Thursday, October 24, 2013

Helium Shortage

By Jesse Beutler


Do you remember when you were little and you use to take in the helium out of your birthday balloons? Well it happens to be that your grandchildren may not be able to manipulate their voice the way you use to. Consequently the helium on planet Earth is evaporating through our atmosphere as well as our government not being able to produce any from the reserves we have now so we are on a shortage, although Russia seems to have plenty of it as of now, we still have little remaining in American helium reservoirs.

You might be asking “is helium really that important?” In all actuality it is! We use helium on a regular basis to weld fiber optic technology, to make superconducting magnets for MRI scanners, manufacture electronics like TV’s and cell phones. So to answer your question, yes, helium really is that important.

It is because of this importance that there is a heavy demand for the product, but with a dwindling supply prices will rise due to a shortage. However the situation could be worse; during the space race and the development of nuclear technologies helium was being used a great deal and less was available to businesses.

However here in the now with the government being shutdown helium may be overlooked with the federal budget and the reserves that America does have may not be running much longer. If they do continue to run though that does mean more jobs for citizens and by 2019 when the reserve is empty it will have gained an estimated revenue of 6.1 billion dollars.

If America does not refund these reserves then the only access the world will have for helium is in Russia.

Truth be told I find it troublesome that we may become dependent on Russia one of our greatest national enemies if not our greatest; for Helium, which America would be in trouble without. Especially with a growing demand of 5% since the year 2000 Russia could definitely benefit from their reserves. So who’s to say that Russia will even comply with providing the necessary materials for American health care? Truth is they probably won’t; considering they’ve even supplied [Syria] help against America. This is why in the mean time America must take advantage of the reservoirs available now so that there is revenue to be earned and jobs to be given while there’s still a chance.

In the next decade Helium demand will have only grown 2.5% and with supplies dwindling prices will rise drastically so the world is in search of substitutes. The substitute will allow for the same process or job to be accomplished with another material that for America’s sake will be cheaper. Just from the research alone there will be jobs growing to find the replacement for helium once it’s gone. Once America has the material then the world will be dependent on the material as well and the American economy will benefit.

For now though the American government needs to decide whether or not they’re going to refund the reserves. Do you think it would be beneficial for America to refund the reserves?

30 comments:

  1. This comment has been removed by the author.

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  2. Jesse,

    Nice job including supply and demand concepts into your blog post! From what I read, it looks like the equilibrium price of helium is set to keep rising and rising! (Pardon the pun!)

    Mr. Batterman

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  3. Wow Jesse this was so interesting to read. It's a scary thought that we would have to rely on Russia for such an important resource. I deffinitely think it is important that our country maintain what reserves our still left. Why not use the resources while we have them? If we do so it will buy us some time to research a substitute. I haven't read a ton on the research that has gone into finding substitutes for dwindling resources like helium, gasoline, and others but it seems like there would be more discussion about strongly supporting the engineers and chemists that are working to discover substitutes for nonrenewable resources. It seems like our money should be going into that research instead of war and the numerous other unnecessary things we spend money on. Awesome post!

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  4. It's interesting how the world has become so distracted by diminishing oil issues that we have literally turned our backs to some of our more rapidly diminishing resources. A helium monopoly for Russia would definitely set us, as well as any other consuming countries, back a bit as Russia will have complete control of it's market. And because we are unable to obtain it ourselves in domestic territory, it makes the whole issue even more-so of a struggle then obtaining oil.

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  5. Whenever I hear that we have a shortage of something, I never would have thought that we would have a shortage of helium! This was interesting because it really opens your eyes to other resources that help us everyday. I agree with Ben when he says that our world has become so distracted by oil issues. It is true because you don't really pay much attention to things, unless they are thought of by so many people.

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  6. I've actually looked into this helium shortage a bit, and I remember reading that the US has been attempting to push out all of it's helium, to deplete the storehouses. Do you know if your statistics assume that they continue this pattern or that they cut back a bit? Also, as to your statement that Russia is our biggest enemy, I'm not sure about that, with North Korea attempting to develop nuclear weapons and constantly claiming that they will destroy America. But, still, I see your good point that we should not be entirely reliant on anyone for one good. Great job.

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  7. After learning about shortage and surplus in class, Helium never struck me as valuable resource. My only thoughts of Helium were recollections of nostalgic joy after sucking in giant gulps of an apparently useful resource to increase the pitch of my voice an astounding amount. If I had known that we were experiencing a shortage of helium, I would have been more reluctant to waste it for the sake of voice-altering comedy. You did a good job connecting this childhood entertainment to our economy, and writing a blog post that is both interesting and informative.

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  8. I think this is a really interesting topic considering everyone is so concerned with running out of oil, we haven't even realized this. I didn't know that helium was used for all those purposes either. It would be ironic if we had to start relying on Russia, so hopefully we can figure out a way to fix the problem. This was really informative, and your economic connections were great! I liked your intro too, it got me interested right from the beginning.

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  9. I agree with Augie, it's crazy to think that we were so focused on the shortage of oil that no one ever though about helium, or even that it's important. Your post really informed people of the necessity of helium, because I would haven ever thought that we needed it for electronics or MRI scanners. Although it's debatable whether or not Russia is our "worst enemy", I think that it's intimidating to be reliant on any country, whether or not there had been conflict in the past. I also think that we should try to refund the reservoirs since, as you have said, helium is a growing necessity in America.

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  10. This is a very interesting topic, thank you for sharing, I was never aware of the fact that helium is actually very important to out every day lives, like MRI scanners and to help produce our cell phones and TV's. All of us depend on our cell phones and we all watch TV regularly, it would be very interesting to see what would happen if we had to rely on Russia or even if the entire world ran out of helium! Overall a very good point to bring up, Jesse.

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  11. I was very shocked to hear that we are running out of helium. It never even crossed my mind that we could run out of something like that. I was also unaware that we used helium that much on a regular basis. I agree with Olivia in that our country should maintain what reserves we still left so that we don’t have to rely on Russia in the future.

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  12. I think this is a very interesting topic and I think if makes you question what other types of things the government overlooks. If Helium is needed for so many things that a majority of Americans never would have thought, who is to say that there aren't other things we use on a daily basis that we haven't even considered yet that are in shortage? The government tends to look at things that right in front of their faces instead of looking at the big picture. Hopefully they will notice that something needs to be done before all of the Helium and other resource we use are diminished.

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  13. This is a cool topic because its not something that most people would think about. I wouldn't have thought that we would be running out of helium. Where does helium even come from and how can we be running out. Its unfortunate that we would have to rely on Russia. Our country is going to have to conserve the helium so that we don't have to rely on Russia.

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  14. Thinking about this topic I remember last year when I wanted to buy a balloon for my sister and I couldn't because of the shortage. That's pretty small scale.. imagine how many people are counting on helium for MRIs! Anyways, it would be scary to have to completely depend on another country for such an important resource. I think it's important that our country maintains what reserves are still left.

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  15. I never knew how important Helium was to our society. I would have, before reading this, said that it was trivial and it was not important enough to waste money on when we are so in debt, but after reading how important it really is, I think it is necessary to maintain these reserves. It is not safe or smart to be relying upon another country to support us with resources for important objects like MRI's. We should focus some of our time and resources on maintaining these reserves.

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  16. With the need for helium so high I do not think that the government will completely stop searching for more of it. However at the same time it is clear that something will need to be done to find a substitute as giving Russia a monopoly on a necessary good would be absurd. So even if the government is devoting more funding to the search for other gases, private companies will be searching for the existing helium to make a profit on the increasing price.

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  17. I literally thought that helium was only used in balloons. I never that that it would have any use in anything else. And I think that we should be spending at least some of our money on this because it's important in the medical field and many others. It is actually being used for something helpful and not just something that looks fun and pretty at a party.

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  18. It is a surprise that Helium is one of the many resources that we are losing. After reading your passage it is true that helium is one of the many things that is still in competition with Russia even though we are allies now. Also from this report it seems more of an avocation paper where you are just defending a specific topic, in this case helium, and pointing out reasons why. If we lose helium the Russian will be the only people producing it. I am pretty sure America will not abandon Helium do to the fact of how much helium we used during the cold war and possible before that.

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  19. I never realized how important Helium can really be. I only thought that it was used in balloons, didn't know that it was used in different kinds of things other than those fun rubber party favors. Though as good as it sounds to have more jobs that were mentioned I think it is kind of important that we don't always rely on other countries in order to get the necessities. If our reserves run out we will have to turn to Russia for Helium which is all good and what not it does pose some problems as to if they will even let America into their own reserves. I think it would be beneficial if America does refund it's own reserves instead of going to an out of country resource.

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  20. I never knew that helium was a resource that was diminishing like that. Along with the fact that it is a resource that is diminishing and the only other producer is Russia I feel like it is key for us to keep up with producing it. Also I never even knew that Helium was used in things other than in balloons! Allowing Russia to be the only country producing and looking for helium it would allow them to monopolize that resource to the entire world. Which would for sure not be a good idea at all. That then makes it necessary for us to keep producing/looking for Helium to keep going with all the needs that we have.

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  21. I truly never knew that there was a shortage of helium! This was very interesting to learn about. I wasn't aware that helium was super important other for in balloons which obviously wouldn't be the end of the world if that diminished. But, I was unaware of the importance it can have. I think it is essential that we try and find a solution for this problem.

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  22. When I first started reading this I didn't think that helium was used for much, however it is obvious from this that it very much is. With the diminishing supply of helium it is sort of sad to think that our grandchildren may not be able to experience helium in itself. I also had no idea that we will have to rely on Russia if we want more. I feel like although it may not be a very serious problem at the time it can have its affect in the future. I think that we need to find a way to replenish the helium before we lose it forever.

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  23. I can't believe that helium is used for so much, before reading this I though it was just for ballons and party tricks. Although it may not be the best situtation it would be kind of intresting to see what would happen if we really did run completly out of helium, I'm sure someone would end up getting super rich selling it to us. Overall before reading this I didn't think a world without helium would be all that bad but now I really hope our government can come to a conclusion and fast!

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  24. I hadn't realized the true value helium has to our world, and if it is as important as you stated here, then our government should undoubtedly raise funds before the crucial element is lost. Although it is an important topic, because it is such an under minded issue to the common American, there will be little to no motivation for the government to go and fix this seemingly minuscule issue. American citizens are more often seen fighting for things that effect their money in the short-run, and seeing as the helium problem will most likely develop in later years, I don't foresee any real action to take care of this potential problem.

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  25. This is actually very surprising to me. I never even knew helium was used for as many things as it is. When I thought of helium, I only thought of it as something we used to change our voice. What will we do when helium runs out? Is there any way to produce more of it? I didn't realize the importance of it, but we must find a solution to this problem.

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  26. This is the first time I heard about a shortage in helium. All I ever hear about is how fossil fuels will run out in about 100 years but no one ever talks about helium though it is used for many different and seemingly important ways. I have no idea why the government and the people of America are not attempting to protect our supply of helium.

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  27. This is a very interesting topic to bring up for discussion seeing that no one really knew helium supplies were going into shortage. Undoubtedly, the price of helium will raise drastically due to this, not only cutting off many Americans from this fun voice-changing gas, but also affecting its most crucial uses in society. Because the prices will rise so much, there won't be as big a quantity of helium demanded from the public, so helium supplies won't really dwindle too rapidly. So should the government fund the reserves? If they were to do so, I'd think it would only be for the serious uses of helium (not raising our voices) beneficial to the country.

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  28. I never knew that Helium was used for so many different things. With all of its uses it's surprising that you don't hear more of the shortage. This topic also relates closely to what we have learned about supply and demand in class. There's no doubt that the price of Helium will increase, probably a lot, with this much of a shortage on the supply side.

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  29. Who would have thought that helium is a necessary item for multiple things. After reading this I have learned a lot and I really like how you end your response with a rhetorical question, allowing everyone to have their own opinion on the topic. The fact that we might have to rely on another country for helium is a bit scary seeing as they don't necessarily have to give it to us. Hopefully we find a way to fix this situation whether that be a substitute or replacement for helium so that it doesn't cause greater problems with price increases. I'm not quite sure how challenging this will be, but if researchers are successful with this it could possibly benefit us in more ways that just with our helium shortage. Overall, this is very well written and you incorporate good connections to economics.

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  30. I have never really thought about helium being used for things other than balloons, like MRI scanners. Are there alternatives to helium to supply these machines with what they need in order to work? And if so, why aren’t we using them yet? Perhaps saving our helium for only the important things would work better as well but then who gets to decide what is important enough for the use of our shortage of helium? Maybe driving up the price of helium would only allow large corporations to purchase it instead of regular citizens using it for frivolous things like birthday parties.

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