Ohio considers bill to push American-made tubular steel for natural gas exploration.
The Alliance for American Manufacturing (AAM) traveled to Ohio today to testify before the Agricultural and National Resources Committee of the Ohio House of Representatives. AAM is a strong supporter of proposed legislation in Ohio, HB 559, that would establish a "Steel Pipe Monitoring Program" in the state.
Other supporters of the bill include the Ohio Steel Council, Ohio Manufacturers Association, United Steelworkers (USW), and members of the Building and Construction Trades.
Expanding natural gas development in the U.S. is creating a demand for more "Oil Country Tubular Goods." These OCTG tubular steel products are used at well sites and in the construction of gathering lines.
Ohio's bill, HB 559, would require pipeline operations in Ohio to report the country of origin and manufacture of the OCTG steel products being used for natural gas development. The Ohio Public Utility Commission and the Ohio General Assembly would then determine whether or not domestic steel pipe products are being utilized in the exploration and gathering of natural gas.
AAM sees HB 559 as striking an efficient balance to promote worthy outcomes while avoiding onerous regulatory mandates. The bill does not tell natural gas firms or pipeline operators in Ohio where to buy their pipe. However, it would help to ensure that steel pipe products utilized in Ohio are of the highest quality, meeting required testing and quality standards, thus ensuring safety and reliability for Ohio’s residents and natural gas consumers.
The bill would also do much to encourage and reward capital investments in the state economy, provide transparency so that citizens can remain educated as to the full-scope of benefits of shale gas development, and so that they can monitor potential import surges from trading partners intending to harm domestic firms.
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