Evening star., 1931-06-13
SOVIET OIL TRADE
IMPROVES RAPIDLY
Shipments Abroad in 1929
80 Were q IL Times Pre-
War Exports.
BY LOUIS E. VAN NORMAN.

Announcement that the Moscow au-
thorities had concluded an agreement
with the new Republican government
in Spain, providing for the importa-
ton OF million tons Of Soviet petro-
leum products during the next three
years, caused furry in American bust
ness circles until the representative OF
the Department of Commerce at Madrid
was assured by the Spanish finance
minister that American oil companies
were still free 10 bid for Spain's needs
in this commodity
World excitement over Russian wheat
really has less Justification than might
be aroused by the menace" Of Russian
oil. In wheat production the Soviet
Union is not yet back TO where cZariSt
Russia was before the war. Soviet oil
shipments abroad in 1929-1930, how
ever, were four and one-half times the
pre-war exports. In fact, oil and timber
are the Soviet Unions best cash crops
Status of Soviet Industry.
The sale of million tons of Russian
oil to Spain over q period of three
years, of course. is not very serious
menace to the trade of the other petro-
leum producing countries of the world.
All countries have increased their con-
room for all oil producing countries
But the Soviet petroleum industry is UP
and coming and its reserves are al
most unlimited.
While the American petroleum in-
dustry is suffering from overprOduction,
with existing wells capable of produc-
ing twice as much as can be consumed
with drilling carried on regardless Of
consumption prospects and an in
ci M in ~
change OF the antitrust laws so as
to prevent further price Generalization,
1t is timely to note the status and
activities of the Soviet oil industry
In oil resources. Russia is the fore
most country in the world. Petroleum
has been produced in commercial
quantities in the Baku region since
1863. For more than half a century
oil production was without organiza-
ton. When the bolsheviks came into
power they began to plan big things for
their oil interests and on January /
1890. all the Oil and gas industries of
the Soviet Republic were unified under
the SoyuZnett," this syndicate taking
over sales and distribution of all Rus
sian oil products at home and abroad.
Under the "lve-year plan" the pro-
duction of crude in the Russian oil
fields. originally fixed at $4,000 600
IL4SIi4S IC44H 1Of,OUu.VUU DdTTSSb, mas
been realized. according to Russian fig
ures received by the Department of
Commerce, much sooner than was ex-
pected. II is now confidently predicted
by the Russians that for their fiscal
year 1928 the production Will be no
less than 100000 metric tons.
Large Quantities Shipped.
Russian oil has been moving abroad
for some time in large quantities. Dur
ing 19c829 100000 tons we're ex-
ported, chiefly 70 Great Britain. fol-
lowed closely by Egypt and India. Ger
many, France and Italy, with the new
contract with Spain nov entering in
as a large factor
There is one drawback in the situ-
alton for Russia. That is the disturb
ing fact that the Russian foreign trade
in petroleum is being carried on
largely at the expense Of domestic
needs. If the tractor production pro
gram Of the Soviet government cones
anywhere near realization there will
not be halt enough gasoline to move
the farm machinery ct home. Russian
official comment received by the De-
psrtment Of Commerce indicates that
this fact Is already realized in Moscow.
Copyright. 1912