Right now, nuclear countries across the globe are taking a second look at their exposure. We've seen reports of that in the US and Europe and certainly Japan. I believe Germany took several reactors offline for a period of 3 months to ascertain their stability.
For the US, the MENA situation may play a more important role in deciding whether to pursue clean coal as instability from oil producing countries is a huge unknown and we have the resources here to take care of our energy needs in coal.
For Japan, there's an inherent sensitivity in the culture to nuclear events, and who can blame them as they are the only country in the world that has been attacked with nuclear weapons. More importantly, they are 100% reliant on foreign sources of oil, much of it from the MENA region. It's not just the governmental instability in MENA, it's the terrain as well. There are numerous choke points that could prevent oil shipments from arriving in Japan. Clean coal technology however, offers them the opportunity to take delivery of the raw materials needed from stable governments. I think this debate will sharpen dramatically in the months ahead and this is good for coal producers and those that produce clean coal technology.
Being that events in Japan were without notice, the move in coal is a knee jerk market reaction, but I believe, just as we saw with oil when trouble started in Egypt, that coal will pullback and allow the institutional money managers to accumulate positions, much larger then what they can buy in a market that is rising due to a knee jerk reaction. We want to watch for that pullback for an entry. Keep these stocks on the radar and if you see what we are looking for, don't hesitate to email me.
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