Uranium - The Next Energy Revolution
March 22nd, 2009 | by winsonlee |Had a conversation with the group and Rick shared his thought about Uranium as it maybe the next booming commodity. Since I always work with numbers, i went online to look for more substantial evidance
I am a bit skeptical about the future price of Uranium. Oil price at the moment is around $50. In the future analyst predicts that it will goes up all the way to $200/barrel. Gold price now is $950/ounce. Some mention that it is possible for gold to reach $2000/ounce. The uranium price is currently sitting at a bit over US$50 per pound. Analyst reckons uranium could go up ten-fold before price starts to affect demand. Uranium is mine to generate energy. At the moment, there is always an alternative to energy. Oil is use commercially as it is the main source of energy for transport. Gold is used as a substitution for cash. Firstly, money is vulnerable to forgery. Secondly, it can be re-produced at almost no cost. Thirdly, the integrity of such money depends on the integrity of the authority that issues it: Rally for gold and oil is backed with substantial demand from the public.
The only reason why uranium price increase is because of the amount of energy Uranium is able to produce compare to other alternative. Blair Athol coal mine in central Queensland produces 12 megatonnes of coal per year. Ranger uranium mine, near Jabiru in the Northern Territory of Australia produces 5273 tonnes of U3O8. 12 megatonnes of coal corresponds to a primary energy content of about 2.9 x 1017 J. 5273 tonnes of uranium output from Ranger corresponds to about 2.5 x 1018 J of primary energy. This is equivalent to 8.6 times the primary energy content supplied by the coal mine. The uranium mine is about a third of the size of the coal mine but at the same time it is able to supply 8.6 times the primary energy content compare to the coal mine.
Source :
http://www.dailyreckoning.com.au/
http://enochthered.wordpress.com/
