• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Home
  • About
  • Podcast
  • Archives

Atomic Insights

Atomic energy technology, politics, and perceptions from a nuclear energy insider who served as a US nuclear submarine engineer officer

Wall Street Failures Indicate Risk of Short Term View – Like Avoiding Nuclear Power

October 2, 2008 By Rod Adams

Friends of the Earth is running an internet ad campaign that attempts to link the current world financial crisis with the future prospects of nuclear power. Paul Gunter – a career anti-nuclear activist – has tried to make the same link.

From a logical argument point of view, the effort is a real stretch. For many years, an often repeated line from many people and individuals opposed to new nuclear power plants was “even Wall Street won’t finance them.” That is a straight “appeal to authority” debating tactic that is often used in trying to explain the pros and cons of very complex issues.

When the topic – like the business case for new nuclear plants – is either beyond the comprehension of the audience or too lengthy to explain in a short discussion, debaters often resort to quoting a respected source that has already issued a judgement on the topic. In this case, the idea is that since the experts on Wall Street chose to avoid new nuclear plant investments, that must mean there was something wrong with the projects.

Appeals to authority that are truly expert in the topic under discussion can be effective, but they can be exposed as a logical fallacy if the authority loses public credibility. It should be pretty obvious that the kinds of investments that Wall Street was willing to make during the past dozen or more years have spectacularly failed to deliver the kinds of returns expected. In fact, they have resulted in a tremendous debt that is beyond the computational ability of many observers.

In general, they provided quick financial payback based on enormous leverage, but the underlying assets were often not very productive. If Wall Street had, instead, been willing to invest in new nuclear power plants in 2000, at a time when the projected cost of building plants was lower and when competing energy sources had already begun increasing in cost, we could be within one or two years of starting up new plants. Few people who understand how to operate a spreadsheet would disagree that a brand new nuclear plant built at a cost of less than about $3000 per kilowatt capacity would be a huge money maker in our current market.

There is no doubt that building new nuclear power plants is a challenging task that requires patience, foresight and dedication. It is, quite frankly, hard work that requires Cal Ripken style performance over a long period of time. From my point of view, our current financial crisis at a time of ever more evident needs for infrastructure improvements indicates that those attributes were not terribly well rewarded or respected in the banking sector. That is a tragedy for all of us.

PS – I realize that logic often has nothing to do with ad campaigns. However, it is worth discussing. I hope you agree.

Filed Under: Uncategorized

About Rod Adams

Rod Adams is Managing Partner of Nucleation Capital, a venture fund that invests in advanced nuclear, which provides affordable access to this clean energy sector to pronuclear and impact investors. Rod, a former submarine Engineer Officer and founder of Adams Atomic Engines, Inc., which was one of the earliest advanced nuclear ventures, is an atomic energy expert with small nuclear plant operating and design experience. He has engaged in technical, strategic, political, historic and financial analysis of the nuclear industry, its technology, regulation, and policies for several decades through Atomic Insights, both as its primary blogger and as host of The Atomic Show Podcast. Please click here to subscribe to the Atomic Show RSS feed. To join Rod's pronuclear network and receive his occasional newsletter, click here.

Primary Sidebar

Categories

Join Rod’s pronuclear network

Join Rod's pronuclear network by completing this form. Let us know what your specific interests are.

Recent Comments

  • Rod Adams on “The Martian’s” RTG science includes jarring errors
  • Gareth on “The Martian’s” RTG science includes jarring errors
  • Rod Adams on “The Martian’s” RTG science includes jarring errors
  • Gareth on “The Martian’s” RTG science includes jarring errors
  • Gene Nelson, Ph.D. on Atomic Energy Wells

Follow Atomic Insights

The Atomic Show

Atomic Insights

Recent Posts

Oil and gas opposition to consolidate interim spent fuel (CISF) storage facilities in Permian Basin

Atomic Energy Wells

Enough with “renewables!”

Can prototype nuclear reactors be licensed in the US under current rules?

Atomic Show #303 – Bret Kugelmass, CEO Last Energy

  • Home
  • About Atomic Insights
  • Atomic Show
  • Contact
  • Links

Search Atomic Insights

Archives

Copyright © 2023 · Atomic Insights

Terms and Conditions - Privacy Policy