Though recent U.S. tariffs on steel have raised oil and gas industry concerns, technological advancements for oilfield products still persist. In fact, it seems most apparent that during challenging times, technology becomes more and more innovative. Industry leaders, like MSI Pipe Protection Technologies, remain diligent at finding new ways to advance industry standards. These days, oil and gas companies alone import approximately three-quarters of the steel used in oilfield products. As such, there is now a new demand for innovative solutions since the pricing for steel continues to fluctuate.
“The headline for July for the oil and gas industry discusses ‘Impact of the Steel Tariffs on Our Industry’. The recently implemented 25% tariffs on imported raw steel and steel pipe to the USA, along with quotas on steel imported from targeted countries to the USA, have definitely impacted many of our customers and could have an impact on oil and natural drilling over these next several months.” John Boben – President, MSI Pipe Protection Technologies
Below, MSI shares innovative ways to preserve your oilfield products, while also helping cut operational costs, and surviving the rising costs of steel.
Advantage of Digital Innovations
Producing companies have been slow to embrace the digital revolution, in part due to concerns about the privacy of information. However, the oil and gas industry is gradually implementing paperless methods of data collection and storage. Furthermore, they’re embracing technology that instantly connects the workforce, customers, and all members of the supply chain.
Companies are finding that the investment in innovative digital technology pays off in the long run by increasing efficiency exponentially. Industry experts predict that future innovations will lead to greater and more secure opportunities for collaboration throughout the industry. At the same time, digital innovations have also been found to help cut the overall cost of operations.
Continue Investing in Protective Products
Another major way of preserving oilfield products is to continue relying on advanced developments in pipe protection. To mitigate rising steel prices, the life of oil country tubular goods (OCTGs) can be maximized with high-quality protection. Protective products like packaging frames, drill pipe protectors, pipe caps and plugs, bumper rings, and many more, all maintain pipe integrity.
MSI’s products are designed to ultimately protect pipes from damage during transportation and storage. We manufacture all our protective drilling and pipeline products from high-performance thermoplastics, metals, and polymer alloys. These materials prevent any caustic fluid from contaminating company pipes, while also eliminating contact between the pipe. When your pipe isn’t cracked, stressed, or displaying other types of damage, you won’t spend more for repairs or new steel replacements.
Hold On Until Relief Comes
Though the industry’s heavy reliance on steel remains a reality, companies continue to push technology forward. Various oil and gas industry experts are working diligently to explore new ways to utilize other raw materials that may not require steel. Until then, MSI, and companies alike, will maintain operations and preserve current resources and technology to their maximum capabilities. It’s still uncertain if or when steel-exporting countries will concede so that relief can take place; yet, we remain watchful and hopeful.
Our ultimate industry goal is to continue increasing efficiency while keeping costs down. However, the key to long-term survival is innovation, and there is no doubt that oil and gas companies are up to the challenge of modernizing their operations when necessary. With gradual advancements in technology, material design, and hardware, companies can continue to extract resources and deliver products safely, more efficiently, and with less wear and tear on oilfield products.