Jan 26, 20223 min
The US is proposing to remove helium from its Critical Minerals List, which we believe is using highly flawed data. AKAP Energy data show that the official US helium export data (presumably considered when coming to this decision) is incorrect and is dramatically over-stating US helium exports, on average we estimate that the actual US exports are <50% of what has been reported in the last few years. This is backed up by the USGS US helium supply balance which states: “substantial increases in exports reported in 2018, 2019, and 2020 suggest that domestic consumption declined, although no significant decline in U.S. helium consumption is thought to have taken place”. AKAP Energy has done a deep analysis of what has been reported as US export data versus what has been reported by the corresponding importer from the US and in virtually all cases the US data is significantly over-reporting the quantities that are being exported, which makes it seem as if the US is in a more comfortable position than it actually is. Furthermore our data shows that exports have been falling and the most recent months show implied US exports being <30% of what was reported by the US in 2019 as exports.
Several companies and organisations have spoken out about the negative impact of removing helium from the Critical Mineral List:
Messers: The USGS proposal to remove helium from the list of critical minerals is shortsighted and ignores concerning trends in the helium industry. If not corrected, this decision could leave the U.S. dependent for helium supply on unstable regions of the world and expose the U.S. economy to unnecessary risks.
Air Products: Air Products and Chemicals, Inc. urges the U.S. Geological Survey to reverse its current decision and keep helium on the national list of critical minerals. Helium is a critical gas, essential for our economic and national security. It is important for the U.S. government to recognize that all major sources of helium outside the United States – in Algeria, Qatar, Poland and Russia – are state-owned and state controlled and therefore, by definition are vulnerable to disruption. As our customers attest, helium is essential to the manufacturing of semiconductors, telecommunications and healthcare systems and countless other consumer products and those essential for our national economy and security.
State of Utah: Helium belongs on the List, in part, because it is not possible to predict market disruption from natural disaster, geopolitical factors, or even pandemics. Currently, the United States is a net exporter, but that could change very quickly. Also, there are additional concerns that the gradual decline in domestic production could lead to the United States depending on foreign supply chains to meet the needs of semiconductor chip manufacturing, the aerospace industry, medical applications, optical fiber manufacturing, etc.
Corning: From a representative of New York-headquartered Corning Inc. on his company’s reliance on helium for manufacturing fiber optics cable: “We require helium in sufficient quantities and at prices that enable us to maintain our global cost competitiveness. Given the unique qualities of helium, it is difficult to store on site for more than 10 days. For this reason, and the global nature of our demand, we have established strategic supplier relationships and long-term supply agreements…. Helium is the only gas that prevents bubbles from forming in the preform manufacturing step, which would render the fiber unusable. There is presently no substitute for helium in this process.”
Micron Technology: From a representative of Boise, Idaho-based Micron Technology, speaking on behalf of his company and the Semiconductor Industries Association regarding the essential role helium plays in the fabrication of semiconductors: “Helium is just one of a number of gasses used to make our
memory chips, but it’s absolutely vital. To put it simply, without helium, we cannot
operate. Micron is not alone in its dependence on this crucial gas….[W]e are dependent on regular deliveries to our facilities. A delay of even a few days could slow production at a semiconductor facility. A significant delay, could idle a plant entirely.”