Supply shortages…
That’s what is fueling the market right now.
Oil companies are making out like bandits…
Natural gas prices are skyrocketing…
And commodities like lithium, cobalt, and aluminum have soared to new heights.
But it’s not all sunshine and roses for some industries.
The auto industry has seen its production plummet due to the global semiconductor shortage…And top automakers are saying it’s not going to end anytime soon.
But semiconductors and commodities aside…
There’s one resource that no one is talking about.
And it could have a massive impact on the world as we know it.
It’s used in everything from medical devices and cryogenics to space travel and even powering the internet. It’s a major element in a number of key supply chains.
In fact, it’s even listed as a critical material to U.S. economic and national security.
It’s a non-renewable resource…and our supply is running dangerously low.
The New York Times says…
While CNBC warns…
And the BBC highlights…
Say what you will about the space race, web3, or the metaverse…
A helium shortage not only stops those innovations in their tracks…It could also derail the technology we’ve all become accustomed to.
Streaming services…
Cell phones…
Electric cars…
Nothing may be possible without it.
And if you thought nuclear fusion was going to save the planet from rising emissions…
Without this noble gas, you can kiss that dream goodbye, as well.
Many people see helium as just the stuff inside birthday balloons…But that isn’t even the tip of the iceberg.
It’s actually a key component in the tools you and I use every single day.
In fact, if you’re reading this right now – it’s because of helium.
That’s because it is a key ingredient in computer chip manufacturing.
It’s also a vital element in telecommunications.
Helium is what has allowed us to go from that annoying 56kb dial-up internet connection to…
This:
This is significant because, without helium, some of the biggest companies in the world might not even exist.
Netflix…
Google…
Even Amazon.
Bid farewell to your Sunday afternoon binge-watching sessions…
And definitely forget about ordering that really cool-looking kitchen tool that popped up in your Facebook newsfeed a few minutes ago.
But we’re just getting started.
Helium is also used in MRIs, space travel, nuclear fusion, and much, much more.
And as I mentioned earlier; it’s running out.
Growing demand from Big Tech and other innovative industries has created a massive supply imbalance…
And, in turn, paved the way for a fast-moving growth opportunity for any exploration and development company that can show potential for significant new helium discoveries.
In 2019 alone, helium prices soared by 135%, hitting $280/Mcf…
And today, refined helium is selling for $600-650.00 USD per mcf.
All while production is slowing…
Now, more than ever, helium is a low-volume, high-value commodity.
But it doesn’t trade like one.
You see, there are no ETFs to bet on helium…and no commodity market.
Even helium companies themselves are few and far between.
Many of the top producers aren’t even public because they’re so profitable.
Think about this…a single space launch uses about $12 million worth of helium…
Elon Musk’s SpaceX alone is planning a total of 52 launches this year.
And that’s nothing compared to NASA, the single biggest buyer of helium.
NASA consumes approximately 75 million cubic feet annually to cool liquid hydrogen and oxygen for rocket fuel.
Between tech innovation, the future of energy, and the red-hot space race, the helium market is set to increase by 11% every year through 2037.
By. Michael Kern Oilprice.com