The Return of Nuclear Power

Today, nuclear energy is experiencing a rebirth in America as environmental concerns continue to escalate over our country's reliance on coal-powered generators. What many people are starting to realize is that nuclear power is one of the cleanest and most environmentally friendly ways to produce electricity. Surprisingly, it is also becoming one of the cheapest ways to power our country. In today's economy, commodity prices continue to rise and fears of super inflation due to out of control government spending and monetizing of that debt (printing money) will certainly keep the trend continuing. For example, over 90 percent of the budget for a gas fired plant is the cost of natural gas. In contrast, uranium, the element used to spark nuclear fission, is less than a quarter of a nuclear power plant's operating costs.

Of course, the biggest concern for many years has been the risk of a meltdown. Many people remember the Chernobyl disaster of 1986 when a nuclear power plant in Ukraine exploded and blasted tons of radioactive materials into the atmosphere. The truth is, today, nuclear technology has become so safe that environmentalists and younger generations consider another meltdown as almost impossible. People are starting to fear nuclear energy less and beginning to embrace the environmental and economic benefits.

Today, approximately 17 percent of the world's electricity is generated by nuclear power. There are over 400 nuclear power plants and many of them are located in France, a country that produces almost 80 percent of its electrical energy via nuclear generators. France is certainly at the forefront of the industry, however recently China has begun to invest more heavily in nukes. The reason is that some Chinese cities have become so polluted that nuclear power plants are becoming a necessary asset. With over a billion people in China to provide electricity to, nuclear power is likely to experience strong demand for years to come.

For investors looking for a hot commodity, uranium might be a wise option. Amazingly, there are only nine companies throughout the world that generate almost 90 percent of global uranium mining and production. As France dominates nuclear power generation, it is Australia and Canada that control 50 percent of the world's uranium mining. A Canadian company, Cameco Corporation (located in Saskatchewan), is the largest producer and has a 16 percent share in the industry. Most recently, Kazakhstan has significantly increased its production of uranium to become one of the world's top producers.

In conclusion, nuclear energy is experiencing a renaissance. Although the debate for alternative energies will continue for many years, nuclear energy will be part of the discussion because it is safer for the environment and more economically viable.