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Steel Tariffs a 'Significant' Hit to Oil Drilling, Conoco Says

  • Pipes, valve fittings becoming more expensive, analysts told
  • Earlier, company reported spending boost, partly for costs
The Chevron Corp. Permian Trove Is Changing U.S. Shale
Photographer: Daniel Acker/Bloomberg

Steel tariffs imposed by the Trump administration are driving a “fairly significant” increase in costs for oil-driller ConocoPhillips, the company said Thursday.

Prices for steel used in pipes, valve fittings and other equipment have risen 26 percent in the U.S. since the start of the year, Executive Vice President Al Hirshberg told analysts on a conference call. The Houston-based company raised its capital budget for the year by a half-billion dollars earlier in the day, partly due to rising costs.