January 2026 Vol. 81 No. 1
Editor's Log
2026 underground infrastructure markets: from lukewarm pipelines to white-hot fiber
By Robert Carpenter, Editor-in-Chief
(UI) — In my December column, we examined the status of the sewer and water market going forward into 2026. As I mentioned then, predicting market currents is a wild guess type of endeavor at best. When I’m pressed to take a shot at prognostication, I label it “forecasting futility.” Still, it presents an interesting journey into examining the markets we cover so intimately each year.
As I look at the various underground infrastructure markets, I tend to rate them by temperature. For example, construction of oil and related products pipelines will probably have a lukewarm year in 2026 for a multitude of reasons. Primarily, there is currently no economic pressure to justify building major oil pipelines. The oil consumption market in the North American right now is only fair-to-middling at best – just too much oil available.
The drill baby drill mentality promoted by President Trump is not particularly relevant in 2026 as there is plenty of oil to go around in the North American market. If you don’t believe me, check your gasoline prices next time you fill up your tank. Prices haven’t been this low in years. But that, too, was a goal of President Trump as reduced fuel prices typically help lower inflation.
And then there is Venezuela, which has the largest oil reserves in the world, estimated at 303 billion barrels. Chevron is expected to receive an expanded Venezuela license from the U.S. government soon that would allow a significant increase in oil production and exports from Venezuela.
Other energy players are also positioning themselves to benefit from renewed access to Venezuela’s heavy crude. Marathon Petroleum is reportedly in talks with the U.S. administration to receive Venezuelan oil for its refineries, while Valero Energy, Mercuria, and Glencore are seeking licenses to resume business with the country. Global trading houses Vitol and Trafigura have also been competing for U.S.-approved deals to export Venezuelan crude. President Donald Trump recently urged oil executives to commit up to $100 billion to revive Venezuela’s oil industry, potentially reshaping global energy markets and OPEC dynamics in the process.
Bottom line, there is plenty of oil flowing through its existing pipeline network today for North America, with more oil production on the horizon.
However, demand for natural gas is another matter. I would rate it as a “warm” market. Not only is the U.S. gas consumption still growing organically, but the current boom in data centers also requires major fuel sources to generate the electricity necessary to power these massive centers. Inevitably, gas demand will grow with this boom and pipeline projects – whether it be for residential consumption, manufacturing or, now, data centers – will grow with it. With several major pipelines already planned to start construction in 2026, even more are already in development stages for 2027.
Power is another market sector that continues to pick up momentum as we roll into the 2026 construction season. I would rate this market as “hot.” Expansion and improvement of the U.S. electric grid is long overdue. Getting a jump start to rejuvenate this market has not been easy, but now a perfect storm is building strength around the power industry. The Infrastructure Act has been pumping funds into better serving markets by spending billions to “harden” the electric grid. Now, the new data centers are putting pressure on the power grid to step up and supply electric power needs at a phenomenal level.
And finally, there is the fiber market, rated at nothing short of “boiling hot.” Just when you thought the fiber installation market could not get any stronger, the Infrastructure Act launched the Broadband Equity Access and Deployment (BEAD) Program, a $42.45-billion federal grant program designed to connect rural and underserved areas to high-speed internet. After a lot of necessary – and sometimes unnecessary – finagling with just how and when the funding would be released, finally, in 2026 the money is on the way.
To further add fuel to the fire, data center construction has already kicked off and will demand incredible amounts of broadband access. The market’s top researcher Michael Render of RVA, provided a very enlightening article about the overall growth of the fiber market in this issue. See “Fiber Construction Market Looks Very Strong Through 2030.”
Depending upon the underground infrastructure market that you participate in, for the most part. 2026 will be a strong year. Indeed, for some, it will be a year to remember.
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