http://themarketmogul.com/invest-uranium/ The bull case scenario...

http://themarketmogul.com/invest-uranium/


The bull case scenario

In 2011 the price of uranium was steadily increasing and possibly set the stage for another bull market. But then out of nowhere an earthquake and tsunami hit Japan and created a meltdown at the Fukushima nuclear power plant (as a side note, according to the World Nuclear Association nobody died as a result of the meltdown. It was the earthquake and tsunami that claimed the lives of several thousand people). The uranium market has been struggling ever since.
But despite the Fukushima disaster the demand for uranium is actually increasing. There are more nuclear reactors under construction now than there were before the disaster.
Nuclear is seen by many as a “dirty” source of energy, but the truth is that nuclear plants emit very low levels of carbon dioxide and they provide a steady source of necessary base load power (steady source of reliable electricity). Nuclear energy is in fact the most environmentally friendly way to produce electricity on a large scale. Around 11% of world electricity comes from uranium. The US derives around 20% of its electricity from uranium. Furthermore, the World Nuclear Association predicts that demand for uranium will grow 33% from 2010 to 2020.
Electricity supply is one of the main factors driving prosperity and quality of life in a country, and currently around 2 billion people worldwide do not have access to electricity. Emerging market countries, especially China and India, want to increase their citizens’ living standards and access to cheap and reliable electricity is therefore key. Nuclear generated electricity can help them reach their goals.
Countries without reactors will soon build their first ones, countries such as Turkey, Kazakhstan, Indonesia, Vietnam, Egypt, Saudi Arabia and several of the Gulf emirates.
According to the World Nuclear Association there are currently 437 reactors in operation around the world. There are a further 67 under construction, 166 on order or planned, and 322 proposed. The future demand for uranium is there. Although future demand looks buoyant uranium skeptics will be quick to point out that Germany will be shutting down all their 17 reactors by 2022, and that Japan already shut down all of its reactors.
Firstly, Germany’s reactors do not make up a big portion of the world total. Moreover, as they have started to shut down their reactors their energy bill has increased considerably and they are in fact importing nuclear generated electricity from France (which arguably is “cheating”). Germany is making up some of the shortfall by burning more coal, but coal is a dirty source of electricity and emits a lot of carbon dioxide. As it turns out, closing down all of Germany’s reactors may turn out to be the wrong decision.