Wyoming's Helium Empire Ascends As Qatar Gas Goes Flat

Readers have already been well briefed, see here and here, that roughly one-third of global helium supply has been disrupted, setting the perfect storm of chaos to spread across high-tech industries, particularly semiconductors. The shock is being driven by shipping restrictions through the Gulf and the shutdown of output from top producer Qatar, where damage to the Ras Laffan complex could keep supplies constrained for years. 

As the U.S.-Iran conflict enters its second month, one of the clearest second-order effects of the widening Gulf energy shock is the rewiring of global energy flows.

Buyers are already being forced to reassess the risks of concentrated energy exposure to the Gulf region, whether in crude and refined products or in LNG and helium, as war damage to major LNG export facilities in Qatar and Hormuz-related shipping constraints suggest energy flows could remain impaired for a prolonged period. Some of the countries most exposed to Gulf disruptions are in Asia, Africa, and Europe, as well as California in the U.S.

The good news for global buyers seeking more reliable alternatives to Gulf energy products is a theme we pointed out last month: American LNG exporters in the Gulf of America stand to be major beneficiaries of the disruption.

Adding to that theme, UBS analysts led by Manav Gupta said ExxonMobil stands out as a major beneficiary of the helium shock.

"Qatar was expected to increase its share of global capacity to 34% over the next five years; however, damage to the Ras Laffan facility could delay this expansion," Gupta noted. But as it has turned out, the head-to-head race with the U.S. in LNG export capacity has paused for now, as the U.S. pulls ahead.

2025 Helium production by country

Gupta continued, noting that XOM is set to dominate the global helium market through its facilities in Wyoming:

XOM's LaBarge facility in Wyoming, provides 20% of the world's supply, which has not been impacted by recent events in the Middle East. With an estimated eight decades worth of helium left to produce there, LaBarge is poised to play a significant role through the end of this century.

This facility, is capable of producing ~1.4 billion cubic feet per year of Grade A helium. With over 30% of global capacity disrupted, this location will play a key role in meeting global needs for Helium which is a critical element for many advanced technologies, like MRIs for healthcare, rockets for space exploration, and microchips for advanced computing.

Extracting helium was not part of LaBarge's original design when the facility began producing natural gas in the mid-1980s. After large quantities of helium were discovered underground, it soon became central to the facility's operation.

The two wars now stretching across Eurasia - the Russia-Ukraine conflict and, now, the U.S.-Iran conflict - are accelerating a rewiring of global energy flows toward suppliers seen as more stable and secure, above all the U.S.

Professional subscribers can read the full note on why UBS says XOM is a "net beneficiary of the current helium market tightness" at our new Marketdesk.ai portal.