The helium industry is still a niche market with no public spot price for the product. As more prospectors enter the growing space, they’re finding out that it’s a bit of a black market.
The gas is needed not just for children’s balloons, MRIs and the space industry, but now the fast-growing semi-conductor chip sector is taking the largest chunk out of global supply.
The land is adjacent to a discovery by North American Helium, a private company that has $3.5 million equity investment into Helium Evolution. The two are partnering on drilling two wells by the end of this year, with the option to drill more. The lack of industry transparency means that Helium Evolution says it doesn’t actually know how much the product they find will be worth.
For years, companies in the middle, those who buy from producers, process and then sell it to end users, have dominated the helium industry. “And to take that risk, you know, we want to get some of that upside,” said Rodd. “We’re not against the midstreamers making margin, but if we’re selling it at the well head for $450 and they’re selling it for $1,500, we’d like to find a way to capture some of that,” Robb said.
Herchen notes that like other resources, helium pricing is based on factors such as how pure the product is and its processing costs.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Twitter layoffs hit Canadian office, involve at least two of the country's top staff - BNN BloombergGlobal layoffs orchestrated by new Twitter owner Elon Musk have hit the company's Canadian office with its two most senior leaders announcing they were part of the cuts.
Read more »
Shane Obata's Top Picks: November 4, 2022 - BNN BloombergTopPicks from Shane Obata, portfolio manager, Middlefield Capital
Read more »
Trudeau tax seen spurring flood of buybacks it’s trying to chill - BNN BloombergA new two per cent tax on share buybacks unveiled by Prime Minister Justin Trudeau’s government won’t be a huge deterrent to companies looking to repurchase modest quantities of shares at reasonable multiples, according to Canadian Imperial Bank of Commerce -- but it could carry a sting for others.
Read more »
If recession happens, expect entrenched inflation, higher rates: FES - BNN BloombergAmid deteriorating global economic conditions, the Canadian government took the rare step of outlining how a “hard landing” and a potential recession in early 2023 would impact Canada’s economy in the Fall Economic Statement released Thursday.
Read more »
Three ways Millennials can cut back on spending ahead of a potential recession - BNN BloombergCanadians should have their finances in 'preparation mode' for a recession, as inflation continues to rise, said Jessica Moorhouse, financial counsellor and host of the More Money Podcast.
Read more »
'The power has shifted': The helium industry is on the verge of change - BNN BloombergThe helium industry is still a niche market with no public spot price for the product. As more prospectors enter the growing space, they’re finding out that it’s a bit of a black market.
Read more »