The 2016
US Presidential election is less than five weeks away and the one thing that everyone in the domestic energy pipe industry can agree on is that the future of oil and gas drilling in the domestic market will largely depend on which candidate is elected into office.
News outlets have reported that former Secretary of State Hillary Clinton (D) largely supported fracking during her time in that office, but today, she is a staunch supporter of states’ ability to implement local bans.
Donald Trump, on the other hand, supports increased drilling by the oil and gas industries as a means of making the U.S. energy independent. His support of fracking is unclear; in July, he was quoted as saying states should be permitted to implement bans. Two months later he was quoted as saying “the shale revolution will unleash a massive wealth for America.”
“People’s opinions of who is best suited to lead the country may be mixed but we all agree the results of the election are going to have a big impact on the oil, gas and energy pipe industry,” one source said.
In terms of current market conditions and pricing,
US import unfinished J55 ERW OCTG OCTG casing from Korea is currently available at approximately $33.00 cwt. ($728/mt or $660/nt), DDP loaded truck in
US Gulf coast ports.
US domestic spot market pricing for finished J55 ERW OCTG casing, on the other hand is currently heard at $40.50-$41.50 cwt. ($893-$915/mt or $810-$830/nt), ex-mill, but sources have been quick to point out that “there aren’t a lot of mills that are making energy pipe these days. Especially since there is still plenty of stuff that’s in-stock and on the ground that can be had at discount.”