While global steel manufacturer Vallourec pursues plans to close three plants in Europe, business at its North American facilities is doing well, thanks in part to higher oil and gas prices.

Vallourec, which operates sites in Youngstown, as well as Texas, Oklahoma, and Louisiana, announced in its First Quarter Result report a thirty percent increase in revenue, led by operations in North America.

In North America, Oil & Gas revenue almost tripled due to higher prices and volumes.

After several years of underinvestment, Vallourec says the future in the U.S. looks good amid reports that a global increase in exploration and production capital spending is forecasted, driven by the tight Oil Country Tubular Goods market environment in North America.

Drilling activity is increasing again globally, with the current rig count up 63% from its Covid-19 trough, according to Vallourec.

In North America, Vallourec says the very favorable market conditions should continue and even improve in 2022, in both price and volume terms.

The positive news about Vallourec’s North American operations comes amid news that the company plans to close sites in Germany, France, and Scotland, with nearly 3,000 jobs to be lost.