english issue
Helium Field in Algeria
A market to be
conquered
By Zineb A. Maïche
It is the second most widespread
element of the universe after
hydrogen. But on the ground, it is
present only in modest amount in
the earth’s crust where it exists
in the form of residue of the
radioactive decays.
From this modest amount, we
evaluate it to 250 billion m3.
Such amount is equivalent to
250 years average consumption.
Few countries contend for the
chance to have and market
heliuM. Leading the way, the
United States produces helium,
followed by Algeria, Qatar and
Russia. And only 12 helium fields
exist in the world. So, Helium
has the characteristic to be rare
to be drawn, but the quantities
available are sufficient. In parallel,
the market is concentrated by few
actors constraining the demand to
undergo the fluctuations.
For what helium
is used
This co-product of natural gas has
multiple interests and uses. In the
medical sector, it represents ¼ of
the worldwide consumption. For
industrial application, it is used to
cool the magnets of the scanners
in the medical imaging. It is also
used for the manufacturing of
electronic chips or optical fiber.
In the liquid state, helium is the
coldest gas on the ground (- 269°)
and thus is used in cryogenics.
Used in medical, military,
aerospace and industrial fields,
helium has an excellent place
following the various discoveries
of the man. Tanks to its diverse
and various uses, it covers a large
demand for diversified applications.
The helium’s rank
Its defining feature is that it is more
or less difficult to be extracted.
Although present at the state
of residue, it is not necessarily
rare. Its price on the market is
interesting for the buyer, but not
always tempting for the investor.
Moreover, helium finds few
concurrent solutions. Indeed, the
alternatives likely to replace it
result in an additional cost. As for
the production of neon lasers or
the manufacturing of optical fiber,
although it is irreplaceable, the
volume of the demand is too low
so that helium can carry weight.
The market
of Helium
The United States produces about
80% of the helium’s worldwide
demand. Without the American
fields, the deficit would range
between 25% and 30%. Algeria
markets approximately 10%
of the worldwide consumption
followed by Qatar and Russia.
The place of Algeria in the market
was supplanted by Qatar since
Americans were into partnership
with Qataris for the development
of the gas co-product. But the
recent demonstrations of hostilities
of Saudi Arabia, Egypt, even US
president Donald Trump toward
Doha could redistribute the cards
and downgrade Qatar on the
market of heliuM. Especially as for
a few years, the blamed American
reserves have not allowed so
effective output any more. The
American fields, profiting from
a permissive law of 1920, had
allowed the seizure of helium
market. Nearly one century later,
the principal importers like Japan
are concerned and worried about a
shortage.
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