Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
US Coronavirus Trend Trajectory Forecast Current State - 7th Apr 20
Boris Johnson Fighting for his Life In Intensive Care - UK Coronavirus Crisis - 7th Apr 20
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up! - 7th Apr 20
Crude Oil's 2020 Crash: See What Helped (Some) Traders Pivot Just in Time - 7th Apr 20
Was the Fed Just Nationalized? - 7th Apr 20
Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset” - 7th Apr 20
US Coronavirus Blacktop Politics - 7th Apr 20
Coronavirus is America's "Pearl Harbour" Moment, There Will be a Reckoning With China - 6th Apr 20
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings - 6th Apr 20
The Stock Market Is Not a Magic Money Machine - 6th Apr 20
Gold Stocks Crash, V-Bounce! - 6th Apr 20
How Can Writing Business Essay Help You In Business Analytics Skills - 6th Apr 20
PAYPAL WARNING - Your Stimulus Funds Are at Risk of Being Frozen for 6 Months! - 5th Apr 20
Stocks Hanging By the Fingernails? - 5th Apr 20
US Federal Budget Deficits: To $30 Trillion and Beyond - 5th Apr 20
The Lucrative Profitability Of A Move To Negative Interest Rates - Pandemic Edition - 5th Apr 20
Visa Denials: How to avoid it and what to do if your Visa is denied? - 5th Apr 20 - Uday Tank
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20
US and UK Coronavirus Trend Trajectories vs Bear Market and AI Stocks Sector - 30th Mar 20
Are Gold and Silver Mirroring 1999 to 2011 Again? - 30th Mar 20
Stock Market Next Cycle Low 7th April - 30th Mar 20
United States Coronavirus Infections and Deaths Trend Forecasts Into End April 2020 - 29th Mar 20
Some Positives in a Virus Wracked World - 29th Mar 20
Expert Tips to Save on Your Business’s Office Supply Purchases - 29th Mar 20
An Investment in Life - 29th Mar 20
Sheffield Coronavirus Pandemic Infections and Deaths Forecast - 29th Mar 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Nuclear Power - The Energy Sector’s Biggest Threat and Opportunity

Commodities / Nuclear Power Sep 25, 2013 - 05:46 PM GMT

By: Investment_U

Commodities

David Fessler writes: On July 6, 2013, Ralph Seidensticker quietly passed away in his home in Valencia, Calif. He was 81 years old.

If you ask 1,000 people who he was, it’s doubtful that more than one or two would know. Seidensticker was the pioneer in nuclear reactor design. He spent 58 years designing reactors for nuclear power plants as an Argonne National Laboratory engineer. Many of the 104 plants in use in the U.S. today use his design features.


Today, a group of companies stands to make billions tearing them down.

Margaret Harding, an industry consultant, told Bloomberg that such decommissioning work is “where companies are going to make their fortune.”

Renaissance in Reverse

Mark Cooper is the senior fellow for economic analysis at the Institute for Energy and the Environment at the Vermont Law School. Cooper examined 11 risk factors that could lead to early nuclear reactor shutdown.

His findings were shocking: 38 of the 104 operating reactors in the U.S. had at least four risk factors.

Entergy’s Pilgrim reactor in Plymouth, Mass., had the most demerits: nine.

The fleet of 104 reactors will shrink this year. Edison International (NYSE: EIX), Duke Energy Corp. (NYSE: DUK) and Dominion Resources Inc. (NYSE: D) are all closing reactors in 2013.

Entergy Corp. (NYSE: ETR) will close its Vermont Yankee nuclear plant next year. Exelon Corp. (NYSE: EXC) plans to close its Oyster Creek plant in 2019.

The Vermont Yankee closing marks the fifth reactor slated for shutdown in the past year. Cooper commented that, this year, “More nuclear capacity has been retired early than in the history of the U.S. nuclear program.”

Are these reactors simply wearing out? The answer is a combination of factors that leads companies to the retirement decision.

Low-cost natural gas, expensive repairs, retrofits and rising operating costs all affect the profitability of any given plant.

“All of the reactors have significant economic issues,” Cooper explained. “If anything goes wrong, any of these could be retired early.”

Most of the current fleet of U.S. reactors dates back to the 1970s. License lengths vary from 40 to 60 years. At the end of its useful life, every plant must go through a decommissioning process.

But “no U.S. nuclear plant has ever closed because it reached the end of its licensed life,” said Peter Bradford, adjunct professor at the Vermont Law School. “Instead, cost challenges to their continued profitability have usually been the cause of shutdowns.”

Twenty-three non-operating reactors are already going through the decommissioning process. Ten have been completely decommissioned.

How Much Does Decommissioning Cost?

Decommissioning a nuclear power plant can take decades and cost billions. For example, the Zion Nuclear Power Station in Illinois shut down in 1998. But it still hasn’t been decommissioned. Full decommissioning of the plant will cost roughly $1 billion over the next decade.

Its owner, Commonwealth Edison, shut Zion down because the cost of needed repairs exceeded the plant’s value. But to save money, Exelon decided to delay Zion’s cleanup. Under Nuclear Regulatory Commission guidelines, it was required only to remove the main reactor components.

Companies like EnergySolutions and URS (NYSE: URS) can clean up nuclear reactors faster since it’s their only business. EnergySolutions, which is owned by the private equity firm Energy Capital Partners, has been contracted to complete the cleanup work at Zion. And it is currently dismantling 18 reactors in England.

You can expect more companies to become nuclear trashmen. Right now, there’s $38 billion-plus of decommissioning work on the horizon, with more coming behind that.

Shuttered nuclear plants are creating a completely new sector of companies. They will create thousands of jobs and put millions of dollars in savvy investors’ pockets.

Good investing,

David Fessler

Source: http://www.investmentu.com/2013/September/energy-sectors-biggest-threat-and-opportunity.html

http://www.investmentu.com

Copyright © 1999 - 2013 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules