Auctioning of federal helium reserve has mixed results

Science : Helium is an important, nonrenewable natural resource that is used in medical, space, military, and commercial applications. About 40% of the helium used in the US is supplied by the US National Helium Reserve, established in 1925 in Amarillo, Texas. In 1996, however, Congress decided to privatize the helium industry and ordered that the helium reserve be sold. To better regulate the selling off of its helium reserves and make the process more competitive, Congress resolved in 2013 to offer the helium at auction rather than sell it at a fixed price. That decision has met with mixed results. Attendees at a recent congressional hearing were informed that the auction succeeded in getting a higher price, but fewer companies ended up bidding on it. Because the supply and price of helium continue to prove volatile, some researchers are calling for the federal reserve to remain open beyond its scheduled closure in 2021.