When a consumer buys a manufactured item, the ubiquitous “Made In China” label says their money is going overseas. When they fill up their car at the gas pump, it’s the same thing but far bigger than just China and Saudi Arabia. The flow of cash from the U.S. to other parts of the world has become a flood. The U.S. trade deficit with China alone is now roughly a quarter of a trillion dollars. In this age of globalization, the U.S. has become hugely dependent upon the goodwill of other nations. With outside interests controlling both cash and vital resources, the world sees a noose rapidly tightening around America’s neck.
Ironically, it’s a noose that could get even tighter as the country moves away from fossil fuels and into nuclear power. In fact, more than 95% of the uranium used in the U.S. comes from outside the country, from places like Russia and Kazakhstan. This is a far greater imbalance than exists with oil. Given that energy represents one of the most critical foundational resources of the country, indeed any modern industrialized nation, the domestication of uranium production stands to become a vital component of future energy policy. Nevertheless, there are currently only a handful of uranium mines in the entire country actively producing uranium.
The only bright spot in this picture is a company called Uranium Energy Corp. (NYSE-AMEX: UEC). With operations in Texas and the Mountain States region of the U.S., Uranium Energy is increasingly viewed as the single best bet to become the next major producer of uranium. The company has deftly utilized one of the biggest databases of historic uranium exploration and development to identify and develop sites with the richest potential. In addition, unlike other aspiring developers, UEC is well funded and already has a full blown and licensed production facility centrally located near its rapidly developing Texas sites. In fact, things are moving forward so quickly, that initial production is expected within a few months. The goal is to reach an output rate of close to 3 million pounds annually by 2015.
With production costs well below anticipated prices, the path for UEC seems open, especially given the almost certain increase in future demand made clear by the $54 billion package of loan guarantees for nuclear power plant construction offered up by the Obama administration. It’s a path to cleaner air, but, with UEC, it’s also a vote for energy independence, a small step toward loosening the noose.
For more information, see the company website at www.UraniumEnergy.com.
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