Utilities need to leverage alternative solutions to meet growing demand while minimizing cost.
Key takeaways
While policy and economic shifts affect solar and wind, those sources remain in the energy mix.
Energy infrastructure across North America is aging and struggling to meet growing demand.
What is the energy outlook?
RSM’s energy outlook provides insights into the major trends shaping the U.S. energy sector throughout the year. In our latest edition, we examine how demand growth and delivery constraints are affecting power and utilities companies. Other recent areas of focus include oil price expectations and grid modernization for legacy energy infrastructure.
Energy trend #1: Power and utilities 2026 outlook: Demand growth meets delivery constraints
The power and utilities sector faces conflicting challenges as 2026 gets underway. Demand for utilities— especially electricity—is rising rapidly, while grid and infrastructure upgrades move more slowly. At the same time, customer affordability pressures are intensifying while power and utility organizations need to recover costs from grid growth and modernization. The result? Utilities will need to grow quickly and do more with less, leveraging alternative solutions and changes to meet growing demand while minimizing the cost to customers.
Energy trend #2: Oil and gas 2026 outlook: Reconciling industry forecasts with company consensus
As of late 2025, independent forecasts for 2026 oil prices suggest they may fall well below the levels oil companies expect, according to the Q3 Dallas Fed Energy Survey. The gap between company expectations and industry forecasts is closing but still notable. In early 2025, survey respondents expected oil prices to be around $70 per barrel in 2026. That expectation has since fallen to an average of $64—but major independent forecasters project 2026 West Texas Intermediate (WTI) oil prices to be in the low- to mid-$50s per barrel.
Energy trend #3: Grid modernization: Digital solutions to legacy energy infrastructure
The electric grid across North America is facing a period of significant stress and change, with a variety of constraints and pressures. For utilities looking to address these challenges, an “all of the above” approach is necessary: increasing capacity through new infrastructure for all types of energy, updating existing infrastructure, and modernizing the grid with emerging technology solutions.
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