The energy sector is in turmoil after the Trump administration halted the U.S. production of uranium for commercial reactors and ordered the Environmental Protection Agency to revise its regulations to make nuclear power safer.
While the stock market is likely to be a big beneficiary of the uranium ban, some investors are also worried about the fallout from the ban, which has been credited with saving billions of dollars in costs and helping the economy.
The U.N. nuclear agency is scheduled to release a final report in the first half of next year on the health and safety of the nation’s nuclear power plants, which produce about 10% of the country’s electricity.
In March, the agency issued a report saying the U and other countries need to address the growing threat posed by the spread of cancer and other diseases in nuclear plants.
“This is an industry where the health impacts of radiation exposure can be significant and are difficult to control,” the U,N.
agency said in a statement at the time.
“Nuclear power is one of the safest industries in the world and has been a major driver of economic growth in recent decades.”
U.S.-based uranium company Uranium One said it expects the ban to have a “catastrophic” effect on its market value.
The company reported a loss of $1.8 billion last year.
The nuclear industry is highly regulated, so it is extremely difficult to predict the impact of the ban on the industry’s bottom line, UraniumOne chief executive Scott Vogel said in February.
“There is a very good chance that we’re going to have to lay off employees,” Vogel told Reuters in a telephone interview.
“We’ll have to reduce production of all uranium products.
We’ll have fewer suppliers.”
Uranium prices have been on a downward spiral, with uranium stocks plummeting more than 80% since February 2018.
Uranium prices fell about 1.7% in April 2018 to $US1,632 per pound, according to the International Futures Association.
The energy sector has been in a slump for several years, with the market falling by $1 billion in the third quarter of 2020.
In 2018, the energy sector was down by about $1 trillion to $1,218 billion.
The global energy sector lost $8.9 trillion in value last year, according a report by the UBS Investment Management Co., which was released on Friday.
The industry lost about 2.4 trillion to 3.6 trillion during the same period.
The decline is due to the drop in coal and oil prices, which have caused many companies to shutter operations and cut jobs.
“We don’t think there’s any reason for the energy industry to get any stronger than it is right now,” said Alex McWilliams, chief investment officer at BlackRock Inc., the largest U.K. investment bank.
“I don’t see any reason to believe that the energy market is going to recover from this.”
Unexperienced managersThe UBS report said some managers in the U-M energy sector are inexperienced.
It said the lack of experienced managers, as well as a lack of management oversight, have left some energy companies struggling to recover.
“It’s a very bad situation,” said Daniel Foskett, an analyst at Goldman Sachs Group Inc. in a phone interview.
Foskitt said some U.M. nuclear companies have a history of bad investment decisions.
The state has not had an operating nuclear plant since the 1990s, when it shut down two reactors to reduce costs.
U.T.A., which is now operating two reactors, was acquired by Westinghouse Electric Co. in 2007.
The purchase cost U.B.C. more than $1bn, according the UBC report.
U.B., the world’s largest nuclear power company, said in April that it is closing two plants to reduce its operating costs and improve its financial outlook.
S., the UPMC Energy Corp., and other companies have also been cutting jobs.
UPMD, which owns the reactors at the UMass-Lowell nuclear research center, is laying off workers.
The companies said they are not currently taking a cut in their operating costs because they are still operating the reactors.UPMD spokesman David Fonagy said in an email that the company is “committed to supporting the continued development of UPM Energy’s portfolio of nuclear power projects in Massachusetts.”