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| Walk-through Valentine Heart by Jeanne Cockcroft |
Last month, right after the January columns went live, I came across some information about the helium shortage that was too valuable to ignore. Not wanting to wait another moth to share what I learned, I posted it to the BHQ mailing lists. Since many of the regular readers of this space don't follow the daily discussions, I'm repeating the information here.
I've written a few times saying that I didn't think the helium situation should be in any way hurting the balloon industry. But that's because I was encouraging the use of air wherever that's practical. This information, if accurate (and it should be, due to the source), makes things look even better.
The following letter by Phil Kornbluth, Executive Vice President of Global Helium at Matheson Tri-Gas Inc. was written in response to an article on bloggingstocks.com. It is included here with his permission.
I am writing with a comment on your recent article related to the helium shortage.I currently am responsible for managing the worldwide helium business for Taiyo Nippon Sanso (TNS), the leading Japanese industrial gases company. Before joining TNS, I managed the global helium business for The BOC Group, plc for many years. So I am somewhat knowledgeable on the subject of helium supply.
The entire premise of the article is flawed. While there is currently a worldwide shortage of helium, and a tight helium market can be expected to continue through 2009 or 2010, there is absolutely not a shortage of helium molecules in the world. The statement that the world's supply of helium will run out by 2015 is ridiculous.
A more accurate portrayal of the facts is as follows:
There are huge reserves of helium in the world that can still be exploited. Huge reserves are located in places like the Tip Top Field in Wyoming, the North Field of Qatar, the South Pars Field in Iran and various gas fields in Eastern Siberia. So why is there a helium shortage? The current shortage was triggered by the U.S. Bureau of Land Management's (BLM) restrictions on the quantity of crude helium feedgas that the BLM will allow helium refiners to "redeliver" from the BLM's crude helium pipeline, thus reducing the capacity of six helium liquefaction plants that together account for nearly 2/3 of global capacity. In addition, production from new plants in Algeria and Qatar was delayed and ramped up to full production more slowly than had been anticipated. Throw in a few maintenance outages and we ended up with a real messy situation. So why is an ongoing shortage expected? It is important to remember that helium is produced as a by-product of natural gas processing, including LNG production. The investments required to develop natural gas fields, pipeline systems and gas processing or LNG facilities are many times greater than the investment required for helium extraction, purification and liquefaction. So even though the helium reserves are present in very large quantities, the helium producers can not produce the helium until such time as the natural gas fields in which helium is present are commercialized. So even though there is a helium shortage, the helium industry can't build new plants until the after the energy investments have been made. There are currently a number of energy/helium projects on the horizon and by 2011, the worldwide supply of helium should be at least ample.
Speaking to the specific comment that the world's helium supply will run out by 2015; I believe that this was an out of context reference to the fact that the BLM will sell off most of the US government's strategic helium reserve by 2015. Sale of the helium stockpile was mandated by the Helium Privatization Act of 1996 and is proceeding in accordance with the legislation. Crude helium from the stockpile has been very useful in enabling the helium refiners connected to the BLM pipeline to maintain their production capacity as the Hugoton Field, which is/was the source of crude helium for both the strategic stockpile and current extraction in the mid-continent area, depletes. In essence, the strategic stockpile has provided a bridge until the various new projects begin production in 2011. A correct statement would be that the US government will sell off most of its strategic stockpile by 2015.
Back to your article - it seems to me that the U.S. scientific community has launched some sort of PR campaign due to their unhappiness with rising prices for helium which have resulted from the shortage and misguided fears that the world is running out of helium, jeopardizing their scientific work. My suggestion is that you do a better job of fact checking before printing this material as it serves to spread misinformation and diminishes the credibility of your publication.
Phil Kornbluth
Executive Vice President - Global Helium
Matheson Tri-Gas Inc.
Now, this does not say the problem is going away tomorrow. In fact, it says there will continue to be limited supply for the next few years. It also doesn't say the price will drop down to where it was before the BLM implemented the current restrictions. But, helium is, and will continue to be available.
For reference, you can read the original article to which Phil Kornbluth was responding.
The range of choices in the arena of balloon industry education has revealed some big surprises in the last month. We learned during Diamond Jam, the annual balloon entertainer convention in Phoenix, that the convention's creator and organizer, Ed Chee, was stepping aside. Dave Scott and Steven Nelson are adopting the event and moving the convention from January to August. This will enable Diamond Jam to take place on dates adjacent to Summer Balloon Camp. Ed and Dave have stresed that the two events are not being combined and the identities of the individual events won't be lost. Diamond Jam 2008-1/2 will be Aug 14-17, 2008 at the Orleans Hotel and Casino in Las Vegas. It will immediately followed by Summer Balloon Camp from Aug 18-20. These changes are geared toward making a larger and more valuable convention experience, which will allow everyone to get a greater education. (If you missed Diamond Jam 2008, you can see the DJ photos, including competition winners here on BHQ.)
We also learned that Steve Jones, creator of Balloon Town USA is retiring that event. A number of us that haven't been able to get there yet are rather disappointed that we'll never get to see more than photos. However, Steve isn't giving up on large projects. He's just moving on to other endeavors. Starting next November he'll be running a new convention, FLOAT. The focus for learning at this convention is strictly centered on balloon decorating.
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| Snow White Look-a-like by Jeanne Cockcroft |
It's not just events in the US that are changing. Millennium Jam, a twister and entertainer focused convention in Belgium has also changed it's dates. Traditionally held in early summer, the event is going to take place in November this year.
And, rumor has it that Balloon Manor will be seeing some exciting changes too. It will be in Rochester, NY at least one more time, but other locations and venues are in the planning stages. For 2008, there will be opportunities for even greater audience interactions as we strive to make the wait to enter the Manor just as exciting as the tour itself.
I can't speak for anyone else, but I'm very happy about the fact that Twist & Shout is sticking to its usual time and format this year. My whole world can't change on me at once. I've been looking forward to this one for a while.
If you're having trouble keeping track of all of these opportunities,
visit the BHQ calendar.
In addition to the few events mentioned here, you'll find information
about many regional and local events. While you're looking, post some of
your own events too, so more of us can get out to where you are.
The award winning team of Jeanne and Dave Cockroft provide classic decor and creative sculptures for a variety of occasions, ranging from birthdays to corporate events.
Visit the portfolio of Balloon Designs by Jeanne.
