Senior officials with the City of Medicine Hat are disputing a report that states it has found “a gusher” of helium, but confirm plans to add the valuable industrial chemical to its energy business model. The report, which appeared Wednesday under a large headline on the Medicine Hat News front page, states that drilling results of ongoing oil exploration in west-central Saskatchewan showed amounts of the element that is about 40 to 50 times more valuable than natural gas. Administrators, however, say that there is “no helium discovery at this point,” but they wish to add the valuable gas to the existing energy business model and plan to work so the production can be refined locally. Elected officials responded to media reports of the project with enthusiasm. “Finally,” Mayor Ted Clugston wrote on social media. “I’ve been eagerly anticipating this announcement for more than a year. This is really fantastic news for the Gas City.” A presentation set to be given on Thursday to council’s utility committee states that helium-specific leases have been secured and exploratory plans have been drawn up to build a local refinery, possibly in partnership with a major firm. Chief administrator Merete Heggelund told the News early Wednesday that there is no helium production currently. “We have plans to drill several prospect (wells) starting this fall,” she wrote in an email. “We have also spent significant time researching and positioning ourselves in the market to build the business plans.” Administrators and council members approached this week by the News declined comment until the item went before the utility committee meeting on Thursday. A backgrounder for the committee states the city has acquired its first helium-specific exploration lease in Saskatchewan and will seek others. The plan is to drill five exploratory wells in 2018, paid four out of division reserve funds. A second lease has been obtained in Alberta, where the royalty regime is different. Some lobbying on the current extraction rates has already taken place. In late 2015, the city-owned energy exploration company, Prodco, embarked on a oil exploration program aiming to diversify the business in light of steadily low natural gas prices. That $45 million drilling program produced, “extraordinary results” according to the most recent update in late 2016. Since then, several city councillors have told the News that helium could add another dimension to the city’s business units, end a drain on current reserve funds and backstop the city’s finances well into the future. Others have spoken about their wish to get an update to Prodco’s oil drilling activity made public before the fall. The city hopes that securing new production of helium, which is naturally occurring and often found in conventional oilfield geology, could result in new refinery located in Medicine Hat that would serve several helium plays. Helium is used in a variety of high-tech purposes, medical equipment and industrial manufacturing. Almost half the global supply is produced in Qatar, followed by the United States with a 30 per cent share.
-
Archives
- October 2023
- September 2023
- August 2023
- February 2023
- January 2023
- June 2022
- January 2022
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- March 2021
- February 2021
- January 2021
- December 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- May 2013
- April 2013
- February 2013
- January 2013
- December 2012
- November 2012
-
Meta