Since 1929, the U.S. has been the world’s largest producer of helium. For decades the National Helium Reserve (NHR) stored and managed the supply and set prices, with the Bureau of Mines coordinating extraction and refining programs. It was seen as a strategically important resource for military and defense during both World Wars, during the Cold War, and for the NASA space programs through much of the twentieth century.
Since the 1990s, moves to privatize helium production and storage has led to the ongoing auctioning of the NHR supply. As the U.S. hydrocarbon industry has migrated from wells to fracking as a method of extracting natural gas, helium is no longer a byproduct.
These industry shifts, along with other market forces, have led to several recent periods of helium shortage. The COVID-19 pandemic has added new uncertainty as oxygen gas became a priority for suppliers.
Current State of the Industry
Other countries such as Qatar and Algeria have developed their natural gas and helium production industries, while Russia, Canada, Tanzania, and others are looking at new exploration. But new sources can take a long time to come online, and exploration doesn’t guarantee results.
Relying solely on accessing additional underground helium deposits to address future shortages is risky. Even if global deposits hold enough helium to theoretically ensure supply through the end of the 21st century, costs—and therefore prices—are likely to continue rising. Available economic modeling forecasts helium price, currently around US$15/ton, will reach $20/ton by the end of this millennium and $40/ton by 2230.
Future shortages and price increases will fall especially hard on “minor” market segments, such as GC, that lack bargaining power. If periods of helium rationing occur, GC would likely be deprioritized in favor of essential medical and other uses.
Is There a Solution for He Shortages?
Luckily, there are other options such as Nitrogen (N2), Argon (AR) and Hydrogen (H2) gasses. In particular, hydrogen gas compares favorably to helium for many GC applications. And newer hydrogen gas generators provide a safe and cost-effective source of high-purity carrier gas for laboratory users.
To learn more about using hydrogen generators as a replacement for helium cylinders, read the white paper.
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