Friday, January 30, 2009

Michael Bass

Soc. Problems

Michael Bass

1/28/09

                                    Oil or Nuclear Energy?

            In a recent article, the World Economic Forum was alive in Davos, Switzerland to discuss the world’s energy problems. Among the many topics brought into question was the true cost of fuel. As oil skyrockets to one hundred fifty dollars a barrel in July last year, now much cheaper prices of near $40 a barrel could help the global economy to gain some momentum. BP Chief Executive Tony Hayward states, “[sixty to eighty dollars a barrel] seems to be what you need to get a good investment.” To help push prices back to that level, the Organization of the Petroleum Exporting Countries has agreed to cut 4.2 million barrels per day from September output levels.

            With the low prices in barrels of oil, people seem to be short-sighted in their view of the economy and focusing on simply how to keep that number low. To stimulate the economy, you need low prices, but to stimulate investment in the long run, oil prices need to be up. Nuclear fuel is another alternative being looked at. Nuclear power has many detractors because of the toxic waste it generates, but it can provide huge amounts of energy without producing carbon emissions. The high cost of bringing on new reactors means nuclear energy is only competitive when oil costs about seventy a barrel, analysts have said.

            The switch to alternative energy needs to happen at a faster rate if we want the emission level to have a chance to go down. At this rate, those who keep searching for a way to make the oil cheaper are postponing other sources or energy that will be extremely beneficial in the long run. The idea of keeping prices high for nuclear energy to compete, while odd in its logic, makes sense if we a cleaner, healthier environment.

No comments: