Helium?

The balloon industry has found itself at the bottom of the food chain with regard to helium supply along with other industries that are deemed non-essential users of helium. As helium supply has reached a record low the balloon industry has felt the effects and it's difficult to be sympathetic to the industries deemed to be essential when our livlihood is at stake. What about balloons? What about this billion dollar industry? What is the answer to this problem? 

For the moment, our only recourse is to wait it out until supply evens out with demand. The fact is, extracting helium from natural gas is a complex and expensive process and not all natural gas is helium rich limiting the number of extraction plants to 10 in the US and 7 abroad. Most of the US extraction plants are located on a 425 mile pipeline connecting two helium rich reserves, the Cliffside Field and Hugoton Field, between Texas, Oklahoma and Kansas (The Federal Helium Reserve).  When the processing equipment on the pipeline, managed by the Bureau of Land Management (BLM) is shut down for maintenance, or production at the plant in Wyoming is reduced, supply runs low and it takes time to ramp up again. Even as production resumes, the equipment at the Federal Helium Reserve is aging and cannot produce at capacity further slowing recovery. 

The best estimate we've been given is November for US supply to return to more normal levels with production from plants in Algeria, Qatar, Russia and Australia keeping pace with foreign demand by next year. Domestic supply will see more relief when foreign demand is met with foreign supply instead of US exports. However, US helium distribution is a complicated matter as private industry controls the lion's share of helium coming off the Federal Helium Reserve leaving only aprehension about future supply for the balloon industry.  

In the meantime, laws governing the current supply of helium in the Federal Helium Reserve are needing to be changed in order to assure continued flow of helium from the reserve after 2014. If we don't change the law, no one will have access to the helium, private industry or no. But the question of who will control the helium is being hotly debated and IBA will keep you informed of all updates and calls to action as they may occur. The Balloon Council has also researched the helium issue and is weighing all options with regard to fair supply for the balloon industry as well. Read 7/25/12 Update 

To read full testimonies on S.2374, the Helium Stewardship Act of 2012, before the Senate Committee on Energy and Natural Resources, and the testimonies on