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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090018-7

and stockpiling petroleum products to meet emergencies. Storage facilities dot the countryside of southern and central Sweden, as well as the coast as far north as Lulea. Some of the government-built facilities are leased to commercial companies, but some of the fuel stored on them is earmarked by the Economic Defense Council for use during a national emergency. To facilitate petroleum distribution in such an emergency, a pipeline linking the west coast refineries with central and eastern Sweden has been proposed by the government. This pipeline would have a capacity of about 2.5 million tons of petroleum products annually.

Sweden had 11 petrochemical plants in operation in 1969. The Svenska Esso AB petrochemical complex at Stenungsund near Goteborg (completed in June 1969) is the first steam-cracking installation of its kind in Sweden. The plant has a yearly capacity of 250,000 tons of ethylene, 120,000 tons of propane, 59,000 tons of butane, 36,000 tons of butadiene, and 130,000 tons of steam-cracked naphtha.

Oil exploration on the Swedish mainland, the continental shelf, and the Baltic Sea has been underway since the early 1960's. Preliminary investigations revealed that oil would most likely be found in southern Sweden, and British Petroleum's Swedish affiliate was given petroleum exploitation rights in 1964. Both OK and Johnson have continued drilling for oil in southernmost Sweden and on Gotland. No oil has been discovered so far, but discovery of natural gas and crude oil in the Norwegian sector of the North Sea and improved drilling technology have generated a strong interest in expanding prospecting of the continental shelves of the North and Baltic Seas. A partly state-owned oil and natural gas prospecting company, AB Oljeprospektering (OPAB), was formed in 1969 to hold the exclusive rights to prospecting concessions in Sweden. Approximately US$31 million has been earmarked for exploratory work both offshore and onshore during an initial 8-year period. OPAB's first drilling was begin last year in the Malmo region, with Italy's Salpera concern acting as the subcontractor for the work. Plans also call for test drilling in the Baltic to begin in 1972 and 1973.

Consumption of natural gas is minimal because of the lack of domestic gas resources and the relatively low cost of oil and electricity. Distribution systems for town use of gas are inadequate. Tentative government feelers have gone out for possible future gas imports from the U.S.S.R., the North Sea, or the Dutch mainland.

b. Electric power

At the end of 1971, Sweden ranked 11th in world production of electricity, having an output of nearly 67 billion kilowatt-hours (kw.-hr.). Installed capacity was 17 million kilowatts (kw.) of which 70% was hydroelectric and 30% thermal. Depending on seasonal variations in rainfall, hydroelectric output (46 billion kw.-hr. in 1971) contributes between 68% and 75% of annual production. In the past 5 years, electric power production rose at an average rate of 6% annually, slightly less than the 7% growth rate in consumption. To meet the demand for electricity, domestic production is supplemented by imports of electric from neighboring countries, mainly Norway.

Electricity is widely employed in all sectors of the economy. The principal consumer is industry, which accounts for approximately three-fifths of the electric power used, mainly in electrochemical, metallurgical, and wood-processing installations. Households, commercial users, and public services are adequately supplied with electricity. About 57% of the total route-kilometers of railroads, including all major trunk lines, are electrified; these carry about 95% of total ton-kilometers of freight traffic.

Facilities of the central government's State Power Administration account for 45% of total production of electricity, municipal facilities another 15%, and privately owned utilities and industrial plants for the remaining 40%. The primary coordinating authority is the Central Operating Management, which is composed of representatives from the central and municipal governments, the largest privately owned utilities, and industrial powerplants. The central government, however, exercises general control over the entire industry, owns and operates the high-voltage distribution grids, sets consumer rates, and is responsible for overall planning to meet national requirements.

Economically exploitable waterpower potential is estimated at 85 billion kw.-hr., 70% of which has been developed. Development has been concentrated in the areas of greatest potential, on the rivers and lakes situated in the northern half of the country. Hydroelectric plants characteristically are build in series along the major rivers, with additional water supply being conveyed to the plant sites from lakes and reservoirs by means of underground conduits. Approximately half of the total national capacity is contained in the numerous large powerplants built among the Angerrnanalven, Indalsalven, Lulealy, and Umealy (rivers). Most of the water resources in

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090018-7