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Energy policy of the Soviet Union
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Energy policy of the Soviet Union
The energy policy of the Soviet Union was an important feature of the country's planned economy from the time of Lenin (head of government until 1924) onward. The Soviet Union was virtually self-sufficient in energy; major development of the energy sector started with Stalin's autarky policy of the 1920s. During the country's 70 years of existence (1922–1991), it primarily secured economic growth based on large inputs of natural resources. But by the 1960s this method had become less efficient. In contrast to other nations who shared the same experience, technological innovation was not strong enough to replace the energy sector in importance.[citation needed]
During the later years of the Soviet Union, most notably during the Brezhnev stagnation era (c. 1975–1985), Soviet authorities exploited fuel resources from inhospitable areas, notably Siberia and the Far East. Construction of industry in these locations required massive input by the Soviet régime. Energy resources remained the backbone of the Soviet economy in the 1970s, as seen during the 1973 oil crisis, which put a premium on Soviet energy resources. High prices for energy resources in the aftermath of the 1973 oil crisis led the Soviet authorities to engage more actively in foreign trade with first-world countries, particularly Europe (natural gas) and Japan (oil). In exchange for energy resources, the Soviet Union would receive first-world technological developments. So, despite its overall stagnation, the Soviet Union under Leonid Brezhnev (General Secretary from 1964 to 1982) moved from being an autarkic economy to a country trying to integrate into the world market.[citation needed]
During its existence, the Soviet Union, when compared to any other country, had the largest supply of untapped energy resources within its borders. Total energy-production grew from 10.25 million barrels per day of oil equivalent (mbdoe) in 1960 to 27.58 million barrels per day of oil equivalent (mbdoe) in 1980. Production and exports for the Soviet Union did not keep growing as Soviet planners anticipated. During the late-1950s, mining activity shifted from European Russia to Eastern Russia for more mineable resources. The increased distances between mines and coal-shipping ports decreased the efficiency of coal exports. Furthermore, the USSR struggled to transport its Eastern resources to its Western side for later consumption and exportation.
Policy used by the Soviet leadership to direct energy resources was vital to the military and economic success of the country. Stagnation in Soviet energy production directly affected Eastern Europe's energy supplies. The policy acted on in the USSR affected the Soviet satellite-nations and - to a lesser extent - the entire world. The political maneuvers used by the USSR with regard to energy exports would come to be mirrored by the Russian Federation government to follow after 1991.
Within Gosplan, the Soviet Economic planning bureau, there were two divisions directly involved with this topic. One was focused on Electrification and Energy, GOELRO Another was focused on Fuels. The focus of the Soviets on energy and especially electrification in early years is often attributed to Lenin's famous line that "Communism is Soviet power plus electrification for the whole country.".
Despite many of the targets being unbelievably high (a 250% increase in overall industrial development, with a 330% percent expansion in heavy industry), remarkable results were achieved:
Electrification of the country was a focus of the Soviet Union's first economic plan (GOELRO plan).
Within the USSR State Planning Committee (Gosplan), there was a State Committee for the Oil Industry which handled this area of the economy.
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Energy policy of the Soviet Union
The energy policy of the Soviet Union was an important feature of the country's planned economy from the time of Lenin (head of government until 1924) onward. The Soviet Union was virtually self-sufficient in energy; major development of the energy sector started with Stalin's autarky policy of the 1920s. During the country's 70 years of existence (1922–1991), it primarily secured economic growth based on large inputs of natural resources. But by the 1960s this method had become less efficient. In contrast to other nations who shared the same experience, technological innovation was not strong enough to replace the energy sector in importance.[citation needed]
During the later years of the Soviet Union, most notably during the Brezhnev stagnation era (c. 1975–1985), Soviet authorities exploited fuel resources from inhospitable areas, notably Siberia and the Far East. Construction of industry in these locations required massive input by the Soviet régime. Energy resources remained the backbone of the Soviet economy in the 1970s, as seen during the 1973 oil crisis, which put a premium on Soviet energy resources. High prices for energy resources in the aftermath of the 1973 oil crisis led the Soviet authorities to engage more actively in foreign trade with first-world countries, particularly Europe (natural gas) and Japan (oil). In exchange for energy resources, the Soviet Union would receive first-world technological developments. So, despite its overall stagnation, the Soviet Union under Leonid Brezhnev (General Secretary from 1964 to 1982) moved from being an autarkic economy to a country trying to integrate into the world market.[citation needed]
During its existence, the Soviet Union, when compared to any other country, had the largest supply of untapped energy resources within its borders. Total energy-production grew from 10.25 million barrels per day of oil equivalent (mbdoe) in 1960 to 27.58 million barrels per day of oil equivalent (mbdoe) in 1980. Production and exports for the Soviet Union did not keep growing as Soviet planners anticipated. During the late-1950s, mining activity shifted from European Russia to Eastern Russia for more mineable resources. The increased distances between mines and coal-shipping ports decreased the efficiency of coal exports. Furthermore, the USSR struggled to transport its Eastern resources to its Western side for later consumption and exportation.
Policy used by the Soviet leadership to direct energy resources was vital to the military and economic success of the country. Stagnation in Soviet energy production directly affected Eastern Europe's energy supplies. The policy acted on in the USSR affected the Soviet satellite-nations and - to a lesser extent - the entire world. The political maneuvers used by the USSR with regard to energy exports would come to be mirrored by the Russian Federation government to follow after 1991.
Within Gosplan, the Soviet Economic planning bureau, there were two divisions directly involved with this topic. One was focused on Electrification and Energy, GOELRO Another was focused on Fuels. The focus of the Soviets on energy and especially electrification in early years is often attributed to Lenin's famous line that "Communism is Soviet power plus electrification for the whole country.".
Despite many of the targets being unbelievably high (a 250% increase in overall industrial development, with a 330% percent expansion in heavy industry), remarkable results were achieved:
Electrification of the country was a focus of the Soviet Union's first economic plan (GOELRO plan).
Within the USSR State Planning Committee (Gosplan), there was a State Committee for the Oil Industry which handled this area of the economy.