What this has shown is that the developed world is extremely dependant on oil and gas, especially as it has removed the use of coal in power stations. Renewable energy is not dependable, so oil and gas is still necessary for most countries.
The only other viable solution for 24x7x365 energy is nuclear power. Major countries will now start to escalate their nuclear energy programs (Australia, China, India, EU, UK, etc.). Although this will be a long term swing (5-10 years), I can envisage nuclear energy companies doing well.
China, Russia, South Korea, France (EDF) and the USA have expertise in building nuclear power stations. I cannot see Europe going to China or Russia or even the USA for their nuclear energy power stations, so this leaves France (EDF) and South Korea.
Key Companies with Expertise
| Company | Country | Expertise |
|---|---|---|
| Rosatom | Russia | State-owned; offers "turnkey" solutions for international exports. |
| China National Nuclear Corp (CNNC) | China | Developed the Hualong One reactor for domestic and export use. |
| Korea Hydro & Nuclear Power (KHNP) | South Korea | Expert in the APR-1400 reactor; major international vendor. |
| EDF (Électricité de France) | France | Largest nuclear operator globally; developer of the EPR reactor. |
| Westinghouse Electric | USA | Known for the AP1000 design; a key player in reactor technology and services. |
| GE Vernova | USA/Japan | Collaborates on reactor technology and is a leader in advanced SMR development. |
SMRs are new and may provide a solution for large private companies, but I cannot see governments investing in lots of SMRs. For UK investors, Rolls Royce RR are up 56% in the last year.
Along with nuclear energy, all countries will need to increase their grid infrastructure and materials (e.g. copper).
So for long-term investments, I am looking at South Korea who are a major international vendor that has successfully exported technology to the UAE (Barakah plant) and recently won a contract for plant expansion in the Czech Republic. EDF is another player (but it is a nationalised company and not listed on the stock market) and perhaps GE Vernova (up 160% in last year) too. Cameco (up 165% in last year) and Brookfield Renewable are possible USA nuclear companies to invest in.
Since nuclear power stations nearly all require Uranium, a 'picks and shovels' bet would be to invest in a Uranium ETFs. URND (dist) or URNG (acc) have 30% Canada, 30% USA, 10% Australia and 9.5% S Korea companies. Both are up 120% in one year to date. NUCG (acc.) is 6.5% in S. Korea and is up 100% in the last year.
However Iran plays out, I can see nuclear energy being a winner.
As with all shares, I need to buy for a cheap price and hold. However, nuclear power/uranium shares may reach a peak in 2026/2027 and I will be looking for an opportunity to sell say 1/3 of them when this happens.
I am currently invested in copper (mining), uranium, Vernova, Cameco, NUCG and Korea ETFs amongst others. I may also switch from NUCG ETF to URND/URNG soon.
What do you think? We will always need oil for plastics and fertilizer but it seems we cannot rely on a steady supply of oil and gas any more. Without it, most countries are in severe economic difficulties - even if they have 60% of their energy as renewables, nuclear seems the only option for a steady supply of energy which is not dependent on consumables once constructed.
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