Seventy-seven percent of Marcellus wells built using foreign steel

Steel pipes
Source: DollarPhotoClub

According to The Pittsburgh Post-Gazette, Department of Environmental Protection records show that only 12 percent of Pennsylvania shale wells were built using American steel, with a staggering 77 percent using imported steel. Eleven percent of wells were mixed.

This data was contradicted by the Marcellus Shale Coalition, an industry group, which said that a brief survey found that more than 90 percent of the steel pipe its members use is American-made.

Nevertheless, U.S. Steel Corp. says a glut of foreign tube steel has put about 260 people out of work at a plant near Pittsburgh and another in Belleville, Texas.

The U.S. steel market, particularly the section of the industry producing the so called ‘oil country tubular goods’ (OCTG); seamless rolled products such as drill pipe, casing and tubing, for oil and gas installations, is suffering because of perceived ‘price dumping’ of cheap foreign products. U.S. steel producers complain that imported goods from countries like: South Korea, India, Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, Ukraine, and Vietnam, sell at a more than 30 percent discount with regard to domestic production.

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