The global helium shortage that began last year continues today and may continue into the next year, affecting various sectors that depend on it in different ways, from semiconductor manufacturing and gas leak detection in ships to forecasting the weather. Since 2006, this is the fourth time the world has experienced a helium shortage. As Money.bg recently wrote, the gas industry has called the phenomenon “helium shortage 4.0”.
Scientists use liquid helium to pressurize and harden the rocket structure. Helium is used to make optical fibers and semiconductors. In addition to being used in high-speed Internet, cable television, computer discs, microscopes, car airbags, cell phones, computer chips and tablets, helium is also used as a coolant for nuclear reactors.
However, the most common use of helium is in the healthcare industry, and more specifically in MRI scanners, a test that provides detailed anatomical and physiological information. In liquid form, helium can cool so-called superconducting magnets that generate images of the human body at temperatures below minus 269 degrees Celsius. Thanks to helium, MRI machines can work more efficiently and effectively.
What effect does helium shortage have on various sectors
Helium is a vital element for most industries, and the shortage of this limited resource and growing demand could create a perfect storm for many industries, writes ctvnews.
It is one of the rarest elements on Earth, quite difficult to extract and even more difficult to store. Furthermore, the current shortage of helium stems from limited supply and growing demand around the world.
Globally, very few countries produce this rare element and even a slight change in production levels could seriously affect the global supply of helium.. One example is the supply chain disruptions that were exacerbated by the 2017 embargo on Qatar, a major helium producer. Once the embargo went into effect, scientists feared they would have to stop the experiments or even close their laboratories. This is because liquid helium has a unique boiling point, which is used to cool superconducting magnets in laboratory spectrometers.
But labs account for only 6% of the helium market, according to the United States Geological Survey. Apparently, hospitals are the largest end-users of helium, up to 32% of the global market share in 2021, followed by 18% for balloons, according to data from JR Campbell & Associates.
Factors that influence the offer
Helium is currently in short supply due to a series of unforeseen circumstances last year, such as the closure of helium plants in Texas and the war in Ukraine.
One major helium supplier, Cliffside, Texas, shut down operations in 2022 due to a technical malfunction, followed by a four-month plant shutdown in 2021. By itself, this event would not impact as much on supplies of helium if another Russian Amur processing plant continued to operate after starting in September 2021.
In early January 2022, the Russian plant, which is under the umbrella of the largest Russian company Gazprom, was hit by an explosion after it caught fire in October, causing it to shut down indefinitely. If both plants were in operation, they would produce a large amount of helium. Amur is estimated to produce 60 million cubic meters per year and is expected to meet the supply of the world market. The war in Ukraine has further questioned the long-term availability of Russian helium.
The current supply of helium is decreasing, which is also the reason for the increase in the prices of this natural gas. Demand for helium has steadily increased since 2009, but it is unclear whether this led to the shortage.
According to a recently surfaced report, the global helium market could reach $ 20.17 billion in 2026. According to gas industry experts, growing demand is not the reason for the helium shortage, and indeed, the demand for helium has not seen a net growth. the last 10 years.
Limited helium production and growth opportunities in Canada
90% of the world’s helium is supplied by major natural gas producers, including Qatar, Algeria, Russia and the United States.
But the recent decline in production in the United States and growing demand from electronics manufacturers in Asia have sparked interest in helium production in other countries, including Canada.
The Canadian province of Saskatchewan is one of the few jurisdictions in the world that has the unique ability to support helium production as an autonomous sector. This is due to the geology of the province, which supports the drilling of special helium wells. Last April, Saskatchewan officially became the home of Canada’s largest helium purification plant.
This has led to a great deal of interest and investment in helium exploration in the provinces of Alberta and Saskatchewan. The region’s authorities aim to allow the development of projects to produce 10% of the world’s helium there by 2030. According to the local Saskatchewan government, it will also generate exports worth more than $ 500 million for the country.
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