A Nuclear Winter

Prime Minister Manmohan Singh struggles to cobble together consensus among his warring coalition partners to gain approval on the Nuclear agreement with the United States. Given the recent recessionary economy and its strong tie in to Housing and Oil, a Newsweek article on the decoupling of US Oil consumption and the coupling of BRIC Oil consumption to the Oil Price. (Ref: The Economy - Why its Worse Than You Think - Newsweek June 2008) and the push the US has been giving on this nuclear deal. I wonder if the incentive for the US is more than just business. India moving to Nuclear Energy does two things

1. It introduces a dependence on the US for the technology at least for maintenance and a deep dependence on the NSG for fuel. At least till we get around to reusing the ore.
2. It reduces India's intake of Fossil Fuel. Cleaner Environment, plus reduced demand on Oil.

The US is one of the last countries to worry about noxious emissions when it is put headlong with economics if the stand of the current government is anything to go by. This is a country where its okay to drive 20 miles each way to your nearest Wall Mart, so that you can save a couple of bucks on groceries!. The interest therefore must be clearly economic, not just in terms of fresh business for its Reactors, but in terms of a larger fillip for its own economic growth. India decoupled from Oil demand would mean lower Oil consumption resulting in lower Oil prices.

In itself this is a good idea. I think there is much in terms of technology which the US can help the rest of the world with. In this case, higher gas prices may be just the tonic we need for a cleaner and more fuel efficient world!

However, I wonder what it will take to get there. $200 for a barrel of Oil? Crippling subsidies on the balance sheets of much of the third world?