This morning money … Europe is now trying to find the best solution …overcoming past mistakes … the best way forward … and much more …
It was interesting to see how the media was dumbfounded by the war in Ukraine.
Obviously, the invasion was only good for attracting attention for a few weeks. Now, despite the fact that the conflict continues, only a few headlines cover the daily development.
Pretty sad reality if you ask me.
More importantly, in terms of the economy and the market, this creates more problems. The fact that this war will not go away any time has put tremendous pressure on energy supply and demand.
Russian oil and gas have been a huge component of meeting the world’s energy needs. Taking this away, perhaps forever, has put many economies in a difficult position.
Many European countries, for example, now have to turn to U.S. exports to increase supplies. But as an interim agreement, it is unclear how sustainable this move will be. It does not help that many gas reserves in Europe were already quite low before the invasion.
As a result, Europe is now trying to find the best solution. This is a problem that requires them not only to provide sufficient energy, but also to continue to meet their goals in the field of climate change.
In my opinion, the answer is simple…
And it seems that the world’s third largest economy – Japan – has come to the same conclusion …
Overcoming past mistakes
Japanese Prime Minister Fumio Kishida told his people that nuclear energy is on the table again.
For the Japanese leader, this is a bold decision, especially when the collapse of Fukushima in 2011 still remains in the minds of many citizens. But it was the reaction to this catastrophe – relying on Russian gas rather than nuclear energy – that led them to this predicament.
Like Europe, Japan now faces rising and declining imports of imported gas, a situation that confirms the importance of localized energy security for today’s economy.
So as elections approach and electricity prices only rise, Kishida is betting big on a nuclear power plant.
In his own words, from a recent visit to London:
‘We will use nuclear reactors with security guarantees to help reduce dependence on Russian energy around the world,
‘Restarting only one existing nuclear reactor will have the same effect as supplying 1 million tons of new LNG (liquefied natural gas) per year to the world market.‘
Fortunately, despite the past catastrophe, it seems that public opinion is also on his side. According to Reuters:
‘But most of the public and business want the government to restart nuclear reactors to address energy security, with the crisis in Ukraine and higher energy costs adding impetus to this shift in views.‘
Clearly, the Japanese people cannot afford to see rising prices for this energy crisis – a fact that should help start Japan’s vibrant nuclear industry, which will be safer and more efficient than ever before.
As for Europe, I hope we will see a similar change in melody.
The best way forward
I have mentioned this before, but both the UK and France are leaders on this nuclear front.
Boris Johnson has already given his nation to build new nuclear power plants. And although he has not outlined any final plans, this week he said that “we are going to build one [nuclear plant] every year ‘.
This is ambitious, of course, but at least it shows his commitment to a nuclear solution.
France is similarly moving away from the re-election of Emanuel Macron. And although his energy program focuses mainly on renewable energy, it is clear that nuclear energy will play a key role in this long-term transition.
I fully expect that in time we will see that more European economies will also come up with this idea.
After all, although nuclear energy is not controversial, in the current climate it is difficult to argue against its capabilities.
For investors like you, more importantly, this transition to a nuclear power plant is a huge opportunity. I recently shared this with many of our paid subscribers, including one very specific Australian small capital company that has the potential to solve all of Europe’s energy problems.
You can read all about it right here.
Because no matter what the future of energy markets looks like, nuclear nuclear energy will play an important role in it. The only question is how big it will be and how much profit early investors can get …
Editor, Morning money
Ryan is also the co-editor Exponential stock investor, a stock newsletter that tracks promising stocks with low capitalization. For information on how to subscribe and see what Ryan is telling subscribers right now, Click here.