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Growing importance of nuclear energy
Nuclear energy persuasive essay
Nuclear energy persuasive essay
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Nuclear Reactor Vendor Industry Analysis (graphics not available) Industry overview During the first ten years after its commercial introduction in 1956, the growth of nuclear power production was exponential, as would be expected for a new energy source. It then slowed down progressively to 10.9% a year by 1990, and has continued downwards to 1.8% a year in 2005 . It is however expected to rise again in the years to come , mainly because of the rise of the electricity demand worldwide (particularly in rapidly-developing countries), the awareness of the importance of energy security and the need to limit carbon emissions due to concern about global warming. Degree of rivalry In spite of a growing market, competition is fierce between the few nuclear reactor vendors and the industry is seeing an acceleration of international mergers and acquisitions as it is increasingly crossing national boundaries in a race to achieve critical mass in a high technology industry with high fixed costs and exit barriers. In 2006, three top level business alliances were created in the nuclear industry, combining the six companies which dominate the global market (Figure 1). Hence, the (CR)4 has recently increased to 0.6 . In addition to that, nuclear power plants orders are long term contracts and customers are not likely to switch from one vendor to another. The combinations of these factors create a moderate level of rivalry even though the upcoming years will be critical to the major players who will have to demonstrate their capacity to their customers’ expectations in terms of cost competitiveness and safety requirements. Bargaining power of suppliers Nuclear reactor manufacturers use two main categories of suppliers: tube-makers for steam generator tubing and steel companies for heavy components made of forged steel parts. In the nuclear business, quality standards are tremendously high and only a few firms are qualified to meet the industry requirements. The companies meeting these quality requirements have therefore significant power over reactor manufacturers, who are less likely to switch suppliers without notice, since it involves a long quality auditing and certification process. There is only a handful of steam generator tubing manufacturers barely meeting the requirements of the nuclear vendors. There are also very few steel-makers capable of manufacturing large sized forgings. Therefore nuclear reactor manufacturers are compelled to reserve capacity on a long term basis. As a response, they tend to backward integrate these steps of the manufacturing process: for example, Areva acquired Sfarsteel in order to produce its own forgings and GE has created a joint venture with Hitachi, a nuclear industry equipment manufacturer.
Nuclear power has grown to be a big percentage of the world’s energy. As of January 18, 2013 in 31 countries 437 nuclear power plant units with an installed electric net capacity of about 372 GW are in operation and 68 plants with an installed capacity of 65 GW are in 15 countries under construction. As of end 2011 the total electricity production since 1951 amounts to 69,760 billion kWh. The cumulative operating experience amounted to 15, 15,080 years by end of 2012. (European Nuclear Society) The change that nuclear power has brought to the world has led to benefits in today’s energy’s usage.
Cameco Corporation is the world’s largest publicly traded uranium company (World Nuclear Association, 2015), and is based in Saskatoon, Canada. Its growth strategy was carefully founded on local and international joint ventures, focusing on sustainable development and the targeted inclusion of Saskatchewan’s Northern
Every nuclear power plant is overseen by the NRC, which sets safety standards for all of the plants. But because of the “team player” atmosphere, safety regulations are often relaxed; testing deadlines are pushed back, and heads are turned when they probably should not be. So when Jim Creswell, an inspector at the NRC, notified his colleagues and superiors of the problems at Three Mile Island, he was told to give them more time to get things running smoothly. As time passed, though, thing...
industries have to adhere to. Nuclear facilities most likely rate first on facility that must be well
The world's natural resources are being consumed at an alarming rate. As these resources diminish, people will be seeking alternative sources by which to generate electricity for heat and light. The only practical short-term solution for the energy/pollution crisis should be nuclear power because it is available, cleaner and safer.
"The Economics of Nuclear Power." Nuclear Power Economics. World Nuclear Association, Feb. 2014. Web. 16 Mar. 2014.
Media coverage of such cases have made the public less comfortable with the idea of moving further towards nuclear power and they only opt for reducing human activities to reduce global warming. It is true that there have been some notable disasters involving nuclear power, but compared to other power systems, nuclear power has an impressive track record. First, it is less harmful and second, it will be able to cater for the growing world population. Nuclear power produces clean energy and it delivers it at a cost that is competitive in the energy market (Patterson). According to the US Energy Information Administration, there are currently 65 such plants in the Unite States (National Research Council). They produce 19 percent of the total US energy generation.
In order to build a strong relationship between companies there must be a trust. So trust played a big role in this case. A good example in this case was that inland steel “concern that a single-sourcing policy might cause it to lose touch with the market”. On the other hand, whirlpool “concerned about the technological risks of relying on only one supplier”. However, building a trust relationship between them was the best solution by the belief that both companies will be a low-cost
While, the reactor option yields poor performance due to its lacks consistency. The company that utilizes the reactor option struggle with its purpose of its existence, innovation and direction of the company. The company also want to cut its cost to defend its position within the existing market. Thus, the reactor is not a successful option (Parnell, 2014).
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
Nuclear energy, which has evolved a great deal since the 1940s during World War II where uranium was used to make bombs, is seen as a dangerous energy origin. The creation of this energy arrives from the splitting of unstable uranium nucleus. This power source of generating energy currently meets half of Ontarians energy needs, receives thorough waste management and emits different degrees of radiation. The majority of Ontario’s energy demands are met by nuclear power plants. The low operating costs for Ontario makes it convenient and extremely useful for the province as a whole. Managing the two nuclear plants in Ontario, Pickering Nuclear an...
The energy industry is beginning to change. In today’s modern world, governments across the globe are shifting their focuses from traditional sources of power, like the burning coal and oil, to the more complex and scientific nuclear power supply. This relatively new system uses powerful fuel sources and produces little to no emissions while outputting enough energy to fulfill the world’s power needs (Community Science, n.d.). But while nuclear power seems to be a perfect energy source, no power production system is without faults, and nuclear reactors are no exception, with their flaws manifesting in the form of safety. Nuclear reactors employ complex systems involving pressure and heat. If any of these systems dysfunctions, the reactor can leak or even explode releasing tons of highly radioactive elements into the environment. Anyone who works at or near a nuclear reactor is constantly in danger of being exposed to a nuclear incident similar to the ones that occurred at the Chernobyl and Fukushima Daiichi plants. These major accidents along with the unresolved problems with the design and function of nuclear reactors, as well as the economic and health issues that nuclear reactors present serve to show that nuclear energy sources are not worth the service that they provide and are too dangerous to routinely use.
Thébaud-Mony, A. & ebrary, I. 2011, Nuclear servitude: subcontracting and health in the French civil nuclear industry,Baywood Pub, Amityville, N.Y.
Furthermore, the future of this industry has a definite growth forthcoming. As we approach fusion power as a reality, nuclear engineers will be essential components to the distribution of a clean, safe energy source.
A company’s relationship with key suppliers is a vital part of any company’s success. A good supplier relation means better price, meeting company standards and a better service level. That 's why when Honda started working with Modine, Honda made sure that its relationship with Modine was