OIL PRODUCTION OFF SHARPLY IN FORMER COMMUNIST BLOC

Oil production from the U.S.S.R. and former Soviet bloc nations in eastern Europe fell sharply during first half 1991 to the lowest level since 1976. Flow from still Communist Asian countries--China and Viet Nam--continued to rise. But their higher production had little effect on the overall plunge in crude/condensate production by nations with past or present centralized planned socialist economies.

Sept. 16, 1991

4 min read

Oil production from the U.S.S.R. and former Soviet bloc nations in eastern Europe fell sharply during first half 1991 to the lowest level since 1976.

Flow from still Communist Asian countries--China and Viet Nam--continued to rise. But their higher production had little effect on the overall plunge in crude/condensate production by nations with past or present centralized planned socialist economies.

Combined oil flow from all countries that made up the disintegrating Communist bloc was about 13.747 million b/d during the first 6 months of 1991 vs. a revised 14.832 million b/d in first half 1990.

Production by the U.S.S.R. and eastern European nations nosedived to 10.868 million b/d in the first 6 months of this year, down from 12.041 million b/d in the same 1990 period.

Oil flow from China and Viet Nam rose to 2.864 million b/d in first half 1991 vs. 2.786 million b/d during the first 6 months of 1990.

Cuban oil production remained virtually unchanged at 15,000 b/d.

U.S.S.R. FLOW SLUMPS

The Soviet Union, while still the world's largest petroleum producer, experienced an unprecedented setback in crude and condensate production during the first half of this year. Flow fell to an average 10.6 million b/d vs. 11.73 million b/d in the first 6 months of 1990, 12.26 million b/d during the first half of 1989, and more than 12.51 million b/d in the same 1988 period.

The U.S.S.R.'s oil production peaked at about 12.84 million b/d in mid-1988. It fell to about 10.4 million b/d last June and dropped further during July.

Official Soviet sources predict second half 1991 crude and condensate flow will average only 10.2-10.4 million b/d.

Western Siberia accounted for most of the U.S.S.R.'s oil production decline in 1989, 1990, and first half 1991. But substantial drops also occurred in the Volga-Ural region and in the Komi Autonomous Republic in European Russia's extreme northeast corner.

EASTERN EUROPE, OTHERS

Significant oil production losses for eastern Europe occurred in Romania and Yugoslavia.

Romanian flow slumped to about 130,000 b/d in first half 1991 vs. nearly 160,000 b/d in the first 6 months of last year. Yugoslavia's production fell from more than 63,000 b/d to less than 60,000 b/d.

Albania, where oil production was not disclosed during the 1970s and 1980s, is now officially reported to have production of slightly more than 30,000 b/d. That's down from a peak of about 60,000 b/d estimated during the 1970s.

Biggest percentage jump in oil production for Communist Asian nations occurred in Viet Nam. Its flow more than doubled from about 30,000 b/d in first half 1990 to an average of nearly 64,000 b/d during the first 6 months of this year.

Vietnamese oil production for the entire year is expected to average about 71,000 b/d.

Chinese crude production continues to increase slowly, and long term targets have been trimmed. Production during first half 1991 rose to about 2.8 million b/d from an officially reported 2.75 million b/d in the same 1990 period.

Current Chinese oil production gains are slightly ahead of those achieved in 1990 and 1989 but much smaller than hikes in the mid-1980s.

China's biggest field, Daqing, had first half 1991 oil flow of nearly 1.12 million b/d. It's expected that Daqing production for all of 1991 will average more than 1 million b/d for the 16th straight year. Shengli, China's second largest field, produced nearly 670,000 b/d during the first 6 months of 1991, about level with 1990 flow.

Oil production from other Communist and former Communist nations during first half 1991 included Hungary 39,000 b/d, Bulgaria 3,000 b/d, Poland 3,000 b/d, and Czechoslovakia 3,000 b/d.