In This Issue: A Long, Slow Drive Away From Oil: In an energy climate so full of surprises, it is especially difficult to fathom when fear of a world without oil will light a flame under demand for alternative fuels or what the spark will be. To answer that question, Standard & Poor's needs to know how high oil prices will go-and by when. Middle East uncertainties make that almost impossible to predict, especially in the short run. But we can at least trace some likely long-term trends and offer some educated opinions. The U.S. Is Looking At A Paced Reemergence Of Nuclear Power: Several influences have combined to generate a clear resurgence of interest in adding new nuclear capacity beyond the modest repowering efforts and 20-year license extensions of recent years. This interest ranges across an array of political and industrial constituents. IGCC: Can It Combine The Best Of Coal-Fired And Gas-Fired Generation?: The confluence of two major economic and political trends-the growing emphasis on domestic sources of energy and concerns over global warming-has substantially raised commercial interest in the use of coal gasification to produce electricity. Ethanol Is Hot, But That Doesn't Ensure Stronger Ratings For U.S. Producers: Ethanol seems poised to become a viable alternative to fossil fuels in the U.S., thanks to the renewable fuel standard requirement in the new federal energy law and the recent record-high crude oil prices. The industry is benefiting from increasing political support and ever-rising demand as gasoline prices soar along with oil. Canadian Oil Sands: The Future For North American Supply?: The oil sands of Alberta could be the key to North America's energy independence. When you consider that the oil sands in the Canadian province contain 174.1 billion barrels of Canada's total proved oil reserves of 178.8 billion barrels-second only to Saudi Arabia-Canada represents a large and secure crude oil source for North America and other export markets. Fueling The Future: No Slowdown In U.S. Hydrocarbon Use: As the world becomes more industrial, it is hard to envision a situation where the growth in demand for hydrocarbons-particularly oil-does not continue to rise. That is largely due to ever-increasing demand in the transportation sector. Latin American Risk Heats Up For U.S. Oil And Gas Companies: Oil prices, hovering near record highs, are transforming the political landscape in many parts of the world. In Latin America, pricey crude has helped spur several governments to push for larger shares of oil revenue and more control over their countries' hydrocarbon assets. The Supermajors Take Alternative-Energy Mainstream: Many global energy giants are spending considerable sums to broaden their portfolios to include nonfossil fuel offerings. At Standard & Poor's Equity Research, we estimate that those efforts are, so far, barely profitable at best, but they are important both for the future of sustainable economic growth and for investors looking to make long-term calls on the stocks of these companies. | 
