Ryan Stancil,
Editor
March 7, 2022
A lot can change in a week.
That’s been more true over this last week than perhaps it’s been in the last few decades.
As Russia ramps up its invasion of Ukraine, it seems like new shifts in economic and international policy are coming every moment.
Countries that weren’t part of the European Union are considering joining. Over 1 million Ukrainians have already left their home in search of somewhere safe. Countries that have famously stayed neutral in times of conflict are condemning Russia’s actions.
Businesses and world governments are cutting Russia off financially, turning it into a pariah state.
Defense spending is on the rise pretty much across the board.
Even China, often Russia’s only friend, has distanced itself from what Putin is doing in Ukraine.
But one of the big stories coming out of this whole thing is how it will reshape energy policy over the next decade.
It’s been stated time and again that much of Europe relies on Russia for natural gas. Energy prices, already high because of inflation, have been spiking. That’s likely to continue in the short term.
This is especially a problem for Germany, which relies on Russian natural gas more than most. Germany can’t be as quick to step away from Russian imports as other European nations because of efforts to divest coal and nuclear power. The country only has three operating nuclear plants at the moment, and those are set to go offline by the end of this year.
But, as I said, a lot can change in a week.
Because of Russia’s actions and the resulting sanctions, leaders in other countries are weighing their options for how to generate power without relying on Russia.
Some, like France, can do just that because of investments in nuclear power.
Others, like Germany, are going to have to play catchup because of their reluctance toward nuclear power. While there hasn’t been anything official yet, Rober Habeck, Germany’s minister of economy and climate, said in an interview that he would be open to extending the life of the three remaining plants.
That’s just one official offering a non-committal answer to the question, but it’s not hard to imagine these conversations are happening behind closed doors.
The fighting is going to continue and, though Germany has reserves to get through the winter, those conversations are likely to become more frequent as this drags on.
Even if the war ended tomorrow, it’s clear that it’s in Germany’s national interest to be as energy independent as possible.
At the very least, they know they’ll need to find a new source of power.
The trends were already pointing at nuclear power becoming the norm as much of the world gets away from fossil fuels. The US and several countries throughout Europe have already started ramping up efforts to use nuclear plants for power generation.
Even if Germany doesn’t generate its own nuclear power, it could turn to these friendlier nations to get what it needs in the future.
And that will be another thing that increases demand for the uranium needed to keep all of these plants running.
Nations around the world were already warming up to nuclear power. Putin’s actions in Ukraine just moved the timeline up. That means that small uranium producers are going to flourish as everyone scrambles to secure supply.
This uranium cycle is going to affect everyone, whether they want to generate power from nuclear directly or buy that power from their neighbors.
But the companies that supply the uranium will be the biggest winners in all of this.
Learn about one tiny company that may corner the market here in the US.
It has millionaire-making potential as the world wakes up to nuclear power.
It’s the perfect opportunity for investors because not many people know about it yet, but that’s sure to change as all these events play out.
Keep your eyes open,
Ryan Stancil
Editor, Daily Profit Cycle