Original API specifications developed from USS's Nationa

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USS Tubular Products


United States Steel Corp. Tubular
Products NASPD Convention Boston, MA October
10, 2008 Joe Alvarado Vice
President-Tubular Operations
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USS Tubular Products

TUBULAR PIONEERS
COMMITMENT
U.S. Steel has long been associated with the
Tubular Products business . . .
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USS Tubular Products
Working with the energy industry for over 100
years

• Made first steel pipe in the US
• Introduced welded casing prior to 1913
• Introduced seamless drill pipe prior to 1913
• Introduced seamless casing in 1924
• Original API specifications developed from USSs
  National Tube Specifications in 1926
• Originated combination casing strings
• Introduced first pipe with seamless couplings
• Introduced first upset drill pipe and tubing
• Introduced first round thread
• Introduced deep-well casing P110
• Introduced buttress thread for casing and tubing
• Developed V150 casing

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USS Tubular Products
The Beginning

• 1869- John Harvey Flagler build a 20 x 125 ft.
  lapweld pipe mill in Boston, MA - primarily
  produced boiler tubes
• 1870- National Tube Works Company is created and
  moved to the center of the iron and steel
  industry- Pittsburgh, PA
• 1895- First seamless tube is produced to be used
  to construct bicycle frames
• 1899- National Tube Works is consolidated with
  other pipe manufacturers to form the National
  Tube Company
• 1901- USS acquires National Tube Company (NTC)
• Post 1900- Automobile demand increased creating a
  demand for higher quality steel tubing- Secondly,
  the rapid increase in auto production created a
  demand for gasoline
• 1914- NTC produces first seamless steel drill
  pipe in the oil industry followed shortly by the
  development of the first seamless steel couplings

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USS Tubular Products
National Tube Company

• Comprised of multiple steel making facilities as
  well as tubular manufactures
• Installed the first integrated pipe mill in the
  U.S.
• Installed the first seamless tube mill in the
  U.S.
• Developed the double piercing process and the
  rotary rolling process which extended the
  commercial size range of seamless pipe from 8 to
  26 O.D.
• At one time owned the largest pipe mill in the
  world

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USS Tubular Products

Evolution

• National Tube Works National Tube
  Company (Pittsburgh)
• Johnson Company National Tube Company
  (Lorain)
• Christy Parks Works National Tube
  Company (McKeesport)
• National Tube Company United States
  Steel
• Texas Works Baytown
• Geneva Works
• Gary Tube Works
• Fairless Pipe Mills
• Oil Well Supply Company

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USS Tubular Products

Evolution
Pre 1981
Post 1981 Lorain
National Gary


Geneva Lorain Fairless

Fairfield Oil
Well Supply Camp Hill Baytown
Christy Park



Seamless Electric Resistance Weld Continuous
Weld Dbl. Submerge Arc Weld Mechanical
Tubing Pressure Vessels Bomb casings Galvanizing E
nd Grooving Coupling Shops Tubing
Upsetters Threading Units Heat Treat Facilities
Sold assets
Closed Facilities
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USS Tubular Products

Committed to grow energy business
LSS Acquisition finalized June 2007 Leader in
the OCTG Market Leader in the Line Pipe Market
Growing the International Market
2007 Lone Star Acquisition

• After 25 years in a difficult energy and steel
  business...
• U. S. Steel reaffirmed its commitment to being
  the leading producer of Tubular Products in North
  America
• The combined entities are currently North
  Americas largest manufacturer of Tubular OCTG
  and Standard Line Pipe products
• Over 2 Million Tons of Seamless and ERW
  production capabilities

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USS Tubular Products

Evolution
1981 June 2007 - Present June 2007
Lorain
Fairfield Camp Hill Lorain
Texas Operations (Lone Star) Fairfield
Bellville Camp Hill
Tubular Processing Services
Tubular Threading Inspection Serv.
Wheeling Machine Products
Apolo Tubulares (Brazil) Fintube
Texas Tubular Products





Seamless Electric Resistance Weld Mechanical
Tubing Boiler Tubing Pressure Vessels Slitting
Capabilities Inspection Units Coupling
Shops Tubing Upsetters Threading Units Heat Treat
Facilities
Expanded Products and Operations
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USS Tubular Products
Minnesota Ore Operations
Hamilton Works
United Spiral Pipe
Lake Erie Works
Great Lakes Works
Lorain Tubular
Gary Works
CampHill
Mon Valley Works
Granite City Works
Fintube Technologies, Inc.
Wheeling Machine Products
U. S. Steel Tubular Products, Inc.
Fairfield Tubular
Texas Operations Wheeling Machine Products
Bellville Operations
Tubular Processing Services Division Tubular
Threading and Inspection Services
Division Wheeling Machine Products
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USS Tubular Products

Current capabilities- OVER 2 Million Tons
Seamless
Size Processing Lorain 3 10-26 Rotary
Roll, Direct Roll, QT, Straighten, Bevel,
HydroTest, WMS, UT Insp. Lorian
4 1.9-4.5 Mandrel, SRM, Straighten,
Bevel, HydroTest, WMS Fairfield 4.5-97/8
Rotary Roll, Mandrell, SRM, Straighten,
Normalize, QT, Straighten, Bevel,
HydroTest, WMS, UT Insp., Thread Cpl.
ERW
Size Processing Texas Ops 1
7-16 FBN, QT, Straighten, Bevel,
HydroTest, UT Insp, Thread Cpl. Texas Ops
2 1.9-7 FBN, QT, Straighten, Bevel,
HydroTest, UT Insp,. Thread Cpl. Texas Ops
Bellville 1.9-4.5 FBN, Straighten,
Bevel, HydroTest Camp Hill
85/8-20 Seam Anneal, Straighten, Bevel,
HydroTest, WMS Texas Tubular Products
23/8-41/2 Seam Anneal, Straighten,
Bevel, HydroTest, WMS
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U. S. Steel Tubular Products Product Size
Offerings
Inches
50
1
5
10
15
20
25
30
60
Texas Operations
Camp Hill
Bellville
Texas Tubular
Apolo
Lorain 4
Lorain 3
Fairfield
United Spiral Pipe
USSK
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U. S. Steel Tubular Products Product Mix Profile
SL 33
OCTG 62
Specialty 5
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USS Tubular Products

OCTG Imports
Market Share 2003 26 2004 30 2005 38 2006
42 2007 42 2008 through September 52
Source Preston Pipe Tube, US Census
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USS Tubular Products

Line Pipe Imports
Market Share 2003 41 2004 50 2005 56 2006
56 2007 61 2008 through September 61
Source Preston Pipe Tube, US Census
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USS Tubular Products

Manpower
Increased Capability in 2008 Fairfield - Hot
Mill - Finishing Lorain - 3 Mill - 4
Mill Camp Hill
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USS Tubular Products

Sales Channels
USS Tubular Products Continued commitment to
distributors Maintains a No Inventory
policy Work closely with Distributors
quarterly forecasts
US and Canada through distribution USS
committed to Stocking Distributors Management of
inventory, stocking locations, repairs and
returns Efficient solicitation of smaller
customers Internationally through
distribution Support major oil gas company
requirements for both domestic and international
activity Internationally through USS
International Sales Group Solicits trading
companies, and countries with State owned Oil
companies and /or requirements of local agent
representation
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United States Steel Corporation Tubular Products
Competitive Advantages Premium Welded Seamless
Tubular Value-Added Supplier Major Player in
Strategic Market Segments Full Complement of
Product Sizes 1.9 inches to 26 inches
diameter Seamless .140 inches to 2.312
inches wall
1 inch to 20 inches diameter Welded
.125 inches to .670 inches wall
Premium Threads Star
Seal Significant Asset Base Fairfield
Seamless Mill World Class Manufacturing
Facility Texas Operations New 5 Heat
Treat Line Lorain 3 Seamless Large
Diameter Heat Treat Line Raw Materials Base
Research and Development


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USS Tubular Products

TUBULAR PIONEERS
COMMITMENT
U.S. Steel has long been associated with the
Tubular Products business . . .
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USS Tubular Products


United States Steel Corp. Tubular
Products NASPD Convention Boston, MA October
10, 2008 Joe Alvarado Vice
President-Tubular Operations