The article briefly considers the question of conservation and oil displacement in recent years. It then focuses on the problem of petroleum supplies, on the factors affecting their expansion, and on Soviet efforts and plans in the field. Investment growth in the oil industry and its regional allocation in the 1980s and beyond are examined. The nature and thrust of the exploratory effort, its relationship to the new reserve classifications, and to prospects for the Soviet oil industry are analyzed. Finally, the causes of the current rebound in output and Soviet plans for field development are assessed.