U.S. oil producers blame steel shortages on low production

According to KeyBanc Capital Markets, the price of oilfield tubulars, or OCTG, reached $2400 a ton this month, up 100% from a year ago. The industry is threatened by steel shortages due to the conflict in Ukraine.

Russia and Ukraine provide about 15% of all U.S. imports of metal. Russia is also an important supplier of welding materials. It is not possible to ramp up production quickly due to rising component prices.