About Helium
Helium is the 2nd
most abundant element in the universe and the second smallest molecule. Hydrogen
is number 1 in both. Helium is a very inert, non-reactive gas. It has the
lowest boiling point of all substances. It will never freeze. It has high
conductivity. Helium occurs in two forms, one with three protons (Helium 3) and
one with four protons (Helium 4). There are two mechanisms for its origin. One
is helium 3 emplaced during the formation of the Earth. The other is helium 4
derived from radioactive decay of uranium, thorium, and lithium. The source of
these mineral elements may be from igneous, metamorphic, or carbonaceous sedimentary
rocks close to basement. Uranium and thorium from granitic rocks are the most
common source. Helium 4 is by far the most common form of helium encountered
via drilling. About 17% of natural gas wells contain some helium but the real
percentage is likely significantly higher as many were not tested for helium. Helium
occurs in the atmosphere at 5.2-6 parts per million. Helium often occurs with
nitrogen, CO2, natural gas, and natural hydrogen in varying proportions. It
does not occur with oil since helium is often pushed out during migration of
the oil. Helium emplacement is associated with rift systems where tectonic
plates move away from each other as outgassing from the resulting faults and
fractures. Accumulations often occur in porous rocks just above or near the top
of igneous or metamorphic basement.
Uses of Helium and Helium Demand
The graphic
below shows the main uses of helium. Cryogenics is the main use. Its main use
in cryogenics is in cooling superconducting magnets in MRI machines. Thus,
medical use is the main use. There are many other uses besides those shown
here. Its use as a component of rocket fuel is important. The second graph
from 2014 shows the major uses for helium in the U.S.
The U.S., E.U.,
Canada, and others consider helium to be a critical raw material. East Asia has
been leading helium demand growth. Countries that are continuing to modernize and
provide better medical care for their populations require more MRI machines and
that is the main source of demand growth. Helium is considered to have a high
geopolitical risk since its production is limited to certain countries. Current
supply estimates suggest we have 100-200 years of helium supply left in geologic
reservoirs.
Source: Proven and Hypothetical Helium Resources in Utah. Tyler J. Wiseman and Marc T. Eckels. Utah Geological Survey. 2020. Wiseman-and-Eckels-2020-Proven-and-hypothetical-helium-resources-in-Utah-RS-no-Attachment.pdf
Where Helium is Produced
The U.S. and Qatar
produced 75% of the world’s helium, each at about 37.5%. Other big producers
include Algeria, Russia, Australia, and Canada. Canada’s helium production is
expected to grow significantly. In the U.S. and Canada, most helium production
comes from the Midcontinent area and the Rockies. Texas and Kansas produce from
the large accumulation in the Hugoton formation, but those fields are in decline.
Other states and provinces with significant helium production include Wyoming, Arizona,
New Mexico, Colorado, Utah, Saskatchewan, and Alberta. Wyoming has the most
production with one field there producing about 9.4% of the world’s supply. Wells
have found potentially commercial quantities of helium in Michigan and Kentucky.
The Michigan accumulation is not expected to be significant, but the Kentucky
accumulation is certainly underexplored and could represent a potential supply
nearer to population centers where it is consumed. However, no current projects
are happening there. Kansas deposits are high grade (high helium%) but Arizona/New
Mexico has the highest percentages. Wyoming has the largest reserves though the
quality/he% is lower.
Source: Statista
Source: AAPG Helium Webinar - Steven Tedesco
Source: Proven and Hypothetical Helium Resources in Utah. Tyler J. Wiseman and Marc T. Eckels. Utah Geological Survey. 2020. Wiseman-and-Eckels-2020-Proven-and-hypothetical-helium-resources-in-Utah-RS-no-Attachment.pdf
Geology of Helium Emplacement, Migration, Trapping,
and Sealing
As mentioned,
the source rocks for helium are often granites that contain significant amounts
of uranium, thorium, and lithium that decay into helium over long periods of
geologic time. These are usually sandstones or carbonates. Porous reservoirs in
the sedimentary section in close proximity to the igneous basement rocks are
the usual reservoirs. Helium, as a very small molecule, will migrate to the top
of a structure. Most plays find it trapped in structural domes with four-way closure
and very good sealing rocks above. Salts and anhydrites make the best seals but
other rocks such as shales can seal it as well.
Helium often
occurs with nitrogen and CO2, but nitrogen and CO2 may also occur without helium.
It also occurs often with natural gas which always has a different origin than
helium. Natural gas is generated in sedimentary rocks at high temperatures and
pressures due to burial, but helium is derived from basement rocks or
near-basement carbonaceous shales. Helium also may occur with hydrogen but sources
of the two are not considered the same, though they both often occur along rifting
zones accessed by basement faults. There are nitrogen and CO2 deposits without
any helium. Thus, there is much variability in gas compositions.
Helium can be
remobilized during basin fluid expulsion. As shown in the models below helium
first migrates from granitic basement faults that extend into the sedimentary
section, into reservoirs, then migrates updip along traps to accumulate in the
structural highs or domes. It first migrates with basin water and other fluids.
As Wiseman and Eckels report in their 2020 paper: “Helium fractionates into
the gas phase easier in shallow, cooler, and underpressured reservoirs with
higher salinity formation water.” Veteran helium explorer Steven Tedesco,
who conducted a recent helium webinar for AAPG, noted that helium deposits are often
found in areas where there are two differing orientations of basement faulting.
One of those orientations is likely to be faulting associated with rifting.
Source: AAPG Helium Webinar - Steven Tedesco
Source: Proven and Hypothetical Helium Resources in Utah. Tyler J. Wiseman and Marc T. Eckels. Utah Geological Survey. 2020. Wiseman-and-Eckels-2020-Proven-and-hypothetical-helium-resources-in-Utah-RS-no-Attachment.pdf
Source: AAPG Helium Webinar - Steven Tedesco
Helium Processing, Transport, and Strategic Reserves
Helium requires
processing to separate it from the total gas stream. This requires
significant amounts of energy. Where applicable the natural gas that occurs in
conjunction with helium can be used to provide that energy. However, not all
helium deposits occur with natural gas so those deposits without it will have different
economics. Building a processing plant can be expensive. There are six
companies that buy helium in the U.S. They are typically large companies focused on “industrial
gases.” These companies may fund processing plants for small producers.
Non-cryogenic plants cost more and need bigger reserves.
Source: Helium One
Helium is
transported as a cryogenic (supercooled) liquid, which requires complex
time-constrained logistics. This is due to its propensity to leak. That is one
reason why producing helium from the abundant helium 3 (emplaced in planetoid
formation) reserves on the moon would be difficult.
The U.S. maintains a federal strategic
helium reserve. NBC News reports: “The mammoth underground structure is
comprised of nearly 500 miles of pipeline — stretching from Amarillo, Texas, to
the panhandle of Oklahoma to Kansas — and supplies roughly 40% of the world’s
helium.” This has been fed mostly by the now declining Hugoton deposits
that overly it. There has been discussion about selling the reserve to a
private entity but there has also been pushback against that. The Bureau of
Land Management (BLM) manages the reserve. Helium shortages have already
affected the availability of MRI services and could make costs higher for consumers
of these medical services. Helium prices shot up to nearly double as a result of
the Russian invasion of Ukraine. Detractors of the potential sale say the sale
would likely result in higher helium prices.
Current Helium Exploration Criteria and Areas
Tedesco points
out that there are two main factors in evaluating helium gas shows in wells.
First one needs to know the % of helium in the gas stream. Second, one needs
to know the production rate of the total gas. Thus, he notes that if the He% is
say 4-8% then the gas production rate needs to be about 250 mcf/day or above. If
the He% is at 0.5-2%, then the gas rate needs to be 1MMCF/day or above. Aeromagnetic,
seismic, and gravity surveys can help delineate deep basement structures. Structure
mapping can identify potential traps. Dry holes and sub-economic wells are
common in helium exploration.
Helium
exploration is ongoing in the Midcontinent and Rockies. Extension of Wyoming
production may be limited by proximity to National Park lands. There may be
areas where helium can be produced with natural hydrogen. Some explorers want
to drill into fractured granite in search of helium.
Source: Helium in Wyoming. Kelsey S. Kehoe. Wyoming State Geological Survey. Public Information Circular No. 48. 2023. wsgs-2023-pic-48.pdf
Helium in Tanzania Along the East Africa Rift System
Basins
A large accumulation has been known in Tanzania for
decades, but sufficient traps have yet to be found. However, a London, U.K. company
called Helium One, has been exploring for the past few years there in the East
Africa Rift System. The rift system consists of multiple rift basins associated
with major rift normal faults. From the shows and seismic it looks like they
are targeting the high sides of the faults. They have recorded over 10% helium concentrations
from thermal springs. One basin there, Rukwa could become a major producing
area. Helium One has been exploring the area for several years now. They are
currently testing that area with Phase II drilling. According to Helium One:
“Rukwa hosts independently verified (SRK-2020)
Best-Estimate Unrisked Prospective Recoverable Helium Resource (2U/P50) of
138Bcf, making this the largest known primary helium resource in the world.
Helium concentrations up to 10.2% He have been recorded in surface seeps,
representing incredible high grade compared to typical values of 0.1-0.3%
associated with hydrocarbon by-product production. An extensive multispectral
satellite spectroscopy (MSS) seep study over the basin in 2021 also confirmed
the presence of these known seeps and has aided our exploration efforts with
identifying potential new seeps and understanding helium migration through the
basin.”
It should be interesting to see what knowledge comes out
about helium migration. The following slides are also from Helium One,
highlighting the geology in their prospect areas.
Helium One is modeling capex costs at $38 million US) per
processing plant and $48 million for 6 wells plus gathering lines. They purchased
their own drilling rig over the same to help better control timing and costs. It
should be interesting to see the results.
Possible Helium Play Along the Kentucky River Fault
System/MidContinent Rift System in Central Kentucky
As mentioned,
there is currently no activity in exploring for helium in Kentucky. There have
been shows of helium gas in wells, of potentially commercial quantities if gas
production rates were higher. One well in particular, Texaco’s No. 1 Kirby well
in Garrard County, Kentucky, had helium shows as high as 1.9%. As shown in some
of the slides below these shows occur along a major rift fault. The structure
is not unlike what Helium One is targeting in Tanzania – high-side of down-to-basin
normal faults bounding the rift system. There are some areas where there are
different directional orientations of basement faults as Tedesco mentioned were
often associated with helium presence. At first, I wondered if a well to the
northwest closer to the center of the Jessamine Dome, which is a part of the
Cincinnati Arch system could act as a trap. That is probably not feasible since
the earliest age of the formation of the Cincinnati Arch is Late Ordovician and
this would require further migration of the helium up through the Cambrian
section to reach the dome and since the surface is Ordovician there is not much
chance for good trapping in the shaly limestones. Geologists at Kentucky
Geological Survey believe that the main source of the helium is the carbonaceous
Conasauga Shale, with the Grenville-aged basement granites a lesser source. The
Conasauga Shale is above the biggest helium show at the top of the Rome
Formation so I think they may be suggesting that the helium is migrating up
from the deeper and thicker Conasauga on the low side of the rift fault.
A paper that
came out in 2018 in the Geological Society of America’s GSA Today reinterpreted
the presumed extension of the Grenville Front south into Ohio as instead an
extension of the Eastern arm of Midcontinent Rift. There is significant
evidence to support this interpretation. One is the exploratory discovery of
the Middle Run Formation, interpreted as a localized but thick Precambrian-aged
metasedimentary Sandstone deposited in a local rift basin in Warren County, Ohio. This well is along
the Western edge of the proposed Midcontinent Rift extension in the paper. One
core in the well showed large vugs in the Knox Dolomite, which is quite thick
in Southern Ohio and Kentucky. On the other side of that same proposed rift
extension is a well I evaluated during drilling in Brown County, Ohio near the
town of Sardinia on the flank of the Cincinnati Arch. The Knox Formation is
older than the Cincinnati Arch. I believe it was at or not far below the Knox
Unconformity which is the truncated top of the Knox Formation a little past
1700ft total depth. There the well had a very small gas show with a strong sulfurous
smell. I was surprised the gas show was so small considering the smell. The
rock samples, some of which I still have, included large dolomite crystals,
small sucrosic (sugary) dolomite crystals, shimmering large pyrite crystals,
and possibly anhydrite. There was also a strong saltwater show. I am guessing
it was a sulfate-bearing brine, probably with lots of sodium, calcium,
chlorides, and sulfates like in the Cambrian brines in Ohio and in the Michigan
and Illinois basins. The deeper Cambrian brines are very saline with high total
dissolved solids, more than the shallower brines. The large vugs with large
crystals suggest the work of hydrothermal brines coming up from the hotter
basement. I had seen Knox vugular dolomite in multiple wells and these crystals
were much larger. I know of a Knox exploratory well a little to the east in
Pike County in Ohio that encountered very high percentages of nitrogen (I seem to recall 80% or possibly 30%). I don’t know if the outgasses are related to the saline brines, I am just noting some
reservoir fluids present in the rocks of the general provenance of a shallow
salty sea with marine and clastic deposits. It is uncertain if any outgassing from
rift faults or other basement faults makes it to the Knox, but it seems likely.
There is high nitrogen content in gas even further to the east in Gallia County,
Ohio in the Silurian Clinton in fields I have worked with directly. There was
also some CO2 and some trace amounts of hydrogen and helium. We did have an
aeromagnetic survey flown over the region and defined basement faults and there
was fair to good juxtaposition of interpreted basement faults with higher nitrogen
gas. Even further east in West Virginia in the central part of the Appalachian
Basin, there are a few fields in the Silurian equivalent Tuscaroras Formation
that have over 50% CO2 that in the past was sold as food-grade CO2 to the
beverage industry. Those wells are within the boundaries of the failed Cambrian
rift system known as the Rome Trough which opened up the Iapetus Ocean that still
underlies the center of the Appalachian Basin.
Source: Is the “Grenville Front” in the central United States really the Midcontinent Rift? Carol A. Stein, Seth Stein, Reece Elling, G. Randy Keller, and Jonas Kley. GSA Today. Geological Society of America. Volume 28 Issue 5 (May 2018). GSA Today - Is the “Grenville Front” in the central United States really the Midcontinent Rift? (geosociety.org)
References:
Helium
Prospecting, Production, Transportation and Breakthroughs - Dr. Steve Tedesco –
AAPG Webinar, November 14, 2023. Bing
Videos
Impending
sale of scientifically critical helium sparks worries. Julia Rosen. AAAS. Science.
November 6, 2023. Impending
sale of scientifically critical helium sparks worries | Science | AAAS
Massive
helium fields found in rift zone of Tanzania. Eric Hand. AAS. Science. July 8,
2016. Massive
helium fields found in rift zone of Tanzania | Science
Wyoming
One of Largest Helium Producers. The Cheyenne Post. November 2, 2023.
Wyoming
One of Largest Helium Producers | News | thecheyennepost.com
Helium
in Central Kentucky? Cores from the Texaco No. 1 Kirby well, Garrard County,
Ky. Kentucky Geological Survey. Helium in
Central Kentucky? Cores from the Texaco No. 1 Kirby well, Garrard County, Ky.
(uky.edu)
Assessing
the Potential Helium Resources in Central Kentucky. J. Richard Bowersox. AAPG. Search
and Discovery Article #51573 (2019). View
PDF (searchanddiscovery.com)
Proven
and Hypothetical Helium Resources in Utah. Tyler J. Wiseman and Marc T. Eckels.
Utah Geological Survey. 2020. Wiseman-and-Eckels-2020-Proven-and-hypothetical-helium-resources-in-Utah-RS-no-Attachment.pdf
Helium
resource global supply and demand: Geopolitical supply risk analysis. Ankesh
Siddhantakar, Jair Santillán-Saldivar, Thomas Kippes, Guido Sonnemann, Armin
Reller, and Steven B. Young. Resources, Conservation and Recycling. Volume 193,
June 2023, 106935. Helium
resource global supply and demand: Geopolitical supply risk analysis -
ScienceDirect
The
fate of America’s largest supply of helium is up in the air. Mary Pflum. NBC
News. February 7, 2023. The
fate of America’s largest supply of helium is up in the air (nbcnews.com)
Helium
One. Investor Presentation. August/September 2023. PowerPoint
Presentation (helium-one.com)
Helium
One. Projects. Introduction
- Helium One Global (helium-one.com)
Is the
“Grenville Front” in the central United States really the Midcontinent Rift? Carol
A. Stein, Seth Stein, Reece Elling, G. Randy Keller, and Jonas Kley. GSA Today.
Geological Society of America. Volume 28 Issue 5 (May 2018). GSA
Today - Is the “Grenville Front” in the central United States really the
Midcontinent Rift? (geosociety.org)
The Geology
of Ohio – The Cambrian. Geo Facts. No. 20. Ohio Dept. of Natural Resources. The
Geology of Ohio—The Cambrian - DocsLib
Isotopic
and geochemical characterization of fossil brines of the Cambrian Mt. Simon
Sandstone and Ironton–Galesville Formation from the Illinois Basin, USA. Dana
M. Labotka, Samuel V. Panno, Randall A. Locke, Jared T. Freiburg. Geochimica et
Cosmochimica Acta. Volume 165, 15 September 2015, Pages 342-360. Isotopic
and geochemical characterization of fossil brines of the Cambrian Mt. Simon
Sandstone and Ironton–Galesville Formation from the Illinois Basin, USA -
ScienceDirect
Helium
in Wyoming. Kelsey S. Kehoe. Wyoming State Geological Survey. Public
Information Circular No. 48. 2023. wsgs-2023-pic-48.pdf
No comments:
Post a Comment