PAGES

Tuesday, March 22, 2011

Renewed nuclear concerns may boost gas, coal

The concerns arising from the crisis at a nuclear power plant in Japan, in the wake of the massive earthquake earlier this month, may be the latest point boost for natural gas as a source of electricity. The nuclear concerns, combined with the aftermath of the Gulf of Mexico oil blowout and linkage of coal-fired energy to global warming, have helped boost natural gas's role in the U.S. energy mix, and "Gas has overcome two of its biggest hurdles — volatile prices and questionable supplies," Jad Mouawad of The New York Times reports.

Despite the positive forecast for gas, Mouawad writes, "It is far too early to say for sure whether the calamitous events in Japan may roll back the global nuclear revival and lead to a surge in natural gas demand." Since the earthquake, uranium prices have dropped by 30 percent and gas prices in the U.S. and Europe have risen by 10 percent. John Rowe, chairman of Exelon, told Mouawad the prohibitive price of building nuclear or coal-fired power plants in the coming years will make it easier for companies to overlook gas price fluctuations that have held back the fuel in the past. (Read more)

And while the Times didn't make note of it, the nuclear disaster is also a boost for coal, at least in the short term, Barron's reports.

No comments:

Post a Comment