Energy investors are no strangers to boom-and-bust cycles. In fact, a number of the experts interviewed by The Energy Report in 2015 took a certain amount of glee in the opportunities they knew would open up in low-price markets for oil and gas, uranium and lithium. Let’s take a trip around the world as we recall the words of wisdom these experts shared, and see if they can spark a better understanding of what we can expect during the next turn around the sun.
The Nuclear Option
In this January interview, Exploration Insights Author Brent Cook took us to Canada’s revered Athabasca Basin to talk about one of the most-hated commodities. “Uranium is a long-term play. When I first started working with Rick Rule back in 1997, it was quite a few years before his contrarian thesis was proven right. But when it was, share prices of the few legitimate uranium companies increased tenfold or more. I suspect that his thesis will be proven right again. I would agree that the uranium sector is a place to intelligently deploy some money into the good deposits and the good companies.”
In this January interview, Outsider Club founder Nick Hodge seconded the position of uranium as “a good contrarian bet.” He called nuclear energy “by far the safest form of baseload energy, and it is carbon free.” He pointed to China’s pollution problem and new commitment to clean energy. “It is looking for threefold nuclear growth by 2020 to 50 gigawatts (50 GW), and then tripling that again by 2030 to more than 150 GW.
“And it’s not just China betting on nuclear,” he continued. “Saudi Arabia has committed to 16 nuclear reactors over the next 20 years at a cost of $80 billion …read more