Michael Munro opines that ... 1. The global demand for electricity will continue to rise due to population growth, development of the third world, and increased use of electric vehicles. 2. The majority of the world electricity comes from coal, which is starting to be phased out in the wealthier countries, but renewables will not be able to fill the gap. 3. Nuclear energy is the only solution to the future global electricity demand, uranium miners offer the best way to capitalize off the growth, and Cameco looks like the best pick in stocks. Although many people consider oil to be the world most hated commodity right now, in actuality, this title falls upon oils much disliked brother, uranium. Since the Fukishima tsunami-caused accident in 2011, the spot price of uranium has fallen from a high of $136 in 2007, to its current price at $33.75.
Much of any small price gain since occurred from 2005 to 2007 during the uranium bubble, which seemed to have been sparked by fears of short-term supply issues secondary to a major flood in Cigar Lake, a large producing mine in Canada with large reserves of high-grade uranium. Within the last few years, growth in demand for nuclear sites have created a new area of growth for the uranium industry. There are currently 67 nuclear plants in planning or construction throughout the world, with the majority to be built in China, Russia, and India.
The price of uranium has two additional growth sources that are almost never discussed: the emergence of electrical vehicles and the decline of the oil and coal industries. Although there is a significant amount of debate as to when the shift towards electric vehicles will occur, it seems reasonable to estimate that within 30-40 years, we will have the vast majority of the worlds vehicles being electric. This will put an enormous pressure on the grid, while at the same time more traditional electricity production methods such as coal, are being phased out....Read on.
Original URL: https://seekingalpha.com/article/3783556-nuclear-power-renewable-energy-coal-electric-vehicles-future-electricity
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