par
Becky Jacoby, Reporter | February 11, 2009
Basic system checks
being performed prior
to a liquid helium
transfer
This report originally appeared in the January 2009 issue of DOTmed Business News
Last year DOTmed Business News reported that helium was in short supply and because of the intense demand, the price of this expensive substance skyrocketed. However, as time passed and economies and governments turned, the trend has reversed.
So, what is the good news? The helium shortage has passed.
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Unfortunately, there is still bad news. The price continues to balloon and the U.S. does not have the power to direct the market.
Is the trend reversal due to an increase in production? Not necessarily. Actually, the school of thought is that the government's formerly stockpiled helium for use in wartime blimps was finally released, causing a sudden flood of product in the marketplace.
Regardless, the price is still high even though there is a ready supply. "The inflated price we're seeing now actually has to do with the shortage from the past. The price should have been much higher last year," says Dave Baldwin, owner of Genesis Magnet Services. "Instead they were only increased a part of the way, but that smaller increase will remain for a longer time."
Besides, is supply really the right question? Cryogen suppliers are focusing on developing new fields around the world. Plus, not all natural gas pipelines-and helium is a by-product of natural gas-can be tapped. Further, the helium separated from the natural gas must go through extensive scrubbing before it can be liquefied, with costs to refine helium growing exponentially.
Tom Freund, Director of MRI Services Oxford Instruments, believes that the U.S. can supply enough natural gas for the next 50 years. However, he also feels the difficulty lies in the cost of recovery and bringing the supply to market.
Technical support individual
delivering a dewar of helium
(photo courtesy of Praxair)
The Federal Bureau of Land Management is responsible for operating and managing the helium reserve. The government's reserve is based on a pipeline that runs on the northwest side of Amarillo, TX, across Oklahoma and into Kansas. Pipelines also exist in New Mexico, but as one might expect, most of the new supplies come from the Middle East, particularly the area of Dubai. Therefore, the control lies outside U.S. gate-keeping.
