Underground Construction - January 2022 - 6

EDITOR'S LOG
Hope and Concerns
variant last summer have seemed meek in
contrast this time around. That's probably
because the Omicron variant mutated
to be contagious - very contagious - but
in doing so, surrendered its strength to
attack the human body. Serious cases are
few and in fact, the majority of people
infected are asymptomatic or experience
only mild cold symptoms.
As we enter a new year, it brings a
mixed bag of hope and concerns for the
underground infrastructure markets.
This issue of Underground Construction
includes two excellent analyses by experts
Daniel Shumate of FMI and Michael
Render of RVA.
Much of the hope is due to a brighter
picture for utility markets. It is generated
by enhanced market conditions and
drivers, combined with, in many cases,
a significant influx of Federal dollars to
further stimulate much-needed economic
investment in our nation's infrastructure.
The water, sewer, fiber and electric
markets will experience high levels of
investment - all desperately needed to
elevate many of our decrepit systems and
underserved populations.
Concerns come from a variety of
factors that began festering in 2020 and
exploded into major growth inhibitors in
2021. Primarily, those include workforce
shortages which, though already a
significant problem, became acute in 2021;
supply chain interruptions and shortages;
and now a fragile and ill-managed economic
recovery has created explosive inflation.
We're entering our third year of the
Covid-19 pandemic. In late 2021, it again
raised its ugly head via the Omicron
variant. However, the knee-jerk reactions
that were experienced with the Delta
6 JANUARY 2022 | UCONonline.com
Certainly, there is still danger, but early
reports are very encouraging that Omicron
is the last gasp of a virus running out of
steam. How fast we are able to restore
work balances, along with a renewed and
effective distribution network, will dictate
just how good a year 2022 will be. Right
now, however, the consensus expectations
are that we've turned the corner.
Energy hypocrisy
Unfortunately for the oil and gas pipeline
markets, the news heading into 2022
remains unclear and still in a state of flux.
Environmental pressures and attacks
on any pipeline project continue. Liberal
(progressive) politicians demand nothing
less than a complete gutting of the energy
industry as it stands today. President Biden
was elected largely with their support and
now has to balance extremist demands
with economic realities. It isn't working.
Most energy companies and utilities are
already actively researching and developing
alternatives to oil consumables with
pledges and plans to reduce carbon output
by massive amounts in the near future. But
that's not good enough for most extremist
progressives, who believe the petrochemical
industry is evil and must be shut down.
The perceived best way to do that is a
three-pronged approach: severely limit
drilling (President Biden has started
blocking drilling on Federal lands, both
onshore and offshore), eliminate new
pipeline construction with lawsuits and
well-publicized protests at every step of
the approval process, and forge attacks on
operating pipeline systems with legal and
government challenges. By stacking the
EPA, FERC and every other federal agency
against pipelines and keeping up the nonsense
in courts, pipeline companies know
they have a challenging 2022 ahead.
Of course, this strategy, combined with
other economic conditions, have led to
predictably soaring prices. The political position
of President Biden and the progressives
is simply do whatever it takes to kill
energy markets immediately, no matter the
economic costs, and damn the science and
benefits of natural gas as a bridge fuel.
Not surprisingly, the consequences of
such a radical agenda amassed quickly.
Plummeting public support and high prices
at the pump led President Biden to counter
with a mass release of oil reserves. He tried
to push other countries into the same
action but was greeted with only mild support.
That release was enough to provide
worldwide relief for about a day. All in all,
it was an impotent and futile gesture.
Biden then tried to bully OPEC+ into
amping up oil production. It's apparently
okay for more oil to be produced and
consumed around the world, as long as the
U.S. proudly leads the planet in blocked
oil and gas production and consumption
domestically. I guess there is some
unexplained bubble over the U.S. that
makes our air cleaner even if more carbon
is released in other parts of the world - just
as long as we stop the evil oil and gas companies
domestically. OPEC wasn't buying it
and elected to stay its planned course.
Next, President Biden resurrected the
tired old tactic of crying about how the big,
bad energy companies are profiteering off
the American Public's pain. It's no wonder
President Biden has lost the support of the
country and even his own party. Too many
political payoffs have cost him an effective
presidency and left the energy industry
with an uncertain future, even while
it's actively working on alternatives and
eventual transition to other fuel sources. *
Robert Carpenter | Editor-in-Chief
http://www.UCONonline.com
Underground Construction - January 2022

Table of Contents for the Digital Edition of Underground Construction - January 2022
