Scarce Helium Supply

Viability Cannot Depend On Associated Gas

The first type of wells include gas fields derived from Meso.proterozoic to Neoproterozoic source rocks, sealed beneath thick evaporitic layers. Notable examples include the Eastern Siberian Platform, the Sichuan Basin in China, and the Amadeus Basin within Australia's Centralia Superbasin (Leipzig, 2023). These infra-labial sedimentary basins are not only primary sources of helium but also hold substantial hydrocarbon reserves (Buttitta et al., 2020). A key example is the Kovykta Field in Far East Siberia, which contains mixed carbonate and clastic reservoirs with helium concentrations ranging from 0.2% to 0.6%. This field alone accounts for approximately 37% to 42% of Russia’s total helium reserves, estimated between 1.9 and 2.5 trillion cubic feet (TCF) (Howard et al., 2012; Poussenkova, 2007; Abe et al., 2003).

The second type is associated with Paleozoic euxinic black shales or stable platform tectonic settings containing cyclic carbonate-evaporite sequences. Examples include the Genet region in Ethiopia and the North Field uplift in Qatar, where helium is often found in association with rich hydrocarbon systems.

The third type involves Paleozoic deep-marine anoxic black shales, notable for their significant thickness and mixed clastic-carbonate lithology. These formations frequently include regional radioactive “hot shales,” which contribute to helium generation. Prominent examples include the Michigan Basin in the United States and Saskatchewan in Canada.

With the advent of horizontal drilling technologies targeting oil and associated natural gas streams, coupled with the development of gas processing plants capable of isolating helium, U.S. helium production has seen a notable increase. This growth has been driven primarily by activity in the Permian and Williston Basins. However, as the era of "easy money" drilling in the Permian comes to a close and production follows a typical bell curve decline—with associated gas output falling to just 5–10% of initial volumes—helium production is expected to face significant challenges starting around 2027.

Then there is the 40 year old oil and associated gas Kansas and Texas wells whose casings are failing and the wells will be plugged and shut in. The state just did this in 2024 shutting in large quantites of wells from operators who did not maintain these old wells.

Historically, helium has been discovered largely by accident during oil and gas exploration. In recent decades, however, targeted helium exploration has become increasingly complex and challenging, often proving more difficult than traditional hydrocarbon exploration and development.