[Congressional Record (Bound Edition), Volume 148 (2002), Part 4]
[Senate]
[Page 4557]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           THE STEEL INDUSTRY

  Mr. STEVENS. Mr. President, apparently, there are people who believe 
that we are cynical in raising the question of the rights of the 
steelworkers and coal workers to their medical costs, and some attempt 
to find a cash stream that will help in making the transition for the 
steel industry as it is consolidated.
  I want the Senate to know that the motivation for thinking about 
steel and the steelworkers came from the provisions in the House bill 
H.R. 4, that contains ANWR, that allocated a portion of the bid moneys 
from the opening of ANWR to some conservation objectives. We looked at 
this problem and decided there were some moneys that could be used and 
what should be used as far as stimulating the future of our own State.
  The Alaska gas pipeline is the real focal point of our future 
development. ANWR is an addition--that is, the drilling in the 1002 
area on the Arctic coast, that million and a half acres there--and is 
the immediate objective. But the long-term objective is to find a way 
to transport the natural gas that has been reinjected into the ground 
since 1968.
  As oil was produced in the Arctic, the natural gas was separated and 
it was reinjected into the ground. We know there is in excess of 50 
trillion cubic feet of gas there--maybe 75 trillion cubic feet of gas. 
But the point is, as one who is interested in national security, I 
believe there are three major industries in this country of great 
concern to us in time of national problems of a military nature or 
security nature. One is agriculture; the second is oil; and then there 
is steel. When we look at the steel industry, it is the real backbone 
of our manufacturing infrastructure. But it has huge challenges right 
now, including dumping from overseas producers, and high internal costs 
have caused bankruptcies. Over 30 steel companies in this country have 
entered bankruptcy since the year 2000. That has impacted 60,000 
workers. These 30-plus companies represent more than 21 percent of the 
domestic steel-producing industry.
  In 1980, there were more than 500,000 U.S. steelworkers. By 2000, the 
number of steelworkers fell to 224,000. The Bureau of Labor Statistics 
estimates that this number will fall to 176,000 by the end of this 
decade. That would be a 22-percent reduction in steel-related jobs. 
Domestic steel shipments were down 14 percent in the first quarter of 
2001. In the last 3 years alone, 23,000 steel jobs have been lost. 
Those who remain employed in the industry help pay for a portion of the 
6,000 retirees and their benefits. Those benefits represent a promise 
that was made to previous workers for their contribution to building 
America's military-civilian infrastructure.
  Our steel industry must undergo consolidation now, but it can only 
take place if the existing cost structures are addressed. That 
primarily means taking care of the health care costs for retirees. 
Failure to address that issue will not only impact retirees, it 
threatens current workers who are faced with the prospect of more mill 
closings and more lost jobs.
  Forty-seven percent of the steelworkers are unemployed in 
Pennsylvania, Ohio, and Indiana. Forty-five percent of the steel jobs 
relate directly to production. Consolidation is an absolute must if we 
are to protect those jobs and failure to address this issue impacts 
steel States.
  Why should I be interested in steel? One is defense, as I said. Steel 
is required to build tanks, fighters, transport planes, helicopters, 
ships, missiles, and other military items.
  During hearings in the House and Senate last month, Robert Miller, 
chairman and CEO of Bethlehem Steel, testified on the problems of the 
steel industry. He told Senators integrated producers provide the 
highest quality steel for steel applications.
  Bethlehem Steel is the only domestic company with the capacity to 
provide the special steel plate that was required to repair the U.S.S. 
Cole. Unfortunately, Bethlehem Steel is currently in chapter 11, about 
ready to go into chapter 7 bankruptcy. What are we going to do for 
sales for our military ships if we lose our own domestic steel 
production?
  Our interest is in the gas pipeline. Alaska's natural gas pipeline 
will be over 3,000 miles long, almost as long as the Great Wall of 
China. It will be the most expensive project financed by private 
capital in the history of man. It will be totally privately financed.
  The gas pipeline requires over 3,000 miles of 52-inch pipe that 
cannot be made in the United States at the present time. It requires an 
additional 2,000 miles of gathering pipelines and production 
facilities. It will take 5.2 million tons of steel. It will take $3 
billion to $5 billion in steel orders. That cannot be done by the 
United States steel industry today. They cannot even hope to 
participate in the building of that pipeline. They will not participate 
unless the issue of the health care costs for retired employees is 
settled.
  Just this morning I had a notice from a friend of mine who told me 
this:

       Presently, there are only two steel mills in the world that 
     are capable of delivering the pipe needed for our pipeline as 
     it is presently designed. The design will require one-half of 
     the world's capability to produce pipe during the period of 
     its construction. If the producers start work on the project 
     this year, it would take until 2010 or 2011 for gas to 
     actually reach the U.S. market. There are over 18 months of 
     work required to complete enough of the design and permitting 
     prior to ordering the pipe. For orders placed in 2003, the 
     pipe materials would be delivered in the year 2007.

  The PRESIDING OFFICER. The Senator from North Carolina.

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