Can US steel manufacturers deliver what is needed to meet demands of energy industry?

Ed Longanecker:
Steel import quotas threaten energy job growth

The Office of the U.S. Trade Representative is considering replacing the current 25 percent tariffs on Mexican and Canadian steel imports with restrictive import quotas under Section 232 of the Trade Expansion Act of 1962. Such a move could prospectively cripple expansion of U.S. oil and natural gas production because of supply restrictions.

A tax on material used in exploration and production and critical infrastructure projects was imposed on the U.S. oil and natural gas industry with previously adopted steel and aluminum tariffs with Mexico and Canada. This added expense, combined with challenges associated with pipeline constraints in West Texas and the Chinese retaliation on domestic oil exports, has caused unnecessary strain for an industry vital to our state and country from an economic and national security perspective.

If import quotas were to be imposed, the consequences could be far worse if these products are made unavailable. Of particular concern to independent oil and natural gas producers is the reality that quotas also have a disproportionate impact on small businesses, who are unable to purchase this material in bulk to meet their supply needs.

As the largest producer of oil and natural gas in the United States, Texas will bear an inordinate burden from the adoption of quotas on steel imports from Canada and Mexico.
...
Steel is needed not only for drilling activities but also is critical for infrastructure projects like pipelines needed to get the oil to market.  A failure to meet steel demand would have a ripple effect in the energy job market.

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