RUSSIA'S OIL AND GAS PROBLEMS CONTINUE TO RIPPLE THROUGH ECONOMY

Moscow has disclosed official figures showing a disastrous setback in Russia's petroleum industry production and in the nation's overall economic activity during the first 9 months of 1992. Crude and condensate flow fell about 1.3 million b/d from the same 1991 period. This indicates average Russian oil production during January-September was only about 8.1 million b/d, compared with 9.4 million b/d in the first three quarters of 1991.

Jan. 5, 1993

3 min read

Moscow has disclosed official figures showing a disastrous setback in Russia's petroleum industry production and in the nation's overall economic activity during the first 9 months of 1992.

Crude and condensate flow fell about 1.3 million b/d from the same 1991 period. This indicates average Russian oil production during January-September was only about 8.1 million b/d, compared with 9.4 million b/d in the first three quarters of 1991.

Even later data confirm that the rate of fall in Russian oil production is still accelerating. October's drop in crude and condensate flow increased to almost 16%, supporting predictions that the republic will average close to 7.7 million b/d for all of 1992 vs. 9.22 million b/d in 1991.

Preliminary figures place Russia's average crude and condensate production at just under 7.8 million b/d during January-October 1992. Oil flow for the entire Commonwealth of Independent States should average slightly less than 9 million b/d in 1992 vs. 10.29 million b/d in 1991.

Russian natural gas production during the first 9 months of this year declined by 120 bcf, or 0.7%, from the same period of last year. However, gas flow rose slightly this October vs. October 1991.

Russia's gas production for all of 1992 will be about 22.6 tcf vs. nearly 22.7 tcf in 1991. The C.I.S. likely will produce about 27.8 tcf in 1992 vs. 28.6 tcf in 1991.

PROBLEMS, EFFECTS

Russia's State Statistical Committee said the same problems afflicting the nation's oil industry are hurting the gas sector-reduced investment and a shortage of modern equipment. It added, "Lower oil flow has led to a 7-9% drop in output of the principal refined products during the first 9 months of 1992.

"Automotive gasoline production was 2.5 million metric tons (18.25 million bbl) below the comparable 1991 level. Output of diesel fuel and heavy fuel oil fell by 5 million tons (36.5 million bbl)."

The Moscow research firm SovEkon estimates overall Russian crude processing this year will be 254 million metric tons less than 5.1 million b/d). That is 89% of the 1991 level and 85% of 1990 volume.

Russia's petrochemical production also declined during the first 9 months of 1992, with output of synthetic resins, plastics, and synthetic fibers down 13% and mineral fertilizer 18%. Ammonia production dropped "substantially."

Total Russian industrial production plunged 17.6% in the first three quarters of 1992 vs. the comparable 1991 period.

Moscow said goods and services provided by joint ventures with foreign firms were below expectations.