Gosh, I remember when the US had a strategic Federal Helium Reserve to secure a reliably supply, but was sold off in the interests of cost savings and shrinking government that was all the rage:...
Gosh, I remember when the US had a strategic Federal Helium Reserve to secure a reliably supply, but was sold off in the interests of cost savings and shrinking government that was all the rage:
To amend the Helium Act to complete the privatization of the Federal helium reserve in a competitive market fashion that ensures stability in the helium markets while protecting the interests of American taxpayers, and for other purposes.
For the better part of a decade, scientists like Hayes have urged government officials to hold on to the reserve, instead of selling it to a private entity — likely a major industrial gas or pipeline company, and possibly one that is foreign-owned. They say that the decision Congress made in 1996 to set into motion a 25-year plan to unload the reserve, in a bid to shrink government, was shortsighted and potentially detrimental to a host of industries, ranging from medical technology to rocket science.
...but they were ignored as privatization of public resources is far more lucrative. This was started in the 1990's but only just was completed a couple of years ago.
I wouldn't overdramatize it either. The US still produces over 90% of the global helium supply for the world. It's essentially a waste product of natural gas production - if you don't sell it, you...
I wouldn't overdramatize it either. The US still produces over 90% of the global helium supply for the world. It's essentially a waste product of natural gas production - if you don't sell it, you just release it, but you can't avoid capturing the helium (since you need to separate it from the natural gas in order no matter what).
US supply is unlikely to be affected. Supply for Asian countries can see a hit in the short term, but over the long term the US can more than rectify the supply issue via the pacific.
That they buy from Qatar is as much about how it's not worth it at the current price of helium for US producers to ship it over.
State energy giant QatarEnergy, the world's second-largest LNG exporter, announced a production halt at its 77 million tons per annum (mtpa) facility last week and declared force majeure on LNG shipments, amid the conflict.
Because helium is extracted as a byproduct of natural gas processing, any disruption to LNG output directly cuts helium supply.
[...]
"If those conditions (supply disruption) persist, the market is effectively missing about 5.2 million cubic meters of helium per month," said Aleksandr Romanenko, CEO of market research firm IndexBox.
The disruption is reverberating through a market with little spare production capacity and limited storage, leaving buyers with few short-term alternatives.
Japan's top helium supplier Iwatani (8088.T), opens new tab said it had so far maintained stable supply to customers including semiconductor manufacturers, partly because it also sources helium from the United States and maintains stockpiles in both Japan and the U.S.
[...]
Helium markets operate very differently from most commodities.
Most supply is sold through long-term contracts rather than a transparent spot market, meaning price signals often emerge slowly even as supply tightens.
That opacity makes price discovery difficult, but signs of tightening supply have already begun to emerge.
"Early indications show about 50% spot price increases already," said Anish Kapadia, CEO of market research firm AKAP Energy.
"In a sustained disruption, prices could rise sharply and potentially retest past shortage peaks of more than $2,000 per thousand cubic feet."
[...]
Helium's physical properties add another constraint. The gas is typically shipped in liquid form and gradually evaporates during transport.
"It's a commodity, but it also has a shelf life," said Chris Bakker, CEO of helium developer Avanti (AVN.V), opens new tab.
"So when you liquefy it, and that's how they tend to ship it worldwide, you've got notionally 45 days to get it to the end-user."
[...]
Kornbluth said industries such as medical MRI systems and rocket ships would probably get 100% of their needs, while semiconductor manufacturers might receive 95%.
Lower-priority uses, including welding, diving equipment and party balloons, would likely face deeper cuts.
This is kinda big. With the AI bubble squeezing semiconductor production for all its worth, a slowdown in AI growth through reduced productions can mean a grinding halt to the US economy. If this...
while semiconductor manufacturers might receive 95%.
This is kinda big.
With the AI bubble squeezing semiconductor production for all its worth, a slowdown in AI growth through reduced productions can mean a grinding halt to the US economy. If this keeps up we're going to see massive market collapses when oil increases the price of everything and a lack of semiconductors paralyzes the rest.
The helium probably won't be that important. If it really gets to that point, the US can easily ramp up production and start supplying Asia through the pacific. The US produces like 90% of the...
The helium probably won't be that important. If it really gets to that point, the US can easily ramp up production and start supplying Asia through the pacific. The US produces like 90% of the commercial helium in the world, and it's just a byproduct of natural gas refinement.
It's those secondary and tertiary knock-on effects of disrupted supply lines that I worry about. Increasing helium production is one thing, ramping up wafer baking is another. The closure of the...
It's those secondary and tertiary knock-on effects of disrupted supply lines that I worry about. Increasing helium production is one thing, ramping up wafer baking is another.
The closure of the Strait already sees some refineries in surrounding countries like Kuwait shut down, and they're exceedingly difficult to start back up. Even if the Strait opens up right now, we're talking weeks of recovery.
We use chips in everything, from household appliances to cars to phones to hospital equipment to military materiel.
I'm not implying this will be the cause of any collapse, but it's one of those indicators in a long line of indicators that worry me.
Helium is also the primary coolant used for superconducting magnets. MRIs need liquid helium to not just be an expensive space heater, and occasionally issues during operation require the coolant...
Helium is also the primary coolant used for superconducting magnets. MRIs need liquid helium to not just be an expensive space heater, and occasionally issues during operation require the coolant to be rapidly purged to shut the system down.
Gosh, I remember when the US had a strategic Federal Helium Reserve to secure a reliably supply, but was sold off in the interests of cost savings and shrinking government that was all the rage:
Of course, it was seen as a risk at the time and likely a bad idea by folks who relied on helium:
...but they were ignored as privatization of public resources is far more lucrative. This was started in the 1990's but only just was completed a couple of years ago.
I wouldn't overdramatize it either. The US still produces over 90% of the global helium supply for the world. It's essentially a waste product of natural gas production - if you don't sell it, you just release it, but you can't avoid capturing the helium (since you need to separate it from the natural gas in order no matter what).
US supply is unlikely to be affected. Supply for Asian countries can see a hit in the short term, but over the long term the US can more than rectify the supply issue via the pacific.
That they buy from Qatar is as much about how it's not worth it at the current price of helium for US producers to ship it over.
From the article:
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This is kinda big.
With the AI bubble squeezing semiconductor production for all its worth, a slowdown in AI growth through reduced productions can mean a grinding halt to the US economy. If this keeps up we're going to see massive market collapses when oil increases the price of everything and a lack of semiconductors paralyzes the rest.
This war is globally unsustainable.
The helium probably won't be that important. If it really gets to that point, the US can easily ramp up production and start supplying Asia through the pacific. The US produces like 90% of the commercial helium in the world, and it's just a byproduct of natural gas refinement.
It's those secondary and tertiary knock-on effects of disrupted supply lines that I worry about. Increasing helium production is one thing, ramping up wafer baking is another.
The closure of the Strait already sees some refineries in surrounding countries like Kuwait shut down, and they're exceedingly difficult to start back up. Even if the Strait opens up right now, we're talking weeks of recovery.
We use chips in everything, from household appliances to cars to phones to hospital equipment to military materiel.
I'm not implying this will be the cause of any collapse, but it's one of those indicators in a long line of indicators that worry me.
Helium is also the primary coolant used for superconducting magnets. MRIs need liquid helium to not just be an expensive space heater, and occasionally issues during operation require the coolant to be rapidly purged to shut the system down.