The Impact of Selling the Federal Helium Reserve (2000) / Chapter Skim
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Pages 4-13
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From page 4... ...
Helium's low liquefaction temperature makes it desirable for the purging and pressurizing of liquid-hydrogen rocket propulsion systems and for cryogenic applications such as the cooling of superconducting magnets for magnetic resonance imaging (MRI) machines and superconducting cavities for high-energy accelerators.
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From page 5... ...
Federal Helium Reserve is a matter of concern to many in the commercial and academic sectors. In response to this concern, the Helium Privatization Act also mandated that the Department of the interior "enter into appropriate arrangements with the National Academy of Sciences to study and report on whether such disposal of helium reserves will have a substantial adverse effect on U.S.
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From page 6... ...
ExxonMobiT's Shute Creek processing plant in the Rocky Mountain region produced approximately 1.0 billion scf (28 million scary) from the LaBarge field, with an additional 0.2 billion scf (5.5 million scat )
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From page 7... ...
Plans for helium processing plant capacity increases on the storage pipeline suggest that this trend will probably continue. Third, there is evidence that natural gas processing facilities in areas other than Hugoton-Panhandle are becoming increasingly interested in processing natural gas for helium, where feasible.
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From page 8... ...
. A formula in the Helium Privatization Act of 1996 specifies the future price for sales from the federal helium reserve.
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From page 9... ...
First, the price established for the crude helium in the Federal Helium Reserve is approximately 25 percent above its current commercial price. Since all helium refiners on the BEM pipeline have longterm take-or-pay contracts with crude-helium producers, it is highly unlikely that the refining industry will buy and use gas from the Federal Helium Reserve in preference to private stockpiles and cheaper suppliers.
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From page 10... ...
To remain in business and satisfy demand, the refining companies on the pipeline will first exploit their private stockpiles at the Cliffside facility. Once these private stockpiles are exhausted, the companies will have no realistic option other than to begin purchasing the crude available from the Federal Helium Reserve.
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From page 11... ...
FOLLOW-ON ACTIVITIES AND RECOMMENDATIONS Although the committee believes that the implementation of the Helium Privatization Act of 1996 should not have an adverse effect on the overall production and usage of helium over the next two decades, there are a number of research programs and follow-on studies that should be considered because they would ensure that sufficient supplies of helium continue to be available to satisfy the needs of known and potential users beyond 2020. Follow-On Studies The committee's assessment ofthe impact ofthe Helium Privatization Act of 1996 was based on a number of assumptions about the future.
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From page 12... ...
Report helium reserves using the natural gas industry's classification scheme. The Helium Privatization Act of 1996 stipulates that the Federal Helium Reserve should eventually stabilize at 0.6 billion scf (17 million scary)
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From page 13... ...
. Identify potential sites for natural storage facilities to permit the establishment of new facilities near future major helium producers and to allow an increase in the storage and conservation capabilities of helium users.
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