Energy Outlook for the Next DecadeBy Chris Nelder
Friday, January 1st, 2010
Uranium
Asa spate of recent news reports have recognized, the global uraniumsupply is running low. We've nearly worked through the stockpile ofuranium from retired nuclear weapons, and the quality and availabilityof fresh ores to mine is falling. As I do not see any significantmomentum toward next generation reactor designs, I believe light waterreactors will continue to dominate the nuclear sector, which meansanother decade of high demand for uranium.
While uranium supply peaks or declines, demand will continue toincrease as new reactors are built, particularly in China and India.Nuclear power will not add a significant amount of primary energy tothe global mix, but uranium will be a hot commodity. It will see atleast one, and maybe two boom-and-bust cycles in the next decade.
One no-brainer investment in this sector would be Cameco Corporation (NYSE: CCJ).They've been making good progress lately and I think they will succeedin pumping the water out of their Cigar Lake mine and putting it backinto action.
The whole uranium producer group should be a long-term hold for the decade.
Full article: https://www.greenchipstocks.com/articles/energy-outlook/613