Comment by marcosdumay
13 hours ago
The US government decided (maybe correctly, IDK) some years ago that their strategic helium reserves were too high (and thus expensive).
There were several announcements, a lot of discussion, and a long process before they started selling it. It was also a temporary action, with a well known end-date (that TBH, I never looked at). It had a known and constant small pressure over investments, it wasn't something that destabilized a market.
Isn't it like underground? Why would it be expensive?
It wasn't. It was injected into the porous rock at the Bush Dome Reservoir [1], which acted as a natural container of helium. The strategic helium reserve was "expensive" because buying helium for storage was funded by treasury debt, but it was expensive purely only on paper.
[1] https://www.tshaonline.org/handbook/entries/bush-dome-reserv...
The Bush Dome Reservoir is a giant underground formation. So yes, it's being stored underground.
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It was a penny wise and pound foolish political move to pretend to be financially responsible and reduce the deficit by some tiny rounding error on top of a rounding error amount.
Basically political bike shedding so elected officials could avoid making any hard or controversial decisions that would have a material impact but maybe upset some folks due to raising taxes or reducing spending.
I suppose I'm neutral on the topic of strategic helium reserves; but what aspect of this is supposed to be pound foolish? What exactly is the buffer meant to be for?
A strategic petroleum reserve makes a lot of sense, petroleum is part of the food supply chain and it'd be stupid to be in a position where a short disruption could cause people to starve. Not to mention the military implications if an army can't zoom around because the petrol stations run dry for whatever reason.
I don't see anything on the list of uses for helium that looks particularly time- and helium- sensitive in the way that a strategic stockpile would help with.