A Successful Steel Distributor Must Meet Current And Future Challenges

As the worldwide steel market continues to return toward pre-recession levels

, signs point to slowly increasing demand for steel over the next decade. The demand for ISO steel should grow due to infrastructure projects around the world, increased oil exploration, and increased natural gas exploration. To succeed in today's economic climate, a steel distributor has to be prepared to meet demand while providing customers of today with steel in a timely and efficient manner. Inventory and delivery systems have never been more important, as projects commence on every part of the globe. A distributor with a strong global supply network is able to meet needs quickly and cost-effectively.

Oil Exploration Increasing Worldwide

Oil exploration is increasing in every type of drilling environment. Shallow water drilling in the Middle East is ramping up, as is exploration in the North Sea, and in the Arctic north of Alaska. Kurdistan is working on deals with international petroleum companies based on discoveries in that region that could tap up to 8 billion barrels of oil and gas. Because of the remoteness of so many of today's oil exploration projects, pipelines will gain importance over the next decade, and suppliers of steel pipe will have to be ready to meet demand and deliver products to more remote regions than ever before.

Natural Gas Exploration Increasing in U.S.

In the U.S., working storage capacity for natural gas grew by 22% between the years 2006 and 2010, part of a decade of increasing natural gas inventories in the U.S. Shale gas production is increasing in the U.S. as well, quadrupling between 2006 and 2010. By the year 2020, shale gas production is expected to account for at least 40% of U.S. gas production. A strong and scalable pipeline system is necessary to make use of the gas that's extracted, yet another reason why suppliers of ISO steel have to be ready to meet increased demand over the next decade.

Pipelines More Important than Ever

With exploration taking place at ever more remote locations throughout the world, the importance of pipelines is expected to increase. While pipelines have high up-front costs, over the long term they become the least expensive method of transport for oil and natural gas. Pipeline steel suppliers will have their work cut out for them as exploration takes place in the Arctic, in deep water environments, and in distant regions such as Kurdistan.

What to Expect from Your Steel Distributor

Your project doesn't have time to wait around for inventory to catch up with your needs. Conversely, if you are part of a large scale project, you may not have the carrying capacity for a large on-site inventory, and you may need a customized just-in-time delivery system. Whichever your need, your steel supplier should understand your requirements and work out a delivery program that works for you. Suppliers with strong, worldwide networks and quality assurance from mill to delivery let you remain confident that your products will meet specifications and will be delivered to you on time.

by: Pete Caballero

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