- The U.S. oil and gas industry slams Pres. Trump’s steel tariff, saying the move would kill energy jobs by raising costs for big infrastructure projects.
- The industry relies on imported steel for drilling equipment, pipelines, liquefied natural gas terminals and refineries; as an example, the Interstate Natural Gas Association of America says the type of pipe and steel used to make thick-walled interstate pipelines are hard to source domestically.
- A study last year by the Association of Oil Pipelines showed that a 25% increase in pipeline costs could increase the budget for a typical project by $76M; TransCanada’s (TRP -0.5%) proposed Keystone XL expansion would cost at least $300M more.
- Large midstream companies, including Kinder Morgan (KMI -1.8%), Magellan Midstream Partners (MMP -0.4%) and Enbridge (ENB -0.8%) have declined to comment on the steel tariffs.
- ETFs: XLE, VDE, XOP, ERX, OIH, GASL, FCG, XES, ERY, DIG, BGR, GUSH, FENY, IYE, DUG, DRIP, IEO, FIF, GASX, IEZ, NDP, PXE, RYE, PXJ, CRAK, FXN, DDG, NANR, FTXN, JHME, ERYY, ERGF
- Earlier: Steel tariff could impact Exxon (NYSE:XOM) refinery expansion (Mar. 1)
- Now read: Can Crude Oil Make A New High?
Original article