Excellent, farsighted report on nuclear power
Comment of the Day

May 23 2011

Commentary by David Fuller

Excellent, farsighted report on nuclear power

My thanks to a subscriber for this report - Uranium: Down but not out, from Morgan Stanley. Here is an interesting section:

David Fuller's view

I think this is a balanced, objective summary. A reduction in Germany's and Japan's nuclear power will increase energy costs and carbon emissions in these two countries.

Globally, the already precarious energy supply/demand balance will be aggravated by delays and high-hurdle costs for nuclear development in the post-Fukushima era. For instance, I expect this to be a problem in the UK, despite the government's climate advisory panel's sensible conclusions.

For a really significant reduction in carbon dioxide emissions, using proven and efficient technologies, the world needs to generate a much higher proportion of its energy requirements from nuclear power and natural gas.

Investors holding uranium mining shares should expect a lengthy convalescence before significant recoveries occur. Nevertheless, from current levels few other sectors have the same limited downside risk relative to eventual upside potential. Unfortunately, one is not rewarded with dividends during the wait.

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