The World's Richest Companies Are Fighting Over A Rare Gas
- FN Media Group Presents Oilprice.com Market Commentary
LONDON, April 29, 2021 /PRNewswire/ -- The next supply squeeze that may take markets by surprise isn't lithium. It isn't even a battery metal …While everyone is distracted by the media barrage surrounding EVs, another commodity may be creating an investment opportunity to rival all … Mentioned in today's commentary includes: Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOG), Suncor Energy Inc. (NYSE: SU), Westport Fuel Systems Inc. (NASDAQ: WPRT), Enphase Energy, Inc. (NASDAQ: ENPH).
It's helium. And some experts say we're running out of it. It's not just a niche commodity anymore. It's not just about balloons. And we think it's positioned to become the focus of increased investor interest.
Like oil and gas, this is about exploration, discovery, and development. And we think the biggest returns may end up coming from the small-cap explorers trying to hit the big time with a new discovery - all on their own.
Right now, we think that's looking like Canadian Avanti Energy Inc. (AVN.V; ARGYF) backed by an experienced team that's been involved in the discovery of the Montney, one of North America's largest natural gas discoveries and is now ready to try it again, hot off the acquisition trail.
The Montney discovery still produces and has produced for over twenty years and at its peak, was producing up to 300,000 boe/d. Now, Avanti has acquired the license for 6,000 acres from the Government of Alberta in highly prospective helium territory at what looks to us like the tipping point of a global supply squeeze. But Avanti has its sights set on North America at large--not just Canada. On April 16, they announced entry into a letter of intent to acquire a 12,000-acre prospective helium land package, this time in Montana.
Growing Helium Demand
Demand for helium is increasing, and it's coming from multiple sectors, including everything from the tech and biomedical industries, to space, medical equipment and national security. And, yes, of course, party balloons and Thanksgiving Day parades. Many industries require helium.
It's been reported that the tech industry has been a massive catalyst, and that 2013 was a game-changing year for helium supply. That's when the world's first 'helium drives' were made commercially available, making helium a key ingredient to fill our monstrous appetite for data.