CATEGORIZED | News

Petitions target Chinese OCTG, drill pipe in US

Posted on 03 February 2010

The United Steelworkers Union, joined by several US producers of drill pipe, have filed antidumping and countervailing duty petitions against imported Chinese drill pipe. The petitions, filed on New Year’s Eve, did not attract as much media attention as IADC believes they should.

Above is an example of drill pipe. Shortages of drill pipe in the United States could be seen as early as March 2010. Petitioners push for a resoultion to drill pipe duties from OCTG to avoid halting oil exploration in the US.

Shortages of drill pipe supply or price spikes in the United States could be seen as early as March 2010.

A day or two earlier, the US International Trade Commission found that oil country tubular goods (OCTG, or casing and tubing for oil well completion) that are imported from China are threatening to injure the US industry. This means that countervailing duties – and likely antidumping duties as well– could be assessed against those products.

According to industry estimates, Chinese drill pipe accounts for 50% of available pipe used in US onshore E&P. If, as IADC expects, Commerce finds dumping and subsidies and the USITC finds injury, Chinese supplies of OCTG and drill pipe would effectively be excluded from the US, causing sharply increased prices and shortages.

Antidumping and countervailing duties are penalty duties; however, unlike normal duties, the importer does not know how high they will be. Therefore, with these products subject to penalty duties, imports are very likely to stop entirely.

A preliminary decision on drill pipe is expected within three to five months. But the prospect of “retroactive” application of these duties could start to dry up imports by March 2010.

Energy producers looking to ramp up exploration and production for oil and gas in promising fields in North America need to get increasing supplies of drill pipe, casing and tubing. Shortages of these products could make our job of supplying more American oil and gas needs from domestic sources harder.

IADC is concerned that the US government is adding to the industry’s burden by entertaining these cases. The association is urging companies to ensure that its representatives at the state and Congressional level understand the impact these rulings may have on energy security in the United States.

0 Comments For This Post

1 Trackbacks For This Post

  1. Raspino: Development of tomorrow’s leaders must begin now | Drilling Contractor Says:

    [...] attention to an emerging legislative fight in the US over Chinese drill pipe supplies. Click here for more information. Share [...]

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 16 April 2014

    Maersk Drilling takes delivery of ultra-deepwater drillship

    Maersk Drilling has taken the delivery of its second drillship, Maersk Valiant from the Samsung Heavy Industries (SHI) shipyard in Geoje-Si, South-Korea. Maersk Valiant has begun its voyage toward the...

  • 16 April 2014

    Ensco orders new jackups from Lamprell

    Ensco has ordered two high-specification jackups, ENSCO 140 and ENSCO 141, for delivery in mid-2016 from Lamprell’s shipyard in the United Arab Emirates. The rigs will also...

  • 16 April 2014

    MPD/UBD successfully drills sidetrack after 6 failed conventional drilling attempts

    In the Brookeland Field in East Texas, conventional drilling methods failed in six attempts to drill a “straightforward” horizontal wellbore. The original well had surface casing installed...

  • 16 April 2014

    Chevron’s DGD training program serves array of learners across generations

    Since 2008, more than 400 people – from operators, drilling contractors, service companies and regulators – have completed Chevron’s dual-gradient drilling (DGD) training...

  • 16 April 2014

    Pacific Drilling integrates ‘disruptive’ DGD technology into 7th-generation drillship

    A disruptive technology is one that “gets its start away from the mainstream of a market and, then, as its functionality improves over time, invades the main market,” as defined by Harvard...

  • Read more news