Helium – Uses, Production, Prices, and News

This blog highlights data I have found on the Internet related to helium uses, production, prices, and news.

Uses.  Helium has a variety of uses based on its inertness, lightness of its gaseous state, and the low temperature of its liquid state.  The following table shows an approximate use percentage for the various ways in which helium is used:

uses	%
cryogenics	25
lifting/other	15
pressure/purging/leak detection	14
electronics/semiconductors/fiber optics	12
science/analytical	12
welding	10
controlled atmospheres	8
breathing	4
total	100

For several years, helium uses have been growing at a compounded annual growth rate of about 2 to 3%.   But this is increasing, especially because of helium’s increased use in electronic, semiconductor, and fiber optics manufacturing.

Production.  Estimated helium global production in 2018 is in the 160 to 165 million cubic meters (c. m.) range.   Approximately 55 to 60% of this amount is produced in the United States.  The next largest producer is Qatar at about 28% and then Algeria at about 9%.  Australia, Canada, China, Poland, and Russia also produce helium, each in the less than 5% of total global production range.   Helium is created by the decay of radioactive elements beneath the earth’s surface and needs to be brought to the surface by drilling, usually while drilling for natural gasses.  Helium then needs to be separated from the natural gasses.

Prices.   Helium prices in the United States have significantly increased from 2016 to 2018.  Prices charged by the US government for helium (from its large helium reserve) have increased from the $4 per c.m. range to the $6 per c.m. range. 

Companies such as Linde, Air Products, and Air Liquide also sell helium, at higher than government prices.   For example, the company Air Products purchased all the helium auctioned by the US Government at its helium 2018 auction at an average price of $10.10 per c.m.   Air Products 2018 gross profit margin percentage (from its 2018 annual report) was 31%.  This suggests that Air Products would seek to sell the helium it brought at the 2018 government auction at an average sales price of about $14.50 per c.m. to maintain the 31% gross profit margin percentage.  

Based on a global 2018 production of approximately 165 million c.m. and using a government price of $6 per c. m., the value for helium produced in 2018 was about $1 billion ($6 per c.m. X 165 million c.m.).  However, using a sales price of $14.50 per c.m. (a price that Air Products might be seeking – see above paragraph) and a 2018 global production of approximately 165 million c.m., the value for helium produced in 2018 might be $2.4 billion ($14.50 per c.m. X 165 million c.m.).

News.   What follows are brief summaries of 2018 news alerts about helium uses.

v    2018 helium demand greatly exceeded production with demand in the 220 million c.m. range and production in the 160 million c.m. range.

v    The US government last scheduled auction of helium owned by the US government in its reserve was held in 2018.  After this last auction, helium remaining in the government reserve will be for use by US government users.

v    Two of the main companies selling helium, Praxair and Linde, have merged, keeping the Linde name.  Other large companies selling helium are Air Products, Air Liquide, and Exxon Mobile.

v    With higher prices and greater demand, exploration for helium is increasing.