Global Helium Shortage Could Deflate Things,
but Unevenly
Thomas J. Sheeran
September 12, 2006 - 00:04 a.m.
CLEVELAND (AP) - Party planners beware: a global but temporary
helium shortage could deflate festive balloons this fall.
The
shortage affecting some suppliers results from a series of
unconnected events, including delays in getting helium plants on
line in Algeria and the Mideast, the U.S. Bureau of Land
Management said.
The agency manages public lands, mostly in the West, and their
mineral resources. It handles 42 percent of the U.S. production of
crude helium, the colorless, odorless gas best known for inflating
balloons that is derived from natural gas production.
The government provides more than one third of the world's
helium, selling it to private plants for processing.
The various factors involved in the shortage in recent months
should be resolved by November, according to Leslie Theiss, who
manages the BLM office in Amarillo, Texas, the heart of U.S.
production of helium.
The U.S. government helium production remains at 100 percent,
but output will be trimmed in the fall for up to two weeks for
scheduled maintenance that has already been postponed to reduce
further supply disruptions, Theiss said.
Any supply disruptions are most likely to affect occasional
users — such as stores that sell seasonal party balloons — with
year-round contract users in better shape.
In Cleveland, Cornelia Franklin at A Pink Gorilla party-supply
store said she has used the same supplier for 17 years and has
been assured her store will get uninterrupted priority shipments.
Helium use for balloons can be seasonal, including busy
Valentine's Day and Christmas holiday demand, Franklin said. Any
reduced supplies probably won't affect people much because fall is
not a peak period, she said.
Inflating — "lifting" in industry lingo — represents less than
7 percent of helium use. Most uses are industrial, including
aerospace, electronics, fiber optics, metals and medical imaging
equipment.
The first public hint of the shortage emerged when party-supply
stores warned customers that they were coping with reduced
supplies amid reduced production and demand rising about 4 percent
annually worldwide.
A key issue in the shortage involves contracts for helium
supplies from a Qatar plant and two in Algeria which that been
off-line, said Hans Stuart, a BLM spokesman. One overseas plant
has been involved in lengthy maintenance and two are behind on
construction schedules
Along a 1-mile suburban Cleveland commercial corridor, the
helium supply situation was uneven.
Factory Card and Party City stores, both with a wall of
inflated sample balloons, reported no helium supply problems. But
Party Place, whose logo includes red and blue balloons, warned
customers with a notice taped to the entrance that temporary
supply limits meant it cannot rent helium tanks used for mass
inflating.
Pam Brooks, emerging from the Party City store with $9 worth of
eight white and translucent balloons to promote an office-supply
store open house, wasn't too worried, as long as the temporary
shortage doesn't mean big price increases.
Any kind of balloon — especially helium balloons that float
around — are visual and attract attention and display a sense of
fun," she said. "When people see balloons they know that's where
the party is."
Would she pay a premium if helium gets expensive? "I guess it
depends on how much more. It's not expensive as it is to get a
display like this," she said.
Praxair Inc., a leading helium supplier based in Danbury,
Conn., announced a 10 percent to 15 percent price increase Friday,
in part due to high demand and energy costs. Airgas Inc. in
Radnor, Pa., said in May it was raising prices for various items,
including 15 percent or bigger hikes for helium because of higher
energy and operating costs.
Praxair said it was working to keep its regular customers
satisfied. "Given the fragile nature of the helium supply system,
we are not able at this time to supply spot, backup, or unplanned
volume," the company said Monday.
A high-profile helium user, the blimp fleet of Goodyear Tire &
Rubber Co. in Akron, said it was more concerned by price increases
resulting from any shortage. About 10,000 cubic feet to 20,000
cubic feet of replacement helium is pumped yearly into the blimps,
which have capacities of 170,000 cubic feet to 180,000 cubic feet.
Blimps lose more helium in hot, humid weather, said Roger
Rydell, a Goodyear vice president. He said the company would not
disclose what it pays for helium.
On the Net:
Bureau of Land Management:
http://www.blm.gov
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