# Conventional oil and gas production and Steel

Their prices have moved together.

Source page: https://www.materialinsights.org/links/conventional-oil-and-gas-production-and-steel/

[Conventional oil and gas production](https://www.materialinsights.org/energy/e_oil_gas_conv/) (energy) and [Steel](https://www.materialinsights.org/commodities/steel/) (commodity): 1 relationship.

## How they are linked

### 1. Price link: main input

*Cost and price · Strong · Both ways*

Wells, casing, platforms and pipelines need large amounts of steel, and drilling booms lift demand for pipe. The US steel index and crude proxy show a yearly link at 0.61, a common driver more than a cost link.

- **0.16** monthly change correlation
- **0.61** 12-month change correlation
- **0.45** fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.