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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: Haim R. Branisteanu who wrote (12052)9/22/2004 10:43:23 AM
From: yard_man  Read Replies (2) of 116555
 
Haim there are "world statistics" there -- wouldn't be surprised if you couldn't find some breakdowns by region.

Europe has more nuclear -- I am not sure that we are more dependent on oil for electrical generation -- typically, oil-fired plants -- turbines, dispatch after gas, except for very few days out of the year when nat gas spikes. My guess is that usage is pretty darn small compared to what we burn in automobiles.

Coal is generally quoted in tons, but your intuition is leading you in the right direction -- often a good portion of the cost of coal is not what it cost at the mouth of the mine -- but the transportation of it -- and of course that is sensitive to diesel (oil). Almost all longer term contracts have a portion of the price tied to rail cost indices -- a part of which is -- the cost of diesel. My understanding is there has been a move by the rails to shorten the duration of contracts as they come up for renewal. Is there any wonder?? Even with the auto adjustments -- sometimes things can get out of whack.

Overall, we are in much better shape as far as electricity supply sensitivity to price, Haim. We have a large amount of coal in this country -- which can be mined rather cheaply. Have you been watching the price of Uranium lately??
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