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.
Philippines Philippines Latest News, Philippines Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BNNBloomberg - 🏆 83. / 50 Read more »