The oil industry played an important role in
the economy of Halychyna, being, along with forestry and agriculture, the main
source of income for the region and the population. A significant role in this
area was given to the legislative and executive branches of government. From
1918 to 1921, more than 20 laws and bylaws regarding the regulation of the oil
industry were adopted.
Prior to the proclamation of the Western
Ukrainian People's Republic, oil production increased from 8 to 326,000 tons,
or 40 times during 1885–1900. During the first decade of the 20th century,
growth was 800% and reached 1761 thousand tons. Since 1910, the productivity of
wells in Boryslav had weakened. Only from 1916 production increased again,
which was caused by the need to provide fuel and lubricants for military
operations.
After World War I, oil production developed
most strongly at the Bytkivske field. The Boryslav deposit was seized by a wave
of post-war redistribution of capital. The market was flooded with French
capital in the form of the «Dibrova» concern and the «Societe Francaise de
Petroles Premier» company. France (53 %), Switzerland, Austria, and other
European countries invested in the development of oil fields. During the active
hostilities of 1915–1917, most of the Halychyna mines passed into the hands of
the Russian tsar.
Halychyna during the Austro-Hungarian period
was one of the leading regions of the world, having up to 6 % of world oil
production. By 1918, the share of Halychyna had dropped to 1.6 %, and by 1920
to 1.3 %. The reason was the active phase of World War I and the devaluation of
the currency. Even though the number of wells increased by 30 %, oil production
decreased three times (from 2080 to 700 thousand tons). During 1905–1920, 17.69
million tons of oil were extracted in Halychyna.
Western Ukrainian People's Republic got the oil
industry in decline and disorganization. From 1919, when Halychyna was occupied
by Polish troops, the redistribution of property at the expense of German and
Austrian businessmen began. Due to the high cost of deep drilling, oil
producers explored promising oil fields in Urych, Oriv, Kropyvnyk, Bytkiv,
Pasichna, Krościenko, Garklova, and others.
Halychyna oil was processed at 64 refineries,
the largest of which were in Central and Eastern Europe: «Państwowa Fabryka
Olejów Mineralnych», «Limanowa», «Trzebinia», «Galicja», «Nafta» and others.
Halychyna during the Western Ukrainian People's
Republic and the Polish occupation was the largest, after Romania, an oil
producer and refiner in Europe. More than a third of the products of oil
refineries and crude oil were exported to Austria (40 %), Germany (23 %), and
Czechoslovakia (20 %).
