this post was submitted on 28 Sep 2024
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Given its scarcity, helium should be more expensive, to the point where filling party balloons with it is decadent profligacy.
Good news everyone! Our national helium reserves have been privatized! Expect rising helium prices soon.
Privatization seems like a really bad idea to me. Helium is non-renewable resource. Privatization is about being 'efficient' at maximising profits. Do you think the people / companies that own the helium reserves are going to be interested in keeping helium available for centuries in the future? I'd say probably not.
For a profit based company, the only motivation to preserve the helium for future use is that maybe it will be worth a lot more money in the future. But there are two big problems with that. Firstly, the timescale is likely to be too long for the profit to be of interest. And secondly, the main reason the price would go up is scarcity; and that scarcity will come sooner if the helium is wasted in the short term. (Unless one company actually has a monopoly on helium, in which case they can create artificial scarcity by just not selling it. But that would obviously be bad for other reasons.)
The thing with helium though is that it's already privatized. The geologic formations that trap helium from uranium and thorium decay are the exact formations that trap fossil fuels, particularly natural gas. Whether it's worth it to capture that helium is purely market driven by private interests. Most of it is just off gassed into space instead of separated. All that government production has amounted to is making helium cheap enough to put in balloons and use on wasteful cryo applications with no recovery mechanism like it was subsidized, making separating it from natural gas uneconomical. Increasing the price would decrease the monumental waste we already do.
https://pubs.aip.org/physicstoday/article/60/12/10/413018/Helium-scarcity-blamed-on-waste