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

1

USS Tubular Products

United States Steel Corp.Tubular Products

NASPD Convention Boston, MA

October 10, 2008

Joe Alvarado Vice President-Tubular Operations

2


U.S. Steel has long been associated with the

“Tubular Products business” . . .

TUBULAR PIONEERS

3

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 USS’s 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

Working with the energy industry for over 100 years


4

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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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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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

Fairfield

7

Evolution


Pre 1981 Post 1981

Lorain

National

Gary

Geneva Lorain

Fairless Fairfield

Oil Well Supply Camp Hill

Baytown

Christy Park

SeamlessElectric Resistance Weld

Continuous WeldDbl. Submerge Arc Weld

Mechanical TubingPressure Vessels

Bomb casingsGalvanizing

End GroovingCoupling Shops

Tubing UpsettersThreading Units

Heat Treat Facilities

Sold assets

Closed Facilities

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Committed to grow energy business


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 America’s largest manufacturer of Tubular OCTG and Standard & Line Pipe products

•Over 2 Million Tons of Seamless and ERW production capabilities

LSS Acquisition finalized June

2007

Leader in the OCTG Market

Leader in the Line Pipe Market

Growing the International

Market

2007: Lone Star Acquisition

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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

SeamlessElectric Resistance Weld

Mechanical TubingBoiler Tubing

Pressure VesselsSlitting Capabilities

Inspection UnitsCoupling Shops

Tubing UpsettersThreading Units

Heat Treat Facilities

Expanded Products and Operations

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Hamilton Works

Mon Valley Works

Fairfield Tubular

Granite City Works

Minnesota Ore Operations

Gary Works

Great Lakes Works Lorain Tubular Lake Erie Works

Fintube Technologies, Inc.

Wheeling Machine Products

Texas OperationsWheeling Machine Products

Bellville Operations

Tubular Processing Services DivisionTubular Threading and Inspection Services DivisionWheeling Machine Products

U. S. Steel Tubular Products, Inc.

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CampHill

United Spiral Pipe

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Current capabilities- OVER 2 Million Tons


Size ProcessingLorain #3 10”-26” Rotary Roll, Direct Roll, Q&T,

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, Q&T, Straighten, Bevel, HydroTest,WMS, UT Insp., Thread & Cpl.

Size ProcessingTexas Ops #1 7”-16” FBN, Q&T, Straighten, Bevel,

HydroTest, UT Insp, Thread & Cpl.Texas Ops #2 1.9”-7” FBN, Q&T, Straighten, Bevel,

HydroTest, UT Insp,. Thread & Cpl.Texas Ops Bellville 1.9”-4.5” FBN, Straighten, Bevel, HydroTestCamp Hill 85/8”-20” Seam Anneal, Straighten, Bevel,

HydroTest, WMSTexas Tubular Products 23/8”-41/2” Seam Anneal, Straighten, Bevel,

HydroTest, WMS

Seamless

ERW

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1 5 10 15 20 25 30 60

Inches

Texas Operations

Bellville Texas Tubular *

Lorain #4 Lorain #3

Fairfield

Camp Hill

U. S. Steel Tubular ProductsProduct Size Offerings

United Spiral Pipe

50

13USSK

ERW

Seamless

Spiral Welded

* Identifies alliancesApolo

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U. S. Steel Tubular ProductsProduct Mix Profile

OCTG62%

S&L33%

Specialty5%

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OCTG Imports


0.795

1.096

1.663

2.0791.912

2.426%

30%

38%

42% 42%

52%

0

0.5

1

1.5

2

2.5

3

2003 2004 2005 2006 2007 2008-Sept

-5%

5%

15%

25%

35%

45%

55%

65%

Source: Preston Pipe & Tube, US Census

Market Share2003: 26%2004: 30%2005: 38%2006: 42%2007: 42%

2008 through September

52%

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Line Pipe Imports


0.8541.079 1.196

1.99

2.965

2.395

41%

50%

56% 56%

61% 61%

0

0.5

1

1.5

2

2.5

3

3.5

2003 2004 2005 2006 2007 2008-Sept

0.4

Source: Preston Pipe & Tube, US Census

Market Share2003: 41%2004: 50%2005: 56%2006: 56%2007: 61%

2008 through September

61%

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Manpower


Increased Capability in 2008

Fairfield - Hot Mill

- Finishing

Lorain - #3 Mill

- #4 Mill

Camp Hill

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Sales Channels



Continued commitment to distributors

Maintains a‘No Inventory’ policy

Work closely with Distributors’ quarterly

forecasts

US and Canada through distribution

USS committed to Stocking DistributorsManagement of inventory, stocking locations, repairs and returnsEfficient solicitation of smaller customers

Internationally through distribution

Support major oil & gas company requirements for both domesticand international activity

Internationally through USS International Sales Group

Solicits trading companies, and countries with State owned Oil companiesand /or requirements of local agent representation

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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

United States Steel CorporationTubular Products

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U.S. Steel has long been associated with the

“Tubular Products business” . . .

TUBULAR PIONEERS

21


United States Steel Corp.Tubular Products

NASPD Convention Boston, MA

October 10, 2008

Joe Alvarado Vice President-Tubular Operations

Documents

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