The New Seven Sisters and the Implications for Energy Security

After the breakup of Standard Oil, the seven companies that dominated global oil production became known as the "Seven Sisters". Yesterday, via the WSJ Energy Blog, we learned that the Finanical Times has designated seven new members of the sisterhood -- and the implications for the free world are rather alarming:

The new Seven, per the FT, are Saudi Aramco, Russia’s Gazprom, CNPC of China (parent of PetroChina), NIOC of Iran, Venezuela’s PDVSA, Brazil’s Petrobras and Petronas of Malaysia.

All are state-controlled. A few are owned by governments that are less-than-friendly, if not downright hostile, toward the U.S. Many are flexing their “resource nationalism,” wresting control of lucrative oil and gas projects from foreign companies, including the old Sisters.

Together, the FT points out, the new Sisters control more than 10 times the oil reserves of the old Sisters. They produce more than twice as much oil as the old Sisters.

The new Sisters only lag the old Sisters in net income. But the new group will likely control the world’s production for decades to come...

As if you didn't need another reason to give nuclear energy a second look. Did I forget to mention that the two nations with the largest proven reserves of uranium are Australia and Canada?

Comments

Michael said…

Thanks for your nice post!

September 25, 2007 at 7:34 PM

How Nanomaterials Can Make Nuclear Reactors Safer and More Efficient

The following is a guest post from Matt Wald, senior communications advisor at NEI. Follow Matt on Twitter at @MattLWald.

From the batteries in our cell phones to the clothes on our backs, "nanomaterials" that are designed molecule by molecule are working their way into our economy and our lives. Now there’s some promising work on new materials for nuclear reactors.

Reactors are a tough environment. The sub atomic particles that sustain the chain reaction, neutrons, are great for splitting additional uranium atoms, but not all of them hit a uranium atom; some of them end up in various metal components of the reactor. The metal is usually a crystalline structure, meaning it is as orderly as a ladder or a sheet of graph paper, but the neutrons rearrange the atoms, leaving some infinitesimal voids in the structure and some areas of extra density. The components literally grow, getting longer and thicker. The phenomenon is well understood and designers compensate for it with a …

Missing the Point about Pennsylvania’s Nuclear Plants

A group that includes oil and gas companies in Pennsylvania released a study on Monday that argues that twenty years ago, planners underestimated the value of nuclear plants in the electricity market. According to the group, that means the state should now let the plants close.

Huh?

The question confronting the state now isn’t what the companies that owned the reactors at the time of de-regulation got or didn’t get. It’s not a question of whether they were profitable in the '80s, '90s and '00s. It’s about now. Business works by looking at the present and making projections about the future.

Is losing the nuclear plants what’s best for the state going forward?

Pennsylvania needs clean air. It needs jobs. And it needs protection against over-reliance on a single fuel source.

What the reactors need is recognition of all the value they provide. The electricity market is depressed, and if electricity is treated as a simple commodity, with no regard for its benefit to clean air o…

Why America Needs the MOX Facility

If Isaiah had been a nuclear engineer, he’d have loved this project. And the Trump Administration should too, despite the proposal to eliminate it in the FY 2018 budget.

The project is a massive factory near Aiken, S.C., that will take plutonium from the government’s arsenal and turn it into fuel for civilian power reactors. The plutonium, made by the United States during the Cold War in a competition with the Soviet Union, is now surplus, and the United States and the Russian Federation jointly agreed to reduce their stocks, to reduce the chance of its use in weapons. Over two thousand construction workers, technicians and engineers are at work to enable the transformation.

Carrying Isaiah’s “swords into plowshares” vision into the nuclear field did not originate with plutonium. In 1993, the United States and Russia began a 20-year program to take weapons-grade uranium out of the Russian inventory, dilute it to levels appropriate for civilian power plants, and then use it to produce…

NEI Nuclear Notes

Search This Blog