Uranium is one of the world’s most important resources for energy generation. While many countries have abundance of nuclear power, the rest of the world is facing a looming supply shortfall and potential price spike for the resource. Justin Huhn, a supply chain analyst for Stratfor, recently noted that the uranium supply is beginning to look like a “black hole.” The dire prediction came after an analysis by Huhn of the long-term contracts in uranium industry. According to him, the number of contracted transactions had decreased dramatically from 201, going from 17 to just two. Long-term contracts, which serve to protect suppliers from sudden price fluctuations, have been drying up over the past decade. This could lead to a supply shortage later on. Uhns noted that many utilities and other buying groups had already switched to short-term buying, gambling on the spot market and thus exposing themselves to possible fluctuating prices. With few long-term contracts still in the market, Huhn believes the likelihood of a price spike is high. The current Nuclear Energy Institute's outlook suggested that uranium will need to be overproduced in order to sustain the demand level in 2022. However, with the commodity already seeing its prices halved since the beginning of 2020, a scenario of a price hike in the near future is not difficult to imagine. Given this, several countries, including the United States, may struggle to achieve nuclear security objectives. As a power source, uranium is essential for stable and secure domestic energy supply. Building stocks and reserves will become increasingly crucial for energy security in the next few years.