Energy supply problems seen persisting in former Soviet Union

This paper reports that the former Soviet Union's energy crisis likely will persist through the end of the 1990s. However, rising natural gas and coal production may marginally ease the nation's fuel shortage at least by 1994. Especially important in easing energy problems in the new Commonwealth of Independent States will be conservation in industrial and domestic sectors, says a study published by the Moscow weekly Ekonomika i Zhizn (Economics and Life). C.I.S. oil flow is expected to fall again this year. But the study shows higher capital investment including foreign funds, improved technology, replacement of worn out equipment, better management, and market oriented prices could enable crude and condensate production to hold virtually steady at about 10 million b/d during 1995-2000. Without required changes, C.I.S. oil production could fall to about 9.2 million b/d by 1995 before recovering slightly to about 9.5 million b/d in 2000, the study shows