Blue Star Helium’s strategy to discover and develop new, high-margin helium supplies in North America is continuing to gain momentum in 2020.
The Australian exploration company is currently focusing on targeting world-class helium resources near the historical Model Dome helium field in Colorado.
To align with this strategy, the company, which remains fully functional despite Covid-19, has changed its name from Big Star Energy to Blue Star Helium.
“It’s a challenging time for all of us but it’s also one of opportunity with the helium market itself being relatively resilient to Covid-19 related effects,” Blue Star Helium said in a statement.
“After a sustained period of 10-15% critical shortage in helium supply prior to Covid-19, there has been reduced short-term demand in sectors such as party balloons and diving gas.”
“However, demand still continues in critical applications including health (MRI, Heliox), military, computing and communications.”
Blue Star Helium said there is some helium supply disruption resulting from low natural gas prices and a worldwide LNG glut.
“Demand and pricing of natural gas and LNG is a key factor in helium supply – the vast majority of both current helium supply and forecast new helium supplies are byproducts of hydrocarbon production,” the statement continued.
“A post-Covid world is difficult to predict with certainty, however, it is likely that major new LNG projects with associated helium will see delays as well as a lack of further investment and this will have a more lasting and significant effect than any short term impacts to demand.”
“This would, in turn, have natural consequences to upward helium pricing in 2021 and beyond.”