Mike Fagan,
Editor
Aug. 1, 2022
If you need any further proof that safe, clean, carbon-free emission nuclear energy — powered by uranium — is going to be a major component of the global energy mix going forward, know this:
Russia’s state-owned Gazprom, despite contractual agreements, is now deliberately weaponizing natural gas by cutting supply to Europe via the Nord Stream 1 Pipeline… just ahead of winter.
Nord Stream 2, of course, was scrapped earlier this year by Germany after Russia formally recognized two breakaway regions in eastern Ukraine… just days before the formal invasion.
In a united front against Russia, EU ministers are now agreeing to cut natural gas consumption by 15% from now until March 2023 in an attempt to build up gas supplies prior to the onset of winter — a strategy being made all the more difficult by unprecedented heat waves across the continent.
The impact is even being felt here in the United States. US energy official Amos Hochstein says, “this was our biggest fear,” because the impact on Europe could boomerang back onto the US in the form of spiking natural gas and electricity prices.
And while energy-security alarm bells are ringing across the EU… the loudest wake-up calls are happening in the nuclear energy sector.
Discussions are now underway regarding increasing nuclear power generation across the region to offset gas shortages being levied by the Kremlin.
Remember, prior to Russia’s invasion of Ukraine, Germany was planning to completely phase out its use of nuclear power by the end of the current calendar year. German leaders have been strongly rethinking that stance ever since!
And now, with this latest transgression by Putin, the country will, in all likelihood, announce a complete shelving of that plan in the coming days or weeks.
France — which already derives about 70% of its electricity from nuclear power — is planning to build six new reactors while also extending the life of its existing plants.
France’s long-standing commitment to nuclear energy was originally rooted in efforts to mitigate greenhouse gas emissions — which, by the way, is proving highly effective.
Yet today, with Russia waging an all-out energy war against the whole of Europe, the nation is standing out as a shining example of ‘how to attain energy security and national security by way of nuclear power’ at a time of escalating global upheaval.
In many ways, EU leaders should’ve seen it coming.
Through years of miscalculation on nuclear energy and flimsy deals on fossil fuel imports, the EU has allowed itself to become reliant on its, shall we say, highly unstable neighbor for almost HALF of its natural gas supply.
As such, the Kremlin is proving it has both the power and willingness to literally turn off the spigot anytime it suits them… and, as a result, the EU’s greatest fears are becoming its new nightmarish reality.
Yet, despite Russia’s strong-arm tactics, Putin cannot simply shut off other countries' nuclear power plants!
And hence, a nuclear resurgence is rapidly gaining traction across the EU.
For example, Belgium has now made a complete about-face with its recent decision to keep open a pair of reactors that were previously slated for closure.
The Czech Republic is inviting Western companies to deliver nuclear fuel to replace Russian energy supplies.
And Poland is presently in negotiations to build new reactors in one of its seaside towns.
This renewed focus on nuclear power is putting upward pricing pressure on the one critical metal required to fuel the world’s reactors: uranium.
And not just across the EU… but here at home as well.
A powerful resurgence is underway across America’s once-dominant uranium mining sector.
As part of a broad revitalization plan, the Biden administration is currently asking Congress for $4.3 billion to buy domestically sourced uranium. And in June, the US Department of Energy awarded over $60 million for 74 US-based nuclear projects.
Among the beneficiaries of those efforts will be the best-positioned small-cap uranium exploration companies who are set to extract yellowcake from US soil for American consumption.
After all, we’re still the world’s largest producer of nuclear power… and, not too long ago, we were successfully mining 100% of our uranium requirements from domestic sources.
I believe we have the resources and the resolve to do it again!
With powerful tailwinds forming for nuclear energy here at home and across much of the EU and Asia, there’s never been a better time to invest in the small-cap uranium mining sector.
Here’s the best way to play.
Mike Fagan
Editor, Daily Profit Cycle