Business Monitor International's special report `Changing The Economics Of Nuclear Power: Impact Of Shale Gas E&P', highlights trends and patterns that have arisen out of the US regarding the correlation between rising shale gas production and feasibility of nuclear power projects.
The report looks at what this means for Europe's nuclear power sector as shale gas exploration spreads across the region at a time when several governments are still trying to get plans for nuclear new builds off the ground.
- Momentum for a nuclear renaissance in the US has been effectively killed off by the glut in US natural gas supply.
- US shale gas success will not simply be replicated in Europe as conditions in the European upstream sector are different to those in the US.
- We anticipate US gas price dynamics will cascade through the European gas market, and in tandem with ongoing exploration for shale gas in Europe, we believe the European nuclear new-build plans can also be in line for a re-assessment.
- Sponsors and financiers of nuclear power projects will remain cautious and non-committal to ventures until the impact of the changes in the gas market is better understood.
- Investment in gas-fired power generation assets will become more attractive.