LETTER TO MR. M. J. RATHBONE FROM ALLEN W. DULLES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R003500230005-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 12, 2016
• Document Release Date: April 10, 2002
• Sequence Number: 5
• Publication Date: August 9, 1961
• Content Type: LETTER

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ER 61-5 97 7/a
9, AUG 196t
Mr. M. J. Rathbone. President
Standard Oil Company
30 Rockefeller Plaaa
New York 20. New York
Thank you for your letter of 20 July providing us with
characteristics of various Soviet crude oils which have
been delivered or offered, to the Tree World.
We have studied this information and our staff has
prepared the attached memorandum which may be of
interest to you.
Sincerely.
&OD
Allen W. Dulles
Director
IRewritten: 0/DCl/ d (8 Aug 61)
Original letter concurrect in by
Orig - Addressee
1 - DCI
1 - DDCI
- ER
2 - DD/I
(31 Jul 61)
and Acting DD/I
Ch/E
1 - D/M
2 - M/FP
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STAT
.at
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SUBJECT: Quality Characteristics of Soviet Crude Oil
From the samples furnished, it is apparent that the
refining of Soviet crudes does not present serious problems
to the recipient nations. The sampling also provides posi-
tive indication that these specifications are representative
Of the quality of crudes corning into the Free World from
the USSR. It appears that the Soviets are using crude from
two of their newest, largest, and least costly producing
areas-- Mukhonovo and Romaslikino--for support of a
usable segment of their export activity.
Soviet source reports an replete with references to the
high sulfur and salt contents which characteriae Urals-Volga
crude oils. It seems to us that as Soviet oil experts continue
to grow, more dependence may have to be placed on these
lower quality crudes for the supplies required. Members
of the US petroleum industry telegatien which visited the
USSR last year about this time reported that some Russian
crude oils contained as much as 1,600 pounds of salt por
1,000 barrels and that the Soviets were unable to reduce
this to less than 15 to 20 pounds per 1,000 borrols. Those
also is evidence that Soviet crudes shipped to Italy and Cuba
contained excessive amounts of sodium and magnesium salts.
Moreover, there have been reports that Russian crudes with
salt contents if 15 pounds per 1,000 barrels are more trouble"
11011146 to refiners than Middle East crudes with as much as
20 pounds of salt per 1,000 barrels.
Among the most useful source rote once. with regard to
quality characteristics of Soviet crudes are the following books:
Robinson, E. A., Nefti tatarskoy AMR (Crude Oils
of the Tatar ASSR), Moscow, 1960
Pavlova, S. N., et al.. Nefti vostoehnykh rayonov
SSSR (Crude Oils of the Eastern Regions of
the USSR), Leningrad, 1958
Permyakov, I. 0., Rasrabotka tuymosinekoso neftyanogo
APPnwedkersliMssfsit9W(thivreNdiaifilain filiFtitti.75002a060-6
Mostew, 1959
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. J. Altatbonc, Wei:fide=
Lt GoidpsAy
ller 1-714.7a
Mar York
thank you for your letter of 20' ;U:li 1961,, provi
dharactsrletios of various Soviat crude oils which horn.
been delivered or offered to the Fre* World. Certainly it eon
be inferred from the distribution of the samples labia you
forwarded to ue that the ovists ere delivering, and have
doliverod,'1401net speeifioationA 00111ed for by purchasers and4
therefore that the refining cwiloiturt 'armies by-reCiPient nations
should not present serious probAtess. The sampling 6100 provides
positive -indication that these spealticatiOns are repredentative
of the quality of crudes la.? the /*OK World frost the USSR.
It appears that the evie sing crude 1Fam two or their
newest, largeet and producing gross -- MhXhanove
and Boweshizlno -- for aport of i sisable sopment of their
export activity.
Soviet.souree reports are replete with references to-the:higb
sulfUr and salt ccteitts which characterise ura1i-vals4 ailair oilai.
It seems to us tt as Soviet oil experts continue to von:lire /
dependence may- vdsced 90 these looter Wality oradso-fOr
the 14014,es zijuired. As Yoa, INV Molls 1110100ers of the Wile 6..
loam inetzy gelegatiostvhichlisited the last year
time reported that woo* Russian crude oils contained as mass
1,600 pound* of salt per 1,000 bairrakvad um libe Soviets were
unable to reduce this toles. than. 15 to 20 'OSA per 1,000 barrell.
There alto le evidence 1014:goviet crudes *hived to Ztal7 and '
contained eggessive cmoUnte-Of sodium and magnesium silts..
there have lietu report* that Russian crudeivjth, salt -cont 15
pounds per 1,000 barrels ere more treMblesome to regincra the
Middle gast crudes -with es much aelo pounds of seat per 1,000 barrels.
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STAT
STAT
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? An our =at useful source ref
Apality eharacteiistios of Soviet crudes are
Robinzary E. A., Nefti ta ABM (Cru
Tatar
ASW, Nbee014
Pavlova S. N., et al?
(Crud; 011s of the
taaingrad.? 19,3
Permyskovi,
to
*scow)
&Arab?
(Development
It you tare anal)
area, please feel free
duetions for you
Distribution: Distribution:
Orig. and 1 - Addressee
DCI
2 - DD /I
_ AD RR
1 - D/M
0 if hob
APPROVED:
STAT
(1?4:6- 14-1)
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STh
pr
Approved
SENDER WILL CH?Eaf"ZnakkvA4GA1148144E6180604117KR103500
UNCLASSIFIED CONFIDENTIAL I SECRET
. CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
INITIALS
DATE
1.
Deputy Director (Intelligence)
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2
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1 ' '4 i 4.1 lel
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ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks:
For your information and preparation of
an appropriate reply for the Director's
signature.
,-
0 /Di)/ - /
SUSPENSE: 2 August 1961
STAT
FOLD HERE TO RETURN TO SENDER
VETFRWITORWRRP2ORWaril.AQVI.D.E.N3IAL
AND PHONE NO.
DATE
Asst to the DCI
I
7/25/61
SECRET _
FORM NO. 237 Replaces Form 30-4
I APR 55 whicb may be used.
3
0350023M5-6
U. S. GOVERNMENT PRINTING OFFICE /955-0-34cua
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MEMORANDUM FOR: Director of Central Intelligence
THROUGH: Deputy Director/Intelligence
SUBJECT:
REFERENCES:
; Exec-L.1;5.17c A...;:vjlt,;xy
- - _
3:. JUL 196:
\ 6 ,
aN-11
Reply to Letter from the President of Standard
Oil Company (New Jersey) on Analysis and
Quality Characteristics of Soviet Crude Oil
(a) Letter from Mr. M. J. Rathbone, President,
Standard Oil Company of New Jersey, to
DCI, dated 23 May 19 61
(b) Letter from the DCI to Mr. Rathbone, dated
10 June 1961
(c) Letter from Mr. Rathbone to the DCI, dated
20 July 1961
1. This memorandum contains a recommendation for action as set
forth in paragraph 6.
2. Mr. Rathbone's letter to you, reference (a), and your reply,
reference (b), discussed the question of Soviet oil exports, with partic-
ular reference to quality characteristics of Soviet crude oils being
exported to the Free World. Your answer pointed out that we believed
that the "average" quality of Soviet crude exports might be somewhat
lower than indicated in the attachment to Mr. Rathbonels letter, refer-
ence (a).
3. Mr. Rathbonets most recent letter, reference (c), provides a
rather wide sampling of Soviet crudes which were delivered or offered to
Free World purchasers. The assays presented in his latest letter support
Mr. Rathbonets opinion that the crudes being exported from the USSR are
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?v ? ?
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of competitive quality, and the "average" may, in fact, be higher than we
heretofore have had reason to believe.
4. The recommended reply to Mr. Rathbonets letter of 20 July 1961
provides some specific information for our estimate that the quality of
Soviet crudes might impose some restrictions on the quantities that could
be exported to the Free World, namely, that Soviet crudes have been
reported to contain excessive amounts of salt.
5. The recommended reply to Mr. Rathbone also provides
references to several Soviet books which contain information on quality
characteristics of their crudes, and the reply offers the services of the
if requested, in obtaining copies of
these books.
6. It is recommended that the attached letter be signed.
Enclosure:
STAT
Letter to Mr. Rathbone.
-2-
Assistant Director
Research and Reports
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