Texas Pipe and Supply

Leading Distributor of Carbon and Stainless Steel Pipe Since 1918.

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Letter From The President

The first quarter of 2012 is a distant memory, and the end of Q2 is rapidly approaching. Time flies when you are having fun!

Keith Rubenstein Shipments were strong for both Texas Pipe & Supply and Energy Metals in the first quarter, and the second quarter of 2012 is shaping up to be a healthy one as well. Metal commodity prices in the steel industry (nickel and HRC steel) have shown some weakening which has put downward pressure on pricing. With the European economy in recent question, no-one knows where things are headed.

I have never thought of the PVF business as a very attractive business to Wall Street, and yet there are large investment companies like Goldman Sachs and Berkshire Hathaway making significant investments in our industry. Some companies have gone public, and the oilfield supply business continues to consolidate with National-Oilwell acquiring Wilson Supply. What’s next? Continued change in our industry is the only thing that is certain.

All of us in the PVF industry are waiting for the eventual rise in natural gas prices, but the oil and gas industry is not waiting. Oil and gas companies are switching their production from dry gas to wet gas, and oil. Although the total rig count remains high, it has switched from 80% of the rigs drilling for natural gas three years ago, to just 30% today.

At Texas Pipe and Energy Metals, we work hard every day to earn your business, no matter what industry you serve. We continue to separate ourselves from our competition with the broad range of inventory we carry, and with our service. We look forward to helping you be successful in your business because your success is our success. Let us know how we can better serve you; tell your salesperson or email me directly at keithr@texaspipe.com.

Thank you for your Business!

Published: Monday, June 25, 2012