ABSTRACT
The 1973 oil crisis made many governments keenly aware of their vulnerability to cutoffs of energy supplies. Although the economic argument for the use of recycled plutonium as fuel is increasingly perceived to be weak, the argument based on security of supply continues to have powerful political appeal. One worry expressed is that the number of major sources of uranium is small, and the number of suppliers of enrichment services is even smaller. The US action of ceasing to accept new contracts for enrichment services is often cited as evidence of the vulnerability of many countries to this critical resource. A government might be willing to pay a premium for electricity in order to gain some security of supply. Arguably the best assurance of supply is to have a competitive market with many sellers. Many countries are diversifying their purchases of uranium and of enrichment services.
