Underground Construction - August 2022 - 6

EDITOR'SLOG
Launch of the Big Event
Robert Carpenter | Editor-in-Chief
There's a good chance by now that most
of our readers have seen announcements
for the evolution of the next big
event for underground industry awards
- a very special occasion that will reward
accomplishments and people of the underground
infrastructure industry in a
unique, personal and deserving fashion.
This program isn't just about pomp
and circumstance (though plans do, indeed, call for an extreme
venue, wonderful food in a beautiful environment). It's all
about creating a respectful and appropriate setting to honor
outstanding deeds and performances for all underground markets.
The inaugural Underground Construction Awards (UCAs)
has been created to achieve all that and more.
Sponsored by Underground Construction magazine, the event
will be held in conjunction with the annual UCT Conference
& Exhibition in Orlando, Fla., the evening of Monday, Feb. 6.
UCT will kick off the next morning, Feb. 7.
Among the awards categories attracting the most interest
are Emerging Technologies of the Year, Rehabilitation Project
of the Year, Rising Star of the Year, and Energy Pipeline Project
of the Year. The program will recognize accomplishments,
projects and technology advances that have made a significant
impact on the market.
The Underground Construction Awards will be the best opportunity
of 2023 to truly recognize and honor the preeminent
projects and people of this grand, underground infrastructure
industry in which we all participate and call home. We sincerely
hope you will participate by joining us in Orlando for the
UCAs and UCT, and the celebration of North America's underground
infrastructure.
Summer of reality
Over the past year, as the price of oil and gas hit record highs
(and continues to hover at those levels), the domestic energy
industry has been responding with increased output, despite
some absurd public outcries by politicians and media outlets
that U.S. companies are profiteering from high prices.
Granted, energy companies have been playing a conservative
approach before jumping back into drilling at warp speed
- and who can blame them?
Two years ago, oil prices were in negative territory. The political
climate was nothing short of an all-out war on petrochemical
industries, and pipelines suddenly became persona non grata.
The mere thought of expanding or adding refineries was repugnant
to progressive politicians who had radical environmental
groups constantly whispering nonsensical diatribe into their ears.
But as we all know - and have felt at the pump - market conditions
did a 180-degree pivot and oil and natural gas prices not
6 AUGUST 2022 | UCONonline.com
only rebounded but strengthened to unexpectedly high levels
- and that was before Russia's unforgivable assault on Ukraine.
Suddenly, the concept of increased refinery production (if
even possible), additional LNG output and export, more gasoline
supplies, etc., is reclaiming favor among the public and politicians.
The result has been a steady upturn in oil/gas drilling.
The U.S. rig count is the highest it's been in two years and is
continuing its steady climb.
The catch-22 for progressive politicians and environmental
extremists is that more oil/gas coming out of the ground means
more pipeline projects. Yet, interstate pipelines still face strong
headwinds, though projects are slowly beginning to re-emerge.
Intrastate projects, on the other hand, seem to be faring at an
improved level.
Bottom line: pipeline projects are slowing arising from their
forced hibernation and, of course, that means more large horizontal
directional drilling opportunities are surfacing - albeit
still at a muted rate.
Contractors have been experiencing some renewed opportunities
and are obtaining work that has been scarce to find for
the last year. Pipeline/energy companies are finally reaching at
least a small level of comfort with market conditions and starting
plans for additional work in 2023.
This is positive news for large rig contractors and suppliers,
to be sure. We're still a long way from a strong market, but recovery
steps - even small ones - are welcome.
Problem is, there are almost too many qualifiers to count in
trying to predict what will happen with energy over the next year
- or even next month. If we've learned anything about the public
perception of energy over the last two years, it is fickle.
We also had confirmed, to the nth degree, that the results of
the 2020 election would be disastrous for conventional energy
policies and directions. And then when the pandemic hit, any
preconceived perceptions simply went out the window.
With current domestic policies, looming November elections
that could redirect energy growth in a positive or negative
direction, continued war in the Ukraine with Russia's unabated
aggression, China's inability to absorb all Russia's now excess
oil supply, and much more, the future of energy and pipelines
is, indeed, murky.
However, encouraging news from the large directional drilling
sector is emerging and we have seen small, steady and positive
turnarounds this summer.
On the small rig side, we've seen equipment delays - while
still long - beginning to shorten. Fiber work hasn't skipped a
beat and contractors are being pressed by owners to accelerate
projects, as best they can, while still dealing with supply chain
and worker shortages.
It's been an interesting summer and it ain't over yet! UC
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Underground Construction - August 2022

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