The United States could export a "reasonable amount" of natural gas while also creating the manufacturing jobs it needs, the chief executive of U.S. steelmaker Nucor Corp told Reuters on Wednesday.
In comments that mark a shift in tone for the U.S. steelmaker, Chief Executive John Ferriola said the government should give natural gas exports "thoughtful, careful consideration."
Nucor made its first foray into gas production in November 2012 to secure supplies for its own operations, forming a joint venture with Encana Corp, which is now on track to produce more fuel than Nucor needs. Drilling was temporarily suspended late last year due to weak gas prices.
"You don't want to export everything and you don't need to export nothing," Ferriola said on the sidelines of the Steel Success Strategies conference in New York.
"I truly believe that you can reach a point where manufacturing would generate the jobs we need in this country, and still export a reasonable amount of natural gas."
Ferriola's predecessor Dan DiMicco has been very critical of plans to export more U.S. natural gas, though he has not called for a complete export ban. Nucor and its rivals see a big opportunity in the low energy costs that have come with the U.S. shale boom that boosted domestic gas supplies.
Ferriola said that under its current drilling plan, within the next decade Nucor would have enough natural gas to supply all its steel mills, its new direct reduction facility in Louisiana, and a second direct reduction plant, with 40 to 50 billion cubic feet of annual production left to sell into the market. He said that plan will likely change.
The government expects the United States to become a net exporter of gas in 2018. The first of what is expected to be several liquefied natural gas export terminals is set to be completed in late 2015.
TSUNAMI OF RUSSIAN STEEL
Ferriola said Nucor is looking at options to address a surge in imports of hot-rolled coil from Russia, including challenging the so-called suspension agreement that has sheltered Russia from steep duties since the Cold War.
Reuters reported on Wednesday that steel industry leaders were considering challenging the trade deal amid mounting tensions over Russia's actions in Ukraine. [ID:nL2N0OZ0GI]
"It's a tsunami, it's out of control, and we will look at every legal remedy and response to that," said Ferriola on Russian imports.
RIGHT OPPORTUNITIES IN IRON ORE
Ferriola said Nucor is considering long-term iron ore supply agreements and could even buy an iron ore mine, though it is less interested in an acquisition now than three years ago, when prices were much higher.
The move to secure more raw materials comes as the company ramps up its new direct reduced iron (DRI) plant in Louisiana.
DRI is made from iron ore and is a substitute for scrap, the company's traditional raw material.
"For the right opportunity under the right circumstances, you know we've go the capital to do it," he said. "If something came along that was perfect for our needs we would consider it."
Source: Reuters
In comments that mark a shift in tone for the U.S. steelmaker, Chief Executive John Ferriola said the government should give natural gas exports "thoughtful, careful consideration."
Nucor made its first foray into gas production in November 2012 to secure supplies for its own operations, forming a joint venture with Encana Corp
"You don't want to export everything and you don't need to export nothing," Ferriola said on the sidelines of the Steel Success Strategies conference in New York.
"I truly believe that you can reach a point where manufacturing would generate the jobs we need in this country, and still export a reasonable amount of natural gas."
Ferriola's predecessor Dan DiMicco has been very critical of plans to export more U.S. natural gas, though he has not called for a complete export ban. Nucor and its rivals see a big opportunity in the low energy costs that have come with the U.S. shale boom that boosted domestic gas supplies.
Ferriola said that under its current drilling plan, within the next decade Nucor would have enough natural gas to supply all its steel mills, its new direct reduction facility in Louisiana, and a second direct reduction plant, with 40 to 50 billion cubic feet of annual production left to sell into the market. He said that plan will likely change.
The government expects the United States to become a net exporter of gas in 2018. The first of what is expected to be several liquefied natural gas export terminals is set to be completed in late 2015.
TSUNAMI OF RUSSIAN STEEL
Ferriola said Nucor is looking at options to address a surge in imports of hot-rolled coil from Russia, including challenging the so-called suspension agreement that has sheltered Russia from steep duties since the Cold War.
Reuters reported on Wednesday that steel industry leaders were considering challenging the trade deal amid mounting tensions over Russia's actions in Ukraine. [ID:nL2N0OZ0GI]
"It's a tsunami, it's out of control, and we will look at every legal remedy and response to that," said Ferriola on Russian imports.
RIGHT OPPORTUNITIES IN IRON ORE
Ferriola said Nucor is considering long-term iron ore supply agreements and could even buy an iron ore mine, though it is less interested in an acquisition now than three years ago, when prices were much higher.
The move to secure more raw materials comes as the company ramps up its new direct reduced iron (DRI) plant in Louisiana.
DRI is made from iron ore and is a substitute for scrap, the company's traditional raw material.
"For the right opportunity under the right circumstances, you know we've go the capital to do it," he said. "If something came along that was perfect for our needs we would consider it."
