The earthquake and resulting tsunami in Japan once again raises concerns about nuclear power as a safe source of energy. As Japan worked round the clock to prevent their nuclear reactors from having a meltdown, the whole world was watching. The debate about the safety of nuclear power was brought into the spotlight as radiation leaking from the damaged reactors contaminated food, sea water and drinking water.
Countries all over the world are taking a second look at their own nuclear power plants to determine if they could withstand a natural disaster of this magnitude. The Nuclear Regulatory Commission (NRC) is responsible for regulating nuclear power plants in the United States. Amidst public concern, the NRC issued a statement to let the public know they will begin reviewing all U.S. nuclear power plants to establish if the reactors could remain intact under similar circumstances as those in Japan.
Unlike other sources of energy, nuclear energy carries with it a stigma of danger and initiates an overwhelming fear after each nuclear mishap. Needless to say, the confidence the public had achieved about the safety of atomic energy was destroyed, once again, in the aftermath of the disaster in Japan. However, confidence is not the only problem the nuclear industry faces. The possibility of stricter regulations and delays in obtaining licenses for new reactors will also negatively impact the industry. Exelon has decided not to spend $3.65 billion originally slotted for nuclear plants; instead they will focus on gas, wind, and solar plants. NRG Energy Inc., the largest independent power producer in the U.S., has postponed orders for two 1,365 megawatt reactors that were planned for Texas.
As fear rises about the safety of nuclear reactors, the natural gas industry seems to be seeing an increase in demand. The $99 trillion natural gas industry has seen an 11% rise in futures since the disaster in Japan. Furthermore, tighter air pollution rules limiting carbon emissions for utilities being implemented by the Environmental Protection Agency may cause utilities to close some coal plants, driving up demand for natural gas.
Last year natural gas power plants provided 24% of the power supplied in the U.S. Coal was the greatest provider of power while nuclear plants were the third largest source of power at 20%. Two big advantages to using natural gas are its abundant supply which helps keep costs low and its stability. If coal plants begin to shut down and the U.S. turns to alternative energy sources because of concerns over the safety of nuclear power, natural gas will definitely be considered the future of energy in the United States.
Judith Ceja writes articles for TheJemReport.
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