Steele City is a village in Jefferson County, Nebraska, United States.

[3] Steele City was founded in 1873 when the St. Joseph and Western Railroad was extended to that point.

[6][7] According to the United States Census Bureau, the village has a total area of 0.23 square miles (0.60 km2), all land.

There were 8.3% of families and 19.3% of the population living below the poverty line, including no under eighteens and 17.6% of those over 64.

[11] At Steele City, the oil pipeline originates at Hardisty, Alberta.

From Steele City, it heads east to Wood River, Illinois, and south to Cushing, Oklahoma.

The purpose of the pipeline is to bring crude oil (bitumen) to refineries in Illinois and on the Gulf Coast at Houston and Port Arthur, Texas.