Exxon Mobil’s LaBarge facility in Wyoming has emerged as a reliable source of helium in the current market, which is experiencing tightness due to an outage in Qatar, one of the largest helium producers. With an estimated eight decades worth of helium left to produce at LaBarge, Exxon Mobil is well-positioned to benefit from the current market conditions.

According to analyst Manav Gupta, Exxon Mobil is a net beneficiary of the current helium market tightness, with upside to pricing and advantages in security of supply relative to certain industrial gas majors that rely on Qatar for production. LaBarge produces approximately 1.4 billion cubic feet of Grade A helium per year, which accounts for 20% of the world’s total supply.

The current market tightness is a result of an outage in Qatar, which has reduced the country’s output by 31%. This shortage has led to increased demand and higher prices for helium, providing Exxon Mobil with an opportunity to capitalize on its secure supply. The company’s LaBarge facility is not impacted by these events in the Middle East, making it a reliable source of helium for industries such as semiconductor and medical imaging.

Exxon Mobil’s LaBarge facility has been in operation since 1960 and has an estimated eight decades worth of helium left to produce. This long-term supply gives the company a significant advantage over its competitors, who may face challenges in securing a stable supply of helium in the future.