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Poland

 
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Poland

Oil and Gas

After rising sharply in the early 1970s, domestic oil production dropped and remained at about 350,000 tons per year into the 1980s because no new deposits were discovered. Domestic oil had never accounted for more than 5 percent of total consumption, but even this figure had dropped sharply by 1980. Under these circumstances, the Soviet Union supplied between 80 percent and 100 percent of Poland's imported oil, with some purchases from the Middle East when market conditions permitted. Poland received Soviet oil through the Druzhba Pipeline, which remained the chief source of imported oil in early 1992. The line supplied the major refinery at Plock. Oil arriving by ship from other sources was processed at a refinery near Gdansk (see fig. 14). In 1992, however, the pattern of Polish oil imports changed markedly. Because the Druzhba Pipeline was considered subject to political pressure and delivery taxes by the countries through which it passed, and because Russian crude oil was high in environmentally undesirable sulfur, Poland cut imports from that source from 63 percent in 1991 to 36 percent in 1992. The gap was to be filled by North Sea (British and Norwegian) oil imports, which rose from 19.5 to 26 percent in 1991, and by the Organization of Petroleum Exporting Countries (OPEC) imports, which rose from 17.5 to 38 percent in 1992. To accommodate more North Sea oil, the transloading capacity of the North Harbor facility at Gdansk was doubled in 1992.

Domestic natural gas provided a much higher percentage of national consumption than did domestic oil. Although pipeline imports of gas from the Soviet Union rose sharply in the 1970s and early 1980s, reaching 5.3 billion cubic meters in 1981, domestic output remained slightly ahead of that figure. Domestic natural gas exploration was pursued vigorously in the 1980s, but equipment shortages hampered the effort. By 1991, however, Polish experts declared the country potentially self-sufficient in natural gas; in 1990 and 1991, large-scale agreements with United States firms brought about new exploration in Silesia and made possible extraction of gas from Poland's many intact coal seams. New domestic gas sources opened the prospect of reducing reliance on coal and saving the hard currency spent on the 7 billion cubic meters of gas imported (mostly from the former Soviet Union) in 1991. No natural gas was imported from the West in 1991, nor did plans for 1992 call for such imports. At the end of 1991, a new agreement with Russia maintained both oil and gas deliveries from that country at approximately their previous levels. (Some 5 million tons of oil were delivered from Russia in 1991.) At the same time, plans called for linkage of Polish and German gas lines as early as 1993, making Poland's gas supply more flexible.

Data as of October 1992

Poland - TABLE OF CONTENTS

  • The Economy

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    Information Courtesy: The Library of Congress - Country Studies


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