Monday, May 21, 2012

Will the Helium Shortage Affect Real Estate?

Here's a follow up article on helium :  http://www.washingtonpost.com/politics/federal-helium-program-how-temporary-becomes-forever/2013/04/26/80ef1148-adb8-11e2-98ef-d1072ed3cc27_story.html


First … to think I use to inhale this stuff to talk like a Munchkin from the Wizard of Oz.  I had no idea where helium gas came from and have never given floating balloons a second thought.  But this weekend, I took notice that most Open House signs were missing the festive balloons we’ve all come to expect.

Helium is the 2nd lightest of all the elements, only beaten by hydrogen.  It is abundant in our universe in which it makes up nearly a quarter of its mass.  Helium is produced by the atomic decay of heavier matter in stars.  We have helium in our atmosphere too but it escapes into space faster than it is produced in the earth.

Our helium comes from the drilling for Natural Gas.  Natural gas pockets contain up to 7% helium and is extracted as the gas is refined.  Helium occurs in natural gas because of atomic decay of radioactive elements in the earth’s crust (as I said, we all have inhaled this stuff in the past to talk funny).

So, why is there a helium shortage?  The US government stockpiled helium starting back when blimps seemed to be the future.  Helium is stored in underground salt domes beneath the Great Plains region.  In 1996, congress decided sell off the reserve at a low price to offset a 1.4 billion dollar debt of the reserve.  A 2000 government study said there will be a helium surplus for the foreseeable future.  The gas storage facility will now be empty by 2015.  Prices are still going up.

Okay, so graduation parties will be a little less festive.  Open Houses will be flying fewer balloons because offices won’t be investing in more expensive tanks.  Car dealerships will be going away from balloons and on to streamers.  Doesn’t seem so bad ….

Wait – helium also cools MRI’s, and is used extensively in aeronautics and electronics.  Welding, mostly of aluminum, alone makes up about 20% of the annual usage.  Shipbuilding will be particularly hit hard as they need to weld Marine Aluminum Alloy – the standard material today.  Other gases can be used in manufacturing but it will be a major overhaul of materials and procedures.  The costs will be passed along to the consumer either way – more expensive helium or a total overhaul to start using other gases.

So sacrificing balloons at Open Houses doesn’t seem like that big a deal.  Just stop breathing the stuff – it’s made from atomic decay and that can’t be good for you.

*about.com was a source for the information above.

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Sandy LeRette – REALTOR® ABR – Better Homes & Garden Real Estate / The Masiello Group – 436 Amherst Street, Nashua, NH 03063 cell: (603) 661-7301 email: slerette@masiello.com





Bob LeRette – Div. Sales Manager/ Real Estate – Boston.com & The Boston Globe, 617-929-2104 email: rlerette@boston.com & REALTOR® - Better Homes & Garden Real Estate / The Masiello Group – 436 Amherst Street, Nashua, NH 03063

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