Tim Rynott, CEO of Four Corners Helium, discusses emerging trends in helium exploration, commodity bundling, technological advancements, market risks, and innovative new uses shaping the global helium industry.
Helium has quietly become one of the most strategically significant elements in the global economy, underpinning technologies ranging from medical devices to advanced electronics and even cutting-edge renewable energy projects. As traditional helium sources deplete and demand for high-purity helium grows, companies are innovating rapidly to explore, extract, and commercialise this critical resource.
In this conversation, we sit down with Tim Rynott to gain insights from a leader at the forefront of the industry. With extensive experience in resource exploration and a focus on strategic innovation, Tim brings a unique perspective on the evolving landscape of helium production, market dynamics, and technological breakthroughs.
From the economic challenges of multi-commodity projects to the opportunities created by new applications, this discussion explores the forces shaping the future of helium, offering a rare glimpse into an industry that plays a surprisingly vital role in modern life.
Previously, you’ve spoken about commodity bundling regarding helium. Do you have any new thoughts on this subject?
Multiple commodities are associated with salt and anhydrite stratigraphic systems. The reason we’ve pursued helium in the Southern Rockies of the United States is the existence of thick salt and anhydrite layers, not only for their superior sealing capacity for oil, gas, and valuable carbon dioxide, but these formations also host substantial lithium and potash deposits.
From an economic standpoint, concurrently monetising two or even three commodities reduces the blowback from individual commodity price crunches. For example, in our Southeast Utah helium project, we plan to develop oil, gas, and potentially lithium derived from supersaturated brines. As for mining potash, 3D seismic is a valuable de-risking tool, which is why we are in negotiations with Vancouver-based Sage Potash to share 3D expenditures in one of our core areas.
More recently, with carbon dioxide prices rising – and helium prices softening – we’ve been examining ways to monetise the significant presence of carbon dioxide in southeast Utah and southwest Colorado. The merchant carbon dioxide market has changed dramatically in the last year or two. Many companies that once sold carbon dioxide as a by-product began injecting it back underground for seductive 45Q sequestration tax credits. That reduced supply. More dramatically, the West Coast will soon witness a 15-25% supply reduction with the shuttering of the Los Angeles Phillips 66 refinery and downsizing of Valero’s Benicia Refinery in 2Q2026. These two refineries contributed large volumes of carbon dioxide associated with their oil and gas refining.
It’s speculated that carbon dioxide at the wellhead can presently fetch $5 to $6 per thousand cubic feet, which is nearly double the average price of natural gas over the past three years. With potentially 1-2 trillion cubic feet of recoverable subsurface carbon dioxide in the US Four Corners vicinity, the economics for the helium/ carbon dioxide drill bit could practically double in some locales. Beer, beverage, bubbly water, and dry ice fans can breathe easier.
Commodity bundling can also be a rate-of-return saviour. Companies like Alberta-based First Helium and Colorado-based Quantum Helium plan to exploit fast-tracked shallow oil and gas targets while the time-intensive infrastructure for the deeper helium targets is being completed.
Are there any new technologies helping reduce helium exploration risk?
There certainly are. Having watched the explosion of technical advancements for oil and gas exploration over the past four decades, we’re applying similar advancements to helium exploration.
First, the primary host rocks for large helium deposits in the Rockies began as shallow water reef complexes, and later, through burial, developed diagenetically controlled pockets of high porosity and high permeability strata. Considering the heterogeneity of these porosity pockets, modern 3D utilising sophisticated inversion and amplitude versus offset algorithms is now paramount to success. Plus, keep in mind not all re-processors are the same – do your homework.
Second, pore pressure prediction has become far more advanced. Offshore drillers developed pore pressure plots based on seismic frequency content to detect pressure transitions in deep wildcat drilling. These same transitions help us recognise viable seals – the single most elusive factor for confirming helium traps.
Third, there’s a newer technique involving tiny pockets of porosity called fluid inclusions. Often just a few millimetres in size in deep sedimentary rocks, these minuscule amounts of gas can be analysed for gas compositions even from wells drilled 60 or 70 years ago. Thereby, detecting whether helium or carbon dioxide is present in areas that were previously data-devoid.
Besides helium pricing, what else do you see as notable in the helium space currently?
Here’s what comes to mind – are we becoming overly comfortable in this new world of Russia-induced helium surplus, starting with the Federal Helium Reserve? The Reserve recently passed the century mark, and the reservoir engineering suggests it could be depleted in 4 to 7 years. The heartburn is knowing that the Reserve supplies 25 to 30% of US consumption, plus it’s been sold to a foreign entity. Eighteen months ago, Germany-based Messer, Inc, acquired the stored helium for a steal, and their operational plans for production sustainability are as opaque as deep space.
Keep in mind that it’s not just helium-dependent semiconductor wafers required for our phones and vehicles – it’s also the dependence on helium to fuel our military might. It’s worth noting that the helium industry has suffered four major helium shortages in only 20 years, and many new demand applications are slated for the future. Yes, it’s true that helium storage caverns have been built to assist in supply stability, but keep in mind, the two United States-based caverns are a fraction of the size of the Federal Helium Reserve, and the cavern fill rates are not made public.
Looking at another aspect of the helium landscape, now that Russia has been producing helium for over two years, how has that impacted the industry?
Let’s start with Gazprom’s helium price war with Qatar for the Chinese market share. By beating Qatar’s helium price by approximately 20%, Gazprom swallowed up almost 40% of China’s massive helium import volumes. All within two years.
Sanctions aside, as the number one helium consumer on earth, could a similar situation befall the United States? Certainly. But what if present helium explorers look to the example of the Permian and Delaware Basins as a rationale for circumventing this fear?
In West Texas and southeast New Mexico, technology and innovation were the driving forces in materially reducing the lifting cost of their crude oil, which had a huge impact in dropping foreign oil imports from a peak of 60% in the early 2000’s to basically negligible today. The same innovation is occurring in the fledgling helium industry. Based on our latest developments in the United States Four Corners area, we are envisioning helium lifting costs competing with any foreign-sourced helium. Whether it’s black-market helium, or we reach a point where Russian helium sanctions are lifted, when it comes to a price war, hear us roar.
Do you have any advice for individuals considering investing in helium?
Well, when your business model includes finding and developing helium reservoirs more affordably than the next guy, studying your competition becomes imperative.
The first place to start is studying a company’s science team. Are they proven hydrocarbon explorers? Do they have expertise in Geology, Geophysics, Geochemistry, Petrophysics, and Petrology? Has the geology been put into a regional context, and are they utilising modern seismic, particularly 3D? Do they have valid estimates for porosity, permeability, bottomhole pressures, and reservoir sizes prior to facility discussions? Answering these basic questions will lay the foundation for risk management in a complex industry.
Additionally, does the company have valid expertise for moving a product to market? Nothing ruins economics faster than poorly planned off-take scenarios. Are the gas compositions thoroughly pinned down? Were the Gantt chart timetables realistic, and EPC funding tightly controlled? Do you have an adequate power source? Economics are slammed when propane or other fuels are required to be trucked in.
Lastly, there are the red flags. Four come to mind. Is their team overly stacked with finance and marketing professionals? Do they overplay inordinately high helium percentages? High helium volumes almost always imply low volumes, and low volumes can’t justify the exorbitant midstream Capex. Do they dismiss extended test periods upon completing a well? There is no justification for this. And lastly, be wary when either the helium-3 or hydrogen card is played. Commonly, this is a Hail Mary pass, but with no receiver downfield.
We follow almost 50 helium exploration companies, and sadly, it’s possible that fewer than half will survive the present global helium bubble. At the same time, we admire entrepreneurship backed by solid science and will be actively cheerleading for the many high-integrity, hardworking enterprises that are chasing elusive helium.
Finally, are there any recent innovative uses of helium that are creating buzz in the industry?
Yes – airships are one of them. Think back to the old Goodyear blimps – now imagine much larger, modern helium airships designed for recreation plus vital long-haul transport. They’ve become highly efficient and will be particularly useful for rapid disaster relief. Another new application involves helium being used in asthma inhalers, with roughly 900 million now sold annually.
There are also airborne wind turbines aptly named flying power plants. These tethered helium balloons operate up to 6,000 feet, where winds are five to eight times stronger than at ground level. A highly innovative and efficient approach for generating electricity in remote areas.
Of particular interest, Ukrainian soldiers have been using helium balloons to train for shooting down drones. By practising on zig-zagging balloons, they’ve increased their drone-kill rate by about 35%.
