Senators Urge Reduction of Import Quotas on Oil and Gas Pipes

By David Shepardson

WASHINGTON (Reuters) – Three Democratic U.S. senators urged the Biden administration on Friday to reduce the import quota on oil and gas drilling pipes from South Korea, stating that it has adversely affected companies in Ohio and Pennsylvania.

The senators—Sherrod Brown of Ohio, Bob Casey, and John Fetterman of Pennsylvania—indicated that the market for products known as oil country tubular goods (OCTG), used for drilling, extraction, and transportation of oil and natural gas, has declined, leading to layoffs at U.S.-based companies.

Affected companies include Tenaris, which operates in Ohio and Pennsylvania, and Vallourec, which has a presence in Ohio. Tenaris USA President Luca Zanotti expressed full support for reducing the quota, emphasizing its importance for protecting American jobs, ensuring fair competition for the domestic OCTG industry, and securing national energy security.

The American Iron and Steel Institute noted that lowering the quota would reflect the current reduced demand for the product and emphasized the importance of domestic steel pipe and tube production for national and economic security needs.

In 2018, the United States imposed tariffs on certain steel and aluminum imports, including OCTG, affecting most U.S. trading partners but exempting some allies like South Korea, which has an annual import quota for OCTG.

The senators urged the administration to take action to prevent further job losses due to what they consider an outdated quota. They wrote to U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo, noting that OCTG companies in the U.S. have experienced over 220 layoffs or workforce reductions across plants in Ohio, Pennsylvania, Oklahoma, and Texas.

USTR and the South Korean embassy in Washington did not immediately respond to requests for comment, while Commerce indicated it would address the senators’ concerns.