By Rod Adams •
June 10, 2008
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It has been darned hot on the East Coast, and the electric companies have been asking their customers to conserve power whenever possible, especially in the heat of the day. Each day this week one of the topics of conversation in my carpool has been the oppressive heat and poor air quality.
The power conservation warnings and the “Code Red” air quality alerts made me think about last week’s announcement by Unistar Nuclear, a partnership between Constellation Energy, Areva, Bechtel, and EDF, that they had successfully filed their combined Construction and Operating License (COL) application for a third unit at Calvert Cliffs.
The plant is not exactly in my backyard, but it is only about an hour’s drive south of my home. Though watching and waiting for the Nuclear Regulatory Commission (NRC) to issue a new nuclear plant license to allow the beginning of construction can be a bit like watching grass grow, the decision to “docket” the application indicates that real progress continues.
If you want to read an article that provides an indication of how the idea of the plant plays to local politicians I recommend a visit to a Washington Post article titled Coalition Formed to Advocate For New Power Plants, Lines.
Why have gas prices risen to nearly $4 a gallon (or more) in the U.S.? Is it oil speculation? Rising demand? Or the first signs of peak oil?
Whatever the cause (and there’s good reason to blame all three to some degree), most so-called experts these days aren’t expecting oil prices to drop anytime soon. In fact, Newsweek this week features a sobering article titled, “The Coming Energy Wars,” that predicts we’ll soon see oil prices top $200 a barrel. When that happens, the authors warn, we can expect everything about our daily lives to change.
You know that times are changing when farmers look to manure as a valuable commodity. Pretty soon, manure from a herd may be more profitable than the beef itself. Manufactured fertilizers has tripled in price in the last year, driving farmers to look for alternatives. This is certainly an indicator of a shifting economy.
1. Energy Prices
Fertilizers are a very energy intensive product. Nitrogen fertilizers are commonly made from petroleum or natural gas. The potash and phosphates in the fertilizers are derived from mining, which also requires a lot of energy. Finally, the finished product needs to be transported and we know all about high gas prices.
2. Fertilizer Demand in China and India
China and India have increasingly been depending on fertilizer, causing a spike in demand. The price of fertilizer has climbed to $750 a ton.