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2016
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12
Global Helium Shortage
Author:
For nearly a month now, concerns about the shortage of helium have kept art balloon vendor Leon Sorin up at night. He runs Balloons by Sorin, supplying balloons for university campus events and bar parties. Originally, his helium supplier used to deliver 10 barrels of helium to him each week; now, however, the supply has dwindled to just one or two barrels. “Everyone’s starting to get nervous,” he says, “and even balloon shops are limiting customers to a maximum purchase of 10 balloons per person.” Sorin and his fellow vendors have been paying attention to the global helium shortage for over a year—but it’s only in recent weeks that they’ve begun to feel real pressure. S
For nearly a month now, concerns about the shortage of helium have kept art balloon vendor Leon Sorin up at night. He runs Balloons by Sorin, supplying balloons for university campus events and bar parties.
The helium supplier used to supply him with 10 barrels of helium each week, but now it’s down to just 1 or 2 barrels. He said, “Everyone is starting to get nervous, and even balloon shops are limiting customers to a maximum of 10 balloons per person.”
Sorin and his industry peers have been paying attention to the global helium shortage for over a year now, but it’s only in recent weeks that they’ve started feeling real pressure. Sorin is still relatively lucky—he has 15 barrels in stock and has even looked into other suppliers—but he still hasn’t been able to return to his original weekly purchase volume of 10 barrels.
Experts say that there is currently a global shortage of helium, and any disruption in production or supply could lead to market imbalances.
This year (2007), helium production plants that had just begun construction in Qatar and Algeria have already experienced reduced output, and there is even the possibility of some of them being shut down. Last September, ExxonMobil, the largest helium producer in the United States, closed a production facility located in Wyoming, citing scheduled maintenance as the reason. Two months later, the U.S. Bureau of Land Management took similar action. The U.S. Bureau of Land Management is responsible for operating the federal helium reserve located in Texas and supplies raw materials to private refineries. According to reports, during winter, severe blizzard conditions have forced many private and state-owned facilities to halt operations.
The helium used for the colorful balloons at children’s parties accounts for only a tiny fraction of global consumption. According to the U.S. Bureau of Land Management, helium is the most stable element of all substances and is commonly used to cool magnets in MRI equipment and to purge fuel tanks on space shuttles.
Helium can also be used for leak detection in other products and as a superconductor in physics experiments. This gas is employed in the manufacturing processes of semiconductors and computer chips, and it plays an important role in air-to-air missile systems.
Established in 1925 in response to national defense needs, the U.S. Federal Helium Program created a storage facility known as the Bush Dome. The U.S. Federal Reserve System became one of the world’s leading suppliers of helium—but this was never the original intention of the U.S. government. When private demand exceeded national needs, Congress passed the Helium Privatization Act in 1996, effectively turning the Federal Reserve System into a supplier for the private production sector. Today, the Federal Reserve System still meets 42% of U.S. domestic helium demand and supplies 35% of the global helium supply.
John Campbell, publisher of the journal CryoGas International, believes that demand for helium is steadily increasing due to the growth of the electronics industry in Asia and China, as well as the expanded use of conventional welding technologies.
Federal agencies like NASA—the U.S. National Aeronautics and Space Administration—are at the very top of the helium supply chain. Experts say that when helium supplies become scarce, private suppliers will prioritize medical needs first.
Leslie Theiss, Property Manager at the Amarillo Branch Office of the Bureau of Land Management, said: “Although it’s frustrating, the balloon industry is at the very end of the helium demand chain.” When helium supplies are tight, children will simply have fewer opportunities to play with balloons.
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