Mineweb.com reports on a recent study by RBC Capital Markets that suggests that uranium prices will rise dramatically as nuclear energy emerges as the new alternative energy.
Recent studies by RBC Capital Markets (RBCCM), a global resources specialist, have found that long-term uranium prices must rise to $60 a pound to meet fuel requirements for new nuclear reactors. Since the start of the current crude oil crisis, uranium has become one of the world’s hottest commodities, given its crucial role in powering nuclear reactors, which provide an alternative to energy sourced from hydrocarbons such as crude oil and natural gas.
The smart money has been on uranium for some time, given that the spot price for uranium oxide has increased from below $5 in 2000 to recent levels of $50 a pound and higher. RBCCM finds that when combined with available inventory, current production growth will result in small market surpluses from 2007 to 2015. However, the total surplus will amount to only six months’ requirements.
RBCCM has also considered a “nuclear renaissance scenario”, based on the likely outlook for new reactors. There are currently 435 nuclear reactors in the world, with just 25 under construction. By 2015, however, there are likely to be 544 reactors in service around the world, and by 2030, no less than 932. On these scenarios, the market for uranium oxide moves back into rapidly widening deficits in 2014.
The “nuclear renaissance” thus requires an additional 109 operable reactors by 2015 (a 25% increase) and a further 388 reactors by 2030 (a 114% increase over current levels). While RBCCM acknowledges that the nuclear renaissance scenario is “ambitious”, it points out that required reactor build rates are not dissimilar to past programs . . . .
Recent studies by RBC Capital Markets (RBCCM), a global resources specialist, have found that long-term uranium prices must rise to $60 a pound to meet fuel requirements for new nuclear reactors. Since the start of the current crude oil crisis, uranium has become one of the world’s hottest commodities, given its crucial role in powering nuclear reactors, which provide an alternative to energy sourced from hydrocarbons such as crude oil and natural gas.
The smart money has been on uranium for some time, given that the spot price for uranium oxide has increased from below $5 in 2000 to recent levels of $50 a pound and higher. RBCCM finds that when combined with available inventory, current production growth will result in small market surpluses from 2007 to 2015. However, the total surplus will amount to only six months’ requirements.
RBCCM has also considered a “nuclear renaissance scenario”, based on the likely outlook for new reactors. There are currently 435 nuclear reactors in the world, with just 25 under construction. By 2015, however, there are likely to be 544 reactors in service around the world, and by 2030, no less than 932. On these scenarios, the market for uranium oxide moves back into rapidly widening deficits in 2014.
The “nuclear renaissance” thus requires an additional 109 operable reactors by 2015 (a 25% increase) and a further 388 reactors by 2030 (a 114% increase over current levels). While RBCCM acknowledges that the nuclear renaissance scenario is “ambitious”, it points out that required reactor build rates are not dissimilar to past programs . . . .
