- Pipeline companies and their trade groups are pushing back against Pres. Trump's directive requiring them to use American steel and iron in their projects, arguing that the change would raise costs and disrupt operations.
- Energy Transfers Partners (NYSE:ETP) tells the Commerce Department that requirements to use domestic steel for its pipelines would "severely delay project schedules, drive up costs, decrease availability, and lower quality."
- Williams Cos . (NYSE:WMB) says "any sort of requirement to use U.S.-sourced steel or pipeline materials manufactured in the United States has the potential to cancel or delay projects." - also, WMB already has purchased more than 1M ft. of pipe in storage for its Atlantic Sunrise project, and nearly 500K ft. for the Constitution pipeline.
- There are very few, and in some cases zero, U.S. companies that make steel for the parts required by large pipelines, so companies must buy overseas, says the American Petroleum Institute.
- Trump has promised to break unleash energy companies from regulation and protect steel from unfair competition, but analysts say market forces may force him to make a choice.
- ETFs: XLE, VDE, ERX, OIH, ERY, DIG, DUG, BGR, IYE, FENY, FIF, PXJ, RYE, DDG, FXN, CRAK
- Now read: E&P Bottom Of The Barrel Club #17-2: Mayday, Mayday!
Original article