RAW

MATERIAL

INDUSTRY I. Ya.

RESOURCES

IN THE

TENTH

OF

THE

FIVE-YEAR

PETROLEUM

REFINING

PLAN

Vainer

The 25th C o n g r e s s of the C o m m u n i s t P a r t y of the Soviet Union has s u m m e d up the c r e a t i v e activity of the w o r k e r s of o u r nation f o r the Ninth F i v e - Y e a r P l a n and has m a p p e d out new f r o n t i e r s which, ff attained, will s t r e n g t h e n still f u r t h e r the p o w e r of the USSRo The s t r i v i n g of all Soviet peoples is c u r r e n t l y being d i r e c t e d toward r e s o l u t i o n of the m a i n t a s k of the Tenth F i v e ' Y e a r Plan, ". o. an i n c r e a s e in the m a t e r i a l and c u l t u r a l level of life of the nation on the b a s i s of a dynamic and p r o p o r t i o n a t e growth of s o c i a l i s t production, an i n c r e a s e in production efficiency, a c c e l e r a t i o n of s c i e n t i f i c - t e c h n i c a l p r o g r e s s , an i n c r e a s e in l a b o r productivity, and an a l l - o u t i m p r o v e m e n t in the quality of w o r k in all s e c t o r s of the national economy~ * A significant role in r e s o l v i n g the m a i n t a s k of the Tenth F i v e - Y e a r P l a n is to be played by the f u e l / e n e r g y complex, including the p e t r o l e u m refining industry. The f u e l / e n e r g y c o m p l e x is a unified whole, combining the e l e c t r i c p o w e r industry, the oil and gas p r o ducing industry, p e t r o l e u m refining; and the coal, shale, and p e a t i n d u s t r i e s . An organic bond e x i s t s between the f u e l / e n e r g y c o m p l e x and the productive f o r c e s of the nation as a whole. Growth of the f u e l / e n e r g y c o m p l e x depends on the d e g r e e to which it is provided with equipment, tools, and m a t e r i a l s p r o d u c e d b y m a n y different b r a n c h e s of industry~ At the s a m e t i m e , m a c h i n e r y construction, m e t a l l u r g y , t r a n s p o r t , a g r i c u l t u r e , and all the o t h e r s e c t o r s of the national e c o n o m y a r e unable to grow w i t h out adequate e n e r g y r e s o u r c e s ~ Our c o u n t r y is l i b e r a l l y endowed with e n e r g y r e s o u r c e s ; t h e s e a r e being used in the e c o n o m y in inc r e a s i n g amounts~ The n a t u r a l r e s o u r c e s of the USSR a r e such that fuel and e n e r g y can also be supplied to the b r o t h e r s o c i a l i s t nations. The s t r o n g e n e r g y b a s e of the Soviet Union is p a r t i c u l a r l y outstanding a g a i n s t the background ot the u n stable e n e r g y position of the developed c a p i t a l i s t i c c o u n t r i e s , which m u s t i m p o r t annually at l e a s t 1 billion m e t r i c tons of nominal s t a n d a r d fuel and m u s t l i m i t the c o n s u m p t i o n of this fuel. During the p a s t 15 y e a r s (1961-1975), the production of p r i m a r y e n e r g y r e s o u r c e s in the USSR has inc r e a s e d by a f a c t o r of 204, including an i n c r e a s e in production of c r u d e oil and gas condensate by a f a c t o r of 3.3. In a c c o r d a n c e with the t a s k s advanced by the 25th C o n g r e s s of the CPSU, new t r e n d s a r e being m a n i f e s t e d in the Tenth F i v e - Y e a r P l a n in drawing up the e n e r g y balance. In his p a p e r at the 25th C o n g r e s s of the CPSU, C o m r a d e A. N. Kosygin e m p h a s i z e d : "In this F i v e - Y e a r Plan, foundations a r e being laid so that, in the future, the growth of o u r e n e r g y potential will c o m e p r i m a r i l y through h y d r o e l e c t r i c power, atomic fuel, and l o w - c o s t coals. As r e g a r d s oil and gas, the i n c r e a s e in production will be m o r e and m o r e d i r e c t e d to technological needs."

* M a t e r i a l of the 25th C o n g r e s s of the CPSU [in Russian], Politizdat, Moscow (1976), p. 166.

T r a n s l a t e d f r o m Khimiya i Tekhnologiya Topliv i Masel, No. 1, pp. 6-9, J a n u a r y , 1977.

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In view of t h e s e c i r c u m s t a n c e s , the s h a r e of c r u d e oil and gas condensate in the f u e l / e n e r g y b a l a n c e in 1980 will r e m a i n at the 1975 level, w h e r e a s in the 1961-1975 period it i n c r e a s e d by 1370. W h e r e a s r e s i d u a l fuel oil in 1975 accounted f o r m o r e than 20% of the r e s o u r c e s of b o i l e r and furnace fuels, in 1980 its s h a r e will fall to 1770, and s u b s e q u e n t l y e v e n lower~ An i m p o r t a n t f a c t o r in the Tenth F i v e - Y e a r Plan, along with the i n c r e a s e in quality level of p e t r o l e u m products, is the i n c r e a s e in r e l a t i v e yields of light p e t r o l e u m products. In the p a s t f i v e - y e a r p e r i o d , the r e f i n e r i e s m e t in full the needs of industry, t r a n s p o r t , and a g r i c u l t u r e f o r r e f i n e r y p r o d u c t s . In the Tenth F i v e - Y e a r Plan, a 25-3070 i n c r e a s e in c r u d e oil runs has been mapped out, thus s a t i s f y i n g the growing demand of the nation f o r p e t r o l e u m p r o d u c t s . The m e a s u r e s to be w o r k e d out during the Tenth F i v e - Y e a r P l a n r e l a t i v e to the g e o g r a p h i c a l d i s t r i b u tion of the refining industry, i n c r e a s e s in the c a p a c i t y of existing p r o c e s s e s through b e t t e r operation, and introduction of the m o s t m o d e r n m a n u f a c t u r i n g p r o c e s s e s a r e in a c c o r d a n c e with the r e q u i r e m e n t s of the 25th C o n g r e s s of the CPSU and the Fifth S e s s i o n of the S u p r e m e Soviet of the USSR r e l a t i v e to the i n c r e a s e in v o l u m e of c r u d e runs, the shifting of r e f i n e r y s i t e s to b r i n g the p r o d u c t s o u r c e s c l o s e r to the c o n s u m e r s , the i n c r e a s e in qualify l e v e l of p e t r o l e u m products, and the i m p r o v e m e n t of the economic indices of the Branch. In o r d e r t o fulfill the plan adopted by the Fifth Session of the S u p r e m e Soviet of the USSR f o r the output of p e t r o l e u m products, the oil fields m u s t supply the r e f i n e r i e s with g r e a t e r v o l u m e s of c r u d e oil and gas condensate during the f i v e - y e a r period. In o r d e r to c a r r y out such a c r i t i c a l a s s i g n m e n t , the p e t r o l e u m refining i n d u s t r y should h a v e the c o r r e sponding p r e p a r e d r e s e r v e s of oil in place and new o i l - f i e l d c a p a c i t y f o r production; in addition, the c a r r y i n g c a p a c i t i e s of pipelines need to be increased~ The p r e p a r a t i o n of c o m m e r c i a l oil r e s e r v e s in c a t e g o r i e s A + B + CI, or, in o t h e r w o r d s , the c o n v e r sion of hypothetical r e s e r v e s (D I + D2) to p r o s p e c t i v e r e s e r v e s (C2) and then to c o m m e r c i a l r e s e r v e s (CI) , which a r e u s e d as the planning b a s i s f o r oil production during the f i v e - y e a r period, r e q u i r e s m a j o r effort in t e r m s of l a b o r and m a t e r i a l r e s o u r c e s . The c o m m e r c i a l o r p r o v e d oil r e s e r v e s r e q u i r e d to e n s u r e the needed v o l u m e s of oil production during the Tenth F i v e - Y e a r Plan had been f o r the m o s t p a r t p r e p a r e d at the s t a r t of this period= However, in view of the lengthy cycle r e q u i r e d f o r the p r e p a r a t i o n of c~,ade oil r e s e r v e s , a g r e a t e r lead t i m e m u s t be provided between the p r e p a r a t i o n of oil r e s e r v e s and the scheduled production, in o r d e r to g u a r a n t e e the oil production and e n s u r e that the b e s t s i t e s will be s e l e c t e d for the production. In view of t h e s e c i r c u m s t a n c e s , a c r i t i c a l t a s k h a s b e e n a s s i g n e d to the geological p r o s p e c t i n g o r g a n i z a tions of the c o u n t r y : During the Tenth F i v e - Y e a r Plan, the volume of c o m m e r c i a l r e s e r v e s of c r u d e oil and gas condensate m u s t be i n c r e a s e d by a f a c t o r of 1o34 in r e l a t i o n to the actual i n c r e m e n t a l r e s e r v e s for this f i v e - y e a r period. Naturally, the p r i n c i p a l i n c r e a s e in new c o m m e r c i a l r e s e r v e s is anticipated in the m a i n c e n t e r of the oil production industry, i~ in W e s t e r n Siberia. Along with this, geological p r o s p e c t i n g will be continued in the E u r o p e a n p a r t of the USSR, including an e x t r e m e l y p r o m i s i n g a r e a in the Komi ASSR and Arkhangel' ()blast' [Province], w h e r e , during the Ninth F i v e - Y e a r Plan, a n u m b e r of new producing fields have a l r e a d y b e e n d i s c o v e r e d and brought into production. Also c o n s i d e r e d as p r o m i s i n g d i s t r i c t s f o r geological p r o s p e c t ing f o r oil in the E u r o p e a n p a r t of the USSR a r e the G e o r g i a n SSR, P e r m ' , and Orenburg O b l a s t ' , the w a t e r a r e a of the C a s p i a n Sea, etc. During the Tenth F i v e - Y e a r Plan, geological p r o s p e c t i n g will be expanded in the Kazakh SSR, which is a l r e a d y a m a j o r producing a r e a . The m i n e r a l r i c h e s of E a s t e r n Siberia and the F a r E a s t have long r i v e t e d the attention of geologists. In the Tenth F i v e - Y e a r Plan, the b r o a d e x p a n s e s of t h e s e d i s t r i c t s will w i t n e s s a c o n s i d e r a b l e i n c r e a s e in the volume of geological s u r v e y i n g and e x p l o r a t o r y drilling. A c h a r a c t e r i s t i c f e a t u r e o f the geological e x p l o r a t i o n o p e r a t i o n s in the Tenth F i v e - Y e a r Plan and s u c ceeding f i v e - y e a r plans is the g r e a t e r expenditures of l a b o r and capital that will be r e q u i r e d . The s e a r c h f o r new oil and gas fields is d i r e c t e d mail~ly toward g r e a t depths, and m o r e and m o r e toward f a r - d i s t a n t and r e l a t i v e l y uninhabitable d i s t r i c t s with p o o r l y developed t r a n s p o r t a t i o n f a c i l i t i e s .

In his p a p e r p r e s e n t e d to the 25th C o n g r e s s of the CPSU, Leonid l l ' i c h B r e z h n e v said: " F o r oil, gas, coal, and o r e , we a r e now going e v e r f a r t h e r to the e a s t and to the north." With a planned i n c r e a s e in added r e s e r v e s in the Tenth F i v e - Y e a r P l a n amounting to twice that in the Seventh F i v e - Y e a r Plan, the new c a p i t a l i n v e s t m e n t is expected to be g r e a t e r b y a f a c t o r of 2 ~176 We should point out that an i n c r e a s e is planned in the p r e p a r a t i o n of g a s - c o n d e n s a t e r e s e r v e s , the p r o duction of which is expected to i n c r e a s e c o n s i d e r a b l y in the future, p a r t i c u l a r l y in the gas condensate fields of W e s t e r n Siberia. The w o r k e r s in the refining i n d u s t r y obviously know what advantages can be obtained through i n c r e a s i n g the r e s o u r c e s of gas condensate, which yields a l m o s t twice the amount of light p e t r o l e u m products that can be obtained f r o m c r u d e oil. The g e o g r a p h i c a l d i s t r i b u t i o n of oil production facilities is a m a j o r f a c t o r in e c o n o m i c a l o p e r a t i o n of both the production and refining b r a n c h e s , since it d e t e r m i n e s the amount of capital i n v e s t m e n t and o p e r a t i n g e x p e n s e s in the t r a n s p o r t of c r u d e oil and gas condensate. In the Tenth F i v e - Y e a r Plan, in c o m p a r i s o n with the p r e c e d i n g plan p e r i o d s , m a j o r shifts a r e taking p l a c e in the g e o g r a p h i c a l distribution of the oil producing industry, p r i m a r i l y due to the high growth r a t e s of the W e s t e r n S i b e r i a n oil region. H e r e the oil production will r e a c h 300-310 million m e t r i c tons by 1980, i.e., will m o r e than double in c o m p a r i s o n with the Ninth F i v e - Y e a r Plan. The i n c r e m e n t a l oil production in W e s t e r n Siberia in the Tenth F i v e - Y e a r P l a n (160 million tons) a c counts f o r all of the USSR i n c r e m e n t (149 million tons} and also m a k e s up for the drop in oil production in c e r t a i n o t h e r d i s t r i c t s (11 million t o n s ) . The u n d e r g r o u n d r i c h e s of W e s t e r n S i b e r i a and the e n o r m o u s aid given to this d i s t r i c t by the C o m m u n i s t P a r t y and the Soviet G o v e r n m e n t a r e making it p o s s i b l e to b r i n g the oil production of this d i s t r i c t to 300-310 million tons within a p e r i o d of 15 y e a r s (1965-1980)o In this connection, it is r e c a l l e d again and again how high a rating was given to the w o r k of the T y u m e n ' oil and gas w o r k e r s by Leonid i l ' i c h B r e z h n e v f r o m the r o s t r u m of the 25th C o n g r e s s of the CPSU~ nThat which has b e e n done, that which is being done in this h a r s h and forbidding t e r r i t o r y - this is a t r u l y h e r o i c a c h i e v e m e n t . And to the hundreds of thousands of people who a r e a c c o m p l i s h i n g this feat, the Motherland p a y s the tribute of a d m i r a t i o n and high e s t e e m . " A p a r t f r o m W e s t e r n Siberia, oil production in 1976-1980 will i n c r e a s e in the Kazakh SSR, the G e o r g i a n SSR, the A z e r b a i d z h a n SSR ( o f f s h o r e } , the Komi ASSR, P e r m ~ Oblast', the U d m u r t ASSR, and Sakhalin Oblast'. At the s a m e t i m e , in c e r t a i n o i l - p r o d u c i n g d i s t r i c t s w h e r e the p r i n c i p a l fields have p a s s e d o r a r e p a s s ing o v e r into the l a t e r stage of development, a drop in oil production is f o r e s e e n . H e r e we r e f e r to the T a t a r ASSR, the B a s h k i r ASSR, Kuibyshev Oblast', the T u r k m e n SSR, the Ukrainian SSR, and the B e l o r u s s i a n SSR~ T h e s e c i r c u m s t a n c e s a r e leading to c e r t a i n shifts in the g e o g r a p h i c a l distribution of the oil producing industry, as i l l u s t r a t e d in T a b l e 1. The c o n s i d e r a b l e i n c r e a s e in p e r c e n t a g e of total production in the e a s t e r n d i s t r i c t s of the nation, without any d e c r e a s e in p e r c e n t a g e of total fuel consumption in the E u r o p e a n p a r t of the USSR, is i n c r e a s i n g the amount of oil t r a n s p o r t . With the r e s u l t a n t g e o g r a p h i c a l distribution of oil production in the Tenth F i v e - Y e a r Plan, future expansion of c a p a c i t y of existing oil pipelines and the c o n s t r u c t i o n of new c r o s s - c o u n t r y oil pipelines f r o m the d i s t r i c t s with expanding oil production will be a c c o m p l i s h e d in the d i r e c t i o n t o w a r d the r e f i n e r i e s of the E u r o p e a n p a r t of the USSR and toward r e f i n e r i e s in Kazakhstan and C e n t r a l Asia. Special attention will be allotted to r e l i e v i n g the r a i l r o a d s f r o m t r a n s p o r t i n g c r u d e oil. While the n a t i o n ' s oil p r o d u c t i o n was i n c r e a s i n g by a f a c t o r of 3~ in the y e a r s f r o m 1961 to 1975, the t u r n o v e r in oil pipeline t r a n s p o r t during this s a m e p e r i o d was i n c r e a s i n g by a f a c t o r of 15.8, through a f o u r fold i n c r e a s e in the volume of oil p u m p e d and a fourfold i n c r e a s e in the distance t r a n s p o r t e d . During the Tenth F i v e - Y e a r Plan, in c o m p a r i s i o n with the Ninth, the t u r n o v e r w i l l i n c r e a s e b y 55% and the distance of pumping the oil by 30%. By the end of the Tenth F i v e - Y e a r Plan, the oil pipelines will total m o r e than 60,000 k m in length. It should be noted that, out of each ruble of c a p i t a l i n v e s t m e n t to be provided in the Tenth F i v e - Y e a r P l a n f o r the growth of the o i l - p r o d u c i n g i n d u s t r y (including oil t r a n s p o r t ) , 16 kopecks a r e allotted to the c o n s t r u c t i o n of oil pipelines.

TABLE 1. P r o d u c t i o n o f Crude Oil and Gas Condensate 1970

USSR district USSRtotal European part and Ural district Tatar ASSI~ Bashkir ASSR, and KuibyshevOblast' Perm' Oblast' Komi ASSRand Arkhangel' Oblast' Other districts Eastern districts Western Siberia Kazakh 88R Turkmen 8SR Other districts

1975 % million metric tons

million metric tons

%

353

lO0,O

490,8

2 ~9,8

82,1

176,1 [6,1 7,6 }0.0 33,2 H,4 [3,1 [4,4 4,3 9

49,8 4,6 2,2 25,5 17,9 8,9 3,7 4,1 1,2

1980

million [

%

)0,0

640*

10G0'

299,4

H10

2~5,6

44,6

178,4 22,3 11.1 87,}5 " 191,1 148,1 23,8 15,3 3,9

~6,3 4,5 2,3 [7,9 39 ~0,2 4,8 3,1 0,9

112,3 31,0 25,0 ~7,3 354,4 3 )8,0 27,0 13,7 5,7

22,3 4.8 3,9 13,6 55,4 48.1 4,2 2,1 1,0

metric tons

*Plan and s u p p l e m e n t a r y assignment. The i n c r e a s e in absolute and relative allocations for growth in oil pipelines will be provided through technical p r o g r e s s . The basic m e a s u r e s in this a r e a in the Tenth F i v e - Y e a r Plan will be the use of pipe in the m o s t e c o n o m i c a l d i a m e t e r s for main oil pipelines (820, 1020, and 1220 ram} and the installation of pumping stations with h i g h e r capacities, equipped with automatic control and monitoring s y s t e m s . Expanded production in the oil i n d u s t r y is determinde to a c o n s i d e r a b l e degree of the p r e p a r a t i o n of oil r e s e r v e s and the development of new oil-field capacity. This will depend f i r s t of all on the amounts of explor" a t o r y and developmental drilling. More than half of the capital investment allotted to the growth of the oil producing i n d u s t r y is e a r m a r k e d for drilling operations. In o r d e r to obtain the i n c r e m e n t s in oil production and p r e p a r a t i o n of r e s e r v e s that a r e p r o j e c t e d for the Tenth F i v e - Y e a r Plan, it will be n e c e s s a r y to drill wells totaling some 75 million m e t e r s , o r 1.4 times that for the past f i v e - y e a r period. Most of this is development drilling (for producing wells}. The need for g r e a t e r amounts of development drilling in r e c e n t y e a r s reflects not only the need to p r o vide a n absolute i n c r e a s e in the nation's oil production, but also the need to c o m p e n s a t e f o r the decline of oil production f r o m old wells. It should be noted that about 70% of the new production c a p a c i t y c r e a t e d by development drilling is r e q u i r e d to maintain the nation' s oil production at the p r e s e n t level. In the i n t e r e s t of improving the economic efficiency of expensive drilling operations, a 25-30% reduction in the cycle time is specified in the " B a s i c Directions of Growth of the USSR E c o n o m y in 1976-1980," as adopted by the 25th Congress of the CPSU. i n o r d e r to fulfill thi~dmportant economic task, while at the same time going to d e e p e r drilling and m o r e s e v e r e natural conditions for many of the drilling operations, it is p r o posed to introduce drilling units with u n i v e r s a l setup capability, along with new types of bits, down-hole motors, drilling muds, h i g h - s t r e n g t h casing and drill pipe, advanced methods of well completion, and improved o r g a n i zation of drilling operations. Of all the p r o b l e m s standing before the oil producing industry, the m o s t important is how to i n c r e a s e the oil r e c o v e r y f r o m the r e s e r v o i r s . At today' s level of equipment and technology, rio m o r e than half the oil p r e s e n t in the r e s e r v o i r can be r e c o v e r e d . When we c o n s i d e r that the oil in place amounts to no m o r e than 3-5% of the total conventional types of fuels, and that the oil r e s o u r c e s a r e not being renewed, we cannot reconcile o u r s e l v e s to such an oil r e c o v e r y factor. All o v e r the w o r l d today, extensive w o r k is in p r o g r e s s in the s e a r c h for methods to i n c r e a s e the r e c o v e r y of oil f r o m r e s e r v o i r s . The s c i e n t i f i c - r e s e a r c h institutes of the Soviet Union a r e conducting m a j o r r e s e a r c h and e x p e r i m e n t a l c o m m e r c i a l studies a i m e d at i n c r e a s i n g oil r e c o v e r y f a c t o r s . A l r e a d y in c o m m e r c i a l use is a method for pumping s u r f a c t a n t s into the r e s e r v o i r , as well as the use of heat and o t h e r means of acting on the r e s e r v o i r . Through the use of m e a s u r e s to i n c r e a s e the oil r e c o v e r y , it should be possible in 1976-1980 to i n c r e a s e production by m o r e than 10 million m e t r i c tons, and tens of t i m e s this much in the next 10 y e a r s .

Mapped out for the oil producing industry in the Tenth Five-Year Plan is a major step-up of production rates, including gas-lift production and the use of new equipment and techniques in producer wells; a high level of complex automation of operations will be achieved in the oil fields. The introduction of new equipment and techniques and the improved organization of production will make it possible to increase ofi-field labor productivity by at least 28-30%. Completion of the complex and critical task of bringing the production of Crude oil and gas condensate to 640 million metric tons in 1980 will require major attention to the needs of the oil industry on the part of the interfacing branches of industry, particularly the machinery construction industry, f e r r ous metallurgy, and the chemical industry. F r o m the p r o g r a m speech of Comrade I~ L Brezhnev at the October (1976) Plenum of the Central Committee of the CPSU, we see that all branches of industry, agriculture, transport, and the sphere of supporting s e r v i ces a r e faced with the task of a widespread utilization of r e s e r v e s and elimination of defects in the o r ganization of production. The oil producing industry is among those which must perform major work in this area. The specific norms for consumption of metal in drilling are still high, and, which is most disturbing, they are not being reduced, but are increasing each year. Efforts to curtail losses of oil in the fields are still inadequate. There are still shortcomings in overall utilization of wells. In 1975, for example, based on a v e r age figures for the Ministry of the Oil Industry, a well completion required 34 days, of which 17 days elapsed in waiting on completion. A decisive elimination of these and other shortcomings will contribute to successful fulfillment of the plan for growth in the oil producing industry in the Tenth Fi ve-Y ear Plan. As shown by experience of the past five y e a r s and by a successful s t a r t on fulfilling the plan for the production of crude oil and gas Condensate in the c u r r e n t f i v e - y e a r period, our petroleum refining industry has at its disposal a strong and stable raw material base for fulfilling and overfulfilling the assignments of the Tenth F iv e- Ye ar Plan.

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