72
HELIUM
(Data in million cubic meters of contained helium gas
1
unless otherwise noted)
Domestic Production and Use: The estimated value of Grade-A helium (99.997% or better) extracted domestically
during 2013 by private industry was about $930 million. Ten plants (five in Kansas, four in Texas, and one in
Wyoming) extracted helium from natural gas and produced only a crude helium product that varied from 50% to 99%
helium. Two plants (one in Colorado and one in Wyoming) extracted helium from natural gas and produced a Grade-
A helium product. Six plants (four in Kansas, one in Oklahoma, and one in Texas) accepted a crude helium product
from other producers and the Bureau of Land Management (BLM) pipeline and purified it to a Grade-A helium
product. Estimated 2013 domestic consumption of helium was 47 million cubic meters (1.8 billion cubic feet) and was
used for cryogenic applications, 32%; for pressurizing and purging, 18%; for controlled atmospheres, 18%; for
welding cover gas, 13%; leak detection, 4%; breathing mixtures, 2%; and other, 13%.
Salient Statistics—United States:
2009
2010
2011
2012
2013
e
Helium extracted from natural gas
2
78
75
71
73
77
Withdrawn from storage
3
40
53
59
60
52
Grade-A helium sales
118
128
130
133
129
Imports for consumption
—
—
—
—
—
Exports
4
71
77
82
85
82
Consumption, apparent
4, 5
47
51
48
48
47
Net import reliance
6
as a percentage
of apparent consumption
E
E
E
E
E
Price: In fiscal year (FY) 2013, the price for crude helium to Government users was $2.44 per cubic meter ($67.75 per
thousand cubic feet) and to nongovernment users was $3.03 per cubic meter ($84.00 per thousand cubic feet). The
price for the Government-owned helium is mandated by the Helium Privatization Act of 1996 (Public Law 104–273).
The estimated price range for private industry’s Grade-A gaseous helium was about $7.21 per cubic meter ($200 per
thousand cubic feet), with some producers posting surcharges to this price.
Recycling: In the United States, helium used in large-volume applications is seldom recycled. Some low-volume or
liquid boiloff recovery systems are used. In Western Europe and Japan, helium recycling is practiced when
economically feasible.
Import Sources (2009
–
12): None.
Tariff: Item
Number
Normal Trade Relations
12–31–13
Helium
2804.29.0010
3.7% ad val.
Depletion Allowance: Allowances are applicable to natural gas from which helium is extracted, but no allowance is
granted directly to helium.
Government Stockpile: Under Public Law 104–273, the BLM manages the Federal Helium Program, which includes
all operations of the Cliffside Field helium storage reservoir, in Potter County, TX, and the Government’s crude helium
pipeline system. The BLM no longer supplies Federal agencies with Grade-A helium. Private firms that sell Grade-A
helium to Federal agencies are required to purchase a like amount of (in-kind) crude helium from the BLM. The
Helium Privatization Act of 1996 mandated that all Federal Conservation helium stored in Bush Dome at the Cliffside
Field be offered for sale, except 16.6 million cubic meters (600 million cubic feet).
In FY 2013, privately owned companies purchased about 4.1 million cubic meters (149 million cubic feet) of in-kind
crude helium. In addition to this, privately owned companies also purchased 58.2 million cubic meters (2,100 million
cubic feet) of open market sales helium. During FY 2013, the BLM’s Amarillo Field Office, Helium Operations
(AMFO), accepted about 11.9 million cubic meters (430 million cubic feet) of private helium for storage and
redelivered nearly 64.3 million cubic meters (2,320 million cubic feet). As of September 30, 2013, about 52.0 million
cubic meters (1,440 million cubic feet) of privately owned helium remained in storage at Cliffside Field.
Stockpile Status—9–30–13
7
Uncommitted
Authorized
Disposal plan
Disposals
Material
inventory
for disposal
FY 2013
FY 2013
Helium
305.5
305.5
64.1
56.1
Prepared by
John E. Hamak
8
[(806) 356–1031, jhamak@blm.gov]
73
HELIUM
Events, Trends, and Issues: In 2013, BLM continued to use a pricing mechanism based on the requirements of the
Helium Privatization Act of 1996. During 2013, BLM helium prices to nongovernment buyers increased to $3.03 per
cubic meter ($84.00 per thousand cubic feet) of gas delivered. By the end of the decade, international helium
extraction facilities are likely to become the main source of supply for world helium uses. Seven international helium
plants are in operation and more are planned for the next 3 to 5 years. Expansions to facilities are planned in Algeria
and Qatar. Additionally, a new extraction facility associated with LNG production in Qatar is expected to be online
within the next 2 years. In 2013, demand exceeded the ability of the BLM’s Crude Helium Enrichment Unit to supply
its customers along the crude helium pipeline. As a result, the BLM allocated helium to the refiners along the pipeline.
The shortage of helium and allocations are expected to continue in 2014 and may become greater as the storage
reservoir production declines. Just before the end of the fiscal year, Congress passed the Helium Stewardship Act,
which continued authorization of the Helium Program through at least 2021. The Act contains changes in how the
BLM sells helium and the timing of those sales.
World Production and Reserves:
Production
Reserves
9
2012
2013
e
United States (extracted from natural gas)
73
77
3,900
United States (from Cliffside Field)
60
52
(
10
)
Algeria
15
15
1,800
Australia
4
4
NA
Canada
NA
NA
NA
China
NA
NA
NA
Poland
3
3
25
Qatar
13
15
NA
Russia
6
5
1,700
Other countries
NA
NA
NA
World total (rounded)
174
171
NA
World Resources: As of December 31, 2006, the total helium reserves and resources of the United States were
estimated to be 20.6 billion cubic meters (744 billion cubic feet). This includes 4.25 billion cubic meters (153.2 billion
cubic feet) of measured reserves, 5.33 billion cubic meters (192.2 billion cubic feet) of probable resources, 5.93 billion
cubic meters (213.8 billion cubic feet) of possible resources, and 5.11 billion cubic meters (184.4 billion cubic feet) of
speculative resources. Included in the measured reserves are 0.67 billion cubic meters (24.2 billion cubic feet) of
helium stored in the Cliffside Field Government Reserve, and 0.065 billion cubic meters (2.3 billion cubic feet) of
helium contained in Cliffside Field native gas. The Hugoton (Kansas, Oklahoma, and Texas), Panhandle West,
Panoma, Riley Ridge in Wyoming, and Cliffside Fields are the depleting fields from which most U.S.-produced helium
is extracted. These fields contained an estimated 3.9 billion cubic meters (140 billion cubic feet) of helium.
Helium resources of the world, exclusive of the United States, were estimated to be about 31.3 billion cubic meters
(1.13 trillion cubic feet). The locations and volumes of the major deposits, in billion cubic meters, are Qatar, 10.1;
Algeria, 8.2; Russia, 6.8; Canada, 2.0; and China, 1.1. As of December 31, 2010, the AMFO had analyzed about
22,000 gas samples from 26 countries and the United States, in a program to identify world helium resources.
Substitutes: There is no substitute for helium in cryogenic applications if temperatures below –429 °F are required.
Argon can be substituted for helium in welding, and hydrogen can be substituted for helium in some lighter-than-air
applications in which the flammable nature of hydrogen is not objectionable. Hydrogen is also being investigated as a
substitute for helium in deep-sea diving applications below 1,000 feet.
e
Estimated. E Net exporter. NA Not available. — Zero.
1
Measured at 101.325 kilopascals absolute (14.696 psia) and 15 °C; 27.737 cubic meters of helium = 1 Mcf of helium at 70 °F and 14.7 psia.
2
Both Grade-A and crude helium.
3
Extracted from natural gas in prior years.
4
Grade-A helium.
5
Defined as Grade-A helium – exports.
6
Defined as imports – exports + adjustments for Government and industry stock changes.
7
See Appendix B for definitions.
8
Team Leader, Resources and Evaluation Group, Bureau of Land Management, Amarillo Field Office, Helium Operations, Amarillo, TX.
9
See Appendix C for resource/reserve definitions and information concerning data sources.
10
Included in United States (extracted from natural gas) reserves.
U.S. Geological Survey, Mineral Commodity Summaries, February 2014