Nuclear and uranium stocks forecast crumbles in wake of Japan’s crisis

Wind, solar and geothermal power are going to need massive investments from governments and private companies to fill the void left by nuclear power. If one country will lead the way, I can see it being Japan.

The crisis in Japan is made even worse by fears that at least two of the country’s nuclear reactors are on the verge of meltdowns. The meltdowns could release large amounts of radioactive material, contaminate drinking water and affect the health of generations of Japanese. It’s overwhelming to think about on top of the tragedies we’ve already watched unfold on television.

The effects of the nuclear crisis will likely have more subtle reverberations around the world, too. With nuclear power supplying 29 percent of the electricity in Japan, it will take considerably longer to get power back online throughout the country’s most damaged areas. It will also likely lead the Japanese to look at alternative sources of power moving forward.

There’s a problem, though. The alternative to nuclear just aren’t that great. Surging demand for oil and coal from the emerging world has already pushed prices up to levels that threaten to stymie growth. Couple that with the pollution problems inherent in burning oil and coal, and it’s going to be difficult to find a solution that’s sustainable moving forward – particularly if the Japanese look to move away from nuclear power entirely.

That could be a reality. “Nuclear technology was making a strong comeback, especially with oil prices surging and the instability in the Middle East and North Africa adding to production uncertainty,” writes Gonzalo Lira at his personal blog. “But now? Irrespective of what we think about nuclear energy … if there is a meltdown of one of the reactors in Japan, that’s curtains for nuclear energy for a generation. The thinking will be, If the Japanese couldn’t prevent a disaster, then no one can.”

Already Switzerland and Germany have announced plans to suspend construction of new nuclear power plants and put renewals for operating permits on hold. The nuclear renaissance is dead and that means we’re going to need even more new sources of energy. In their present states, solar, wind and geothermal aren’t the answer. They’re going to need massive investments from governments and private companies to fill the void left by nuclear power. If one country will lead the way, I can see it being Japan.

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1 thought on “Nuclear and uranium stocks forecast crumbles in wake of Japan’s crisis”

  1. I have a web site where I research stocks under five dollars. I have many years of experience with these type of stocks. I still like the idea of buying stocks involved in nuclear energy even after the nuclear problems in japan after the earth quake. this is still the most viable alternative to coal oil or anything else it is also the cheapest form of energy that you can use to produce electricity. you can now buy stocks in the nuclear energy business at a discount.

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