Pappy. Furthermore..
Helium, a lightweight gas, is a highly desirable commodity widely used in medical research, semiconductor manufacturing, space exploration, fiber optics, nuclear power generation, and other advanced technology sectors, as well as arc welding and rocket propulsion. "In our view, Western Canada is one of the most attractive jurisdictions to explore, produce, and develop a booming helium industry."
—Christopher Jones, Haywood Securities
Haywood Securities analyst Christopher Jones, in a recent industry report, noted that the combination of the 2018 drawdown of the U.S. helium reserve along with demand growth has "driven some remarkable price increase to this important commodity. With the price of helium at ~US$300/Mcf for producers (50x that of natural gas) even small amounts or low concentrations can be highly economic." Industry research predicts helium demand to "at least sustain the growth it has experienced over the last decade ([compound annual growth rate] of ~5%) through 2030."
Jones noted that there have not been any new helium supply sources in North America for years and that most of the new supply will come from geopolitically unfavorable areas. "This has created an opportunity for Western Canadian producers to fill the void," he stated. Most helium is produced as a byproduct of natural gas, but Western Canada boasts non-hydrocarbon sources of the gas.
"In our view, Western Canada is one of the most attractive jurisdictions to explore, produce, and develop a booming helium industry," the Haywood report stated. "Of note, in 2021, helium was declared a critical mineral in Canada which means it is considered essential to Canada's economic security."
Haywood counts. Stayhard