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Harness the Powerful
Investment Potential of the Atom |
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Published:
July 14, 2008
For the past few years,
politicians, environmental advocates
and just about everybody in between
has talked about the need to reduce
our dependence on fossil fuels and
embrace clean energy like wind, solar and geothermal
power.
Unfortunately, while some progress
is being made, there has still been
far more talk than action. There are
plenty of obstacles that have
delayed the transition to
alternative energies, but one of the
biggest is cost disparity. Despite
recent technological improvements,
many forms of alternative energy
simply aren't price competitive with
oil, coal and natural gas.
The lone exception: nuclear power,
which can actually cost less.
Believe it or not, one kilogram of
uranium-235 has the stored energy
equivalent of 1,500 tons of coal.
Think about that, one small nugget
has the capacity to unleash the
same power as a three million pound
mountain of black rocks.
Nuclear Power Waking Up
Thirty years ago, the meltdown of
Pennsylvania's Three Mile Island
plant tarnished the image of nuclear
power, and the more serious
Chernobyl incident a few years later
reinforced those fears. Jobs were
lost, political resistance gained
strength and future nuclear development was
put on hold. In fact, we haven't
seen a new nuclear facility enter
operation in the U.S. since the late
1990s.
However, things are quickly
beginning to change.
The two incidents mentioned above
prompted widespread improvements in
everything from employee training to
emergency response planning and led
to greater scrutiny and oversight
from regulatory agencies. As a
result, nuclear facilities
have been trouble-free for decades
and are far safer today than ever
before.
Furthermore, time has healed the
industry's wounds, and the threat of
a future reactor breach has been
greatly diminished in the eyes of
the public. According to a survey
conducted by the Tennessee Valley
Authority, almost nine in ten people
living near the Watts Bar plant in
Tennessee support the recent
decision to bring a second reactor
online after construction was halted
in 1988.
This new 1,200 megawatt plant will
have the capacity to power over
650,000 homes. And Bechtel, the
company awarded the contract for
engineering and construction, will
be given a $1 billion paycheck for
its services.
Meanwhile, as opposition to nuclear
power has waned, public outcry
against global warming and
greenhouse gases continues to grow.
For every megawatt hour of
electricity produced, coal-fired
power plants produce over 2,200
pounds of carbon dioxide, oil-fired power
plants produce about 1,700 pounds,
and gas-fired power plants spew out
1,100 pounds. By contrast, nuclear
fission is a clean energy source
that emits no pollutants, which has
helped it win the backing of many
environmental groups.
Perhaps the biggest driving force,
though, is the surging price of oil
and gas. When crude prices were
languishing at $20 or $30 per
barrel, there was little need to
explore alternative energy sources.
However, with oil now reaching
stratospheric levels near $150, less
expensive options like nuclear are
quickly gaining momentum -- thanks
in part to billions of dollars in
subsidies and tax breaks provided by
the Energy Policy Act of 2005. And
it certainly doesn't hurt that most
of the nation's uranium needs can be
met by domestic and Canadian mines
rather than overseas imports.
With all of these factors coming
together at once, nuclear power is
emerging from a long hibernation and
will be feeding a much larger
percentage of the country's power
needs within the next 10 years.
Beginning of a New Era
You might be surprised to know just
how dependent the U.S. already is on
nuclear power's generating capacity.
Nationwide, there are 104 nuclear
plants in operation, which account
for a combined 20% of the country's
electricity.
And that number is set to grow. Not
only are the nation's overall power
needs rising year after year, but
the portion supplied by nuclear
facilities is forecast to rise as
well and could ultimately double to
40%. That would require the
construction of dozens of new
reactors. Already, nearly 20 different utility companies have
expressed an interest in boosting
their nuclear capacity, and the
Nuclear Regulatory Commission is
expecting as many as 30 new plants
to begin construction within the
next five years.
And by no means is this expansion
limited to the United States. With
435 plants currently in operation
worldwide, nuclear power accounts
for an even larger percentage of the
electricity needs of many foreign
countries: 30% in Japan, 40% in
South Korea, and nearly 80% in
France, according to the
International Atomic Energy Agency (IAEA).
In Europe, expansion programs are
underway in countries such as
Finland and Bulgaria. And Italy
recently lifted a 20-year ban on
nuclear power. However, as is the
case with many industries, the real
growth prospects lie in Asia.
Electricity consumption in
power-hungry China is growing at a
prodigious clip -- but is still only
one-eighth that of the U.S. on a
per-capita basis. With its 1.3
billion citizens clamoring for more
and more power, government officials
are looking to boost the nation's
nuclear energy program and are
planning to add dozens of new
plants. The story is similar in
other emerging markets like India,
where nuclear generation could soar
from fueling 3% of the nation's
electricity to 10% within the next
12 years.
According to the World Nuclear
Association, there are 34 new
nuclear reactors currently under
construction in 12 different
countries -- and as many as 290 more
have either been planned or proposed
worldwide, over 100 of those in
Southeast Asia.
Glowing Gains on the Horizon
After slumbering for over 20 years,
nuclear power is once again gaining
momentum.
Presidential candidate John McCain
just outlined plans to build over
100 new facilities in the United
States, more than doubling our
current capacity. And thanks to the
Kyoto Protocol, rising oil/gas prices,
and a more environmentally conscious
outlook, other foreign leaders are
turning to nuclear power to fuel
their countries' growing electricity
needs.
As you might expect, there are many
companies that stand to benefit from
this powerful global trend: uranium
miners and enrichers, nuclear power
generators, and infrastructure and
equipment suppliers.
With this in mind,
in a recent issue
of
Half-Priced Stocks, editor
Nathan Slaughter uncovered a number
of firms already starting to benefit
from the new nuclear wave. He
also profiled one company that has
boosted its dividend by +185% over
the past six years and is sitting on
some of the richest uranium deposits
on the planet.
To learn
more about
Half-Priced Stocks,
including the name of this glowing
find, please
visit this link. |
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