• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days The United States produced more crude oil than any nation, at any time.
  • 10 days e-truck insanity
  • 5 days How Far Have We Really Gotten With Alternative Energy
  • 9 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 8 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 8 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 10 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 13 days Bankruptcy in the Industry
OPEC Expects Solid Global Oil Demand This Summer

OPEC Expects Solid Global Oil Demand This Summer

OPEC expects strong oil in…

U.S. Drilling Activity Continues to Drop Off

U.S. Drilling Activity Continues to Drop Off

The total number of active…

Trump’s ‘Buy American’ Pipes Push May Not Be Feasible

President Trump’s desire that pipelines in the U.S. buy American iron and steel products may run into international trade law violations, and have a yet-unpredictable impact on costs and prices for manufacturers and pipeline companies, experts and economists reckon.

Last month, President Trump issued a memorandum on the construction of American pipelines, asking the Secretary of Commerce to prepare within 180 days a plan “under which all new pipelines, as well as retrofitted, repaired, or expanded pipelines, inside the borders of the United States, including portions of pipelines, use materials and equipment produced in the United States, to the maximum extent possible and to the extent permitted by law”.

The American Iron and Steel Institute (AISI) praised President Trump’s executive actions to expedite Keystone XL and Dakota Access pipelines as “ensuring key markets for domestic steel and pipe products”.

However, one concern over the ‘buy American’ provisions is that they may violate World Trade Organization (WTO) regulations that call for non-discrimination of suppliers.

According to S&P Global, “the U.S.-made provision, if ultimately enacted, is expected to trigger a trade war under the U.S.’ World Trade Organization commitments”.

In addition, the government telling private companies how to do their business is also a concern, especially in light of traditional Republican values that favor little government interference in business.

Related: OPEC 310,000 Barrels Per Day Above Production Cut Goal

“If it becomes a bargaining chip to the pipelines getting the environmental review and the permits necessary to complete the projects, that’s very problematic. It’s a form of extortion,” Nick Loris, an economist at the conservative Heritage Foundation, told Dallas News last week.

Others are worried that costs could increase if companies are forced to buy American-only products.

According to John Stoody, spokesman for the Association of Oil Pipe Lines, who spoke to Dallas News:

ADVERTISEMENT

Pipeline companies currently have an America-first general policy. But it’s a competitive market, and operators build the projects at the lowest cost possible — they are obligated to.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News