Helium Update
Having attended the World Balloon Convention recently in Dallas, TX, I was able to speak to many people and quiz them on their experience with helium supply. I was surprised to learn that many have experienced little change in their supply. Depending on the region, their supplier and personal volume, not everyone is experiencing a shortage. On the other hand, everyone reported a price increase and some more than doubled in the last year. Again, the determining factor tended to be related to the supplier and any contractual agreements. Many found themselves cut off from supply and searching for helium in neighboring cities, sometimes traveling hours to pick up a tank. There is no doubt that tight supply of helium is a conundrum that is plagueing the balloon industry but there is no need to panic or question the future of helium-filled balloons; the current shortage does not mean that we're running out of helium - the world still has tremendous unexploited helium reserves.
Pricing In the US, the main source of helium is stored in the Bush Dome-Cliffside Field near Amarillo, TX, and stretches through 425 miles of pipeline from Texas to western Kansas. This reserve has been managed by the government office of the Bureau Land Management (BLM) and sells an annual cap of 2.1 billion cubic feet of helium per year to private refiners. It was because the US government recognized helium as a valuable resource in 1960 that they developed the BLM system and stored Billions of cubic feet of helium in the Cliffside Field. US industries have been the recipient of ample supply at reasonable prices over the last 40+ years and only now are paying prices more in line with the rest of the world. A New Concern By 2015 the debt to the US Treasury for building the BLM System is due to be retired leaving approximately 10 billion cu ft. of helium remaining in the Cliffside Field with no plan in place for extracting and processing the remaining helium for private use. What happens with the remaining helium is a new concern for the IBA. IBA has joined a coalition made up of helium, scientific, medical and industrial companies to amend the Helium Privitization Act of 1996 and ensure our continued access to helium in an expedient and responsible draw-down. The Helium Stewardship Act of 2012 has been drafted, but not yet submitted, for the Senate Committee on Energy and Natural Resources where provisions for the remaining helium will be lined out. The amendment has been written to authorize the continued management of the reserve and maintain stability in the helium markets for all stakeholders. Future Outlook In the meantime, there are new helium plants coming online all over the world that will eventually supply all the helium needs of Europe, Asia, and the Middle East. Supply is tight because there is not any extra helium right now and when a plant shuts down for maintenance either in the US or overseas, it causes already tight supply to become tighter. The helium shortages that are being experienced in the US and around the world right now are tough but temporary. With new production over seas in the next year we'll begin to see relief. What You Can Do Right Now International Balloon Association (IBA) is your industry association. IBA believes Collaboration, Coordination, and Communication are the backbone and strength of our industry and that together through one voice we can create change and protect our right to do business. The IBA offers valuable education and marketing programs as well as information on helium, balloon legislation, environmental concerns, and safety issues. Stay informed by visiting the IBA Web site: www.ibaonline.net Don't stand on the sidelines waiting for everyone else to solve the problems facing our industry today. Join IBA and be a part of the solution now! Best Regards, Marty Fish IBA Executive Director
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