December 2024 Vol. 79 No. 12
Editor's Log
Editor’s Log: Wild Ride
By Robert Carpenter, Editor-in-Chief
(UI) — 2024 was a year of accomplishment, a year of desperation and a year of hope. That’s a tough yet unique way to define one year, but that’s how I see it.
Of course, everyone will have their perspectives on this past year and what it meant to them. Each year brings different accomplishments, challenges, sorrows and joy. It just seems to me that 2024 has been a particularly wild ride, including all those elements that have impacted underground infrastructure in a diverse manner.
Much of that wild ride has involved politics. Not just the presidential and congressional elections, but the overwhelming intrigue and varying perspectives – all very emotionally presented – by so many, armed with their own set of motivations.
Like all pundits these days, I’m trying to analyze the wild ride of 2024. Let’s start with politics.
President-elect (for the second time after having failed re-election in 2020 – shades of Grover Cleveland) Donald Trump not only won re-election, but he did so in an unexpectedly strong manner, including a landslide victory in electoral votes. He also claimed a majority of all votes cast as well. Trump rolls into office with momentum at his back.
The obvious change the Trump administration brings will be to the energy sector. It remains to be seen if his frequent “drill, baby, drill” approach to oil and gas will bring about a flourish of new exploration and wells. Certainly, many of Biden’s restrictions on oil and gas will be lifted and opportunities for drilling in previously banned areas will become available. But the dollars and cents of the energy economy has to be balanced before companies jump back into increased production. Caution will guide exploration and drilling plans in 2025.
But what could see an immediate turnaround is construction of LNG export terminals, which have been artificially delayed since January 2024 by what Biden essentially called a “pause.” All pending and future applications to export LNG from new projects were halted so the Department of Energy could conduct a review to examine the economic and environmental impacts of projects that were seeking approval to export LNG to Europe and Asia.
The move was designed to delay a new decision until after the November 2024 presidential elections. At the time of the pause, Biden said, “During this period, we will take a hard look at the impacts of LNG exports on energy costs, America's energy security and our environment." Biden repeated his oft-used statement that he “sees the climate crisis for what it is: the existential threat of our time."
Of course, Biden withdrew from the election and Vice President Kamala Harris lost the presidential race. Trump will undoubtably remove the “pause” and allow energy companies to continue with previously approved plans. New pipelines could certainly be needed to transport gas for export purposes.
And regardless of whether or not there will be an immediate increase in drilling, many pipelines are desperately needed to gather and transport products to market. Plans for several such projects have already been taken off the shelves where they’ve been stored for the past four years, dusted off, and work resumed to evaluate the current practicality of these pipelines.
But perhaps most importantly, the Trump Administration will no longer be supporting the plethora of legal suits that have become inevitable every time a pipeline project is proposed. Indeed, pipeline companies will now have an ally rather than an enemy when trying to clear all the regulatory hurdles and lawsuits that may arise. Other agencies will see a change in personnel, which will also be more supportive of the energy industry. Further, Trump has picked oil executive Chris Wright to be the secretary of energy, a role in which he's likely to promote fossil fuel development and reverse many Biden-era initiatives.
Switching gears to the famous Infrastructure Act of 2021, roughly $55 billion was allocated for construction, maintenance and rehabilitation of sewer, water and storm water systems. Money is scheduled to be allocated through 2026. But concerns arise about that much-needed spending boost when some Congressmen and Senators, both Republicans and Democrats, started talking last year about perhaps reducing funding for the ongoing Clean Water Act and State Revolving Loan Fund allotments. They reasoned that with the Infrastructure Bill money being doled out, full funding for those annual programs was not necessary.
That assumption unveils a disappointingly poor grasp of the problems of America’s sewer and water infrastructure. Sure, the Infrastructure Act is a shot in the arm, but nowhere near what is actually needed to finally get the U.S. infrastructure caught up with its needs. According to the most reliable estimates, ever after the Infrastructure Bill funding is consumed, the country will still be roughly $750 billion in the hole. Simple math shows that the CWA and SRF programs will need their funding dramatically expanded, not slashed by some ridiculous theory that the Infrastructure Act will take care of all sewer and water needs.
Still, a new president and Congress that most likely will be more business-friendly raises hopes that prosperity in the utilities and pipeline markets will remain strong – at least until the next election.
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