He said there has been an imbalance of supply and demand for some time now. In 2018, excess uranium supplies were driving down prices. The world’s largest uranium mine closed due to poor demand since the Fukushima, Japan nuclear disaster in 2011. As China gained interest and demand began to increase, supply dwindled, so the only growth until last year was in China, India and Russia.
Now, the US is expanding its nuclear plant capacity and, in the face of climate change, the European Union has even declared nuclear power “green energy”, but it will take some time for any new capital-intensive new plants to come online. It will take Meanwhile, Germany is closing all of its nuclear plants, while the United Kingdom and France have development plans. Piquard said there may be interest in smaller modular nuclear units to complement wind and solar power. Meanwhile, uranium fell to $20 a pound, now $40, and needs about $60 a pound to break-even, so Piquard said future prices could climb.
“As consultants in Canada, we think we should focus on Alberta oil and gas for our energy exposure,” Piquard said. “It is a way of looking at a global commodity and a global ETF that has exposure to different energy sectors and possibly the future of energy. So, I think that is a good thing for advisors, especially since Canada Truly a major player in this field.