Sunday, May 15, 2016

EIA sees strong growth in nuclear energy


Global nuclear electricity generation is expected to almost double by 2040, according to the latest projection by the US Department of Energy's Energy Information Administration (EIA). Most of this growth will be in the developing world, it said.  

Releasing the latest edition of its International Energy Outlook yesterday, the EIA said total world energy consumption will increase by almost 50%, from 549 quadrillion British thermal units in 2012 to 815 quadrillion Btu in 2040. This growth will be driven by industrialization in non-OECD countries, especially in Asia, the EIA said.

"Developing Asia accounts for more than half of the projected increase in global energy use through 2040," said EIA administrator Adam Sieminski. "This increase will have a profound effect on the development of world energy markets." By 2040, almost two-thirds of the world's primary energy will be consumed in the non-OECD economies, according to the EIA.

Boy have I been wrong about the price of uranium. Nevertheless demand continues to increase and nuclear will be a substantial part of that increase. The price is not currently at a level that will stimulate sufficient demand so the price will go up. As always it is about timing. One of things I have done for a couple of years is accumulate shares in Uranium Participation Corp. This is a fund that buys casks of yellowcake uranium. No mining risk just buy and hold physical uranium. It is not exciting or sexy investment but it is buying an undervalued asset at a substantial discount to what it will be worth in the years to come. 

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