"In real terms, due to the chemical makeup of the Nizhnevartovsk oil, the net total production loss understates the actual impact on our economy. Siberian oil is 'light, sweet' crude, which means that it contains a disproportionately large amount of the most valuable fractions-those which we use to make gasoline, kerosene, and diesel fuel, for example. The net loss in these particular areas is forty-four percent of our gasoline production, forty-eight percent of kerosene, and fifty percent of diesel. These figures are rough calculations I made on the flight back, but they should be accurate to within two percent. My staff will have more precise figures ready in a day or so."

"Half?" the General Secretary asked quietly.

"Correct, Comrade," Sergetov responded.

"And how long to restore production?"

"Comrade General Secretary, if we bring in every drilling rig and operate them around the clock, my rough estimate is that we can begin to restore production in twelve months. Clearing the site of wreckage will take at least three months, and another three will be needed to relocate our equipment and commence drilling operations. Since we have exact information for well locations and depths, the usual element of uncertainty is not part of the equation. Within a year-that is, six months after we commence the redrilling-we will begin to bring the production wells back on stream, and full restoration of the wells will be achieved within two more years. While all this is going on, we will need to replace the EOR equipment also-"

"And what might that be?" Defense asked.

"Enhanced Oil Recovery systems, Comrade Minister. Had these been relatively new wells, pressurized from underground gas, the fires might have lasted for weeks. As you know, Comrades, these are wells from which a good deal of oil has already been extracted. To enhance production we have been pumping water into the wells, which has the effect of forcing more oil out. It may also have had the effect of damaging the oil bearing strata. This is something our geologists are even now attempting to evaluate. As it was, when power was lost, the force driving the oil from the ground was removed, and the fires in the production fields rapidly began to run out of fuel. They were for the most part dying out when my flight left for Moscow."

"So even three years from now production may not be completely restored?" the Minister of the Interior asked.

"Correct, Comrade Minister. There is simply no scientific basis for making an estimate of total production. The situation we have here has never happened before, either in the West or the East. We can drill some test wells in the next two or three months that will give us some indications. The staff engineers I left behind are making arrangements to begin the process as quickly as possible with equipment already at the site."

"Very well," the General Secretary nodded. "The next question is how long the country can operate on this basis."

Sergetov went back to his notes. "Comrades, there is no denying that this is a disaster of unprecedented scale for our economy. The winter has drawn down our heavy oil inventories more than usual. Certain energy expenditures must remain relatively intact. Electrical power generation last year, for example, accounted for thirty-eight percent of our oil products, far more than planned, due to past disappointments in coal and gas production, which we had expected to reduce oil demand. The coal industry will require at least five years to restore due to failures in modernization. And gas drilling operations are currently slowed by environmental conditions. For technical reasons it is extremely hard to operate such equipment in extreme cold weather-"

"So make those lazy bastards on the drilling crews work harder!" suggested the chief of the Moscow Party.

"It is not the workers, Comrade." Sergetov sighed. "It is the machines. Cold temperature affects metal more than men. Tools and equipment break simply because they are brittle with cold. Weather conditions make resupply of spare parts to the camps more difficult. Marxism-Leninism cannot dictate the weather."

"How difficult would it be to conceal the drilling operations?" Defense asked.

Sergetov was surprised. "Difficult? No, Comrade Minister, impossible. How can one conceal several hundred drilling rigs, each twenty to forty meters high? One might as easily attempt to conceal Plesetsk's missile launch complexes." Sergetov noticed for the first time the glances being exchanged by Defense and the General Secretary.

"Then we must reduce the consumption of oil by the electrical industry," the General Secretary pronounced.

"Comrades, allow me to give you some rough figures on the way in which we consume our oil products. Please understand that I am going from memory, since the annual departmental report is in the process of formulation at this time.

"Last year we produced 589 million tons of crude oil. This fell short of planned production by thirty-two million tons, and the amount actually produced was only possible due to the artificial measures that I have already discussed. Roughly half of that production was semirefined into mazut, or heavy fuel oil, for use in electrical power plants, factory boilers, and the like. Most of this oil simply cannot be used otherwise, since we have only three-excuse me, now only two-refineries with the sophisticated catalytic cracking chambers needed to refine heavy oil into light distillate products.

"The fuels we produce serve our economy in many ways. As we have already seen, thirty-eight percent goes for electrical and other forms of power generation, and fortunately much of this is mazut. Of the lighter fuels - diesel, gasoline, and kerosene- agricultural production and the food industries, transportation of goods and commodities, public consumption and passenger transportation, and finally military uses, these alone absorbed more than half of last year's production. In other words, Comrades, with the loss of the Nizhnevartovsk field the end users I just mentioned account for more than we are able to produce, leaving nothing at all for metallurgy, heavy machinery, chemical, and construction uses, not to mention what we customarily export to our fraternal socialist allies in Eastern Europe and throughout the world.

"To answer your specific question, Comrade General Secretary, we can make perhaps a modest reduction in the use of light oils in electrical power usage, but even now we have a serious shortfall in electric power production, resulting in occasional brownouts and complete power outages. Further cuts in power generation will adversely affect such crucial State activities as factory production and rail transport. You will recall that three years ago we experimented with altering the voltage of generated power to conserve fuels, and this resulted in damage to electric motors throughout the Donets industrial basin."

"What about coal and gas?"

"Comrade General Secretary, coal production is already sixteen percent below planned output, and getting worse, which has caused conversion of many coal-fired boilers and power plants to oil. Moreover, the conversion of such facilities from oil back to coal is costly and time consuming. Conversion to gas is a much more attractive and cheaper alternative that we have been vigorously pursuing. Gas production is also under-plan, but it is improving. We had expected to exceed planned targets later this year. Here we must also account for the fact that much of our gas goes to Western Europe. It is from this that we gain Western currency with which to purchase foreign oil, and, of course, foreign grain."

The Politburo member in charge of agriculture winced at this reference. How many men, Sergetov wondered, had been done in by their inability to make the Soviet agricultural industry perform? Not the current General Secretary, of course, who had somehow managed to advance despite his failures there. But good Marxists weren't supposed to believe in miracles. His elevation to the titular chairmanship had had its own price, one which Sergetov was only beginning to understand.


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