Uranium Has It All

The considerable potential for higher uranium prices is starting to make its
way into the
public market. This is a commodity which experienced a great deal of attention a
couple years ago as we witnessed its run to $137 per pound. Thanks to a supply
shortfall, combined with a dramatic shift to clean energy production, uranium
prices are poised to dramatically increase once again. Currently uranium trades
at $42 per pound.
 

Key Fact: Once extracted, uranium (there are two methods) is
processed at a mill, turned into what is known as U3O8 or ‘yellowcake’ and is
then enriched and used in nuclear reactors to create electricity - something no
country, city or home can go without. Currently, nuclear power is responsible
for roughly 19% of electricity in the United States. This number varies from
country to country and is expected to rise exponentially. And therein lies the
opportunity for all of us.


Make no mistake, nuclear energy is a green, clean form of energy that is
being embraced and is highly sought after by developed and developing nations
across the globe. And the pace in which uranium is being accumulated is
staggering.


Nuclear is far more efficient than any competing energy source and
because of this, uranium has sustained a healthy level of demand over the past
decade. As proactive investors, it must be noted that very soon there will be a
breakout in uranium demand thanks to a global shift towards nuclear power.


Uranium companies have their 'development foot' pressed hard against the
pedal as the largest countries in the world have announced billions of
investment capital will be set aside for the creation of hundreds of nuclear
reactors in the near and long-term. Emerging nations in Asia, most notably
China, are in desperate need of an efficient, clean source of electricity. China
desperately needs to provide its evolving population with a sufficient energy
source.


Key Fact: There are currently 436 nuclear reactors in
operation worldwide.
Right now there are over 50 reactors under construction
in 13 countries along with 130 nuclear power reactors planned and an additional
250 which are being proposed. (source: World Nuclear Association)


The pressure on governments to move away from dirty energy sources, such
as coal and other fossil fuels is greater than ever. The emphasis developed and
developing nations are putting on nuclear energy is just starting to surface.
Simple logic tells us that demand for uranium will increase in order to sustain
the planned growth and new reliance on nuclear energy. The green movement is a
core fundamental reason uranium's long-term demand will continue to grow and why
we are betting on a substantial price increase.


Uranium is Clean and Green


There is a central theme emerging in almost all aspects of our lives in
the 21st century. The theme is ‘green’ or environmental consciousness.
Governments have never before been so accountable for their actions and are
investing in practical, long-term solutions for our energy needs. Nuclear energy
and uranium are at the core of that shift (multi-billion dollar government
investments) because they represent the only realistic and reliable competitor
to fossil fuels in our never ending drive to create more energy and electricity.
A recent Industry Report from Octagon dated January 19th 2010 clearly
illustrated uranium’s advantages:


"Uranium is a cost-effective and environmentally friendly
alternative to fossil fuels for generating electricity. Approximately 1 kilogram
of uranium produces the same amount of electricity as 16,667 kilograms of coal
or 12,500 kilograms of oil, with the added benefit of no greenhouse gas
emissions and at a lower cost per kilowatt hour."


Those are powerful facts. Most of the general population is unaware of
these statistics and would be shocked to learn how much traction nuclear energy
has been gaining recently. Governments from around the world are waking up to
the above facts and engaging nuclear energy experts to construct new reactors
and to upgrade old ones. The Obama Administration has already taken their stance
as the US desperately needs to stay competitive in the race for a sustainable
clean energy source.


President Barack Obama's recent budget proposal calls for
tripling government loan guarantees for new nuclear reactors.
It would amount to $54 billion in loan guarantees. This followed Obama's pledge
in his State of the Union Address on January 27th in which he proposed to
heavily expand nuclear power production. The administration plans to achieve
this by creating a "new generation" of nuclear power plants as means to develop
less polluting energy sources and to garnish GOP support for the climate-change
bill (now pending in the Senate). This is all part of Obama's 2011 budget and
will create huge profit opportunities for proactive investors.


Obama has called on Congress to pass an energy and climate change bill
with incentives to make clean energy profitable. Obama went on to state that,
"And that means building a new generation of safe, clean nuclear power plants in
this country."

 


Carol Browner, who advises the President on energy and climate change
issues, stated that, "As the world moves to tackle climate change and diversify
our national energy portfolio, nuclear energy will play a vital role."


The message is very clear. The United States is already a leader in
nuclear power, but wants to dramatically increase its dependence on this clean,
efficient source of energy.  China is following the Americans, along with many
other countries.


China has made its mission clear and is leading the...

 

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Community Talk

Re: Uranium Has It All

ED MINNEMA

Obama Backs Nuclear Power

Mon, Feb 15, 2010

Feature
Articles
, Uncategorized,
Uranium
Articles

By Melissa Pistilli-Exclusive to Uranium
Investing News

Early this week, US President Barack Obama is expected to announce a loan guarantee for two new reactors that will be
built by Southern Company in Burke, Georgia.

Southern Co will be the first nuclear energy firm to take advantage
of The Energy Policy Act of 2005, which allows the Department of Energy
to issue loan guarantees for projects that help in the fight against
greenhouse gas emissions, passed under the Bush administration.

The pair of reactors will also be the first built in the US since the
Three Mile Island catastrophe soured Americans on nuclear energy three
decades ago. More loan guarantees for other reactors are reportedly
likely this year.

Rising energy needs, the global push towards climate change action,
and a desire to end foreign oil dependence is ushering in a nuclear
renaissance in the US, as it is in many parts of the world.

Currently, the US has 104 nuclear reactors in 31 states that provide
about 20 per cent of the nation’s energy needs. US energy consumption is expected to rise 14 per
cent over the next 25 years and those in the industry are hoping to grab
a big piece of the pie.

Obama Onboard the Nuclear Bandwagon

During his 2008 campaign, Obama acknowledged that “nuclear power represents
more than 70 per cent of [US] non-carbon generated electricity,” and
declared nuclear power an essential tool for meeting “climate goals.”

In his State of the Union speech last month, Obama spoke
about the benefits of “building a new generation of safe, clean nuclear
power plants in this country.” The president also called on the Senate
to pass a “comprehensive energy and climate bill with incentives that
will finally make clean energy the profitable kind of energy in
America.”

The Obama Administration’s 2011 federal budget cuts subsidies for fossil-fuel
companies while tripling loan guarantees for firms constructing new
nuclear reactors, adding $36 billion on top of the $18.5 billion already
available under Bush’s Energy Policy Act. The total, $54.5 billion,
could help construct six to seven new plants.

Southern Co’s two-unit nuclear plant is expected to cost $14 billion.
The company is still waiting for construction and operating licenses
from the Nuclear Regulatory Commission (NRC), which it may not get until
late 2011 or early 2012. Construction on the plant will most likely be
completed in 2016 and 2017.

At least 13 other license applications to build around 30 new
reactors are awaiting approval from the NRC. If all are approved, the US
reactor fleet would increase by 25 per cent, reports Russell McLendon for the Mother Nature Network.

Weighing the Good with the Bad

While those in the industry and several government officials are
quick to point out the benefits of nuclear power, there are many
skeptics with reasonable concerns.

On the plus side, nuclear power requires cheaper fuel, it’s climate
friendly, and new plant construction will provide much need employment.

Although building nuclear reactors is expensive, fuelling them is
much cheaper than the cost of fossil-fuels. McLendon points out that
“nuclear fuel costs about 0.5 cents per kilowatt hour, while fossil
fuels cost roughly 2.4 cents per kilowatt hour.”

Energy created from nuclear power doesn’t emit greenhouse gases and
is a much more reliable energy source than other renewables such as wind
or solar power.

The US government is under increasing pressure to help create jobs
and reviving the nation’s nuclear energy industry may help. The Southern
Co project alone is expected to employ about 3,000 during construction
and about 850 people are needed to run the new plant.

Criticism of nuclear power includes construction costs, waste
disposal, potential dangers, and possible fuel supply problems.

Nuclear power plants are extremely expensive to build and at times
maintain, but the real cost, say critics, is the potential danger such
plants pose to the public. From meltdowns to terrorist attacks, the
safety of nuclear reactors is constantly called into question. Threats
to public health extend to waster disposal as well.

And while it has been lumped in with renewable energies by some,
others point out that uranium fuel is not entirely a renewable resource,
nor will it necessarily solve the US’ problem with foreign oil
dependence: the US imports 86 per cent of its uranium needs.

Nuclear Power Demands will Power Uranium Sector

Despite the many concerns, a record 59 per cent of Americans support
nuclear power generation, says a 2009 Gallup Poll.

This positive attitude towards nuclear power is growing around the
world and the rising demand for nuclear power is improving the outlook
for uranium. The World Nuclear Association forecasts uranium demand
exceeding supply around 2022, which will no doubt take spot prices, currently
$42 per pound, much higher.

 

ED MINNEMA