Investor Alert: U.S. Nuclear Power Revival Now Looks Like Sure Thing Thanks, Ironically, to Oil and Canada (Part 1 of 2)
Submitted by EnergyTechStocks.com
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The revival of the nuclear power industry in the U.S. now looks like a sure thing, despite what inevitably will be strenuous attempts by environmentalists to prevent it. The revival is predicated not on nuclear power’s own merits but, rather, because it is needed to try to save the U.S. from an impending oil crisis.
According to Canadian press reports, Washington is so concerned about potential oil shortages that it wants to increase imports of oil from Alberta’s tar sands region by a whopping 500% or so over the next several years. But there’s a problem with that strategy, namely, the sands must first be heated in order to separate the oil, a process that currently requires a great deal of natural gas. Indeed, so much gas would be required to raise oil output by some 500% that analysts say Canada would have to cut way back on exports of natural gas to the U.S., likely creating a new energy crisis for the U.S. – natural gas – even as it tries to deal with an old one (oil).
It is far from certain that, even with a 500% increase in oil imports from Canada, the U.S. can avoid an oil crisis. What is certain is that without more tar sands oil, the U.S. has no chance.
A new announcement by the Idaho National Laboratory, the U.S.’s main nuclear laboratory, and the Alberta Research Council is a compelling new indication that Washington’s proposed solution is to heat the tar sands with electricity from new onsite nuclear power plants. The new agreement calls for research into how nuclear power can be best utilized to do the job natural gas now does in the oil extraction process. In making the announcement, a U.S. nuclear official said, “The U.S. is dependent on Alberta for energy security,” thus linking the future of nuclear power to America’s greatest energy security issue – potential oil shortages.
The more nuclear power becomes the backbone of Canadian tar sands production, the more it will be seen as a critical element of America’s energy security, overriding environmental concerns about waste handling and other issues. The more oil and nuclear power are linked in national energy policy, the more likely Washington will fast track new nuclear plants in the U.S., just as they will have to be fast-tracked in Canada if they are to be online in time to meet the potential confluence of an oil and natural gas crisis.
While actual earnings from new nuclear projects may still be some time off, as an investment theme, the coming nuclear revival in the U.S. could gain strong momentum at any moment. One company that should be a beneficiary of this is French nuclear giant Areva, which has shown strong interest in Canada. Investors should also take a closer look at U.S. utilities planning new nuclear facilities, such as Progress Energy and Exelon.
