The World's Supplies Of The Non-Renewable Resource Helium Are Running Out - Total Helium (OTCQB: TTLHF) Says It Has The Solution

Rhea-AI Summary

Total Helium Ltd. is working to keep America and the world from running out of helium. The global suppliers of helium are primarily the USA, Russia, Qatar, and Algeria. The market for helium is forecasted to grow to $6.4 billion by 2027. Total Helium is positioning itself to be a top supplier of helium in North America and has acquired a helium field in Arizona and plans to establish a salt cavern helium storage facility.

Positive

• Total Helium is working to ensure a continued supply of helium, which is in high demand and facing a global shortage. The company has acquired a helium field in Arizona with a high concentration of helium and plans to expand its production capacity. Additionally, Total Helium is establishing a salt cavern helium storage facility, positioning itself as a vertically integrated company.

Negative

• The world is currently facing a shortage of helium, which has caused the cost of helium to almost double since 2021. This shortage has led to rationing of supplies and disruptions in scientific research. The Federal Helium Reserve is also selling off its helium supply, further exacerbating the shortage.

DENVER, CO / ACCESSWIRE / May 23, 2023 / Many are unaware of the importance of helium as a natural resource, however, this non-renewable gas has a variety of industrial and scientific applications and plays an essential role in a range of industries. As production struggles in the U.S., exploration and production company Total Helium Ltd. (OTCQB:TTLHF) reports working overtime to keep America and the world from running out of helium.

The global suppliers of helium are primarily the USA, Russia, Qatar and Algeria. However, U.S. near-dominance in global production has evaporated in recent years, going from 80% in 2010 to 56% in 2018. This is in part due to the U.S. Federal Helium Reserve selling off its massive supply over the past 25 years.

The market for helium was worth $4.4 billion in 2022, and is forecasted to grow to $6.4 billion by 2027, at a compound annual growth rate (CAGR) of more than 6% from 2022 to 2027. Demand for the gas continues to increase, linked in part to growth in the technological and service sectors, including semiconductors, fiber optics, aeronautics and medical devices. Hospitals are the largest end-users of helium, using 32% of the global market's helium in 2021. As well as its technological and medical uses, helium also has a range of industrial applications, such as welding, cryogenics and nuclear power.

Its importance is also tied to its role in furthering scientific research. Helium is used in physics, biology, engineering and other scientific research, and liquid helium has been used in 16 Nobel prize-winning projects.

However, the world is in the midst of a shortage of the gas, dubbed "Helium shortage 4.0," which began early in 2022. It arose in part due to long-term pandemic supply chain failures, the Russian-Ukrainian war, as well as disruptions at various facilities in Russia and Qatar. The shortage, which saw the cost of helium almost double since 2021, has caused major helium providers to ration supplies, and in the summer of 2022 made institutions like Harvard stop some of their scientific research as helium became unobtainable.

Total Helium - Stepping Into the Breach To Ensure Continued Supply?

Total Helium is a helium exploration, production and storage company. It is positioning itself to be a top supplier of helium in North America, to both strengthen the domestic supply of the gas and reestablish America as a leading player in the global market. It has already built a network of industry relationships and helium-producing sites at various natural gas reservoirs.

The company recently acquired 50% ownership of a helium field in Holbrook Basin, Arizona, a 27,000-acre, helium-rich project called Pinta South. Total Helium plans to have 20 wells by the second quarter of 2023, with plans to scale up to over 150 wells over time. The project has a helium concentration of 5-8%, significantly higher than the usual gas concentration that ranges from .5% to 3%.

As part of Total Helium's supply chain solutions, it also announced a joint venture to establish a salt cavern helium storage facility. This sophisticated facility positions Total Helium as vertically integrated, from production to storage. The fact that the Federal Helium Reserve is selling off its helium supply and exiting the helium business underlines the importance of Total Helium's storage site.

Companies in the helium exploration, production, and storage market include Desert Mountain Energy Corp. and Air Products & Chemicals Inc.

Want to learn more about Total Helium? Visit its website.

Featured photo by Pixabay on Pexels.

Contact:

Dan Lane
dan.lane@totalhelium.com

SOURCE: Total Helium Ltd.

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FAQ

What is Total Helium's role in the helium market?

Total Helium is a helium exploration, production, and storage company that aims to be a top supplier of helium in North America.

What is the current market forecast for helium?

The market for helium is forecasted to grow to $6.4 billion by 2027, with a compound annual growth rate of over 6% from 2022 to 2027.

What steps has Total Helium taken to ensure a continued supply of helium?

Total Helium has acquired a helium field in Arizona with a high concentration of helium and plans to expand its production capacity. The company is also establishing a salt cavern helium storage facility.

What is causing the current shortage of helium?

The shortage of helium is due to long-term pandemic supply chain failures, the Russian-Ukrainian war, and disruptions at facilities in Russia and Qatar.

What are the potential impacts of the helium shortage on the stock price of Total Helium?

The helium shortage could positively impact the stock price of Total Helium as the company works to ensure a continued supply of helium and position itself as a leading player in the global market.