Reorganization of the USSR oil industry management system at the turn of the 1960s and 1970s: causes and results

Importance of the study is determined by the importance of studying the Soviet experience of industrial management in order to develop an optimal strategy for the socio-economic development of the Russian Federation, identify both achievements and effective mechanisms, and prevent previous miscalculations. The purpose of the study is to identify and characterize the main directions of reorganizing the management system of the oil industry at the turn of the 1960s and 1970s, identify the causes, and analyze the results.

Materials and Methods. The source base of the research has been made up by now declassified documents from the funds of the Central Committee of the CPSU of the Russian State Archive of Modern History. The analysis was based on documents sent by the leadership of the Ministry of the Petroleum Industry to the Central Committee of the CPSU and containing information on the implementation of decisions taken in 1969 on the need to improve and reduce the cost of the management apparatus. The methodological basis of the research is the general scientific method of analysis, a systematic approach, principles of objectivity and historicism.

Results and Discussion. It has been determined that the reasons for restructuring the management system of the oil industry are as follows: its excessive complexity, which hinders the adoption of operational decisions and reduces the responsibility of engineering and technical personnel, who are overloaded with administrative functions, for improving equipment and technology; the need to redistribute resources to new and more promising oil and gas production regions.

Conclusion. The optimization of the industry management system led to the release of a significant number of specialists, cost savings, and greater centralization, but there were still factors hindering progress, such as miscalculations in planning and pricing, as well as a lack of investment. There were also objective reasons related to the development of new, difficult-to-access regions. The lag in the implementation of automated management systems was often overcome by purchasing foreign equipment.