Helium infoA dramatic – and potentially lucrative – scenario may now be unfolding in the markets for one of the most overlooked natural resources on the planet.
This essential commodity – helium – is used to drive innovation for many of the world’s biggest tech companies...and it is needed to help manufacture everything from medical equipment to computer chips.
Yet despite its critical importance – and growing demand – a potentially crippling lack of supply has put us on the brink of a critical shortage.
This supply-demand imbalance has triggered a fast-moving growth opportunity for any exploration and development company that can show potential for significant new helium discovery.
The Bull Market for Helium Shows No Signs of Slowing Down
As a noble gas, helium is not combustible and has properties that make it irreplaceable for a number of important industrial applications.
Helium is the second most abundant element in the universe but it is extremely rare on earth.
With a global helium shortage looming, it’s estimated that the supply will not keep up with demand for the next 20 years.
And that is happening as industry demand is projected to increase at a compound annual growth rate of 11% each year through 2037.
While helium is most commonly thought of as being used for the inflation of balloons, the truth is helium is used in a number of critical parts of daily life.
* Medical Industry – Helium is used to operate MRI machines and as part of respiratory treatments.
* Cryogenics – Helium is the only element that can come close to reaching absolute zero.
* Internet Connectivity – Fiber optic cables must be manufactured in a pure helium environment.
* Electronics – Many electronics and semiconductors – including mobile phones – require helium to be used at various stages of the production process.
* Computers – Helium-filled hard drives offer 50% higher storage capacity with 23% lower operating power.
* Car Air Bags – Helium is the gas of choice for effecting the near instantaneous deployment of air bags in cars.
Helium is used by companies like Amazon, Google and Netflix to help cool their data centers. And both the U.S. and Canadian governments have recently added helium to their critical minerals lists.
Not to mention...approximately $12 million worth of helium is needed for a single space rocket launch.
In fact, the single largest buyer of helium is NASA, consuming almost 75 million cubic feet annually to cool liquid hydrogen and oxygen for rocket fuel.
And with the highly publicized rocket launches from Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin...that consumption of helium for space launches is only likely to increase in the months ahead.
That’s why for us Avanti Energy Inc. (TSX: AVN.V; US OTC: ARGYF) right now appears to be such an attractive potential investment.
Avanti Energy is Led By a Collection of Resource Industry Recognized Veterans
The Avanti Energy team is comprised of industry recognized veterans, some of whom were (while formerly at Encana) involved in the early stages of the discovery of the Montney Formation, one of the premier natural gas formations in North America.
Without question, the Avanti Energy team is among the most experienced – and most decorated – in the helium space, with direct experience in developing multi-billion dollar projects from their time at Encana.
Avanti CEO Chris Bakker has over two decades of experience in oil and gas, most recently working as a commercial negotiator with Encana (now Ovintiv) for major facilities and pipelines in the Montney gas play.