Is the Next Nuclear Bull Backed by Obama?

Keith Kohl

Written By Keith Kohl

Posted February 20, 2010

You may hesitate to call it a revival, or even a renaissance…

But the nuclear industry is getting a boost, no matter how you slice it.

This week, President Obama said the government will guarantee loans for new nuclear plants — nearly three decades since U.S. soil last saw construction of a nuclear plant.

Hailed for its ability to wean us off of a carbon-fueled future and despised for its heavy stigma, nuclear energy is getting the boost it needs. The new move will give an $8.3 billion loan to the Southern Company (NYSE: SO) and its partners to help build two nuclear reactors in Georgia with projected completion in six to seven years.

It should be glaringly obvious by now that no single energy source will be a panacea for our looming energy crisis. But it is a step in the right direction…

So what else has been happening this week?

  • The fate of hydraulic fracturing hangs in the balance as the House Energy and Commerce Committee started an investigation to determine the potential impacts on both the environment and human health.

  • As you know, shale gas has exploded over the last several years — thanks mostly to advances made in horizontal drilling and hydraulic fracturing. Federal regulations on “hydro-fracking” could have serious repercussions for our domestic gas production.

  • The supermajors are finally getting their act together. ConocoPhillips announced it had replaced 141% of its reserves in 2009. Exxon released similar news, increasing the company’s reserves by 133% last year.

  • Petroleo Brasilerio, Brazil’s state-controlled oil company, will issue $75 billion of shares in the world’s largest stock sale. Although the company has yet to set a date for the sale, the company is expecting to raise nearly $50 billion in cash from investors.

  • Meanwhile, Mexico is pinning its hopes and dreams on a new oilfield discovered in the south of the Gulf of Mexico. Developing this new field could take up to 2 years, and could potentially add another 150,000 barrels to the country’s daily oil production.

  • Mexico’s Cantarell field is expected to pump out 2.3 million barrels per day in 2010. This 11.6% projected decline over 2009’s production has situated the Mexican government between a rock and a hard place, especially after considering that approximately 40% of government revenue comes from the country’s oil production.

  • With Mexico’s oil production spiraling downward, things are just starting to heat up for Canada. Oil and gas drilling rights in Alberta brought in $106 million this month — more than 12 times the amount of 2009’s February land sale. We’re chalking up Alberta’s success to the Cardium formation, where companies are starting to utilize horizontal drilling and hydraulic fracturing techniques. I’ve covered the Cardium oil formation for readers in the past, which is catching up to Saskatchewan’s famous Bakken formation as the hottest oil play in North America.

Enjoy your weekend,

keith kohl

Keith Kohl

P.S. In case you missed our top stories from this week’s Energy and Capital or our sister publications, I’ve included them below.

A Bakken Mistake Worth Millions: The Hottest Oil Play in the U.S. that Fooled Even the Experts
Energy and Capital readers have known about the Bakken formation for years, yet even they were surprised when one tiny error made their favorite oil stocks explode higher. Of course, the ride isn’t over for us… because the Bakken’s second round of profits has just begun.

Nuclear Energy’s Second Wind: How to Harness Energy’s New Picks and Shovels
Editor Nick Hodge takes the upcoming nuclear bull by the horns, showing investors which sectors are going to rake in the gains.

The Death of Death: One Overlooked American Biotech Making Huge Strides
It’s a fact: disease is the #1 cause of death in the world. By a long shot. Energy and Capital reports: One tiny biotech company is developing new vaccines to fight the quiet killer that claims hundreds of thousands of lives each year. Learn how these guys could help you earn a profit on their latest breakthrough.

The Brewing Pension Funding Crisis: When this Train Arrives, It’ll Run Us Over
Wealth Daily
Editor Steve Christ sheds some light the crisis brewing in municipal pensions, which is leading us toward another financial disaster.

China, Denmark, and Renewable Energy: Two Countries Team Up after COP-15
International Editor Sam Hopkins explains why China and Denmark are teaming up to establish a clean energy research center. Find out how this will impact China’s long-term energy efficiency goals.

Investing in Land Stocks: 6 Land Stocks to Safeguard your Portfolio
Wealth Daily
Editor Luke Burgess touches on a commodity more important than gold or oil: land. Luke shows you what to look for when investing in land stocks… and gives you a headstart in your research.

The Single Uranium Stock to Buy Right Now: Uranium on the Rise as Obama Goes Nuclear
Are you ready for the nuclear revival? Wealth Daily Publisher Brian Hicks knows the next bull market in nuclear energy is right around the corner. In his latest musings, Brian offers one uranium company in a perfect position to make his readers turn a profit over the next six months.


DNA Vaccine Investments: This Bull Market is Just Heating Up
Editor Steve Christ weighs in on the next big thing in the biotech industry. Here’s a hint: this third generation of new vaccines could make early investors a fortune over the long haul…

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