Comments (5)

I like Amory Lovin's advise...which is to focus on micropower (renewables and co-generation).

All markets are bubble if you look at them within a short enough time span. Solid investing doesn't involve worrying what a stock is doing two days in a week. You have to be looking at 5, 10, and 20 year time spans, if possible. That's the way we http://www.lajollafinance.com do it anyway. Some companies have to be examined on a five-year basis at most, but when you are dealing with a commodity in the energy sector, it's always wise to view it as a long-term investment.

Developing an effective energy policy for America is not that difficult. The problem is politics and special interest groups. The Democrats don't have a clue...they say no to every technology for generating power and believe a few windmills and conservation can solve the problem. The Republicans are too closley tied with oil companies and powerful industries within their jurisdictions. Both parties will not make the commitments necessary to solve our energy problems because significant funding over several years is involved. Wouldn't we rather spend $1 trillon dollars developing new technolgies and building nuclear plants instead of using the money to wage war?

The entire nuclear power process is concerning. Designs are new, at least to the U.S., the licensing process is untested, the availability of equipment and construction resources is questionable, the sources of qualified operations personnel are not clear and spent fuel handling storage and reprocessing continue to be significant issues. Costs and construction schedules are not adequately defined to promote financing flexibility. We have not seen, but will see, the anti nuclear sentiment assert itself in a meaningful way. This does not have the makings of a viable energy alternative but, ironically, it is our best shot at energy independence. The U.S. was able to put a man on the moon in less than ten years and we are planning to do it again. I agree with Boone Pickens that we cannot drill our way out of our current energy dilemma. But if we can put a man on the moon again we certainly can revitalize the nuclear power option.

As an active nuclear worker, I'd note another item of concern in the US industry is the rapidly aging workforce. I think the average age of nuke workers is mid-40's or above. Plants are facing wholesale retirements in the next 10 - 15 years. There are efforts to bring in younger workers, but that can be a bit difficult based on pay, the industry's popularity, and the isolated nature of many plant locations.