- Joined
- Jan 19, 2023
You're right, there wasn't really any difference between them in terms of structure although the USSR didn't have the same technical capacity to produce refined products with the same quality in quantities like the US or Saudi Arabia. It wasn't really needed in the USSR since most vehicles were designed to run on lower-octane fuels and diesel that they could produce and the higher grades were only needed for aviation/military purposes.Focusing on oil, I don't believe there's really that much difference between the oil industry in the USSR compared to western countries. Oil shares similarities with other extraction industries where they have to heavily refine the product before it can be used. In the west, large vertically integrated oil producers tend to own their outlets for distribution, like gas stations. These gasoline retail businesses show characteristics of a monopoly or oligopoly where a single business controls the prices in a given region of a country. If the USSR had been dependent on oil, like Saudi Arabia, it would've been stable even through the period of declining oil prices SINCE the USSR probably didn't export crude oil. The USSR probably had a state monopoly on the production and refinement of oil. In other words, it was vertically integrated. The price of crude oil may fluctuate greatly, but gasoline is more stable. The USSR was probably selling gasoline at more stable prices compared to crude oil at unstable prices.
That being said, I concede that it's possible the USSR mismanaged its oil industry. Throughout its history, the oil industry has been subject to more government intervention because of the importance energy has for the modern world.
However, crude oil exports were extremely critical during the 1970s because the Soviets needed to earn hard currency to fund food imports as well as purchases of machinery/equipment and technological products their domestic industries couldn't produce. There was a lack of investment in these sectors in the preceding decades which meant domestic equipment was very outdated technologically and made it difficult to produce any products besides raw materials that were competitive on the world market.
The Soviet ruble couldn't be used to purchase products from non-Comecon countries since it wasn't convertible and had artificially low, fixed exchange rates. So they had to earn dollars/yen/pounds/etc. to purchase products from these countries.