8 and a h a l f b i l l i o n cubic meters from the North Caucasus, and most of that w i l l go 7 to Donets and Lugansk Oblasts. As can be expected, ferrous metallurgy i s by f a r the largest consumer i n the region.  Since 1958, when the blast  furnaces of the region f i r s t began to u t i l i z e gas, they experienced an up to 20 percent reduction i n coke consumption, as the following table indicates. B l a s t i n g with gas i n the m i l l s of Donets and Lugansk Oblasts alone (accounting f o r h a l f of the pig iron production of the Ukraine) l e d to a saving of 25 m i l l i o n rubles i n 1960 and 1961. Since coke i s sold at cost price while gas at more than double that of production plus transport cost, the r e a l 8 saving was over 50 m i l l i o n rubles. —  A t l a s SSSR. p. 139j Geograficheskiye Problemy. p. 194 and Referativnyy Zhurnal. No. 1, 1963, E59K. 8 Yu. I . Bokserman: op. c i t . , p. 232.  132. Table XI Coke Consumption per 1 ton of pig iron (in kilograms)  Mills  Without use of Gas (1958)  Reduction i n Coke Consumption (percent)  Using Gas (1960-61)  Makayevka(Kirov m i l l )  864  707  18  Yenakiyevo  840  713  15  831  682  18  Donetsk  1046  856  18  Zhdanov(Ilyich m i l l )  1042  756  27  Zhdanav (Azovstal ) r  Zaporozhstal'  671  658 A  20  Dnieprodzerzhinsk  771.5  687 &  12.3  Lugansk  830  722 A  15.0  Dniepropetrovsk  818  743 &  10.1  & Indicates that data refer to  1960.  . Source: Yu. I. Bokserman, op. c i t . , p. 232 and Z. I* Nekrasov: op. c i t . , Ispol*zovaniye Gaza v Promyshlennosti, Tashkent, 1963, p. 99. The steel m i l l s of the Ukraine pioneered also i n the u t i l i z a t i o n of natural gas i n open-hearth  furnaces.  Since Volga  o i l s are highly sulfurous and the sulfur i s not removed during the r e f i n i n g process, the use of f u e l o i l from Volga crudes, i n these furnaces i s not advantageous.  High quality f u e l o i l  (from Baku and Groznyy) i s expensive and the metallurgical works 9 of the Donbass are attempting to eliminate i t s use e n t i r e l y . 9  Gosplan Ukrainskoy SSR: Voprosy Ratsional'nogo Ispol*zovaniya Toplivno-ener&eticheskikh Resursov, Kiev, 1964,p.107.  133. The open-hearth furnaces of the Ukraine have been operating mainly on a mixture of coke-oven and blast-furnace gases, w h i c h — though f r e e l y a v a i l a b l e — have low heat value.  Considerable  attention i s , therefore, devoted to the more intensive u t i l i z ation of natural gas.  In 1960, out of the ten m i l l s of the  Eastern Ukraine, eight used some natural gas i n their openhearths, though only at Makayevka and Zaporozhe did i t s share exceed AQ% of the t o t a l fuel-mix of these furnaces.  The use of  natural gas i s increasing since by-product gases are more economically u t i l i z e d  i n the chemical industry, especially i n the 10  production of f e r t i l i z e r s . The Donets-Dnieper of a l l thermal e l e c t r i c i t y  region produces close to f o u r - f i f t h s i n the Ukraine.  Though most stations  run on c o a l — especially coal dust which no other consumer can u t i l i z e economically— natural gas nevertheless accounts f o r about a f i f t h of a l l f u e l used by power plants.  As can be ex-  pected, the share of gas i s smallest i n the stations of Donets and Lugansk Oblasts (less than 9%), but i s higher i n those of Zaporozhe and Dniepropetrovsk Oblasts and very high i n those of 11 Khar'kov Oblast.  A r e l a t i v e decrease i n the use of that qual-  i t y fuel by power plants, however, seems l i k e l y , and the projected use of Dnieper brown coal i n new thermal plants w i l l 10 Ibid., p. 94, Table 2 and p. 95-100. 11 Voprosy Ratsional*nogo Ispol*zovaniya Toplivnoenergeticheskikh Resursov, p. 18-19 and D.I. Maslakov: op.cit., p. 114-15.  134. further strengthen the preponderant p o s i t i o n of coal i n t h i s 12 sector. As l i g h t and consumer oriented industries are s t i l l 13 poorly developed i n the region,  they do not consume much  gas e i t h e r . In the s t i l l small-size chemical industry, East Ukrainian gas could play a major r o l e , not only as f u e l hut also as raw material.  The Shebelinka deposit i s one of the major sources  of condensates i n the USSR, even though they are present i n lower concentration than, f o r instance, i n the f i e l d s of Krasnodar Kray.  In addition, the gas contains a great deal of  ethane and some propane, to pentane f r a c t i o n s as well (see Table V, Chapter I I , p. 40). A very large chemical combine i s now under construction at Shebelinka, which w i l l u t i l i z e condensates and gas f o r the production of organic 14 products, as well as of n i t r i c f e r t i l i z e r s .  petrochemical The f u e l also  w i l l undoubtedly be gas. Two large ple,nts i n the region, at Lisichansk (Donets Basin) and at Novocherkassk (near Rostov) use Stavropol' gas for the manufacture of ammonia and i t s derivatives.  Since this gas i s very dry, i t i s not suitable  for the making of o l e f i n s , but at least one of the plants (Novocherkassk) combines ammonia production with the manufac12 Geograficheskiye Problemy. p. 202. 13 Ibid., p. 203 and Voprosy Ratsional'nogo Ispol'zovaniya Toplivno-energeticheskikh Resursov. p. 53-34 (for Zaporozhe Oblast ) 14 V.M. Vol'pe and V.S. Klupt: op. c i t . , 1964, p. 26. 1  135. 15 turing of acetylene and uses the l a t t e r as organic intermediate. Nevertheless, an expansion of organic petrochemical capa c i t y i s more economically based on the condensates and gas of Shebelinka and LPG brought i n from nearby Krasnodar Kray. Unfortunately, less than h a l f of the condensates produced today from the wells of Shebelinka are separated from the gas (8.6 m i l l i o n tons i n 1962), the rest i s allowed to enter the trunkl i n e s , where they increase the f r i c t i o n , reduce the pressure and thus impair the e f f i c i e n c y of networks.  Nor i s the gas  processed i n order to s t r i p o f f the l i g h t e r fractions (ethane 16 to pentane),  which are thus burned as f u e l s .  A more r a t i o n a l  u t i l i z a t i o n of the resources of Shebelinka i s undoubtedly necessary i f the Ukraine i s to develop a sizable organic petrochemical industry - a l l the more so since the petroleum r e f i n i n g 17 capacity of the Republic i s extremely l i m i t e d . The Rest of the Ukraine and the Moldavian SSR Very l i t t l e information i s available about the consumption of natural gas i n the rest of the Ukraine.  The Pre-Carpathian  region of the Republic contains the old, but s t i l l important Dashava deposits, which produced 6 b i l l i o n cubic meters i n 15  Inset, Gazovaya Promyshlennost*, No.3, 1964 and Khimiya i Tekhnologiya, No.7, 1963, p. 41-43. 16 A.P. Yakovenko: Ratsional*no ispol zovat* gazovyy kondernsat," Gazovoye Delo. No. 12, 1963, p. 47. 17 See two chapters, dealing with the use of Shebelinka condensates i n the chemical industry, i n Voprosy Ratsional'nogo Ispol*zovaniya Toplivno-energaticheskikh Resursov, p.164-178. M  1  136. 1961.  18  Probably l e s s than h a l f of t h i s output i s consumed i n  the Ukraine, s i n c e the Dashava f i e l d s are the fuel-hungry Moscow.  the only s u p p l i e r s of  B a l t i c and B y e l o r u s s i a and  Only two  even send gas  l a r g e c i t i e s i n the U k r a i n i a n  from these f i e l d s : K i e v and L'vov.  SSR  to  receive  gas  The Dashava-Kiev p i p e l i n e  pumped 3 b i l l i o n c u b i c meters of gas i n 1962 (2.6 b i l l i o n i n . 19 1961), but a l a r g e p o r t i o n of t h a t — perhaps c l o s e to a half—  continued  on t o Moscow.  K i e v r e c e i v e d l e s s than 100  In 1959,  domestic consumers i n  m i l l i o n c u b i c meters, which would  i n d i c a t e that t o t a l consumption by the c i t y was  20  billion.  L'vov being  much l e s s than t h a t .  only a t h i r d of the The  s i z e of K i e v ,  and  reached by a p i p e l i n e from Shebelinka,  the S t r a i t  It i s doubtful much the supply are r e l a t i v e l y  of gas  in  while  i s pro-  of Kerch.  t h a t the Dashava f i e l d s could to the U k r a i n i a n  s m a l l , and,  cities.  increase  These d e p o s i t s '  s i n c e the r e g i o n i s by now  p r o s p e c t e d , f u r t h e r d i s c o v e r i e s are u n l i k e l y .  18  used  Odessa, as w e l l as K i s h i n e v  another l i n e from the Kuban to the Crimean P e n i n s u l a jected across  one  l a r g e c i t i e s of the Southern Ukraine,  such as Kherson, N i k o l a y e v M o l d a v i a , are now  below  By  1966,  well they  C a l c u l a t e d by s u b t r a c t i n g the p r o d u c t i o n of the Sheb e l i n k a f i e l d p l u s the p r o d u c t i o n of o i l - w e l l gases from the t o t a l p r o d u c t i o n of the U k r a i n e : Promyshlennost' SSSR, 1963, p. 214-217 and V.T. B o r i s o v : op. c i t . , Gazovoye D e l o , No. 10, 1963, p. 68. 19 Yu. I . Bokserman, op. c i t . , p. 118. 20 S.U. Landsman et a l : "Udel'nye p o k a z a t e l i , p o t r e b l e n i y a gaza v zhilom sektore gorodov," Gazovaya Promyshlennost* , No. 2, 1963, p. 30.  137. are called  upon to d e l i v e r 6 b i l l i o n cubic meters per year to  Byelorussia and the B a l t i c , and these regions, therefore, w i l l surely claim most of the increase i n production.  Many of the  smaller c i t i e s i n the Western Ukraine, however, receive propane and butane from gas-processing plants.  340 thousand apartments  i n the Republic as a whole were served with LPS i n 1962, most 21 of them west of the Dnieper. The Western Ukraine produced 1258.7 m i l l i o n 22 of gas from o i l wells i n 1963.  cubic meters  This amount w i l l increase but  slowly since the region produces only a small amount of petroleum, and 70 percent of the gases released with o i l i s now utilized.  A l l of t h i s , apparently, i s consumed l o c a l l y , 23  almost exclusively as f u e l . gas-processing  but  The Western Ukraine has but  plant of small capacity at B o r i s l a v .  one  The "bottled  gas, delivered to households i n the Republic, therefore, must come from other regions, probably the North Caucasus.  As Table Y  (Chapter I I , p. 40) shows, the o i l - w e l l gases of the Ukraine are r i c h i n the ethane to pentane f r a c t i o n s : their use without cessing i s economically  pro-  irrational.  In the Western Ukraine, thermal stations use much more gas than i n the Donets-Dnieper Region, although the t o t a l amount of e l e c t r i c i t y generated i s only about a seventh of the t o t a l . 21 "Gazovaya Promyshlennost' v 1962 g," Gazovaya Promyshlennost' , no. 10, 1963, p. 55. 22 Promyshlennost' SSSR, 1963, p. 216-217. 23 Pravda, A p r i l 27, 1964, p. 2.  138. (The  W e s t e r n and  Southern Ukraine  of a l l e l e c t r i c i t y about t w o - t h i r d s  combined p r o d u c e b u t  i n the R e p u b l i c )  o f the  I n 1961  f u e l u s e d by  gas  a  fifth  accounted  power p l a n t s  i n the  for  South  West E c o n o m i c R e g i o n w h i c h b u r n e d c l o s e t o 3 m i l l i o n t o n s o f 24 nominal f u e l equivalent. The t h r e e l a r g e s t s t a t i o n s r u n n i n g on gas  are  the L ' v o v and  TETs.  Another middle-sized 25  urgan i n Moldavia. conveniently itative  uses.  The  the  and  gas  and Mari  Byelaya and  region.  the  i n order  c o u l d be  economic r e g i o n  northward along  much g r e a t e r u s e  the r e g i o n  THE The  i s nearing  completion  Western Ukraine contains  of e l e c t r i c i t y  In p a r t i c u l a r ,  fertilizers  one  l o c a t e d c o a l b a s i n near L'vov.  voices urging  generation  D o b r o t v o r r e g i o n a l p l a n t s and  great  at  Kuch-  small  but  There are of t h i s  utilized  need  in their  author-  coal for  t o f r e e n a t u r a l gas  i s i n great  Kiev  for  the other  of  nitric 26 production.  VOLGA REGION of the river  v a l l e y s as w e l l .  Volga  and  For  the  present  a l s o be  This area,  of France,  size  extends from  i n c l u d e s the  C h u v a s h ASSR's w i l l the  a  the  Volgograd  l o w e r Kama  a n a l y s i s , the  t r e a t e d as p a r t contains  of  roughly  the 18  24 Voprosy Ratsional'nogo Ispol*zovaniya Toplivnoe n e r g e t i c h e s k i k h R e s u r s o v , - p. 16-^19. 25 I b i d . , p . 18; I z v e s t i y a , M a r c h 1, 1964, p . 1 and S.U. Landsman e t a l t op. c i t . , G a z o v a y a P r o m y s h l e n n o s t ' . No. 2, 1963, p . 30. 26 E k o n o m i c h e s k a y a G a z e t a , D e c . 7,1963, p . 8 and B. J a r a m c h i s h i n : op. c i t . , E k o n o m i k a R a d i a n s k o y U k r a i n e , No. 1, 1963, p . 72.  Map  139  11  THE  VOLGA  MARI  REGION  BASHKIR  ASSR  TATAR Kazan'  ASSR  A S S R  Ufa*  Al'me.t'evsk  CHUVASH ASSR  A-<#  A  UI'ya o«ok^?s n  k  Tuymazy  Buguruslan  J  A kuybyshev SyzratT Orenburg  Saratovi  -^Stepnoye A  GAS  A  OIL FIELD  <$)  GAS  FIELD  PROCESSING  ^  HYDROELECTRIC  JL-  THERMAL  ^  fuel GAS  'Volgograd  ®-  OIL  Scale:  PLANT STATION  STATION  (Gas  oil) PIPELINE PIPELINE  1 cm.  60  km.  and  140. m i l l i o n people, with a rate of growth nearly twice the national 27 average since 1939.  Though i t s Industrial Revolution came l a t e r  than that of the Urals and Kuznets Basin, i t was just as spectacular.  Between 1940 and 1956,  i n d u s t r i a l output i n i t s central  oblasts and ASSR's increased faster than i n any other part of 28 the Soviet Union save for Novosibirsk Oblast'. Today the Volga 29 contributes close to one-eighth of the manufacturing.  The  most dramatic increase took place i n the production of energy: presently with as much as one-third of the t o t a l , the region i s the largest f u e l producer  i n the USSR, exceeding even the Donets30 Pridnieper area or, indeed, the whole of the Ukraine. In con31 t r a s t , i t contributed only 8 percent even as late as 1955. Natural gas represents less than a twentieth of the 32 region's f u e l production,  but i t i s of great importance both  l o c a l l y and on the national scale.  Roughly a t h i r d of a l l gases  produced27 are from o i l wells (perhaps f i v e b i l l i o n cubic meters D. J . Hooson: op. c i t . , p. 69. 28 Stephen G. Prociuk: "The T e r r i t o r i a l Pattern of Indust r i a l i z a t i o n i n the USSR," Soviet Studies, July, 1961, p. 78. 29 D.J. Hooson, op. c i t . , p. 68. (Hooson includes Perm Oblast' and parts of Kirov Oblast', too, i n h i s region. However, since he excludes Volgograd Oblast', the share-- close to onee i g h t h — should be about correct for the present analysis.) 30 Yu. I. Bokserman: op. c i t . , p. 29, Table 19 and p. 7, Table 5; Promyshlennost' SSSR. 1963. p. 194-95, 206-97, 214-15. The following conversion factors were used: 1 ton of hard coal= 1 ton of nominal f u e l ; 1 ton of o i l = 1.43 ton of nominal f u e l ; 1000 cu.m. of free gas=1.21 ton of nominal f u e l ; 1000 cu.m. of o i l - w e l l gas=1.3 ton of nominal f u e l . 31 D. B. Shimkin: op. c i t . , p. 31, Table 5. 32 See footnote 30.  141. i n 1962-63), even though only 60 percent of these gases— released 33 i n the course of petroleum production-- i s u t i l i z e d .  In view  of the emphasis given to the petrochemical industry, the importance of t h i s resource cannot be overestimated. In contrast to i t s high share of f u e l production, the Volga i s s t i l l a modest consumer of f u e l , taking but 6.1 percent 34 of the t o t a l i n 1960. Most of the petroleum and perhaps a t h i r d of a l l natural gas produced leave the region to enter into 35 the energy-mix of other areas. Though the greatest storehouse of hydrocarbon f u e l s i n the USSR, the Volga s t i l l has to depend on imported coal for much of i t s energy need. for  Coal accounted  over 45 percent of the fuel-mix as late as 1958, while the  share of o i l and gas stood at 24 percent.  By the end of 1965  o i l and gas are to contribute 33 and 40 percent respectively but coal w i l l s t i l l remain important, supplying over a f i f t h of 36 a l l f u e l consumed. It i s interesting to observe that at the former date 33  Yu. I. Bokserman: op. c i t . , p. 64, Table 26; A. S. Shaposhnikov: "Sredne-Volzhskiy ekonomicheskiy rayon - forpost khimiya,"- Vestnik Moskovskogo Universiteta, Seriya Geografiya, No. 2, 1964, p. 6. 34 "Statisticheskiye Materialy," Vestnik S t a t i s t i k i , No. 5, 1962, p. 91. This figure should be s l i g h t l y higher since the o f f i c i a l boundaries of the Volga Economic Region i n 1960 were somewhat d i f f e r e n t from those used i n the present analysis. 35 Estimated from data i n Yu. I. Bokserman: op. c i t . , p. 29, Table 19; Vestnik S t a t i s t i k i , No. 5, 1962, p. 91; G.S. Urinson: op. c i t . , Gazovoye Delo, No. 4, 1963, p. 5 and 7; Geograficheskiye Problemy Krupnykh Rayonov SSSR, p. 219. 36 Ibid., (Geograficheskiye Problemy), p. 219.  142. natural gas was  on par with, o i l i n the f u e l mix of the Volga  and today probably exceeds i t by a s l i g h t margin despite the fact that i t represents but a twentieth of the region's hydrocarbon output.  O i l being the more v e r s a t i l e and valuable pro-  duct, i s indispensable i n every region, even i n energy-saturated Central S i b e r i a .  I t i s also much cheaper to transport over long  distances than gas.  F i n a l l y , the shortage of gas-processing  f a c t o r i e s as yet prevents the large-scale processing of o i l well gases which, therefore, are mostly consumed l o c a l l y and as fuel.  At present, gas by pipeline i s supplied to other regions  from Saratov and Volgograd Oblasts and-- to a very limited e x t e n t — from Orenburg Oblast  1  and Bashkiria, since only here  are free gases produced i n s u f f i c i e n t quantity to j u s t i f y the construction of trunklines. A modest amount of LPG i s sent to other regions by r a i l from the few gas-processing plants of the Middle Volga. The Volga Region today produces a f i f t h of the country's natural gas, a share which i s soon to be s i g n i f i c a n t l y  reduced.  The present production rate however, i s severly taxing the resources of the area, and save for the Azerbaidzhan deposits, the Volga f i e l d s have the highest depletion rate i n the USSR. Only Volgograd Oblast' i s i n a better position due to r e l a t i v e l y 37  large resources and low rate of production to date.  A pipe-  l i n e i s already complete, however, to send Volgograd gas 37  Yu. I. Bokserman: op. c i t . , p. 29, Table 19.  through  143. the to  Saratov-Gor'kiy supply  to  full  t i o n c a r r i e d on  capacity.  t h r o u g h the  ing  and  The  Volga,  gas  e s p e c i a l l y i f the  a  step  the  the  t r u n k l i n e , which Saratov 38  Soviet  press  therefore,  quently  on  this plan  for  of  data  the  given  share  of  much h i g h e r opment The  The  which could  disappoint39  to other  importer  build-up  of t h e  explora-  of  areas. natural  i s accelerated-  potentialities  is a  c o u r s e most f r e -  serious  postpone  of  the  difficulties— realization  of  decades. the  utilization  V o l g a R e g i o n as f o r Saratov  than  of n a t u r a l gas  a whole i s not  Oblast  1  building material  of the  switch  industrial  tapping  intensive have been  s o o n become an  present  page 6 4 —  the  years  However, i t i n v o l v e s  B r e a k d o w n on omy  few  of  l o c a t e d C a s p i a n Lowland 40  advised.  mentioned  past  result  recommends a  could  strongly urged.  conveniently  The  Oblast' i s unable  the n a t i o n a l a v e r a g e —  region  and  a v a i l a b l e , but  is illuminating. industry  also points  i n the  The  very  ( b r i c k s , cement, a t t e s t s the  to the  general  rapid  econthe high glass)rf devel-  l a c k of  coal.  a l m o s t f o u r f o l d i n c r e a s e p l a n n e d f o r c o n s u m p t i o n by the 38 G-.S. U r i n s o n e t a l : op. c i t . , G a z o v o y e D e l o , Ko. 4, 1963, p . 5. 39 R o b e r t E . K i n g ; op. c i t . , A m e r i c a n A s s o c i a t i o n o f P e t r o l e u m G e o l o g i s t s , B u l l e t i n , A u g . 1964, p . 1341. 40 See f o r i n s t a n c e , H. N e k r a s o v : " Z o n a l ' n o y e Razmeshc h e n i y e k h i m i c h e s k o y i n d u s t r i i , " V o p r o s y E k o n o m i k i , Ho. 3, 1964, p . 31-32.  144. Table XII Consumption of Natural Gas by Sectors of Economy in Saratov Oblast ( i n percent of t o t a l ) 1961  1965  (plan)  8.4  10.6  3.7  14.0  23.5  18.3  8.5  9.0  O i l and gas industries  10.8  4.1  Other industries  18.8  2.3  E l e c t r i c stations  26.3  41.7  Municipal and  domestic  Chemical industry Building material industry Machine building  1963,  Source; p. 7.  G. S. Urinson: op. c i t . , Gazovoye Delo. No.  4,  chemical industry shows the future importance of the Volga as the major supplier of petrochemical products i n the USSR but also shows the embryonic nature of that industry to date.  Gas  consumption by e l e c t r i c stations, however, i s certain to be higher i n Saratov (and Volgograd) Oblast than i n the northern part of the region and the difference i s bound to increase sharply.  F i r s t , since the crudes of the southern part of the  Volga Region contain very l i t t l e sulfur, they are used for highoctane motor fuels and f o r lubricants and not under b o i l e r s . Natural gas i s , therefore, the p r i n c i p a l f u e l used by power stations, with coal making up most of the difference.  Further  north, however, i n Kuybyshev Oblast', the Tatar and Bashkir ASSR's, f u e l o i l from the highly sulfurous crudes i s extensively  145.  employed for the generating of e l e c t r i c i t y , especially since the f a c i l i t i e s for the removal of sulfur are s t i l l not adequate 41 and the process i s costly.  At the same time, most gases here  are from o i l - w e l l s and w i l l he used more and more i n the LPG  and  petrochemical industries rather than for common f u e l . Due  to f a i l u r e to increase reserves and due to unsatis-  factory exploitation of o i l - w e l l gases, a shortage of gas i n the Volga i s already apparent, especially i n Kuybyshev Oblast. and the two ASSR's mentioned above.  There were stoppages of  gas to domestic and municipal consumers at times of peak demand in 1963, and a general shortage to the same sector was for 1964.  foreseen  Power stations would also need more gas, and i n  general, the r e l a t i v e l y meager supply of that f u e l i s the chief 42 cause behind the continued imports of coal. Despite d i f f i c u l t i e s , discussed l a t e r , the Volga Region exhibits i n the whole of the USSR the most favourable conditions for the creation of a large petrochemical complex, especially , for the manufacturing  of organic chemicals.  The region has  an abundance of a l l three alternate raw materials f o r the production of o l e f i n s : wet natural gas, r e f i n e r y gases and hydrocarbons.  liquid  It accounts for nearly two-thirds of a l l output  of o i l - w e l l gases and boasts perhaps 40 percent of Soviet petro—  Geograficheskiye Problemy Krupnykh Ekonomicheskikh Rayonov. p. 220. 42 Yu. 3?. Zolotarev: "Eormirovaniye nefte - gaza - energokhimicheskogo kompleksa Kuybyshevskogo promyshlennogo uzla," Vestnik Moskovskogo Universiteta, Seriya Geografiya, Ho. 3, 1963, p. 28.  146. leum r e f i n i n g capacity.  43  I t also has an unrivaled  advantage  f o r the production of s u l f u r i c acid - mainly from o i l , hut also from natural gas. As shown above, natural gas i n the Volga does not have a monopoly as a petrochemical raw material. p o s i t i o n , however, i s very favorable.  I t s competitive  Of a l l regions of the  country, i t i s here that wet gases are produced i n the largest quantities, and they are very r i c h i n the ethane to pentane f r a c t i o n s (see Table V, Chapter I I , p. 40). propane-butane  Their l i q u e f i e d  fractions have considerable economic advantages  f o r the manufacturing of o l e f i n s over both petroleum feedstocks and refinery gases, as the following table indicates. Table XIII Cost of Ethylene i n the Volga Region From Three D i f f e r e n t Sources ( i n percent) Liquefied o i l viell gases Cost of ethylene  Liquid petroleum . Products  Refinery Gases  100  120  154  C a p i t a l investment 100  125  175  Source: U. Pedorenko and A. Vayn..: "K probleme razmeshcheniya Khimicheskoy industrii,™ Planovoye Khozyaystvo, l o . 5, 1964, p. 26  43  Kh. Markaryan: op. c i t . . Planovoye Khozyaistvo, No. 9, 1963, p. 77; Robert E. Ebel: op. c i t . , p. 114, Table 34, and p. 116.  147. Despite such favorable indices, the u t i l i z a t i o n of o i l well gases as petrochemical raw material i s proceeding slowly. At the beginning of 1964,  the whole of the Volga Region had but  seven gas processing plants. i n 1963.  Two  of these went on stream only  Some plants s t i l l do not work at f u l l capacity, and  one (at Saratov) operates so i n e f f i c i e n t l y that i t s costs are 44 six to twelve times as high as those of the other f a c t o r i e s . The two plants most frequently mentioned (Tuymazy and Minnibayevo)-- and thus presumably the largest ones— have capaci45 t i e s of about 200 thousand tons of LPG per year. Because of the slow construction of gas-processing works the greater portion of o i l - w e l l gases produced i n the Middle Volga (63 percent i n 1962) are s t i l l used without processing. (And, as mentioned, the u t i l i z e d amount i t s e l f i s only a f r a c t i o n (58 percent) of the t o t a l quantity released from the 46 reservoirs.)  At the same time, the synthetic industry of the  region-- small though i t i s at p r e s e n t — finds i t s e l f short of petrochemical intermediates and has to depend largely on grain and wood alcohol, glycerine, animal f a t and coal-derived raw materials.  Only some 15 percent of the organic chemical indus-  try around Kuybyshev, for instance, i s based on o i l and gas, and 44 A.S. Shaposhnikov; op. c i t . , Vestnik Moskovskogo Universiteta, Seriya Geografiya. No.2, 1964, p. 6; Ekonomicheskaya Gazeta, Feb. 1, 1964; V.I. L i z i n : op. c i t . , Gazovoye Delo, No. 8, 1963, p. 50; Ekonomicheskaya Gazeta, Nov. 9, 1963,p.8. 45 D.A. Tsvetkov: op. c i t . , Gazovoye Delo, No.11, 1963, p. 43. 46 A.S. Shaposhnikov: op. c i t . , Vestnik Moskovskogo Universiteta, Seriya Geografiya, No. 3, 1963, p. 25.  148. much of the hydrocarbon feedstocks used i n the Middle V o l g a — nearly a t h i r d i n 1961—  47 are actually imported into the region.  The modest petrochemical industry i s linked more to o i l r e f i n eries than to gas processing plants, hut even i n t h i s case i t uses the uneconomic dry gases of r e f i n e r i e s while the much more 48 valuable LRG's ( l i q u i d refinery gases) are burned as f u e l . Neither i s the extraction and u t i l i z a t i o n of sulfur proceeding s a t i s f a c t o r i l y .  Although sour gases i n the USSR are  not common, many of those of the Volga area are sulfurous, the o i l - w e l l gases of Kuybyshev Oblast Chapter I I , p. 40).  very highly so( see Table V,  1  Because Volga o i l s also have very high  sulfur content, the region i s i n an ideal p o s i t i o n f o r the manufacturing of sulfur, s u l f u r i c acid and of f e r t i l i z e r s which need this acid.  Despite this fact, no sulfur i s yet extracted from  gas and but l i t t l e from o i l according to available evidence. The gas processing plants of the Volga seem to process only sweet gases.  No such plant exists yet i n Kuybyshev Oblast,  where gases, especially those from o i l wells, are very sour, and the f i r s t factory to process sulfur from o i l was to go on stream only i n 1964-65.  Meanwhile, s u l f u r i c acid for the Volga  chemical f a c t o r i e s i s brought i n from the Urals and the Moscow Region at great cost from plants which u t i l i z e mineral sulfur 47  Yu. IP. Zolotarev: op. c i t . Vestnik Moskovskogo Univ e r s i t e t a . Seriya Geografiya, No. 3, 1963, p. 25; Kh. Markaryan; op. c i t . . Pianovoye Khozyaystvo, No.9, 1963, p. 78. 48 L. Kochetov _et a l : "Bol'shaya khimiye i mezhotraslevoye kombinirovaniye v promyshlennosti," Voprosy Ekonomiki, No. 1, 1964, p. 21. t  149. and pyrite and operate at considerable d e f i c i t s .  49  A massive petrochemical industry along the Volga w i l l require great amounts of both e l e c t r i c i t y and steam.  Favouring  multi-purpose projects, Russian planners f e e l that large thermal e l e c t r i c centers (TETs's) used with excellent results f o r space heating i n many large c i t i e s of the country, would provide both steam and e l e c t r i c i t y i n the most economic manner.  (Although  at present the Volga i s the third largest producer of e l e c t r i c i t y i n the USSR, most of this i s generated by hydro stations.)  Due  to the merely moderate resources of natural gas, however, the substantial increase i n fuel consumption— r e s u l t i n g from the construction of new TETs's— would have to be met by the more expensive f u e l o i l , which however, i s needed throughout 50 country.  the  The production of ammonia and urea, of which the  region consumes a twelfth to a tenth of the nation's t o t a l , would also have to start soon, since these f e r t i l i z e r s are very expensive to transport.  This, too, w i l l increase the  strain  on the gas resources of the Volga.  49  See footnote 44 and Yu. E. Zolotarev: op. c i t . , Vestnik Moskovskogo Universiteta, Seriya Geografiya, No. 3, 1963, p. 25; L. Kochetkov et a l ; op. c i t . , Voprosy Ekonomiki, No. 1, 1964, p. 20; R. Sheyenko: op. c i t . , Ekonomicheskiye Nauki, No. 1, 1964, p. 9. 50 N. Nekrasov: op. c i t . , Voprosy Ekonomiki, No. 3, 1964, p. 31-32.  15G. THE TRANSCAUCASUS Despite occasional gestures to the contrary, the nonSlavic republics of the Transcaucasus  have remained largely  outside the mainstream of Soviet economic l i f e .  The only ex-  ception i s Baku, where the o i l - e x t r a c t i n g and r e f i n i n g indust r i e s have continued to be important. little  Outside Baku, however,  i n d u s t r i a l development has taken place, and the most  notable one, the construction of the iron and s t e e l work at Rustavi, proved to be an economic f a i l u r e . It i s not surprising,  therefore, that notwithstanding  the r e l a t i v e l y large population (lOjr m i l l i o n ) , h a l f of which 51 i s urban, f u e l consumption i n the Transcaucasus i s very l i m i t e d , amounting to less than 3 percent of the country's 52 t o t a l i n 1960. In spite of the presence of r i c h hydrocarbon resources, f u e l o i l and natural gas have s a t i s f i e d only a part of t h i s . l i m i t e d f u e l need - a l i t t l e over two-thirds i n 1958 and some f o u r - f i f t h s i n 1960.  While n e g l i g i b l e  i n Azerbaydzhan,  expensive coal-- mainly from Georgia, but also from the Donets— has played an important role i n the f u e l mix of the other two 53 republics. Neither i s the use of f u e l o i l as advantageous as 51 52  Narodnoye Khozyaistvo SSSR v 1962 g. p . 23-24.  "Statisticheskiye Materialy," Vestnik S t a t i s t i k i , No. 5, 1962, p . 91. 53 D.I. Maslakov: op. c i t . , p. 159 and Vestnik, S t a t i s t i k i , No. 5, 1962, p . 87. There i s considerable discrepancy, too large for a two-year i n t e r v a l , regarding the share of coal i n the f u e l mix of the Transcaucasus. In a l l probability, i t i s caused by different a l l o c a t i o n of f u e l consumption among the three republics.  THE  TRANSCAUCASUS  152, i t seems at f i r s t glance, since much of i t i s "imported" over long distances from the Volga.  The high quality Baku crudes  are more needed f o r the manufacturing of benzine, l i g r o i n and high-octane gasoline, and what f u e l o i l i s produced i s generally 54 sent to the Urals, the Ukraine and Leningrad. Under these circumstances, a sharp increase i n the consumption of natural gas i s planned i n a l l three republics i n order to reduce the share of coal and "imported" f u e l o i l i n the energy-mix.  The increase i s most marked i n Georgia and  Armenia, which have no resources of natural gas and have to bring i t i n from Azerbaydzhan and the North Caucasus.  In 1963,  Armenia received 800 m i l l i o n cubic meters of gas, which was to be raised (LPG supplies included) to 2-g- b i l l i o n by the end of 55 1965. The plan f o r Georgia i s probably l e s s , since the Republic v / i l l continue to exploit i t s coal deposits. Part of that gas w i l l have to come from the North Caucasus, since the capacity of the Karadag-Tbilisi-Yerevan p i p e l i n e - - which has only one compressor  station at i t s point of o r i g i n — i s today limited to 56  1.8 b i l l i o n cubic meters. of Azerbaydzhan 54  The share of gas i n the f u e l mix  exceeded 80 percent i n 1960, while three years  Geograficheskiye Problemy Krupnykh Rayonov SSSR, p. 272, footnote 2. 55 I. G. Papiyev: "Perspectivy r a z v i t i y a g a z i f i k a t s i i Armeniya," Gazovaya Promyshlennost'. No. 1, 1963, p. 24. 56 S. Yukhanonov: "Opyt ekspluatatsii gazoprovodov Zakavkazya," Gazovoye Delo, No. 9, 1963, p. 20.  153. l a t e r i t reached 35 percent i n Armenia.  57  According to plan,  natural gas i s to supply 60 percent of a l l f u e l consumed i n 58 the Transcaucasus  by the end of the present year.  Such intensive u t i l i z a t i o n , however, i s out of proportion to the reserves of the region which are very moderate in size.  At the present rate of production, the reserves of 59  the Transcaucasus w i l l be exhausted within 8 years.  It i s  s i g n i f i c a n t that output from gas wells a c t u a l l y declined between 1961 and 1964,  and only by a substantial increase i n  60 the production of o i l - w e l l gases was the loss compensated. Unlike the Volga region, Azerbaydzhan today u t i l i z e s over four61 f i f t h s of i t s o i l well gases:  thus any further increase i n  their production i s t i e d to an increase of petroleum  output,  which, however, i s r e l a t i v e l y stationary, owing to long exploitation. Despite the marginal nature of the region, gas to the Transcaucasus  i s now  necessary.  "import"  The d i f f i c u l t pipeline  b u i l t i 57 n 1963 across the Great Caucasus (Ordzhonikidze-Tbilisi) I. G. Papiyev: op. c i t . , Gazovaya Promyshlennost', Ho. 1, 1963, p. 24 and Geograficheskiye Problemy, p.271. 58 Ibid., T J . 272. 59 Yu. I. Bokserman: op. c i t . , p. 28-29. 60 Ibid., p. 5, Table 2 and Promyshlennost SSSR, 1963, p. 217. 61 E. Alikhanov: "Khimiya Azerbaydzhana, Planovoye Khozvavstvo. Ho. 3, 1964, p.19. 1  11  154. i s capable of transporting 1.6 b i l l i o n cubic meters at present, 62 and t h i s amount can be raised to two b i l l i o n l a t e r on. the more distant future, the "import from Central A s i a i s a p o s s i b i l i t y .  In  of gas across the Caspian  0  Some, s t i l l vague, studies  have been made to that e f f e c t , but the technical and economic 63 problems are many. An important feature of gas-consumption  i n the Trans-  caucasus i s that notwithstanding i t s r e l a t i v e scarcity, gas i s extensively used i n power stations.  As mentioned, o i l i s  both too expensive and of high quality to be burnt as b o i l e r f u e l , and coal reserves are also inadequate.  Thermal elec-  t r i c i t y , generated by natural gas i s especially important i n Azerbaydzhan where hydroplants produce less than 30 percent of 64 e l e c t r i c power. gas are now  A number of new  thermal plants that use mainly  completed or under construction, hot only i n Azer-  baydzhan, but also i n the other republics which rely on water power, (e.g. A l i - B a y r a m i i n s k — capacity 300,000 kw, TET* s —  Yerevan  capacity 550,000 kw, Razdansk T E T s — capacity 100,000 65 62 kw, Kirovakan, and Leninakan) yet e l e c t r i c a l outYu. I.Rustavi Bokserman: op. c i t . , p. As 123. 63 V.A. Shelest et a l : "Akademiya Nauk SSSR and Gosplan SSR," Problemy Razvitiya i Razmesheheniya Elektroenergetiki v Sredney A z i i , Izdatel'stvo "Nauka", Moskva, 1964, p.175-180. 64 D.G. Zhimerin: Istoriya E l e k t r i f i k a t s i i SSSR. p.425.. 65 A.. Babakanyan: "The Present and Future of the E l e c t r i c Power Industry i n Armenia," Kommunist Armanniya, Nov. 15, 1963, p.2. Trans, i n US JPRS 23654, March 12, 1964, p. 34; and S. Yukhanonov: op. c i t . , Gazovoye Delo, No. 9, 1963, p. 23.  155. put per capita i n the Transcaucasus i s well below the national 66 67 ... average, and because of the very rapid population growth the extention of generating capacity i s necessary.  The increas-  ing use of gas i n e l e c t r i c stations, therefore, seems inevitable even with the continued e f f o r t to harness the large hydropotentials of the region.  (This may be obviated however, by 68  transmission of e l e c t r i c i t y from Central Asia.) Conditions for the developing petrochemical industry may be compared to those of the Mid-Volga region.  A l l three prin-  c i p a l raw materials-- o i l - w e l l gases, refinery gases and  liquid  refinery products-- are present i n r e l a t i v e abundance, to which the condensates  of Karadag should also be added.  As i n the  Middle Volga-- but to a f a r greater e x t e n t — the s t r a i n on gas reserves may  create f u e l problems for the industry.  The use of  fuel o i l for the production of steam and e l e c t r i c i t y i s f a r less economic i n Azerbaydzhan, since Baku crudes are f i v e times as 69 expensive as crudes from Kuybyshev Oblasts. As petrochemical raw materials, o i l - w e l l gases i n Azerbaydzhan probably do not have the same advantage over l i q u i d refinery products as i n the Volga (see Table X I I I , p. 146). 66 Promyshlennost' SSSR, 1963, p. 235. 67 Narodnoye Khozyaistvo SSSR v 1962 g., p. 9. 68 V. A. Shelest et a l : op. c i t . , (Akad. Nauk SSSR), p. 177-78. 69 Geograficheskiye Problemy, p. 270, footnote 5.  156. The reason f o r t h i s assumption l i e s i n the f i n e quality of Baku crudes and i n the cost and composition of o i l well gases. Despite the high extraction cost, most refinery p r o d u c t s — including the l i g h t benzine fractions, which are the chief petroleum-based  feedstocks of the chemical i n d u s t r y — are  considerably cheaper to manufacture from Baku o i l s than from 70 those of the Volga.  At the same time, the o i l - w e l l gases of  Azerbaydzhan must be much more expensive than those of the MidVolga, since their cost depends d i r e c t l y on the extraction cost of crude petroleum.  F i n a l l y , they are much less r i c h i n pro-  pane and butane than the gases of the other region (see Table V, Chapter I I , p. 40).  I t appears, therefore, that the use of  l i q u i d refinery products i n Azerbaydzhan  i s at least as econ-  omic as the use of wet natural gas, and the greater portion of the emerging petrochemical industry seems to be oriented to the huge refinery complex of the Apsheron Peninsula, s t i l l the l a r gest of the USSR.  The use of both raw materials, however, w i l l  be ultimately handicapped by the r e l a t i v e shortage of f u e l natural gas - and by scarcity of water.  70 Referativnyy Zhurnal, Ko. 2, 1964,  E70  157 >  SUMMARY The three regions i n this chapter d i f f e r s i g n i f i c a n t l y from those of the previous one.  F i r s t , they a l l are producers  of natural gas and second, they are a l l affluent i n other sources of f u e l , although only i n the Volga can the r i v a l fuel be called reasonably cheap.  Only i n the f i r s t two regions are reserves  large enough to allow "exports" to other areas and such exports from the Volga are r e l a t i v e l y modest.  The deposits of the  Transcaucasus are small and barely enable the region to supply i t s own needs even at the r i s k of early depletion. In the Volga and the Transcaucasus, the two p r i n c i p a l o i l producing areas of the USSR, natural gas takes a much greater share i n the energy supply than i t s reserves would warrant. Being the less v e r s a t i l e of the two hydrocarbon f u e l s , and the one more expensive to transport, gas i s called upon to free petroleum products for use i n other regions and for supraregional consumption.  (Roughly h a l f of a l l petroleum i s used by  transport, agriculture and the m i l i t a r y ) .  This i s especially  true of the Transcaucasus, where— owing to the fine quality of the c r u d e s — r e l a t i v e l y l i t t l e f u e l o i l i s produced by the r e f i n e r i e s , and what i s produced i s sent out of the region. The r e l a t i v e abundance of wet natural gas i n both these areas makes them a t t r a c t i v e to the s t i l l embryonic but developing petrochemical industry.  However, f u e l (and water) shortage  w i l l probably l i m i t expansion i n the Baku area, while i n the Volga Region a greater reliance on f u e l o i l (more expensive  158. than natural gas) f o r thermal energy may become necessary. Despite the f a r greater resources of natural gas i n the Greater Ukraine, t h i s f u e l contributes much less to the regiona l energy b a l a n c e — both i n the eastern and western parts of the r e g i o n — than i n the Volga and the Transcaucasus.  The  Eastern Ukraine i s the largest coal producer i n the country and a c i t a d e l of ferrous metallurgy.  Coal here i s king and  w i l l l i k e l y remain so. The largely r u r a l Western Ukraine which also contains a small but important coal-basin, "exports" the greater part of i t s gas output to s t i l l poorer areas.  159.  Chapter V I I  PRODUCING REGIONS  160. THE NORTH CAUCASUS The economic region of the North Caucasus includes the lands between the Lower Don and the crest of the Great Caucasus mountain chain.  The i n d u s t r i a l complex of the Don mouth and of  the Russian portion of the Donets Basin - though o f f i c i a l l y part of the region, have been excluded here, since they are intimately t i e d to the Eastern Ukraine and have similar  economies.  The North Caucasus i s s t i l l predominantly r u r a l and a g r i c u l t u r a l : only some 40 percent of i t s ten and a h a l f m i l l i o n people l i v e i n c i t i e s , and i t has much fewer i n d u s t r i a l workers 1 per t o t a l population than the national average. resource i s very much underutilized.  The population  Industry i s e n t i r e l y  lacking i n many of the smaller c i t i e s and i s i n s u f f i c i e n t l y dev2 eloped or imbalanced i n the larger ones. such an imbalance one may  Almost as a symbol to  c i t e an oversized petroleum refinery  industry - too large both for the l o c a l o i l f i e l d s and f o r the 3 region's 1 capacity to consume and work up i t s products. Promyshlennost' SSSR, 1957, p. 23-4 and Narodnoye Khozyaystvo RSPSR, 1957, p. 11-47. Quoted from Cole and German, op. c i t . , p. 238-39. Data refers to 1955. However, Narodnoye Khozyaystvo RSPSR 1962, p. 54-59, indicates that i n d u s t r i a l growth i n the North Caucasus has been rather slow over the l a s t decade, and thus the number of i n d u s t r i a l workers per t o t a l population i n 1962 could not have been much d i f f e r e n t . 2 Geograficheskiye Problemy, p. 263. 3  Ibid: p. 242.  161  Map 13  THE  NORTH  CAUCASUS  A  Gas field  $  Hydroelectric station  •  O i l field  •  Thermal station  ®  Gas processing plant  Gas pipeline Gas pipeline (under construction)  lii  Petrochemical plant  $  Petrochemical plant (under construction)  0  O i l refinery  Oil pipeline  Scale: I cm.  60  km.  162.  This somewhat lopsided and i n s u f f i c i e n t l y developed region i s an old, hut now r e l a t i v e l y unimportant, producer of petroleum, with small and hardly increasing output.  However,  i t was dramatically rejuvenated i n the early f i f t i e s by the sudden discovery of very large quantities of natural gas. i s now  It  the greatest storehouse of gas i n the European USSR,  whose reserves i n the A  B (i.e.  "proved recoverable"), though  not i n less tangible, category s t i l l exceeds those of Central Asia.  In 1963, the North Caucasus produced 26.4 b i l l i o n cubic  meters from gas wells - nearly 30 percent of the country's 4 t o t a l - and perhaps an additional 900 m i l l i o n cubic meters 5 from o i l wells. Together with i t s crude o i l output (around 6 8 m i l l i o n tons) the region accounts f o r over 5 percent of the 7 t o t a l f u e l production of the USSR. Only about a f i f t h of the gas produced i s consumed within 8 the North Caucasus, the rest i s sent out through Rostov and the 4 N.I. Novikov: op. c i t . , Gazovoye Delo, No.5, 1963, p.10. 5 Estimated by assuming the same g a s - o i l r a t i o as i n Azerbaydzhan, where o i l f i e l d s are i n similar depth and have been exploited for about the same length of time. For data on o i l production i n the North Caucasus see Footnote 6. 6 D.B. Shimkin: op. c i t . , p. 90, Table XIV. Latest data available i s f o r 1956, given as approximately 6.7 m i l l i o n tons. Latest precise figure i s for 1955 - 6,452,000 tons. Production i n 1963 i s unlikely to have been much over 8 m i l l i o n tons, judging from the rate of growth since 1937. 7 The conversion rates are explained i n footnote 30, p.140, Chapter VI. Total f u e l production i n 1963: Promyshlennost' SSSR, 1963, p. 191. 8  A.L. Kozlov et a l : "Ekonomicheskiy a n a l i z razrabotki Severo-Stavropol'skogo mestorozhdeniya," Gazovaya Promyshlennost', No. 11, 1963, p. 5 and Neftyanoye Khozyaistvo. Feb. 1962, p. Above sources give amount of gas transported from the North Caucasus. Latter source f o r Krasnodar Kray gives only d a i l y "export". From the amount remaining, the quantity estimated to go to the Lower Don area was subtracted.  163. Donets Basin to the Central Region and Leningrad.  An unknown  hut small portion i s carried over the Caucasus Range to Georgia and Armenia.  The North Caucasus, therefore, i s a gas exporting  region par excellence. As such, i t d i f f e r s from the other chief producers of European Russia, the Ukraine and the Volga, which consume the major part of their output. At  least u n t i l now,  the cost of production i n Stavropol'  Kray was the lowest i n the USSR - being 5 rubles or 2.5 times 9 lower per 1000 cubic meters than the average f o r the USSR. (Eor  more d e t a i l , see page 197).  This advantage, however, seems  to be coming to an end due to the rapid diminishing of pressure i n the large North-Stavropol' f i e l d , which accounts f o r pract i c a l l y a l l the output of the Kray.  Always f a i r l y low, due to  the large extent of the f i e l d , the pressure w i l l drop to a mere 12 atmospheres-of the decade.  less than a f i f t h of the o r i g i n a l — by the end Already, the gas must be pumped out of the de-  posit, requiring the setting up of a large number of compressors 10 at the wells. production.  I t i s certain to add appreciably to the cost of By the beginning of 1963, over 41 b i l l i o n cubic  meters were taken out of the f i e l d amounting to 18 percent of the o r i g i n a l reserve. Output i n that year reached 13 b i l l i o n . Such rate, i t i s supposed can be maintained f o r another 8 to 11 10 years. 9  A.L. Kozlov et a l : op. c i t . , Gazovaya Promyshlennost', No. 11, 1963, p. 6. 10 Ibid., p. 8-9. 11 Ibid., p. 6.  164. The deposits of Krasnodar Kray on the "western part of the North Caucasus are the largest producers of condensates i n the USSR. put  Though s t i l l only partly removed from the gas, out-  increased nearly tenfold between 1958 and 1961, from a merer  15,000 to 138,700 tons.  The plan c a l l s for 720,000 tons by 1965  Krasnodar Kray can boast a wide variety of petrochemical raw materials.  In addition to the increasing volume of conden-  s a t e s — composed of aromatic and naphtenic hydrocarbons up to 13 50 - 60 percent —  i t s gases are f a i r l y r i c h i n the ethane to  penthane f r a c t i o n s (see Table V, p. 40).  Besides gas-derived  feedstocks, however, refinery products are also available i n large quantities, since the North Caucasus contains a large share of the r e f i n i n g capacity of the country.  Yet the region*s  proximity to Rostov and the Donbass does not bode well f o r the North Caucasus as a future center of organic synthesis.  Up to  f o u r - f i f t h s of the production of gas i n Krasnodar Kray, f o r instance, i s accounted for by the Northern border region of the 14 Kray, within 150 kilometers from Rostov.  The cost of trans-  porting natural gas and LPG i s more than offset by the market advantages of the Lower Don-Donbass area, which, i n addition, 12 Trud, Oct. 12, 1961 and V. T. Borisov: op. c i t . . Gazovoye Delo. No. 10, 1963, p. 68. 13 Trud, Oct. 12, 1961 and Gazovaya Promyshlennost', No. 4, 1964, p. 4. 14 N. K. Baybakov and V. A. Bragin: "Razvitiye i tekhnicheskiy progress gazovoy promyshlennosti Krasnodarskogo Kraya," Gazovoye Delo, No. 6-7, 1963, p. 3.  165. already has a small-size chemical industry "based on coal.  When  Soviet planners talk about developing an organic petrochemical industry i n the North Caucasus, i t i s the Lower Don and Russian Donbass to which they generally r e f e r . The present organic capacity of the region i s linked more with the r e f i n e r i e s , especially with the one at Groanyy where a 15 very large chemical plant has been recently completed.  In a l l  p r o b a b i l i t y , however, the plant burns natural gas to supply i t s f u e l and energy needs.  Without f a i l , gas w i l l be used on a  large scale f o r the manufacturing  of ammonia and i t s deriva-  t i v e s since the North Caucasus consumes perhaps a twelfth of a l l 16 n i t r i c f e r t i l i z e r s i n the USSR.  Ammonia production i s to be  based on the p a r t i a l combustion method, which also y i e l d s an appreciable amount of acetylene. be used also as organic feedstock.  Then, via acetylene, gas w i l l This combination i s most  l i k e l y to apply to Stavropol'Kray, where gases are exceedingly dry.  It i s here, too, that the construction of a carbon black 17  plant has started,  although the production of that chemical  from natural gas i s a rather wasteful process.  It must be men-  tioned that these plans for petrochemical developments may  be  c u r t a i l e15 d by the water problem. The r i v e r s of the North Caucasus Ekonomicheskaya Gazeta, Oct. 30, 1961, p. 11. 16 N. Nekrasov: op. c i t . , Planovoye Khozyaistvo, No. 8, 1964, p. 9. 17 Geograficheskiye Problemy, p. 243.  166. are  very greatly mineralized, containing an exceedingly high 18  concentration of calcium and magnesium.  While t h i s i s no d i s -  advantage when used f o r cooling purposes, the high mineral content makes these waters unsuitable for use i n chemical processing (e.g. hydration) without previous treatment.  The cost of  p u r i f i c a t i o n , however, may prove too great. Aside from the above mentioned  chemical industries,  natural gas i s unlikely to a t t r a c t manufacturing to the area . because of proximity to the i n d u s t r i a l i z e d Eastern Ukraine. Agriculture contributes over a t h i r d of a l l production i n the region and much of the manufacturing consists of food processing 19 and a g r i c u l t u r a l machine b u i l d i n g .  Here natural gas as f u e l  already seems to play an important r o l e , though t o t a l consumpt i o n by these industries i s not large.  Probably more important  as a consumer i s the huge o i l - r e f i n i n g industry of the region, concentrated at Groznyy and Krasnodar.  A pipeline connects  Groznyy with the large deposit of North-Stavropol*, b u t — i n addition to dry gas-- both refinery complexes have o i l - w e l l gases available to them from near-by 18  oil-fields.  A. A. Sokolov: Gidrografiya SSSR. Gidrometeoizdat, Leningrad, 1964, p. 174-75. 19 Geograficheskiye Problemy .... p. 238 and Atlas SSSR (1962), p. 128-9.  167. CENTRAL ASIA Central A s i a was the l a s t major addition to the Russian Empire and, even more than the Transcaucasus, side the mainstream of economic l i f e .  has remained out-  Its t i e s with the Slavic  core land of Russia has "been e s s e n t i a l l y c o l o n i a l down to the present day.  A few staple crops, marketed i n European Russia,  has formed the mainstay of the economy, and though the region can now boast a range of consumer industries, nearly a l l c a p i t a l goods must s t i l l be supplied from more developed areas.  Combined  p r o f i t s from the industries of the Uzbek, K i r g i z , Tadzhik and Turkmen SSR's represented i n 1962 less than three percent of 20 the t o t a l i n d u s t r i a l revenue of the USSR. Central A s i a here includes the four Mid-Asian Republics plus that portion of Kazakhstan which l i e s south of the desert belt.  This region contains 20 m i l l i o n people, of which only 21 seven and one-half m i l l i o n l i v e i n c i t i e s . Despite the large population (nine percent that of the country), Central A s i a accounts for a mere 3.2 percent of the f u e l consumption of the 22 USSR. It i s f a r behind the rest of Russia i n the production 20 21  Promyshlennost  1  SSSR, Moskva 1963,  p. 99.  Narodnoye Khozyaistvo SSSR v 1962 a., p. 23-24. Of the Kazakh SSR, only Alma Ata Oblast and the Southern Kazakh Kray was included, since the rest of Kazakhstan does not form part of Central A s i a . 22 "Statisticheskiye Materialy," Vestnik S t a t i s t i k i , No.5, 1962, p. 91, Puel consumption f o r Central A s i a , excluding Southern Kazakhstan, was given as 2.4 percent. To calculate f u e l consumpt i o n i n Southern Kazakhstan, the same relationship was assumed to hold between population and energy consumption as i n the four Central Asian Republics.  MIDDLE  Oil  field  Bituminous  coal  Lignite Hydroelectric  station  Hydroelectric  ^ation^u^r.^j  Thermal  station  Petrochemical O  •O-  plant  Gas  pipeline  Gas  pipeline  (under  Gas  pipeline  (proposed)  construction)  Scale. I cm, 100 km,  ASIA  168. and consumption of e l e c t r i c i t y : i t produces l i t t l e over a t h i r d per capita than the average f o r the USSR and, as the region s t i l l 23 has separate grids, there i s no "import" from other areas. This s t i l l backward region has a variety of f u e l resources, but none of them amounted to very much u n t i l the end of the l a s t decade.  Its c o a l - f i e l d s are small, a n d — with the exception of  Angrensk l i g n i t e , which can be q u a r r i e d — are d i f f i c u l t to mine. The presence of o i l has long been known and the outlook i s encouraging, but prospecting was not yet rewarded with any tacular f i n d .  spec-  The late f i f t i e s , however, saw the discovery of  very large amounts of natural gas, and the prospects f o r further s t r i k e s are excellent.  "Proved recoverable" reserves i n Central  A s i a now almost match those i n the North Caucasus, but prospective resources are f a r i n excess. Though i t i s natural gas which dominates the f u e l resources of Central A s i a , output i s not yet large.  In 1963 less than  3.4 b i l l i o n cubic meters were produced, and the plan f o r 1965 24 c a l l s f o r 19 b i l l i o n .  Gas supplied l e s s than a f i f t h of the  f u e l consumed i n 1962 and w i l l supply less than h a l f (47^) even i n 1965.  Coal i s s t i l l important and w i l l remain so, with 25 shares 23 of one-half and one-third — i n the above years. Only Narodnoye Khozyaystvo SSSR v 1962 g.. op. c i t . , p. 95. 24 Promyshlennost SSSR. 1963, p. 215; A.N. Rudin: "Gazovaya promyshlennost Sredney A z i i , " Gazovoye Delo, No. 1, 1963, p. 4. 25 Referativnyy Zhurnal, No. 12, 1963, E131. 1  1  169. a f r a c t i o n of the gas produced i n Middle A s i a i s to be used at home.  P r a c t i c a l l y the entire output of the giant G a z l i f i e l d  i s to be sent to the Urals, which means that the needs of Central A s i a w i l l have to be met from the much smaller Mubarek f i e l d s i n 26 Uzbekistan and from other scattered deposits.  Less than nine  b i l l i o n cubic meters per year i s planned to be consumed i n the region after 1965, but small though t h i s amount i s i n view of the large population, i t may not be available unless reserves 27 i n the A B category are expanded. Despite the excellent prospects for further discovery i n Central Asia, the amount of d r i l l i n g done i s very inadequate i n Uzbekistan has been actually declining since 1959. to 1962  and  Prom 1959  (inclusive) Uzbekistan received f i v e percent of the to-  t a l amount of d r i l l i n g f o r gas i n the USSR; i n 1962 l e s s than two percent.  i t received  While there was probably an increase  i n d r i l l i n g i n Turkmenia, the t o t a l amount f o r gas (not o i l ) i s certain to have been l e s s than i n Uzbekistan.  Since this  region i s the most promising of a l l areas i n the USSR, t h i s i s an astonishingly small share. (See Table XIV  below).  The future plans f o r gas production i n Central A s i a are very ambitious.  Besides i t s own needs, the region i s supposed  to send around 44 b i l l i o n cubic meters annually to other regions of the country, mainly to 26 I. Mints: "Ispol stane...," Gazovoye Delo, 27 Ibid., p. 54; A. No. 1, 1963, p. 4.  the Urals and the mining complexes of 1  zovaniye prirodnogo gaza v UzbekiNo. 1, 1963, p. 54. N. Rudin: op. c i t . , Gazovoye Delo,  170. Northern Kazakhstan,  after 1970.  28  It i s abundantly  clear,  however, that there i s no hope of f u l f i l l i n g that plan without a r a d i c a l change i n the practice of prospecting.  It i s also  clear that whether f u l f i l l e d or not, Middle A s i a w i l l be producing mainly f o r the benefits of more v i t a l and economically better developed areas. Table XIV D r i l l i n g f o r gas and increase of reserves i n the Uzbek SSR and in the USSR as a whole Uzbek SSR  USSR K  D r i l l i n g footage (1000 meters)  Year  Increase of A B reserves ( b i l l . cu.m.)  Drilling footage (1000 meters)  Increase of A B reserves.(bill. cu.meters)  1959  86.5  293.3  931.0  737.1  1960  92.2  58.5  1094.0  187.7  1961  65.4  17.4  1962  29.2  19.9  1617.7  349.3  5168.1  273.3 1959-62 (inclusive)  160.1 JS£-  -72.8 1012.1  & Increase calculated by subtracting A B reserves at the beginning of each year from the ones given f o r the following year. ML It seems that the amount produced each year i s subtracted from the reserves. Output i n 1962 was 73.5 b i l l i o n cubic meters. This means there was p r a c t i c a l l y no addition to reserves i n that year. Sources: Yu. I. Bokserman: op. c i t . , p. 17, 19 and 45; and M. M. Brenner: Ekonomika Neftyanoy Promyshlennosti SSSR, 1962, p. 83. Though gas from gas-wells dominate the reserves of Central Asia, one should not forget that a certain amount of natural gas 28  Yu. I. Bokserman: op. c i t . , p. 307.  171. i s also available from o i l wells.  The Nebit Dag  region produces  almost a third as much o i l as Azerbaydzhan and about a b i l l i o n cubic meters of gas i s released i n the course of petroleum production.  Roughly f o u r - f i f t h s of that gas, however, i s vented  into the atmosphere, suggesting 29  a rate of u t i l i z a t i o n which i s  lowest i n the USSR. Because of the rapidly growing population, the of power-producing capacity i s imperative.  extension  It i s especially  important i n Uzbekistan, which contains h a l f the population  of  Central Asia and accounts for h a l f the i n d u s t r i a l and some two30 thirds of a g r i c u l t u r a l e l e c t r i c i t y consumption i n the region. Although the share of hydro i n the e l e c t r i c i t y production of 31 Middle A s i a i s very high (over one-half) station now  , and the giant Nurek  under construction w i l l guarantee that i t w i l l re-  main so, several new  thermal stations are being b u i l t today  which w i l l doubtlessly increase the share of thermal e l e c t r i city.  Up to now,  natural gas produced less than a tenth of a l l  thermal e l e c t r i c i t y i n the region, three-quarters  of which was  generated by c o a l . (See table below.) 29  B. Obezov: "Za kompleksnoye Razvitiye khimii," Partiynaya Zhirn*. No. 16, 1963, p. 10 ; Promyshlennost* SSSR. 1963. p. 207 and 215. 30 Narodnoye Khozyaystvo v 1962 g., p. 23-24 and V. A. Shelest ot a l , op. c i t . . p. 65. Uzbekistan and Tadzhikistan j o i n t l y account f o r about 90 percent of the e l e c t r i c i t y consumed by agriculture i n Middle A s i a . The share of Uzbekistan, therefore, must be at least two-thirds. 31 Ibid., (V. A. Shelest, et a l ) , p. 23.  172. Table XV Fuel consumption by thermal stations i n Central A s i a Of which: Uzbek SSR  Kirgiz SSR  Tadzhik SSR  2836.6  2531.9  114.1  190.3  0.3  240.5  3.2  9.2  0.1  228.0  172.5  95.9  Converted to nominal f u e l (1000 tons) 2114.5  1517.3  81.0  106.5  409.7  1584.2  1410.0  67.8  106.3  0.1  Liquid f u e l  333.6  5.0  13.2  0.2  315.2  Gas  196.7  102.3  As percentages  100.0  100.0  100.0  100.0  Coal  75.0  92.9  83.6  99.8  Liquid f u e l  15.7  0.3  16.4  0.2  9.3  6.8  Central A s i a (without .Southern Kazakhstan)  Fuel Natural state: Coal (1000 ton) Liquid f u e l (1000 ton) Gas (mill.cu. meters)  Coal  Gas Source:  Turkmen SSR  76.6  94.4  100.0  76.9 23.1  V.A. Shelest et a l , (Akad. Nauk), op.cit., p. 185.  Several new power plants are now under construction (e.g. at Tashkent, Navoinsk, Bukhara, Dzhambul, Ashkhabad, Dushanbe and Krasnovodsk) and though some of these are rather small, they w i l l appreciably increase the share of gas i n the f u e l mix of e l e c t r i c  173. stations.  32  A very long range and somewhat visionary plan en-  visages an incredible expansion  of generating capacity, based  mainly on natural gas as f u e l and with the power marketed mostly 33 i n European Russia and the Urals.  The magnitude of such expan-  sion (an almost 30-fold increase i n f u e l consumption by power plants over what may  be a 20 year period) i s open to question,  and the recent trend against the use of gas as b o i l e r f u e l must also be considered.  What i s s i g n i f i c a n t , however, i s that even  in such long range plans, Middle A s i a i s considered primarily as a source of energy for other regions, and i t i s possible that much of t h i s energy w i l l leave the area i n the form of electricity. A broadening unquestionably  of the i n d u s t r i a l base i n Central A s i a would  result i n increased consumption of natural gas.  A development of two industries -- both heavy consumers of g a s — i s imminent i n the near future.  These are the building mater-  i a l s and the chemical industries, especially the production of fertilizers.  None of the four Republics, for instance, are able  to meet their need for cement: the Tadzhik and Turkmen SSR's produce less than half of vfhat they consume, the K i r g i z SSR  less  than a tenth and demand i s not f u l l y s a t i s f i e d even i n Uzbekistan. The whole region has but seven cement plants, and outside 32  Izvestiya, Nov. 4, 1962; D.O. Zhimerin: op. c i t . , p. 418 and 429; Pravda Vostoka, Oct. 10, 1962, quoted from US JPRS, 16843, p. 46; N.P. Mun'ko: op. c i t . , p. 124. 33 V. A. Shelest et a l , op.' c i t . , p. 172-75, 184, and p. 187, Table 32.  174. Uzbekistan (where the distance i s only 600 km.),  the average  distance for the transport of cement i s over 1000 km., exceed34 ing 1200 km. i n the K i r g i z SSR. More f a c t o r i e s are planned i n the  region to reduce these monstrous hauls. As the proportion  of thermal energy used i n the building material sector i s very high, reaching nine-tenths of the t o t a l use of energy i n some 35 cases,  the construction of such plants would appreciably i n -  crease the amount of gas consumed i n Middle Asia, especially since no other f u e l i n the area i s able to provide heat at low enough cost. Even more important would be the development  of the chem-  i c a l industry, and a s i g n i f i c a n t increase at least i n the production of f e r t i l i z e r s i s d e f i n i t e l y decided on.  It i s for n i t r i c  f e r t i l i z e r s - - f o r which natural gas i s the cheapest raw material —  that Middle A s i a has the greatest need on account of inten-  sive cotton c u l t i v a t i o n .  Today the four Mid-Asian Republics  account for twelve percent of the consumption  of ammonia-based  f e r t i l i z e r s and Southern Kazakhstan perhaps f o r another two percent.  (Kazakhstan, as a whole, consumes f i v e percent.  The  36 exact share of Southern Kazakhstan i s impossible to ascertain.) 34 35  Ibid., p. 55-56.  U.N. Economic Commission f o r Europe: Evaluation of Recent Developments i n the European Gas Economy, Geneva, 1962, p. 50. 36 N. Nekrasov: op. c i t . , Planovoye Khozyaystvo. No. 8, 1964, p. 9; V.A. Shelest (op. c i t . , p. 58) claims about 50 percent for the four Middle Asian Republics, but t h i s i s obviously a mistake.  175. Only i n Uzbekistan are f e r t i l i z e r s produced on more than a very minor scale, and the K i r g i z and Tadzhik Republics do not produce them at a l l .  The output of n i t r i c f e r t i l i z e r s cannot be  determined but the output of n i t r i c and phosphorous f e r t i l i z e r s combined (potassium f e r t i l i z e r s are not produced and hardly consumed i n Central Asia) i n the four Republics amounts to l i t t l e 37 more than three percent  of the national t o t a l .  these badly transportable products are shipped  As a result i n from the  Moscow Region, the Donbass, the Kuzbass and the Urals. transport costs f o r the "import" of nitrogen f e r t i l i z e r s  Annual alone  exceeds eight m i l l i o n rubles and i s more than double that amount 38 for a l l f e r t i l i z e r s .  In view of the large market and reserves  of natural gas, a sharp increase i n the production of ammonia and i t s derivatives i s called f o r .  Yet, i n spite of frequent  urging i n the Soviet press, only two nitrogen f e r t i l i z e r plants are under construction today i n Central A s i a . (At Navoinsk and 39 at Fergana.) It i s clear that i n the current Seven Year Plan the development of the petrochemical  industry i n Middle A s i a i s very  limited and i s e n t i r e l y r e s t r i c t e d to the production of f e r t i 37 Promyshlennost' SSSR, 1963, p. 142 and 145; V. Gitkovich: "Transportation problems of the chemical industry," Gudok, Nov. 13, 1963, p. 3, translated i n US JPRS 23053, Peb. 4, 1964, p. 45-46; N. Nekrasov: op. c i t . , Planovoye Khozyaystvo, 1964, No. 8, p. 9. 38 Pravda, Jan. 5, 1964, p. 2; N. A l i s o v et a l : "Problemy r a z v i t i y a khimicheskoy promyshlennosti Sredney A z i i , " Planovoye Khozyaystvo, 1964, No. 2, p. 49. 39 Ibid., (Pravda), p. 2.  lizers.  40  176. Many authors i n recent l i t e r a t u r e urge the creation  of a large-scale organic petrochemical industry i n the region for which both raw materials and cheap energy are available 41 i n abundance.  There are no serious plans f o r using the o i l -  well gases of Hebit-Dag for organic synthesis and the industry would be based on a acetylene produced from natural gas.  There  i s much to be said for such a course of action, especially since the production of acetylene can be combined with that of ammonia and i t s derivatives.  Cost figures for such products,  as methyl alcohol, v i n y l acetate, v i n y l chloride, acetate f i b e r s , n i t r o n , etc., are very favorable.  (See Chapter IX, p. 211 and  Appendix, Tables VIII-XII ). Two things, however, l i m i t  the p o t e n t i a l i t i e s of Central  A s i a for the petrochemical industry. water-shortage disposal.  The f i r s t i s the great  which also creates serious problems of waste  Most petrochemical processes consume a prodigious  amount of water and therefore are i l l - s u i t e d for Middle A s i a , although the manufacturing  of acetate f i b e r s and of n i t r o n i s  less r e s t r i c t e d by high water-demand. pheral p o s i t i o n of the region.  The second i s the p e r i -  Hot only i s i t separated from  the major consuming regions of the USSR by hundreds of miles of 40  Narodnoye Khozyaistvo Uzbekistana, Nov. 11, 1961, translated i n US JPRS 12730, p. 15. 41 See for instance Ibid., p. 50; V.A. Shelest et a l , op. c i t . , p. 37-42; H. Pedorenko and A. Vayn: op. c i t . , Pianovoye Khozyaystvo, Ho. 5, 1964, p26-32;H. A l i s o v & P. Grigor'yants: "Problemy r a z v i t i y a khimicheskoy promyshlennosti Sredney A z i i , " Planovoye Khozyaystvo, Ho. 2, 1964, p. 46.  177. desert and steppe but i t also l i e s off the main axis of pioneer development.  In addition, i t i s s t i l l a predominantly non-Slavic  area, whose people are the least integrated into Soviet economic life.  Nevertheless, the rapid growth of the already dense and  very clustered population, which i s f a r from adequately u t i l 42 ized,  w i l l probably cause a quickening of i n d u s t r i a l i z a t i o n .  Certain branches of the chemical industry, based on natural gas, could therefore, be expected to develop. Domestic needs, too, are very poorly supplied at p r e s e n t — even more poorly than, for instance, i n the B a l t i c and Byelorussia.  At the beginning of 1963, less than 260 thousand  quar-  ters were served by gas i n the four Republics of Middle A s i a , 43 and two-thirds of these received i t i n cylinders.  That means  that natural gas was available to less than a tenth of the popul a t i o n even i f s i x people are counted per quarter. of the large families common i n the area).  ( i n view  The completion of  the Middle-Asian pipeline network, w i l l undoubtedly bring t h i s figure up.  The construction of this network began at the same  time as that of the Bukhara-Ural, but while the l a t t e r i s now being doubled, the former-- though much shorter and of smaller diameter— i s s t i l l f a r from f i n i s h e d .  No better commentary i s  needed on the marginal position of Central A s i a and the essentially " c o l o n i a l " p o s i t i o n of i t s gas industry. 42 Geograficheskiye Problemy, p. 487. 43 Gazovaya Promyshlennost', No. 10, 1963, p. 55.  178. SUMMARY As gas regions, the North Caucasus and Central Asia closely resemble each other.  Each of them can boast roughly  one-third of the country's proved recoverable reserves (A-+-B) and close to one-third of i t s balance reserves (A-f-B+Cj), a l though Central A s i a has much greater p o t e n t i a l than i t s r i v a l . Owing to better location, the North Caucasus produces much more today.  In t7i/o-three years, however, the two regions should draw  equal and by the next decade Middle A s i a w i l l probably have the larger output. Both regions are ( o r ' w i l l be) primarily "exporters" of natural gas and feed the two biggest pipeline systems of the Soviet Union.  The North Caucasus (excluding the Lower Don Valley)  consumes but a f i f t h of i t s output while Middle A s i a w i l l have to be content with at most a quarter. A share much greater than three-fourths may leave Middle A s i a i f more of the very large reserves, believed to exist i n the region,are proved and brought into production. Expensive coal w i l l continue to supply a s i g n i f i c a n t portion of f u e l requirement i n both regions to allow such "exports." Middle A s i a and the Northern Caucasus are both predominantly a g r i c u l t u r a l areas and w i l l l i k e l y remain so.  The pro-  duction of f e r t i l i z e r s i s , therefore, the f i r s t industry to be attracted by the large scale resources of natural gas.  In the  future, Middle Asia may become an important producer of polymers for i t has cheap energy and a large labour force. p o s i t i o n and tight water balance, however, may  I t s marginal  l i m i t such devel-  179. opments despite very favorable projected production costs. In the North Caucasus, proximity to the i n d u s t r i a l Rostov-Donets area and, i t seems, higher energy costs are the l i m i t i n g factors, although the raw material base i s excellent. I t seems certain that both regions w i l l continue to be suppliers of other provinces and only a small portion of their production w i l l be consumed at home.  180.  Chapter V I I I  POTENTIAL REGION SIBERIA AND NORTHERN KAZAKHSTAN  181. Prom the Urals to the P a c i f i c Ocean and from Lake Balkhash to the A r c t i c Sea, stretches a tract of land as large as Canada and Argentina combined..  The greater portion of i t i s frozen  •wasteland or otherwise unresponsive  t e r r i t o r y , but i t s south-  western quarter forms the tapering eastern part of Russia's economic t r i a n g l e .  Into that funnel, ending at Lake Baykal, has  poured perhaps a f i f t h of a l l investment though much of that was  1  Kuznets Basin.  since the Revolution,  channelled to one limited area, the  Since 1950, however, t h i s zone has been the scene  of more intensive economic a c t i v i t y both i n agriculture and i n dustry.  The V i r g i n Land Program and the recent power develop-  ments i n the Yenissey-Angara region have gradually brought the whole area as far as Lake Baykal into the mainstream of Soviet economic l i f e . This long belt may  be divided into two major regions.  The western one embraces the southern portion of the West Siberian Lowland and the northern h a l f of Kazakhstan, the eastern one extends from the Ob to Lake Baykal.  (It includes Semipa-  l a t i n s k , Novosibirsk and the whole of the Kuzbass)  The two regions  have nearly equal population of between eleven and twelve m i l l i o n , but the l a t t e r i s considerably more urbanized and  contains  N. M. Budtolayev et a l : "Problemy ekonomicheskogo r a z v i t i y a Zapada i Vostoka Sovyetskogo Soyuza, Vestnik Moskovskogo Universiteta, Seriya Geografiya. No. 4, 1963, p.8, Table 2.  SOUTHERN Gas  field  Oil  field  Coal  field  Coal mining C o a l mining Oil  (bituminous) (brown c o a l )  pipeline  -  O i l p i p e l i n e (under  -  Gas  -o- - o  pipeline  const.)  SIBERIA  ANDNORTH - KA Z A K HS T A N ^  I r o n and s t e e l  plant  +  Copper & n i c k e l  j£x  Hydroelectric  smelting  station  S^S H y d r o e l e c t r i c s t a t i o n Vunder c o n s t r u c t i o n ) Thermal s t a t i o n u s i n g c o a l ^  Thermal s t a t i o n construction)  (under  Gas p i p e l i n e (under construction)  •o • • o-Gas p i p e l i n e  (proposed)  0*  184.  2 a greater number of large c i t i e s . West Siberia-Northern Kazakhstan (as delimited) accounts for 6 to 7 percent of t o t a l f u e l consumption, Central Siberia 3 for over 10%.  In the former region, the larger part of this i s  consumed by agriculture and food processing as only two c i t i e s , Omsk and Karaganda, are large centers of industx-y.  In the l a t -  ter region, on the other hand, most of the f u e l consumption i s accounted f o r by industry (including the generation of e l e c t r i city). 2 Narodnoye Khozyaystvo SSSR v 1962 g, p. 20-23 and 25-87. 3 D i f f e r e n t methods of calculation y i e l d f a i r l y close res u l t s . Consumption i n Central S i b e r i a may he calculated fromcoal and o i l consumption, the l a t t e r mainly estimate. 38$ of Kuzbass coal i s used within the Kuznets-Novosibirsk region, while almost a l l the coal mined i n East S i b e r i a i s used l o c a l l y . 7000 Cal were assigned to 1 ton of Kuzbass and Irkutsk coal and 4000 Cal to 1 ton of Kansk-Achinsk coal. Similar r e s u l t i s arrived at by a l l o c a t i n g 80% of t o t a l f u e l consumpt i o n i n East S i b e r i a (given i n Vestnik S t a t i s t i k i ) to the area south of the Angara and west of Lake Baykal and adding to i t 38% of Kuzbass coal output (see above) and the estimated amount of petroleum consumption in.the Kuznets-Novosibirsk region. Fuel consumption i n West Siberia-Northern Kazakhstan (as delimited) may be calculated by adding to the t o t a l f u e l consumption of Northern Kazakhstan the f u e l consumption of West S i b e r i a minus coal and o i l consumption i n the Kuznets-Novosibirsk region (see above). Respective shares of Northern and Southern Kazakhstan are determined i n Chapter 7, page 167, footnote 22. Sources used for calculations and estimates: Vestnik S t a t i s t i k i , No. 5, 1962, p. 91; Narodnoye Khozyaystvo v 1961 g, p. 205; Pravda, 1964, Dec. 22 , p. 1 ; Ekonomicheskiye Rayonirovaniye i Narodnoye Khozyaystvo SSSR, Izdatel'stvo Mysl*, Moskva, 1964, p. 43, 63, 64; Geograficheskiye Problemy...., p. 388.  185. Tixe rest of S i b e r i a and even the Far East are  marginal  areas, devoid of the bustling a c t i v i t y which characterizes the southern belt west of Lake Baykal.  The vast expanse of land  north of the Angara River and the Stanovoy Range (an area as large as the United States) contains but 1.3 m i l l i o n people, while Transbaykalia and the lands of the Amur (with Sakhalin Island)  4 have 1.8 and 3.9 m i l l i o n respectively. This enormous t e r r i tory probably accounts f o r less than 5% of the country's f u e l 5 consumption,  and-- aside from a few isolated areas-- i s devel-  oping slower than the more c r u c i a l regions of S i b e r i a . At present, natural gas plays no part i n the f u e l  supply  of S i b e r i a and Northern Kazakhstan aside from f i e l d uses of some casing head gas i n the Emba o i l f i e l d s and Sakhalin Island. This b r i e f consideration and the foregoing regional "breakdown, therefore, serves only to help assess i t s possible future s i g n i ficance.  The belt of land as far as Lake Baykal c l e a r l y rep-  resents a huge market for energy.  Its headlong growth and the  continued emphasis given to i t mean that i t s share can only i n crease i n the future.  This i s p a r t i c u l a r l y true of Central  S i b e r i a , which w i l l be considered  first.  Central S i b e r i a What works against Central Siberia's becoming a major market for natural gas i s i t s distance from the present  ( and  Narodnoye Khozyaystvo RSESR v 1962 g, p. 13-14. 5 Estimated from data i n Vestnik S t a t i s t i k i , No.5, p. 91, and figures arrived at i n footnote 3.  1962,  186. probably also future) supplying areas, coupled with opulence i n other form.3 of energy.  The region contains over half the acces-  s i b l e reserves of coal and over h a l f the accessible water-power 6 potential of the Soviet Union.  At the same time, i t has only  n e g l i g i b l e quantities of natural gas, and the known deposits of S i b e r i a - - along the Lower Ob and i n Y a k u t i a — l i e very f a r away.  (The former, i n any case, are being linked to the econ-  jomy of the Ural Region). In the larger, eastern h a l f of Central S i b e r i a , natural gas would have to compete with the cheapest coal of the USSR. More than h a l f of the region's coal resources by weight (55$) and close to h a l f by c a l o r i f i c content are found i n the conveniently located Kansk-Achinsk Basin, extending along the Trans-Siberian railway east and west of Krasnoyarsk.  Here ex-  t r a c t i o n costs from large open-cast mines are as low as 0.50 to 0.70 rubles, or 1.10 to 1.50 rubles per ton of nominal  fuel  (7000 C a l ) . As Table VII, p. 70 shows, the transport cost of natural gas-- converted to tons of nominal f u e l - - over a d i s tance of 1000 km i s 1,62 rubles per ton, even without charges.  capital  This means that from Achinsk to Irkutsk (where coal  again can be quarried, though at a somewhat higher cost), natu r a l gas would be more expensive unless found l o c a l l y .  D. J . Hooson; op. c i t . , p. 102. 7 Geograficheskiye Problemy.... p. 388.  187. As discussed i n Chapter I I I , the Angara-Lena Downwarp i s p a r t i a l l y within the Central Siberian Region and holds promise f o r gas f i n d s . be exploited.  Any  sizable deposit found here w i l l doubtlessly  However, as the region i s already saturated with  cheap energy, f a r beyond i t s capacity to use i t , there appears no urgency for such an additional resource.  Any discovery w i l l  l i k e l y be the r e s u l t of prospecting f o r o i l rather than gas, for the former i s a much more indispensable material owing to i t s diverse uses. If gas i s found, i t s three most l i k e l y consumers w i l l be the household sector, the chemical and machine building i n dustries, though even here-- with the possible exception of machine b u i l d i n g — the lack of gas i s no serious Space-heating i n the fast-growing  hindrance.  c i t i e s i s carried on by large  TETs's, which presently account for about one-third of the t o t a l  8 i n s t a l l e d thermal capacity of the region.  The culinary needs  of households i n the c i t i e s are easily supplied by  electricity,  of which the region produces far more than i t can presently use.  As for the chemical industry, natural gas would be used  c h i e f l y as raw material, not as f u e l .  As cost figures i n  Chapter IK, p. 211 and Appendix, Tables 8-12 show, organic synthesis v i a a c e t y l e n e —  produced by the e l e c t r i c cracking of  methane i s indeed competitive  i n t h i s region.  However, i f the  search for l o c a l supplies of o i l i s substantiated( and the recent Markovo strike i s very promising), _  Referativiny Zhurnal, 1964,  obviating the imports of crude No. 3,  E44.  188. from the Volga, refinery l i q u i d s w i l l prove to he a cheaper source of raw material for organic petrochemicals than natural gas.  Even with Bashkir crude, the cracking of petroleum emul-  sion i s thought to he very cheap. (Chapter IX, Table XXIII, p. 213) The future position of gas i n the Kuzbass-E'ovosibirsk area i s much more favourable.  Kuznets coal-- while f a r cheaper  than any to the west— i s more expensive than Kansk-Achinsk One ton from'open-cast  coal.  mines costs 2.5 to 2.9 rubles, while 9  coking coal-- mined from underground-- costs about 6.5  rubles.  The Kuzbass i s the t h i r d largest metallurgical center i n the Soviet Union and the only producer of pig iron i n S i b e r i a . Although i t s coking coal i s the cheapest i n the country, a reduction i n coke expenditure i s much hoped f o r . As for s t e e l making, the open-hearth furnaces of the region operate almost exclusively on coke oven and blast furnace gases f o r want of better f u e l .  Here, indeed, i s a large market f o r natural gas,  to which the developing chemical industry of the Basin could be added. Beside having a greater need for natural gas than the eastern h a l f of Central S i b e r i a , t h i s region also l i e s closer to actual and potential areas of supply.  Though gas found  i n the ?jestern h a l f of the West-Siberian Depression w i l l unquestionably go to the Urals rather than the Kuzbass, a large enough section of t h i s petroliferous province i s at a reason-  -  Geograficheskaya Problemy..., p. 338.  189. able distance from the Kuznets Basin to -warrant the construct i o n of a pipeline following successful s t r i k e s .  Indeed, the  recent find at Okhteure— though over 600 km away— has already given r i s e to plans for a p i p e l i n e .  Deposits much closer than  that could soon be discovered. North Kazakhstan-West S i b e r i a This region i s much less i n d u s t r i a l i z e d than Central S i b e r i a and consumes much less energy.  The major centers of  consumption are the single large c i t y of Omsk i n the north and the mining towns of the south, with ferrous and non-ferrous metallurgy a t Karaganda and Dzhezkazgan. Omsk today boasts the largest petroleum r e f i n i n g capac i t y i n S i b e r i a , has a wide range of industries and i s growing rapidly.  I t i s favourably situated as a p o t e n t i a l market for  the natural gas of West S i b e r i a for i t i s on the edge of petroliferous territory.  I f natural gas i s to supply the c i t y , how-  ever, the deposits would have to be discovered i n f a i r l y close proximity.  The isolated p o s i t i o n of the c i t y makes i t a small  market compared to Novosibirsk and the Kuzbass, which would not j u s t i f y the construction of a long p i p e l i n e . Temir Tau, a s a t e l l i t e of Karaganda, i s an expanding i r o n and s t e e l center.  Though Karaganda coking coal i s cheaper  than that of the Kuzbass, i t i s considerably more costly to cokifys hence a reduction of coke needed would be very welcome. —  O i l and Gas Journal, June 8, 1964, p. 114.  190. As i n the Kuzbass, the open-hearth furnaces at Temir Tau must work on a mixture of coke-oven and blast-furnace gases.  Their  conversion to natural gas could greatly raise the e f f i c i e n c y of the steel plant.  An extension of the Central Asian pipeline  from Tashkent to Karaganda i s projected.  This, however, repre-  sents a stretch of a thousand km through barren, desert country, and there i s no evidence that even preliminary work has started yet. If gas i s discovered i n the southern part of the West Siberian Lowland, i t would be more l o g i c a l to supply Karaganda from that d i r e c t i o n . ply  A pipeline from the north could also sup-  Omsk and Petropavlovsk as well as a number of towns i n the  V i r g i n Land.  The l a t t e r i s not a large market, though T s e l i n -  ograd i s developing a range of industries associated with a g r i culture, but i t i s a f a r more responsive t e r r i t o r y economically than the desert further south. The a g r i c u l t u r a l lands of the V i r g i n Lands and West S i b e r i a could become a f a i r l y large consumer of l i q u i d gases.  Natural  gasoline can r e a d i l y he used as tractor f u e l , while the households of r u r a l and small-town inhabitants, numbering 7 to 8 m i l l i o n , would need a f a i r l y large amount of propane and butane. By f a r the greater part of t h i s vast steppeland i s devoid of wood and has very l i t t l e peat, which leaves the population without l o c a l f u e l resources. the least expensive  The d i s t r i b u t i o n of bottled gas i s  solution.  Gas d i s t r i b u t i n g stations i n the  region are already i n operation at Karaganda, Uralsk and Guryev and L.P.G. pools are now under construction at Aktyubinsk,  191. Kokchetav, Tselinograd and Pavlodar, with others projected.  11  The rest of S i b e r i a and the Par East Elsewhere, natural gas has and w i l l have only l o c a l s i g nificance.  Through a d i f f i c u l t pipeline to be b u i l t on perma-  f r o s t , the Vilyuy f i e l d w i l l supply the c i t y of Yakutsk.  Several  sources mention the eventual pumping of gas to Norilsk from the Taz deposit, which i s believed to be of a magnitude comparable to Shebelinka or G a z l i . haline may  F i n a l l y , the f i e l d s of northern  Sak-  serve Komsomolsk, with i t s small steel m i l l , i f the  12 technical d i f f i c u l t y of bridging the Tartar S t r a i t i s surmounted. Since the open hearth furnaces of Komsomolsk lack suitable supp l i e s of cheap f u e l (there i s no blast furnace, hence no byproduct gases are available) and seem to be f i r e d by f u e l o i l transported across S i b e r i a by r a i l , the a v a i l a b i l i t y of gas would be s i g n i f i c a n t . These developments, however, w i l l scarcely a f f e c t the o v e r - a l l economy of S i b e r i a , l e t alone of the USSR as a whole. The form of energy-supply may  be d r a s t i c a l l y changed i n a few  given c i t i e s , for instance Norilsk, but the a v a i l a b i l i t y of gas w i l l not appreciably increase t o t a l f u e l consumption.  The growth  of these areas depends e n t i r e l y on conditions elsewhere.  With  large regions, more r i c h l y endowed and much better located, s t i l l .  _ 0. Yu. Kulinyak: "Ispol zovaniye gaza v Kazakhstane," Gazovoye Delo. No. 1, 1963, p. 46. 1  12  Geograficheskaya Problemy.»•, p. 345; Yu. I. Bokserman: op. c i t . , p. 136-37; R.E. King: op. c i t . , Amer. Assoc. of Petroleum Geologists, Aug. 1964, p. 1342; Gazovaya Promyshlennost , No. 3, 1963, p. 43. 1  192. i n a semi-developed  stage, the lands of Northern S i b e r i a and  the Amur w i l l no doubt continue to be economically dormant.  193.  Chapter EC  REGIONAL COST ANALYSIS  194. The USSR i s a country of continental proportion, even i f one excludes the largely marginal areas of Northern Siberia and the Far East.  Its energy resources and markets are very  unevenly d i s t r i b u t e d .  One of the most urgent tasks of Soviet  planners, therefore, i s to determine the r a t i o n a l energy-mix for each major economic region. Since natural gas was able to cover only 12.4$ of the f u e l requirement i n 1963, i t i s obvious that the major problem of the planners i s the r a t i o n a l a l l o c a t i o n of this fuel among the various areas and among the different consumers within these areas.  Such an a l l o c a t i o n means the maximization of savings  (derived from the replacement of more expensive fuels by natu r a l gas) not merely i n any p a r t i c u l a r region, but i n the whole of the USSRi  Obviously, the cost advantage of gas versus  other  fuels i s of v i t a l importance i n any given region, b u t — owing to the present disequilibrium between supply and demand— a high cost difference does not everywhere guarantee large-scale substitution. In the following pages the costs of natural gas, natural gas l i q u i d s and a few petrochemicals  derived from them are ex-  amined i n various regions of the USSR.  A b r i e f look i s also  given to the p r i c i n g of these fuels and the p r i c i n g zones set up i n 1964. Of a l l f u e l s , natural gas i s the cheapest to produce. In 1962. extraction costs of 1000 cu. meters of gas from gas wells amounted to 0.51 rubles.  Converted to nominal f u e l s , average  production costs of various fuels i n recent years were as follows (rubles per ton):  195 Table XVI Fuel  Cost  Year  Natural gas  0.42  1960  Crude o i l  2.10  1960  Coal  11.37  1958  Peat  5.30  1958  Shale  14.83  1958  Wood  34.00  1958  Sources: Yu. I . Bokserman: o p . c i t . , p . 15; R.E.. Ebel: o p . c i t . , p . 99-100; S.D. Eel*d (1964): o p T c i t . , p . 62. Production costs of gas and o i l were calculated using the following conversion f a c t o r s : 1 ton of crude oil=1.43 ton of nomi n a l f u e l , 1000 cu. m. of gas from gas wells = 1.21 ton of nomi n a l f u e l . Costs of other fuels were given per ton of nominal f u e l by Pel*d. Eel'd also gives costs for crude o i l and natu r a l gas (for 1958). However, for natural gas he includes gases from o i l - w e l l s , the cost of which cannot be meaningfully determined (see below). These figures, therefore, were not used. Since output of o i l - w e l l gases i s intimately tied to that of crude petroleum, extraction costs of these gases cannot be independently  appraised.  The above costs do not include costs of prospecting and exploration and are, therefore, somewhat u n f a i r l y weighed i n favour of the two hydrocarbon f u e l s .  Authoritative sources,  however, disagree widely about the investment required (for both gas and o i l ) when prospecting i s included:  i t i s not  possible, therefore, to arrive at an unequivocal figure about 2 o v e r a l l costs.  D i f f e r e n t sources, however, are i n agreement  about straight production costs from the various deposits i n 2 .V.N.I.I.: Ekonomika Neftedobyvayushchey Gostoptekhizdat, Moskva, 1963, p. 17.  Promyshlennosti,  196. recent years, and the figures are given below: Table XVII Extraction costs of natural gas, including transport cost by f i e l d gathering system (rubles per 1000 cu.m.) 1955  1959  1960  1961  1962  Average for USSR  1.48  0.64  0.59  0.53  0.51  Komi ASSR  1.58  2.44  2.66  2.52  2.77  Kuybyshev Ob.  1.71  1.47  1.53  1.62  1.82  Saratov Ob.  2.23  1.58  1.02  0.84  0.72  Volgograd Ob.  0.64  0.59  0.55  0.57  Krasnodar Kray  0.77  0.80  0.70  0.70  0.23  0.16  0.20  0.18  12.02  18.82  3.944  5.60  . 13.14 12.64  9.97  8.97  1.16  1.32  1.23  Stavropol' Kray Chechen-Ingus ASSR  18.67 8.65  Dagestan ASSR Poltava Ob. Khar'kov Ob.  0.33  0.29  0.26  0.24  L'vov Ob.  0.49  0.49  0.44  0.39  7.20  5.77  5.96  6.25  3.70  2.94  1.95  1.21  2.13  2.59  3.00  Ivan-Pranko Ob.  0.68  Uzbek SSR K i r g i z SSR  _  & The reorganization of the industry i s responsible for the excessive change i n cost from the previous year. Sources; Yu. I . Bokserman: op. c i t . , (1964) p. 15 and N. I . Hovikov, op. c i t . , Gazovoye Delo, 1963, Ho. 5, p. 9 (for the major deposits).  197. Two important conclusions can be drawn from the table: a)  extraction costs of natural gas vary greatly i n the d i f f e r -  ent f i e l d s , b)  a l l major f i e l d s and the whole of the USSR experienced a  gradual reduction of costs over the years.  Since the beginning  of large-scale production, extraction has been cheapest i n Stavropol' Kray (North-Stavropol' f i e l d ) , followed by Kharkov Oblast (Shebelinka) and L'vov Oblast. the G a z l i deposit) has been, up to now,  The Uzbek SSR a relatively  (mainly expensive  producer, due to desert conditions, remoteness and the ing d i f f i c u l t i e s i n development.  result-  By the end of 1965, however,  planned cost at G a z l i i s supposed to be no greater than i n the 3 well developed region of Stavropol ^ Kray, and may 1  even be  less.  There i s evidence that production cost has increased recently i n the l a t t e r area, caused by the drop i n f i e l d pressure(see page 163).  In every producing f i e l d , the amortization of f a c -  i l i t i e s — wells, compressors, gathering l i n e s , e t c . — make up by far the largest share of extraction cost, reaching two-thirds 4 of the t o t a l i n North-Stavropol'.  (For precise breakdown, see  Appendix, Table VI ). 3  A.E. Zasyad'ko: Toplivno-Energeticheskaya Promyshlennost' SSSR, Gosplahizdat, Moskva, 1959, p. 55; L.A. Melent' ev & E.O. Shteyngauz: Ekonomika Energetiki SSSR, Gosenergizdat, Moskva, 1963, p. 97 and V.A. Shelest e_t a l : op. c i t . , p. 73. There i s no agreement among the sources about precise planned costs i n the various f i e l d s . The l a s t two sources give costs as " i n the future". Both -judge Central A s i a to be the cheapest future producer. 4 A.L. Kozlov: op. c i t . , Gazovaya Promyshlennost', 1963,No.11, p. 8; M.M.- Brenner: Ekonomika Nefyanoy Promyshlennosti SSSR, p.320, Moskva, 1962 and E.E. Dunayev: Ekonomika i Planirovaniye•; Nefyanoy Promyshlennosti, Gostoptekhizdat, Moskva, 1961, p. 139.  198. Though long distance transport increases cost by as much as four-five times, natural gas i s s t i l l the cheapest f u e l i n every region of the Soviet Union except S i b e r i a and the Far East. The tables below present comparative costs of various fuels i n the major regions of the USSR for 1959 major points of consumption i n 1965.  and projected costs at Despite the high cost of  transport f o r natural gas, this f u e l i s much cheaper than the others i n a l l regions of European Russia, though i t must y i e l d to  coal east of the Urals.  Here coal i s quarried i n large open-  cast mines very near to places of consumption, while the recently discovered gas deposits of S i b e r i a l i e 1500  - 2000 kms away  from the populated belt along the Trans-Siberian Railway. U n t i l very recently the price of gas was  seriously out  of balance with i t s cost, and i n most regions was 5 l e v e l of the price for coal. tem came into e f f e c t .  fixed at the  In January 1964 a new  price sys-  Though more r a t i o n a l than the former,  i t s t i l l only p a r t i a l l y r e f l e c t s the competitive p o s i t i o n of t h i s f u e l i n the various regions of the country.  Five zones  are established, the price being the same everywhere within each zone.  Zone I comprises the major gas producing regions, such  as the North Caucasus, the Western Ukraine, part of the Volga (for at  Kharkov Oblast, see below), within which the price i s fixed 9.5 rubles per 1000  cubic meters.  Zone I I includes the minor  producing regions, e.g. the Transcaucasus, the Komi ASSR, probably the Middle Volga, etc., and areas which are traversed by _  T. Brents: op. c i t . ,  Gazovoye Delo, No. 8, 1963,  p. 44.  199. Table X V I I I Costs of various fuels and. required c a p i t a l investments i n the major regions of the USSR (1959) (rubles* per ton of nominal fuel) Oil  Cost Natural  Gas  Local fuel  B a l t i c and Byelorussia  4.5  3.0  S.O  Northwest  6.0  3.5  10.0  Center  4.5  Volga  peat shale  C a p i t a l outlay Oil Natural Local fuel Gas 7.0  2.75  2.76  7\ 25  3.25  3.3  3.0  shale lignite 13.5 peat  7.0  2.75  4.5  4.0  1.5  12.5  shale  6.5  1.5  3.25  Donbass  4.5  2.5  8.5  coal  7.0  2.25  2.25  West Sib.  5.5  3.5  4.55  coal  7.5  3.25  1.35  East S i b .  6.5  5.0  1.8  coal  8.5  4.35  0.74  A  Given i n old rubles and converted to present value.  Source; Akademiya Nauk SSSR; Toplivo i Toplivnaya.Promyshlennost' , Moskva. 1960, p. 242.  large diameter trunklines. Here the price i 3 11 rubles per cu. meters.  1000  To t h i s zone are assigned also Poltava and Kharkov  Oblasts (with the huge Shebelinka f i e l d ) since the lowering of the price here i s not thought expedient due to proximity to the Donets Basin.  Zone I I I includes a l l the Ukraine save for L'vov,  Kharkov and Poltava Oblasts.  The price here i s set at 12 rubles.  To Zone IV belong the Center and the B a l t i c , except Estonia, with a price of 13 rubles per 1000 cu. meters.  Zone V embraces  Leningrad and Novogorod Oblasts, which are farthest from centers of production, and also Estonia where natural gas i s penalized  200 Table S I X Projected costs of various fuels i n 1965 at major consuming centers of the USSR and regional c a p i t a l investment (rubles per ton of nominal fuel) Points of consumption  N A T U R A L Regions from which c i t i e s are supplied  GAS Total Cost  Capital Outlay (Total)  East Ukraine North Caucasus West Ukraine North Caucasus East Ukraine Volga Volga North Caucasus Volga North Caucasus Karadag Central A s i a  2.41 2.75  24.3 30.1  1.9 1.32 0.65 0.56  18.1 13.0 6.4 6.1  1.5 2.52  13.8 25.1  Minsk  Western Ukraine  1.45  15.8  Kiev  Western Ukraine Central Asia Central Asia  1.8.  17.1  1.33  13.0  3.33  30.9  Leningrad Riga Moscow Gor * kiy Rostov Saratov Tbilisi Sverdlovsk  Tashkent Alma-Ata  COAL Deposits from which c i t i e s are supplied  Total Cost  Capital Outlay (Total)  PEAT Regions of consumption  Donbass Vorkuta Donbass  15.68 22.98 15.45  38.04 38.45 31.26  Leningrad Oblast' Latvia  Donbass  14.28  27.93  Donbass Donbass Donbass  14.71 13.14 14.28  30.81 24.19 27.72  Moscow Oblast' 5.80 Gor'kiy Ob.6.92  Donbass Kuzbass Chelyabinsk Donbass L vov-Volynsk  14.94 10.49 12.16 15.26  28.14 20.46 34.38 29.78  19.70  26.43  Donbass Kuzbass Karaganda Kuzbass Karaganda Ekibastuz  14.17 13.04" 12.41 10.49 11.22 6.75  27.68 27.02 22.10 23.93 20.95 22.12  1  Cost  7.72 6.37  Byelorussia 6.00  Ukraine  : 5.63  201. on a c c o u n t o f t h e e x i s t i n g l a r g e - s c a l e f a c i l i t i e s  f o r the pro6 a u c t i o n o f s h a l e g a s . H e r e n a t u r a l g a s i s p r i c e d a t 15 r u b l e s . One c a n p e r c e i v e scheme.  the problem of a l l o c a t i o n behind  Since n a t u r a l gas can cover  gy n e e d , t h e use o f h i g h - c o s t some a r e a s . to  only a p o r t i o n of the ener-  f u e l s w i l l have t o continue i n  Here gas i s p r i c e d h i g h e r  discourage  wasteful  than otherwise  c o n t r o l - - c a n now c h o o s e t h e i r  Comparing these  prices to costs  XVII-XIX) the d i f f e r e n c e s appear very g r e a t . mineral fuel profit  warranted  consumption ( e . g . under b o i l e r s ) by p l a n t s  w h i c h - - due t o l o o s e n i n g p l i e r s to a degree.  this  industries,  t o d a y i n t h e USSR.  sup-  (Tables  Indeed o f a l l  t h e gas i n d u s t r y r e g i s t e r s the l a r g e s t I t must be remembered, h o w e v e r , t h a t  p r o s p e c t i n g and e x p l o r a t i o n c o s t s a r e n o t i n c l u d e d i n t h e c o s t s given  i n these  tables (XVII-XIX).  T h e s e a r e h i g h a n d must be  covered. The partly  production  costs of n a t u r a l gas l i q u i d s  on t h e c o s t a n d c h e m i c a l  which these  composition  l i q u i d s a r e e x t r a c t e d and p a r t l y  of gas-processing  plants.  Production  depend  o f wet g a s e s f r o m on t h e e f f i c i e n c y  costs f a l l  o f f sharply  as t h e c o n c e n t r a t i o n o f l i q u i d s i n t h e gas i n c r e a s e s . g r a m b e l o w , g i v e n f o r two m a j o r g a s - p r o c e s s i n g Middle  Volga,  illustrates  this  The d i a -  plants i n the  fact.  6 I b i d . , p. 46-47. Note f o r Table X I X : P o r g r e a t e r d e t a i l o f c o s t s and capi t a l i n v e s t m e n t s ( i . e . f o r o u t p u t and t r a n s p o r t ) see A p p e n d i x , Table V I I . S o u r c e s : P o r gas and c o a l : Y u . I . Bokserman: op. c i t . , ( 1 9 6 4 ) , p . 229 & 2 3 0 . F o r p e a t : D . I . M a s l a k o v : o p . c i t . , p . 1 0 6 .  202. r U b , e  %on  O 100  200  300  400  500  gm./fcu. m.  Concentration of l i q u i d f r a c t i o n s (propane - pentane) 1 - Minnibayevo plant 2 - Tuymazy plant Though the above diagram i s g i v e n o n l y f o r propane and n a t u r a l g a s o l i n e , i t can be s a f e l y assumed t h a t t h e same s i t u a t i o n app l i e s t o condensates.  F o r t h i s r e a s o n , assuming  similar  strip-  p i n g t e c h n i q u e s , t h e c o s t o f p r o d u c i n g one t o n o f condensates i n K r a s n o d a r K r a y - - -where i t s average c o n c e n t r a t i o n i n t h e gas i s 26.4 gram p e r c u . m e t e r s - - must be much l o w e r than a t Sheb7 e l i n k a , where o n l y 4.5 grams p e r c u . meter a r e p r e s e n t . Cost f i g u r e s o f L P G and n a t u r a l g a s o l i n e i n n i n e import a n t g a s - p r o c e s s i n g p l a n t s a r e l i s t e d below f o r t h r e e y e a r s . F i v e o f t h e works a r e l o c a t e d i n the V o l g a R e g i o n , t h r e e i n the Caucasus and one i n the , 7 e s t e r n U k r a i n e .  The wide v a r i -  a t i o n i n cost i s immediately apparent. 7 V. T. B o r i s o v : " P r o i z v o d i t e l ' n o s t * t r u d a i p u t i y e y e p o v y s h e n i y a v dobyche gaza," Gazovoye D e l o , Uo. 8, 1963, p. 68.  203. Table XX Cost of LPG and natural gasoline i n gas-processing plants of the USSR (rubles per t o n ) . Plants Tuymazy ,  Minnibayevo  ^ X)  Plan  Realization 1959 I960  1961  10.27  11.57  9.32  8.45  7.24  15.03  11.54  9.62  o o Mukhanovsk a si  6.68  °3 |  Shkapovo  6.12  Groznyy  —  -P  rQ  o 0 4 J  3  22.18  24.50  25.45  Baku  35.82  31.58  25.61  Borislav  33.47  o  £o  & xi  17.13  Saratov  —-  79.92  33.44 73.32  90.72  o a> Krasnodar 55.00 61.88 55.10 Source; V. I. Luzin: "Hekotorye ekonomicheskiye pokaz a t e l i polucheniya zhidkikh produktov i z nefyanogo gaza, Gazovoye Delo. No. 8, 1963, p. 50. tt  As with dry natural gas, the prices of natural gas l i q uids are centrally fixed, but seem to exhibit greater v a r i a t i o n s . The prices f o r LPG and natural gasoline are not a v a i l a b l e , but some data on condensates has been found.  At Shebelinka the price  i s fixed at 23.70 rubles and r e f l e c t s the low productivity due to the low concentration of condensates i n the gas. In Krasnodar Kray, on the other hand— though production i s c e r t a i n to be much cheaper on account of the greater concentration of these l i q u i d s - - the price i s fixed independently  of production 8 cost and i s set at the price of crude o i l , as 4.90 rubles. 8 Ibid., p. 67.  204. This indicates that there must be an o f f i c i a l l y delimited, s t r i c t l y bound, market area for both producers. tween them i s only 500 km,  As the distance be-  condensates from Krasnodar Kray should  be much cheaper at Shebelinka  than the l o c a l  product.  In trying to gain some idea (however vague) of the comparative economic p o s i t i o n of petrochemicals  derived from natural  gas i n the various regions of the USSR, one i 3 forced to think more i n terms of the future than the present.  A mere 457,000  tons of natural gas l i q u i d s were used to produce in 1962,  petrochemicals 9 against over 14 m i l l i o n tons i n the United States.  Even i n 1965,  for instance, nearly h a l f of a l l ethyl alcohol i s  to be manufactured from potatoes and grain (in 1961, 10 made from these sources).  62^ were  As for dry natural gas, i t i s beginning to be used i n greater quantities as basic feedstock f o r three  chemicals:  ammonia (and i t s d e r i v a t i v e s ) , methyl alcohol and carbon black. Since 1963,  h a l f of a l l ammonia i s produced from natural gas  (ammonia produced from synthesis gas, obtained during the manu11 facturing of acetylene i s included).  Natural gas should play  a similar role i n the production of other n i t r i c such as urea and ammonium n i t r a t e .  fertilizers  (The amount of gas consumed  9 Butane-Propane News, No. 10, 1962, p. 53 and No. 1, 1963, p. 46; L. P. Gas, A p r i l 1963, V o l . 23, No. 4, p. 36; D. A. Tsvetkov: op. c i t . , Gazovoye Delo, No. 11, 1963, p. 43. 10 B.A. Brunshteyn e_t a l : Proizvodsvo Spirtov i z Neftyanogo i Gazovogo Syrya, Izdatel'stvo "Nedra", Leningrad, 1964, p. 41. 11 N. A. Simulin: "Razvitiye azotnoy promyshlennosti," Khimicheskaya Promyshlennost , No. 1, 1964, p. 8. 1  205. to produce these f e r t i l i z e r s i s unfortunately not a v a i l a b l e ) . For  the manufacturing of methyl alcohol, one b i l l i o n cubic me-  ters were used i n 1963 and about a t h i r d of a l l methyl alcohol 12 was produced from natural gas.  Of a l l petrochemicals, probably  carbon black accounts f o r the largest amount of gas: 2.5 b i l l . 13 cu. meters were planned to be burned f o r carbon black i n 1964. P r a c t i c a l l y no data i s available about the production costs of n i t r i c f e r t i l i z e r s , which are, i n any case, different when ammonia and i t s derivatives are produced i n conjunction with acetylene.  Even the largest plants operate at varying  l e v e l s of technical e f f i c i e n c y and need d i f f e r e n t amounts of gas of i d e n t i c a l chemical composition and c a l o r i f i c  content to  produce the same amount of analogous products, (e.g. the Novomoskovsk, Lisichansk and Nevinnomysk p l a n t s — a l l using Stavropol  1  g a s — d i f f e r by as much as 25$ i n the number of cubic 14  meters required to make one ton of ammonia)  Situated some  800 kms farther away from their mutual source of gas-supply and, therefore, incurring s i g n i f i c a n t transport charges on every cubic meter used, the Novomoskovsk (south of Moscow) chemical combine 12 nevertheless manufactures ammonium n i t r a t e about 50$ B.A. Brunshteyn et a l : op. c i t . . p. 22 and "Gazovaya promyshlennost* k 46-iy godovshina Velikogo Oktyabrya," Gazovaya Promyshlennost', No. 11, 1965, p. 5. 15 Ibid., (Gazovaya Promyshlennost') p. 5. 14 R. Sheyenkov: "Pob'em proizvodstva mineral'nykh udobreniy," Ekonomi che skiye Nauki, No. 1, 1964, p. 10. (By 245 cu. meters. About 1060 cu. meters are required to produce one ton of ammonia.  206. c h e a p e r t h a n the L i s i c h a n s k combine (Lugansk O b l a s t ' ) . ute  cost i 3 a v a i l a b l e only f o r the G h i r c h i k p l a n t , near  w h i c h u s e s gas H e r e one  ently  f r o m t h e B u k h a r a d e p o s i t s a b o u t 500  t o n o f ammonium n i t r a t e  c h i k i s one  of the  kms  AbsolTashkent,  away.  c o s t 31 r u b l e s i n 1962.  Chir-  large plants with technical efficiency  comparable t o the L i s i c h a n s k combine.  a t Novomoskovsk s h o u l d  n o t be much more t h a n 20  t o n o f ammonia t h a n a t N o v o m o s k o v s k — 16  appar-  Assuming t h a t , cost r u b l e s and  N e v i n n o m y s k ( s o u t h o f S t a v r o p o l ' ) — w h e r e l e s s gas per  15  at  i s needed  i t s h o u l d be  somewhat  less. T h e s e f i g u r e s c a n n o t be but  they  do  illustrate  taken w i t h too g r e a t a c e r t a i n t y ,  the f a c t t h a t i t i s not y e t p o s s i b l e to  make a r a t i o n a l e c o n o m i c a n a l y s i s a b o u t t h e p r o d u c t i o n fertilizers  at various points.  n a t u r a l gas  f r o m c o a l and  and  These f a c t o r i e s  coke-gas o n l y i n the p r e s e n t  m a t e r i a l s and  distance for n i t r i c  i n many r e g i o n s .  fertilizers  i n 1960  extreme c o n c e n t r a t i o n of p r o d u c t i o n to  to  decade, costs  fuel.  E x c e s s i v e l y l o n g h a u l s , h o w e v e r , can more t h a n cost of f e r t i l i z e r s  of  changed over  c o n d i t i o n s w i t h i n t h e p l a n t s h a v e g r e a t e r e f f e c t s on  t h a n t h e p r i c e o f raw  the  cost  The was  i n a few  triple  average shipping 17  1290  km,  areas.  due  to  According  E e d o r e n k o , the c o s t of t r a n s p o r t i n g 100,000 t o n s a d i s t a n c e 18 o f 1000 km a m o u n t s t o 5,650,000 r u b l e s , t h a t i s 56.5 rubles 15 I b i d . , p . 7. 16 I b i d . . p. 9-10. 17 V. G i t k o v i c h : op. c i t . . Gudok. Nov. 1 3 , 1 9 6 3 , p. 3. 18 N.P. E e d o r e n k o e_t a l : Q c h e r k i po E k o n o m i k e K h i m i c h e s k o y P r o m y s h l e n n o s t i SSR, I z d a t e l ' s t v o " V y s s h a y a S h k o l a " , ffioskva, 1960, p. 1 0 3 .  207. per ton.  In the Western Ukraine, therefore, which s t i l l does  not supply i t s own needs, a ton of ammonium n i t r a t e from the Lisichansk factory should cost somewhere "between 80 and 90 rubles (and more from the other coal-based  f e r t i l i z e r plants of the  Donets Basin)-- though advantageous freight charges should keep i t lower than that. fertilizers  It i 3 averred, as late as 1964,  can be "economically"  that n i t r i c  ( i t a l i c s added) d i s t r i b u t e d  from the Eastern Ukraine within an area of nearly 570,000 sq. 19 km  —  a huge t e r r i t o r y which must include the whole of the  Ukraine, part of the B a l t i c , Byelorussia and the Central Chernozem Region.  Such transport by r a i l i s undoubtedly carried on  today, although the delivery of the required amount of natural gas (presumably by pipelines of 28 inches diameter or over) i s alleged to cost h a l f as much as the transport of these f i n i s h e d products.  (5.6 m i l l i o n rubles for 100,000  tons of f e r t i l i z e r  delivered over a distance of 1000 km against 2.25 m i l l i o n rubles for 100 m i l l i o n cubic meters of gas delivered over the same 20 distance. for  This cost f o r the gas may  include c a p i t a l charges,  i t i s higher than given by Savelev on page 70.)  ures, too should be treated with caution.  These f i g -  A more recent state-  ment claims that transport costs of n i t r i c f e r t i l i z e r s are at most 30$ higher than the delivery costs of the required amount 21 of natural gas by major trunklines. 19  20 21  Ekonomicheskaya Gazeta, June 13, 1964, Ibid., p.  p. 9.  103.  V. Bivishev: "Khimiya i narodnoye potrebleniye," "Voprosy Ekonomiki. No. 2, 1964, p. 48.  208. P r a c t i c a l l y no sulfur i s extracted yet from natural gas. Fortunately for Soviet planners only a few, deposits y i e l d sour gas  relatively  small  (see Table V, Chapter I I , p. 40),  s u l f u r , therefore, does not i n t e r f e r e with long-distance port.  and trans-  The lack of urgency to remove s u l f u r , however, has  prived the chemical industry of a cheap raw material. plants today use mineral s u l f u r f o r the production  de-  Most  of s u l f u r i c  a c i d , e s s e n t i a l i n the manufacturing of superphosphate, similar phosphoric f e r t i l i z e r s and a host of other chemical At present,  products.  s u l f u r i c acid i n the USSR s e l l s for 18 rubles at  the place of production  (mainly the Center, the Urals and  the  Eastern Ukraine), but the f a c t o r i e s are obliged to spend 17 rubles on the mineral sulfur alone.  (Whether t h i s i s less i n  the Urals, where sulfur i s mined, than i n the other  regions,  or whether a uniform price i s set on sulfur i s not indicated). It i s evident, that under such conditions a l l f a c t o r i e s using 22 mineral sulfur must work at a huge d e f i c i t .  Sulfur produced  from gas and o i l should be 4 - 5 times cheaper than that. Production  costs of carbamide (urea) and of methyl  a l c o h o l — which are manufactured most cheaply from natural gas but which also require high enex'gy inputs-- vary i n d i f f e r e n t regions with the cost of raw material and energy.  (Usually, but  not necessarily, natural gas provides the energy as well.) most favoured 22 1964,  p.  The  regions, therefore, are Central A s i a , the Volga  R. Sheyenkov: op. c i t . , Ekonomicheskiye Uauki, No. 9.  1,  209. and East S i b e r i a .  In the l a t t e r area the small amount and r e l a -  t i v e l y expensive gas of Irkutsk Oblast could provide the raw material even at present, while the very cheap coal could sati s f y the energy need-- which i n the case of methyl alcohol, at l e a s t - - i s consumed c h i e f l y i n the form of e l e c t r i c i t y . Table XXI Tentative costs of carbamide and methyl a l c o h o l (from natural gas) in various regions. (in  percentages. Costs i n the North-West are taken as 100$)  Economic regions  Carbamide end Expenditure on: cost raw material energy  North-West  100  100  100  Methyl Alcohol end Expenditure on: cost raw mat. energy 100  100  103  116.3  100 60.0  Center  90.4  96.7  72.1  Volga  70.1  75.8  40.0  70.6  83.6  46  North-Caucasus  81.9  84.6  90.4  82.0  93.0  56  Y/est S i b e r i a  77.5  87.8  54.7  80.9  92.0  54  East S i b e r i a  70.8  75.0  43.4  72.1  86.5  44  109.5  115.4  104.0  126.0  129.8  100  70.6  73.7  44.8  67.5  80.7  44  Far East Central A s i a  i  Source: N. Fedorenko and A. Vayn: op . c i t . ,Planovoye Khozyaystvo, No. 5, 1964, p. 29. Production costs of organic intermediates and their regi o n a l variations are almost a l l forecasts. In Chapter I I , p.34-41 the respective positions of LPG's (via olefins) and of dry natural gas (via acetylene) as petrochemical raw materials were discussed i n a general way.  Due to the concentration of LPG- production  (combined with general s c a r c i t y ) , i n regions reached by gas  210. pipelines the production of acetylene may  be more economic than  the production of o l e f i n s from LPG-'s imported by r a i l .  If the  region has a large enough o i l refinery, however, o l e f i n s from refinery l i q u i d s are l i k e l y to be cheaper.  The following pages  compare the end costs of acetylene (from dry natural gas) and of two o l e f i n s from l i q u i d hydrocarbons i n three types of regions of the Soviet Union.  Tables VHI-X i n the Appendix compare the  costs of three further products which can be made from dry nat u r a l gas as well as l i q u i d products (unfortunately only percentage figures are a v a i l a b l e ) . Type I regions i n the following table represent those where hydrocarbon resources are abundant and energy cost moderate but not cheap, such as the Middle Volga, the Baku area and to a much lesser extent the Western Ukraine.  Type II includes  those regions which have limited hydrocarbon resources, especi a l l y natural gas, but boast low cost energy.  Central S i b e r i a  i s the most obvious representative of this type.  F i n a l l y , Type  I I I embraces those regions which have extensive resources of natural gas and cheap energy, e.g. Central A s i a and the North 23 Caucasus (especially the former).  These examples are not given  by the source cited, but the c r i t e r i a of grouping make i t f a i r l y clear which regions should be included i n each group. These are no doubt tentative comparisons, but the conclusions that may be drawn from them f i t w e l l into the general analysis of the use of o l e f i n s and acetylene i n the organic petrochemical industry of the USSR.  (Chapterll, p. 38-41).  23 G-.Borisovich: "0 r a z v i t i i proizvodstva e t i l e n a , a t s e t i lena," Khimicheskaya Promyshlennost', No. 8, 1963, p. 4.  211. Table XXII Cost indices of acetylene, ethylene and propylene i n various regions of the USSR ( i n percentages) Methods of production  Capital outlay  Projected costs i n three types of regions ( i n percentages) I II III  Acetylene P a r t i a l oxydization (oxygen pyrolysis) of methane from 100 natural gas. High temperature pyrolysis of l i q u i d products 115 E l e c t r i c cracking of methane from natural gas 70 Prom coal v i a calcium carbide 115  100  100  - 100  95  90  110  —  6  0  60 150  165  70  70  85  55  55  70  Ethylene Pyrolysis of l i q u i d hydrocarbons  40 Propylene  Pyrolysis of l i q u i d hydrocarbons Source:  20  Khimicheskaya Promyshlennost , Ho. 8, 1963,  Where o l e f i n s can be produced—  1  p.4.  i n areas which have resources  of LPG's and refinery l i q u i d s — they serve as a much more attractive base f o r the petrochemical industry than acetylene.  Pro-  pylene i s especially economic, though i t i s a less v e r s a t i l e basic chemical than ethylene (or acetylene).  But ethylene, too,  costs 1.3 to 1.5 times less than acetylene and i t s production requires much l e s s capital investment.  In regions of type II  and I I I , however— such as Central S i b e r i a and Middle A s i a — the manufacturing of acetylene by e l e c t r i c cracking appears very a t t r a c t i v e indeed and i s considered cheaper than the production of ethylene (mostly from "imported * petroleum), and i n Region I I I 1  cheaper even than that of propylene.  The much higher c a p i t a l  212. investment n e c e s s a r y — the  i n t e r e s t s on w h i c h a r e n o t  c o m p a r i s o n o f c o s t s - - makes t h e p i c t u r e somewhat l e s s " b r i g h t  f o r a c e t y l e n e , however.  Acetylene  by p a r t i a l c o m b u s t i o n ( o x y d i -  z a t i o n ) a p p e a r s much more e x p e n s i v e , i n a l l three types be  included i n  of regions  and  approximately  on  ( T h i s , however, does not  par  seem t o  a r e a l i s t i c a s s u m p t i o n on a c c o u n t o f t h e h e a v y t r a n s p o r t  n a t u r a l gas must i n c u r i n R e g i o n I I ) .  In r e a l i t y  i t i s much  c h e a p e r , f o r o v e r 10,000 c u b i c m e t e r s of s y n t h e s i s gas t a i n e d a l o n g w i t h a t o n o f a c e t y l e n e , and valued  a t o v e r 40$  of the p r o d u c t i o n  cost  is  ob-  t h i s by-product i s  c o s t of the a c e t y l e n e ,  an  24 amount w h i c h must be acetylene related  deducted.  i s t o be p r o d u c e d by  to the  Table X X I I I provides  Don  of acetylene  a r e a and  i s a b a s i c raw  of n i t r i c f e r t i l i 25 material.  d e t a i l e d cost comparisons f o r  i n two  Central Siberia.  regions  o f t h e USSR —  Production  costs are  electric  c r a c k i n g of l i q u i d  c l e a r w h e t h e r the gas "imported".  Only very  here at present,  24  feedstocks.  compared and  for  ( i t i s n o t made  u s e d i n C e n t r a l S i b e r i a w o u l d be s m a l l amounts o f n a t u r a l gas  though d i s c o v e r i e s are not  the  the Lower  b o t h f o r t h e p a r t i a l c o m b u s t i o n o f methane ( n a t u r a l g a s ) the  of  t h i s method-- a p l a n w h i c h i s  i n c r e a s e i n the m a n u f a c t u r i n g  z e r s f o r w h i c h s y n t h e s i s gas  production  I n the f u t u r e , the b u l k  are  unlikely.  local  or  found "Imports"  L.V. Semenov e t a l t " P e r s p e k t i v y i e k o n o m i c h e s k a y a e f f e k t i v n o s t ' i s p o l ' z o v a n i y a l o v u s h e c h n y k h e m u l s i i ... v p r o i z v o d s t v e a t s e t i l e n a , " K h i m i y a i T e k h n o l o g i . y a , Ho. 7, 1963, p. 4 2 , T a b l e 1. 25 G. B o r i s o v i c h : op. c i t . , K h i m i c h e s k a y a P r o m y s h l e n n o s t * , Ho. 8, 1 9 6 3 , p. 4.  213. Table X X I I I Production costs of acetylene i n two l o c a l i t i e s and by two d i f f e r e n t manufacturing methods  Basic materials: Natural gas(lOOO cu.m.) Oxygen(lOOO cu.m.) P e t r o l , emulsion (ton) A u x i l i a r y mat. (kg)  Price of P a r t i a l combustion of E l e c t r i c cracking of petunit methane roleum emulsion (rubles) No. of Total Cost No. of Total Cost Novo Cen units Novocher- Centunits Novocher- Centcher t r a l kask r a l Sib. kask r a l Sib. kassk S i b . 6.4 6.4 10.62 1.00 1.77 6.00 6.00 21.8& 21.8 3.6 3.055 3.00 2.00 9.18 6.11 1.00 1.00 6.00 6.0 6.0 6.0 6.00 6.00  Energy costs: Electricity(lOOO kwh) Water (ton) Steam (cu.m.) Condensate (cu.m.)  5.00 4.00 0.0_2 0.012 2.15 2.15 0.54 0.54  a  Wages & salaries(rubles)  —  Amortization(rubles)  mm mm  1.57 575.0 6.87, 0.5  — mm mm-  Shop & Dept. expenses(ru. ) -_ _  Total plant cost  By-products: Synthesis gas(l000 cu.m.) 4.00 4.00 0.11 0.11 Carbon black (kg) End cost of 1 ton of acetylene by the combustion method (rubles) End cost of 1 ton of acetylene by e l e c t r i c cracking using: (rubles) a) 30$ pet. emulsion b) 17$ pet. emulsion  mm> mm  — —  — —  10.3  7,85 6.9 14.77. 0.27  6.28 6.9 14.77 0.27  1.41  10.18 235.0 6.87 0.5  50.90 2.82 14.77 0.27  40.72 2.82 14.77 0.27  1.41  1.09  1.09  6.39  6.39  2.76  2.76  14.68  14.68  12.72  12.72  86.27  89.12  —— —  100.51  87.26  41.20  41.20  3.3 312.0  13.2 34.32  13.2 34.32  45.07,  47.92  52.99 50.86  38.34b 37.74  —  b  a) Oxygen, whose production requires a considerable amount of e l e c t r i c i t y should be cheaper i n S i b e r i a . b) Figures add up to s l i g h t l y d i f f e r e n t end costs: 39.74 and 37.61. Either there i s a minor error somewhere or there are additional factors influencing cost. Source: Khimiya i Tekhnologiya. No. 7, 1963, p. 42.  214. to the area east of the Yenissey do not appear probable could be expected to the Kuznets Basin.  but  In any case, however,  the price of gas i s set improbably low as explained further below). It i s c l e a r l y shown by the table that the cost of elect r i c i t y makes up h a l f the t o t a l cost of acetylene produced by e l e c t r i c cracking( I f methane and not l i q u i d feedstocks were cracked, even more e l e c t r i c i t y would be required.)  The  partial  combustion method, therefore, i s c l e a r l y more economic i n a region, such as the Lower Don-North Caucasus, where natural gas i s abundant and cheap but e l e c t r i c i t y i s f a i r l y expensive—  espece  i a l l y when these regions are also i n need of f e r t i l i z e r s . The actual costs of acetylene, however, are l i k e l y to be considerably higher than those given i n the table f o r both areas. The cost of raw materials seems unbelievably low.  The  chemical  industry purchases gas at a price which excludes turnover 26 sales t a x — which cuts the price by one h a l f  and  -- and Novocherkassk  i s situated very close to the major deposits of the North Caucasus.  Yet a price of one ruble per 1000  cubic meter i s pos-  s i b l e only i f the pipelines purchase gas at cost and deliver i t to the plant, making hardly any p r o f i t .  (The producing  enter-  prises and the pipelines form d i f f e r e n t departments of the State G-az Trust (Gazprom) with separate planned p r o f i t s for each). Such a course i s possible, but i t i s certainly not i n a l l areas of the USSR. 1000  rubles per  cubic meter would be far too low even at cost price. 26  p.47.  In S i b e r i a , however, 1.77  sanctioned  T. A. Brents: op. c i t . , ' Gazovoye Delo, No. 8,  A  1963,  215. higher price f o r natural gas, however, would simply strengthen the argument of the previous pages about the competitive position of acetylene produced by p a r t i a l combustion of methane. The difference between producing areas and those to which gas has to be transported would be accentuated. l i g h t petroleum fractions suspended S i b e r i a than at Novocherkassk,  (Petroleum emulsion—  i n water-- cost less i n  despite the 'import' of o i l from  the Hiddle Volga, because at the l a t t e r place Caucasian crudes would be used, which are f i v e times more expensive than crudes from the Middle Volga). Tables VIII - XII i n the Appendix i l l u s t r a t e the l i m i t ations of dry natural gas as raw material f o r organic synthesis. Dry gas can be economic only i n those regions where i t i s plent i f u l , provided that these regions have cheap e l e c t r i c i t y (then e l e c t r i c cracking i s used) or require n i t r i c f e r t i l i z e r s i n large quantities (then p a r t i a l combustion i s employed) and have, by and large, no access to IPG's or low-cost refinery products (at present, from Volga crudes).  216.  C O N C L U S I O N  217. TJtie Soviet natural gas industry i s very young: i t s large-scale development i s the work of the past f i f t e e n years, and especially of the l a s t decade.  Since 1950,  output increased  about 20 f o l d , and today the USSR produces about one-fourth as much as the United States.  Though i t s proved reserves are  still  only a quarter of those of the l a t t e r , i t s ultimate reserves are far  i n excess, judging from the extent of promising  basins.  sedimentary  Many of the deposits however, even today and more i n  the future, are inconveniently located with respect to the major consuming areas. Notwithstanding of  the general eastwardly s h i f t , the bulk  the Soviet population and industry i s s t i l l found i n Euro-  pean Russia, the Urals included, and three-fourths of a l l f u e l is  consumed west of Chelyabinsk and the Caspian Sea.  As the  coal resources and hydro potentials of t h i s area are generally meager and expensive to exploit, i t i s here that the benefits of  cheap natural gas are f e l t today.  Outside European Russia  gas consumption i s as yet n e g l i g i b l e . Although a l l the economic regions of the European USSR receive gas today, the amount u t i l i z e d by them and the c o n t r i bution this f u e l makes to the regional f u e l balance varies greatly. ing  The Central Region i s by far the largest consumer, accountfor over a t h i r d of a l l gas used i n 1962, but w i l l soon be  matched by the U r a l s .  The Eastern Ukraine and the Volga are  moderate consumers, while a l l other regions use only small amounts.  218. All to  areas could use much more gas than i t i s available  them at present, and Soviet planners are faced with the pro-  blem of a l l o c a t i n g this s t i l l somewhat scarce resource.  Al-  though natural gas i s expensive to transport, i t i s s t i l l the cheapest f u e l i n a l l regions of European Russia.  However, cost  advantage alone cannot determine whether gas w i l l be substituted  for other f u e l s .  The r e l a t i v e importance of any one area,  the value and t r a n s p o r t a b i l i t y of alternative sources of energy, and the t o t a l saving accruing to the national economy by the replacement must a l l be considered.  Thus while the production  of  l i g n i t e and/or peat i s being reduced i n the i n d u s t r i a l core  of  the Central Region and i n the Urals, i t i s being expanded i n  the more outlying areas of the Center, i n the B a l t i c and Byelorussia. and  S i m i l a r l y shale production has ceased i n the Volga  the North Caucasus, but i s being i n t e n s i f i e d i n Estonia. The share of gas i n the f u e l mix of the various regions  does not necessarily vary according to the amount u t i l i z e d , since many regions are unimportant  consumers of f u e l .  i s over a h a l f i n the Transcaucasus,  The  share  over a t h i r d i n the Volga  and about a quarter i n the i n d u s t r i a l core of the Central Region. Gn the other hand, i t i s n i l i n Estonia, small or very small in  the Leningrad Region and the Eastern Ukraine and r e l a t i v e l y  low even i n the rest of the Ukrainian SSR.  Very large supplies  do not necessarily lead to a correspondingly high share of natu r a l gas i n the f u e l mix of a region.  In both Central A s i a and  the North Caucasus natural gas s a t i s f i e s less than h a l f of the very modest f u e l need.  219. Because the production of natural gas i s highly  concen-  trated, large areas have and w i l l have no output on t h e i r  own.  The Center, the Urals, the Leningrad Region and the B a l t i c have to he supplied from distant deposits through long-distance trunklines.  The f i r s t two regions, i n p a r t i c u l a r , are served by the  two longest and largest pipeline-systems of the country.  While  the above regions need to "import" a l l their gas, the two r i c h est p r o v i n c e s — the North Caucasus and Central A s i a —  utilize  only a f r a c t i o n of their output at home. The areal discordance between the major producing and consuming areas i s l i k e l y to increase i n the f u t u r e .  In 1963  some three-quarters of a l l free gas output came from the North Caucasus and the Ukraine, while the Volga produced roughly an additional one-sixth and the bulk of the o i l - w e l l gases i n the country.  In that year the r a t i o of " i n d u s t r i a l reserves" (A B)  to output i n European Russia had f a l l e n to an 18 year supply, while i n the Ukraine, the Volga and Azerbaydzhan i t was well below that f i g u r e .  Obviously, new f i e l d s must he brought into  production i f output targets are to be met, and the necessary increase i n reserves w i l l have to come largely from Central Asia and West S i b e r i a .  At the same time, Middle A s i a w i l l remain  hut a minor consumer r e l a t i v e to more important regions i n European Russia, while the swampy wilderness of the West Siberian Lowland w i l l u t i l i z e no part of i t s output. Only a small amount of natural gas i s processed today, with the r e s u l t that the production of natural gas l i q u i d s i s as yet quite i n s i g n i f i c a n t .  A major consequence of t h i s fact  220. i s that only a very small share of Soviet gas output i s consumed today as chemical raw material, since NGL's (natural gas l i q u i d s ) constitute the most important natural gas-derived feedstocks for the chemical industry. Another i s the r e l a t i v e significance of dry gas for organic products.  Methane (via acetylene) i s given  a greater emphasis v i s a v i s NGL's i n Soviet plans than i t i s receiving i n the United States, especially since the manufacturing of acetylene can be p r o f i t a b l y combined with the production of n i t r i c f e r t i l i z e r s i n many regions. The development of the natural gas l i q u i d industry, nevertheless, i s given increasing attention as a prerequisite for the creation of a large petrochemical industry.  In those regions,  where wet gases are produced i n s i g n i f i c a n t quantities, such as the Middle Volga, the Caucasus and, to a much lesser extent, Central Asia and the Western Ukraine, an increasing share of wet gases w i l l be processed i n the future.  Only i n the Volga  Region, however, are other conditions favourable enough for the large-scale production of organic intermediates from IPG's. S t i l l , i n a l l regions, even i n the Middle Volga, where wet  o i l - w e l l gases predominate over free gases, natural gas i s  u t i l i z e d overwhelmingly as f u e l .  Each region, and even sub-  region, has i t s own d i s t r i b u t i o n pattern, but the i n d u s t r i a l sector (the consumption by power plants included) everywhere takes a share not f a r from the national average of over 85 percent.  Nowhere, not even i n the c i t y of Moscow, do household  municipal consumers u t i l i z e d i r e c t l y more than a tenth of the t o t a l output, although some of the gas burned i n e l e c t r i c  and  221. stations does end up i n this sector as by-product heat. Variations i n the regional pattern of consumption great and are influenced by a multitude of factors.  are  While i n  the Eastern Ukraine, thermal stations u t i l i z e r e l a t i v e l y small amounts, and i n the Donets Basin the share of gas i n the f u e l mix of power plants i s very low, i n the Central Region, the Volga and the Transcaucasus, e l e c t r i c stations are very heavy consumers, accounting f o r a considerably higher share than the nationa l average.  The demand f o r , and value of, the alternative f u e l ,  as well as the seasonal f l u c t u a t i o n i n consumption, account for such differences.  Since power plants can use p r a c t i c a l l y any  f u e l with r e l a t i v e l y l i t t l e change i n t h e i r e f f i c i e n c y , they burn the less valuable ones—  coal i n the Donbass and, generally,  in the Eastern Ukraine; natural gas i n the Volga and the Transcaucasus.  In the Central Region, the great imbalance i n season-  a l consumption  and the small scale of underground  storage com-  pels planners to allocate very large amounts of gas to thermal stations on an i n t e r r u p t i b l e basis. In regions which boast large iron and s t e e l plants, and where natural gas i s available, ferrous metallurgy i s a most important consumer.  The use of gas i n the blast furnace reduces  greatly the amount of coke needed, which-- aside from the Kuzbass— i s expensive everywhere i n the USSR.  Steel making i n open-hearth  furnaces i s becoming more and more the domain of natural gas since Soviet f u e l o i l s are either sulfurous or expensive and byproduct gases have low heat value.  In addition, iron and steel  plants are a t t r a c t i v e to planners, because they are very large  222. users and are l i t t l e affected by seasonal fluctuations.  In both,  the Eastern Ukraine and the Urals, therefore, ferrous metallurgy predominates consumption and i t s share w i l l be very s i g n i f i c a n t in the Central Region once the huge Novo-Lipetsk  complex i s  completed. In the Center, Leningrad and the Urals, though not yet in the Eastern Ukraine, gas i s u t i l i z e d extensively i n machine building.  In a l l regions of European Russia, again with the ex-  ception of the Eastern Ukraine, and increasingly so i n Middle A s i a , i t appears to play a major role i n the building material industry as well, since the great amount of thermal energy required by this industry cannot be produced at low enough cost by other f u e l s . In the not too distant future, the Kuznets Basin and parts of North Kazakhstan and West S i b e r i a w i l l probably receive natural gas.  Yet gas consumption w i l l continue to be concentrated  i n European Russia and the Urals to an overwhelming degree, and the share of various regions i s not l i k e l y to change greatly i n the future.  The Center and the Urals w i l l remain the largest  consumers, followed by the Eastern Ukraine and the Volga.  The  one region which w i l l probably increase i t s presently small share of gas consumption i s the Leningrad area, but only a f t e r  new  f i e l d s have been brought into production. The sectoral d i s t r i b u t i o n of consumption i s more l i k e l y to change except i n the household and municipal sectors.  There  are no plans to increase the share of household consumption i n the future (indeed, i t has been f a l l i n g since the m i d - f i f t i e s ) ,  223. and household and municipal  consumers w i l l continue to account  for s l i g h t l y l e s s than ten percent  of the t o t a l amount u t i l i z e d .  L i t t l e v a r i a t i o n i s to be expected i n the d i f f e r e n t regions cept i n the manner of supply.  ex-  Just as today, households i n the  more marginal areas (e.g. Central Asia, Byelorussia and the Western Ukraine) w i l l probably receive a very large portion of their supply i n l i q u e f i e d form to save investments on d i s t r i b u t i o n lines.  Industry w i l l continue to receive 85 percent  or more of  t o t a l supply i n every region, but within this sector some changes seem l i k e l y .  These changes, however, w i l l tend to reinforce  the regional d i s t r i b u t i o n pattern of today. Presently, there i s a decrease i n the r e l a t i v e importance of e l e c t r i c stations i n the t o t a l consumption, and authori t a t i v e voices c r i t i c i z e the indiscriminate use of gas as b o i l e r fuel.  Yet owing to the areal discordance  between the  concentra-  t i o n of population and reserves of s o l i d f u e l s , as well as to the l i m i t e d f a c i l i t i e s f o r storage, the share of e l e c t r i c stations w i l l surely remain considerably higher than i n the United States.  A s i g n i f i c a n t r e l a t i v e decline can be expected only  i n the Ukraine and, perhaps, i n the adjoining part of the North Caucasus. The i r o n and steel industry has greatly expanded i t s share of consumption since the end of the l a s t decade, and  this  increase i s l i k e l y to continue u n t i l the U r a l m i l l s and the Lipetsk complex receive enough gas for t h e i r needs. there may  Beyond that,  be some further growth i f natural gas i s introduced  the Kuznets Basin.  The  new  to  chemical industry, especially the petro-  224. chemical, i s going to receive an i n c r e a s i n g share, both i n the form of n a t u r a l gas l i q u i d s and of dry n a t u r a l gas i f S o v i e t plans m a t e r i a l i z e .  Except f o r the production of f e r t i l i z e r s ,  however, t h i s increase w i l l be concentrated i n a few r e g i o n s , such as the Volga and, to a much l e s s e r extent, the Caucasus, the Eastern Ukraine and, perhaps, Middle A s i a . The share of n a t u r a l gas i n the f u e l mix can be expected to increase s t i l l f u r t h e r , and-- given a decade or s o — the S o v i e t f u e l s t r u c t u r e w i l l approximate that of the United States.  However, i f production i s to increase as planned (to  over 300 b i l l i o n cubic meters by 1970 and to c i r c a 700 b i l l i o n by 1980) proved reserves must be enormously extended— mostly i n c l i m a t i c a l l y harsh environment, f a r from population c e n t e r s . Such expansion w i l l c e r t a i n l y require much l a r g e r investments i n the n a t u r a l gas industry than i t has so f a r r e c e i v e d .  225,  BIBLIOGRAPHY  226. Akademiya Nauk, I n s t i t u t G e o g r a f i i , Geograficheskiye Problemy Razvitiya Krupnykh Ekonomicheskikh Rayonov SSSR, Izdatel'stvo Mysl', Moskva, 1964. Akademiya Nauk SSSR, I n s t i t u t Geografii, i Leningradskiy Univ e r s i t e t : Severo-Zapad RSFSR. Izdatel*stvo M y s l , Moskva, 1964. . . 1  Akademiya Nauk, I n s t i t u t Geografii, Tsentral'nyy Rayon, Gosidat, Moskva, 1962. Alikhanov, E., "Khimiya Azerhaydzhana," Pianovoye Khozyaystvo, No. 3, 1964. 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Zinovyev, A.F., et a l . , "Osnovnye napravleniya ispol'zovaniya prirodnykh i poputnykh gazov v khimicheskoy promyshlenn o s t i , " Gazovaya Promyshlennost', No. 4, 1960. Zlotnikov, I.M., "K voprosu ob ispol'zovanii neftyanogo gaza," Gazovoye Delo, No. 12, 1963. Zolotarev, Yu.F., "Formirovaniye nefte-gaza-energokhimicheskogo kompleksa Kuybyshevskogo promyshlennogo uzla," Vestnik Moskovskogo Universiteta, Seriya Geografiya,No.3,1963.  235.  APPENDIX TABLES  236.  Table I The f u e l mix of the United States from 1880 to 1920 ( i n percent)  Year  Coal  Oil  1880  41.1  1.9  1885  50.3  1890  Natural Gas  Nat.Gas liquids  Hydropower  Wood  n.a.  57.0  .7  1.5  47.5  57.9  2.2  3.7  .3  35.9  1895  64.6  2.2  1.9  1.2  30.1  1900  71.4  2.4  2.6  2.6  21.0  1905  75.7  4.6  2.8  2.9  13.9  1910  76.8  6.1  3.3  3.3  10.7  1915  74.8  7.9  3.8  3.9  9.5  1920  72.5  12.3  3.8  3.6  7.5  Source: p.  36.  •2  S. H. Schurr and B. C. Netschert:  op. c i t . ,  237  Table I I Gross Consumption of Commercial Sources of Energy (million metric tons coal equivalent) Electricity (hydro,geotermal and imported)  Solid  Liquid  Gas  North America 1929 1937 1950  559.8 457.4 488.6  179.2 200.7 403.7  73.3 105.5 251.0  45.7 50.4 86.9  858.0 814.0 1230.2  Latin America 1929 1937 1950  9.5 9.7 9.1  15.0 18.4 45.1  0.3 2.4 4.9  2.0 3.6 6.4  26.8 34.1 65.5  Oceania 1929 1937 1950  12.0 14.3 20.7  2.4 4.1 8.6  —-  0.8 1.2 2.7  15.2 19.6 32.0  Europe 1929 1937 1950  633.2 614.0 635.5  23.7 40.8 73.7  1.7 3.9 4.5  38.6 45.5 67.1  697.2 704.2 780.8  USSR 1929 1937 1950  52.1 137.9 268.8  20.4 44.3 69.7  0.3 1.9 11.2  0.4 4.1 6.4  73.2 188.2 356.1  Asia 1929 1937 1950  86.0 109.1 117.2  12.0 16.3 25.3  0.6 1.3 1.2  12.5 18.8 28.7  111.1 145.5 172.4  Africa 1929 1937 1950  14.7 18.3 28.8  2.3 3.4 10.1  —  0.1 0.3 0.8  17.1 22.0 39.7  World 1929 1937 1950  1367.3 1360.7 1568.7  255.0 328.0 636.2  76.2 115.0 272.8  100.1 123.9 199.0  1798.6 1927.6 2676.7  Total  Source: S t a t i s t i c a l Office of the United Nation, Dept. of Economic A f f a i r s , Yforld Energy Supplies i n Selected Years. 1929 - 50. S t a t i s t i c a l Papers. Series J . . No. 1, New York, Sept. 1952.  233 Table I I I Technical Indices of Blast-furnace Smelting A i r Blasting without natural gas Blast temperature (centigrades) Coke consumption (ton of coke per ton of pig iron) Volumetric  efficiency  Productivity (percentage)  B l a s t i n g with gas, enriched by oxygen  1200  1200  1200  0.538  0.493  0.436  0.595  0.524  0.480  100  113  124  145  175  Natural gas consumption (cu.m. --per ton of p i g iron) Oxygen consumption (cu.m. per ton of pig iron)  -—  Blast consumption (cu.m. per ton of pig iron)  1530  Oxygen content i n blast, (percent)  Blasting with natural gas  138 -  1270  940  —  32  Source: A. A. Pedotov et a l : Izvestiya Vysthikh Uchebnik Zavedeniy Chernov M e t a l l u r g i i , No. 1, 1964, Transl. i n US J . P. R. S., 23673, March 13, 1964, p. 5.  239  Table IV Transport Costs of Natural Gas. Cost variations according to length, and diameter of pipelines and the volume of gas transported (rubles per 1000 cubic meters) Inside diameter and thickness of pipe -wall (Millimeters)  Transport of gas(billion cu.meters per year)  500  Distance, 800 1000  1.0 1.5 1.7 2.0  3.1 2.6 2.7 2.8  5.3 4.5 4.7 4.9  6.9 6.2 6.1 6.1  1.0 1.5 1.7 2.0 2.5 3.0 3.5 4.0  3.9 2.6 2.3 2.0 1.6 1.6 1.6 1.7  6.3 4.2 3.7 3.1 3.0 2.9 2.8 2.8  7.9 5.2 4.6 4.2 3.7 3.7 3.6 3.6  6.5 5.8 5.6 5.6 5.7  9.0 8.0 7.9 7.7 7.9  820 x 10  2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0  2.2 1.8 1.5 1.3 1.3 1.4 1.3 1.5 1.6  3.6 2.9 2.6 2.5 2.4 2.5 2.4 2.6 2.6  4.5 3.7 3.2 3.0 2.8 2.9 3.0 3.1 3.1  6.7 5.6 5.2 4.8 4.6 4.6 4.8 5.1 5.3  9.2 7.7 7.1 6.6 6.2 6.1 6.6 7.2 7.7  1020 x 12  3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5  1.7 1.5 1.3 1.2 1.1 1.0 1.1 1.0 0.94 1.0 1.1 1.1 1.1 1.1 1.2  2.7 2.3 2.1 2.1 1.9 1.8 1.8 1.7 1.6 1.6 1.9 2.0 1.9 1.9 2.0  3.4 2.9 2.6 2.6 2.4 2.4 2.4 2.2 2.2 2.2 2.4 2.4 2.5 2.6 2.6  5.0 4.6 4.4 3.9 3.9 3.8 3.7 3.6 3.6 3.5 3.9 3.9 4.1 4.1 4.0  7.0 6.3 5.7 5.4 5.2 5.0 5.1 4.9 4.7 4.8 5.3 5.4 5.6 5.7 5.7  529 x 8  720 x 9  km. 1500  - — __ _  2000  ---  —  Source: V.M. Gal'perin, "0b optimal'nykh usloviyakh dal'nego transporta gaza," Gazovaya Promyshlennost', No. 4, 1964, p. 42.  240 Table V Coat Structure of Gas Transport over the Kiev Network (comprising the Dashava-Kiev, Kiev-Bryansk and Shehelinka-Poltava l i n e s )  Percent of t o t a l 1960 1961 1962  1000 rubles per 1 1960 1961 1962  20.3  19.3  18.1  0.81  0.72  0.53  Materials and reagents  0.5  0.5  0.5  0.02  0.02  0.02  Energy  7.6  6.5  2.1  0.31  0.24  0.06  61.4  63.4  69.8  2.47  2.36  2.13  Maintenance and inventory  2.7  2.8  3.0  0.11  0.11  0.08  Transport expenses  1.1  1.1  0.4  0.05  0.04  0.02  Administration and organization  4.0  3.9  3.6  0.16  0.14  0.11  Other economic expenses  2.4  2.5  2.5  0.09  0.09  0.07  Item  Wages  Amortization  TOTAL  100$  Sourcet V. S. Chernovol, op. c i t . , Gazovaya Promyshlennost' , No. 12, 1963, p. 40.  241 Table VI Cost structure of natural gas extraction  Item of Expense  Horth-Stavropol' kop./lOOO cu.m. %  Wages Amortization -of wells -of other equipment Repair  Departmental cost General i n d u s t r i a l cost Administration Total Cost  Saratov Ob. percent  1.7  9.5  17.5  17.0  11.7 5.4  66.0 30.4  50.0 30.3  52.8 40.6  6.3  35.6  19.7  12.2  0.4  2.1  0.5  1.7  32.0  28.5  100.0  100.0  Other production cost  Ukraine "percent  0.7 1.3  3.9 7.3 4.5  0.8 1.2  6.7  17.8  100.0  Sources; A. L. Kozlov et a l : op. c i t . , Gazovaya Promyshlennost', Ho. 11, 1963, p. 8 and P.P. Dunayev: op. c i t . , p. 189.  Table VII Projected costs of natural gas and coal i n 1965 at major consuming centers and necessary c a p i t a l investments (rubles per ton of nominal fuel)  Points of consumption Leningrad  Riga Moscow  Gor'kiy Rostov Saratov  N A T U R A L GAS C 0 A L Cost Cost Capital Outlay C a p i t a l Outlay Out- TransCoal Out- TransOut- TransGas Out- TransTotal F i e l d s put port Total put port Total F i e l d s put port Total put port East Ukraine 0.41 North Caucasus West Ukraine 0.65 North Caucasus East 0.5 Ukraine Volga 0.52 Volga 0.46  2.0  2.41  3.9  20.4  24.3  2.1  2.75  6.5  23.6  30.1  Donbass 12.72 2.73 15.4523.12  8.14 31^6  1.4  1.9  4.4  13.7  18.1  Donbass 12.72 1.56 14.2823.12  4.81 27_-!3  0.8 1.32 0.19 0.65  5.2 3.9  7.8 2.5  13.0 6.4  Donbass 12.72 1.99 14.71 23.12  7.69 30.81  North Caucasus0.52 0.04 0.56 Volga  5.2  0.9  6.1  Donbass 12.72 0.42 13.1423.12 Donbass 12.72 1.56 14.28 23.12  1.07 24W9 4.60 27_7*  Donbass 12.72 2.22 14.9423.12  5.02 28W¥  Kuzbass 7.44 3.05 10.4914.20 Chelyabinsk 11.18 0.98 12.1630.70 Donbass 12.72 2.54 15.2623.12 L'vovVolynsk 18.23 1.47 19.7023.50  6.26 20-16  North Caucasus0.7 0.8 Karadag Central Sverdlovsl Asia 0.22 2.3  1.5  6.3  7.5  13.8  2.52  2.1  23.0  25.1  Western Ukraine 0.65 0.8  1.45  6.5  0.3  15.8  1.8  6.4  10.7  17.1  Tashkent  Western Ukraine 0.7 1.1 Central Asia 0.23 1.1  1.33  2.1  10.9  13.0  Alma-Ata  Central Asia 0.23 3.1  3.33  2.1  28.8  30.9  Kiev  9.92 38..CW  Vorkuta 15.17 7.81 22.98 26.12 12.33 38-45  Tbilisi  Minsk  Donbass 12.72 2.96 15.6823.12  Sources;  3.68 34-33 6.66 29.78 2.93 26-43  Donbass 12.72 1.45 14.1723.12 4.56 27.6? Kuzbass 7.44 5.60 13.0414.20 12.82 27^02 Karaganda 8.38 4.03 12.4116.69 5.51 22W0 Kuzbass 7.44 3.05 10.4914.20 9.73 23-73 Karaganda 8.38 2.84 11.2216.69 4.26 20-95 Ekibastuz 2.00 4.75 6.75 12.93 9.19 22-/2  For gas and coal: Yu. I. Bokserman: op. c i t . , (1964), p. 229. & 230. For peat : D. I. Maslakov; op. c i t . , p. 106.  243 Table VIII Cost indices of v i n y l chloride i n various regions  Method of production  Capital Outlay  Hydrochlorination(with regeneration of HCl) of acetylene produced by: a) high temperature pyrolysis b) e l e c t r i c cracking  85 65  Projected costs i n three types of r e gions(in percent) III II  75  75 ---  Prom dichlorethane and acetylene i n conjunction(acetylene made by pyrolysis) portion of acetylene:0.3 ton 90 portion of acetylene:0.2 ton 75  105 90  As above, with acetylene made by e l e c t r i c cracking portion of acetylene:0.3 ton 70 portion of acetylene:0.2 ton 65  —-  75  105 95  —-  110 100  Table EC Cost indices of acetaldehyde, produced from acetylene and ethylene, i n various regions Method of production  Capital Outlay  Acetylene Hydration of acetylene, produced by p a r t i a l combustion of methane 100 Hydration of acetylene, produced by e l e c t r i c cracking of methane 80 Hydration of acetylene, produced by high temperature pyrolysis 110 Ethylene Dehydration of ethyl alcohol produced through hydration of ethylene 95 Straight oxydization of ethylene 95 Source;  Projected costs i n three types of r e gions (in percent) II III  130 85  100  100  100  105  120  165  60  70  90  Khimicheskaya Promyshlennost . Ho. 8, 1963, 1  244  Table X Projected costs and c a p i t a l investment of acetylene i n various regions ( i n percent) Central^ Region End cost of acetylene Cost of raw material (natural gas) Energy costs C a p i t a l investment for production of acetylene, including output and transport of nat. gas A AA  Volga  Leningrad Region&ft  Middle Asia  100  76  104  74  100 100  45 62  131 103  31 60  100  91  102  90  On basis of East Ukrainian. and Saratov gas. On basis of East Ukrainian, gas• Table XI  Projected costs of o l e f i n s i n various regions (in percent) Economic Regions  Tentative end costs  Leningrad* Center  4  Volga ( a ) l i q u i d petroleum products (b)L.P.G.»s North Qaucasus (a) petroleum products (b) L.P.G.«s East S i b e r i a (Bashkir o i l )  100  100  100  94  90  82  77 60  79 45  49 23  111  59 30  94 70 91  Par East*  127  Donets-Dnieper^*  101  Kazakhstan AA  Expenditure on: raw material energy  98 probably from petroleum products. may be from condensates.  63 121 163 121 105  Source: N. Fedorenko & A. Vayn: op. c i t . , Planovoye Khozyaystvo, No. 5, 1964, p. 27, Table 4 and Table 3.  47 118 72 82  245  Table X I I Projected costs of v i n y l chloride and vinyl acetate on the basis of acetylene from natural gas and acetylene plus ethylene from petroleum products ( i n percent)  Economic Regions Leningrad  V i n y l chloride M V i n y l acetate A From natural From petroleum From nat. From pet. gas products gas products 100  100  100  100  Center  88.3  99.2  88.1  92.0  Volga  68.8  80.4  72.2  79.7  North Caucasus  88.0  92.3  80.0  87.9  Central A s i a  65.7  81.3  ' 71.2  85.8  78.9  85.1  71.0  83.3  111.4  114.2  West S i b e r i a East S i b e r i a Far East  67.8  82.9 _ _ _  Notes Percents may be compared only within v e r t i c a l columns. Data for natural gas and petroleum products cannot be compared. i t V i n y l chloride and v i n y l acetate can be produced v i a acetylene as w e l l as ethylene. It i s not shown i n the table which route i s chosen. The cheaper route i s generally v i a ethylene, but t h i s chemical cannot be produced from dry gas while acetylene can be made from any feedstock. One suspects that i n the Volga and perhaps i n the Center too, these f i g ures were arrived at on the basis of LPG and not dry gas. This would allow production v i a ethylene, and would explain why cost i s no higher i n the Center than i n the North Caucasus, which i s a major gas-producing area. Source; N. Fedorenko & A. Vayn: Khozyaystvo. 1964, No. 5, p. 28-29.  op. c i t . , "Planovoye  246  Table X I I I  P r o j e c t e d Cost of F o l l o w i n g P r o d u c t s ; ( i n percent)  Two Regions  fflethyl alcohol  Central Asia  100  East S i b e r i a  107  Vinylacetate 100 87.4  Phenol  100 95.0  Source; 1ST. Fedorenko and A. Vayn: op. Planovoye Khozyaystvo, Ho. 5, 1964, p. 31.  Caprolactone 100 94.5  cit.  t  247. SOURCES f o r MAPS Map 1. 2 & 5;  Sources for Table I I I (p. 13) and Table VI (p.48);  O i l and Gas Journal, June 8, 1964, p. 114; V gazprome rt  SSSR," Gazovaya Promyshlennost*. Ho. 8, 1964, p. 44; Izvestiya, March 29, 1964, p. 5 and Map 4;  E. J . Eohs:  others.  op. c i t . , American Assoc. of Petro-  leum Geologists, B u l l e t i n , V o l . 46, 1962, p. 1978-79. Modified. Map 5:  Yu. I. Bokserman: inset map between p. 68 and 69;  op. c i t . . p. 95-143 and H. K. Ham:  op. c i t . ,  Gazovoye Delo, Ho. 5, 1963, p. 40-41; R. E. King; op. c i t . , American Assoc. of Petroleum Geologists, 1964, p. 1342; O i l and Gas Journal, June 8, 1964, p. 114; "V gazprome SSSR," Gazovaya Promyshlennost*. Ho. 3, 1964, p. 441; Izvestiya, March 29, 1964, p. 5 and March 15, 1965, p. 4, and others. Map 6:  "Statisticheskiye Materialy," Vestnik  Statistiki.  Ho. 5, 1962, p. 87 and 91; A Riznik, and S. Litvak: op. c i t . . p. 17 and 24; Promyshlennost' SSSR. 1963. p. 191-217, passim; and D.I. Maslakov: op. c i t . . p. 146-167, passim. Maps 7 - 1 6 :  Eor these regional maps, various atlases and  sketch maps were used as well as newspaper reports on construction of plants, power stations, e t c .  

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