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Extraction and use

After an oil drilling operation in 1903 in Dexter, Kansas produced a gas geyser that would not burn, Kansas state geologist Erasmus Haworth collected samples of the escaping gas and took them back to the University of Kansas at Lawrence where, with the help of chemists Hamilton Cady and David McFarland, he discovered that the gas consisted of, by volume, 72% nitrogen, 15% methane (a combustible percentage only with sufficient oxygen), 1% hydrogen, and 12% an unidentifiable gas. With further analysis, Cady and McFarland discovered that 1.84% of the gas sample was helium. This showed that despite its overall rarity on Earth, helium was concentrated in large quantities under the American Great Plains, available for extraction as a byproduct of natural gas.

Following a suggestion by Sir Richard Threlfall, the United States Navy sponsored three small experimental helium plants during World War I. The goal was to supply barrage balloons with the non-flammable, lighter-than-air gas. A total of 5,700 m (200,000 cu ft) of 92% helium was produced in the program even though less than a cubic meter of the gas had previously been obtained. Some of this gas was used in the world's first helium-filled airship, the U.S. Navy's C-class blimp C-7, which flew its maiden voyage from Hampton Roads, Virginia, to Bolling Field in Washington, D.C., on December 1, 1921, nearly two years before the Navy's first rigid helium-filled airship, the Naval Aircraft Factory -built USS Shenandoah, flew in September 1923.

Although the extraction process using low-temperature gas liquefaction was not developed in time to be significant during World War I, production continued. Helium was primarily used as a lifting gas in lighter-than-air craft. During World War II, the demand increased for helium for lifting gas and for shielded arc welding. The helium mass spectrometer was also vital in the atomic bomb Manhattan Project.

The government of the United States set up the National Helium Reserve in 1925 at Amarillo, Texas, with the goal of supplying military airships in time of war and commercial airships in peacetime. Because of the Helium Act of 1925, which banned the export of scarce helium on which the US then had a production monopoly, together with the prohibitive cost of the gas, German Zeppelins were forced to use hydrogen as lifting gas, which would gain infamy in the Hindenburg disaster. The helium market after World War II was depressed but the reserve was expanded in the 1950s to ensure a supply of liquid helium as a coolant to create oxygen/hydrogen rocket fuel (among other uses) during the Space Race and Cold War. Helium use in the United States in 1965 was more than eight times the peak wartime consumption.

After the Helium Acts Amendments of 1960 (Public Law 86–777), the U.S. Bureau of Mines arranged for five private plants to recover helium from natural gas. For this helium conservation program, the Bureau built a 425-mile (684 km) pipeline from Bushton, Kansas, to connect those plants with the government's partially depleted Cliffside gas field near Amarillo, Texas. This helium-nitrogen mixture was injected and stored in the Cliffside gas field until needed, at which time it was further purified.

By 1995, a billion cubic meters of the gas had been collected and the reserve was US$1.4 billion in debt, prompting the Congress of the United States in 1996 to discontinue the reserve. The resulting Helium Privatization Act of 1996 (Public Law 104–273) directed the United States Department of the Interior to empty the reserve, with sales starting by 2005.

Helium produced between 1930 and 1945 was about 98.3% pure (2% nitrogen), which was adequate for airships. In 1945, a small amount of 99.9% helium was produced for welding use. By 1949, commercial quantities of Grade A 99.95% helium were available.

For many years, the United States produced more than 90% of commercially usable helium in the world, while extraction plants in Canada, Poland, Russia, and other nations produced the remainder. In the mid-1990s, a new plant in Arzew, Algeria, producing 17 million cubic metres (600 million cubic feet) began operation, with enough production to cover all of Europe's demand. Meanwhile, by 2000, the consumption of helium within the U.S. had risen to more than 15 million kg per year. In 2004–2006, additional plants in Ras Laffan, Qatar, and Skikda, Algeria were built. Algeria quickly became the second leading producer of helium. Through this time, both helium consumption and the costs of producing helium increased. From 2002 to 2007 helium prices doubled.

As of 2012, the United States National Helium Reserve accounted for 30 percent of the world's helium. The reserve was expected to run out of helium in 2018. Despite that, a proposed bill in the United States Senate would allow the reserve to continue to sell the gas. Other large reserves were in the Hugoton in Kansas, United States, and nearby gas fields of Kansas and the panhandles of Texas and Oklahoma. New helium plants were scheduled to open in 2012 in Qatar, Russia, and the US state of Wyoming, but they were not expected to ease the shortage.

In 2013, Qatar started up the world's largest helium unit, although the 2017 Qatar diplomatic crisis severely affected helium production there. 2014 was widely acknowledged to be a year of over-supply in the helium business, following years of renowned shortages. Nasdaq reported (2015) that for Air Products, an international corporation that sells gases for industrial use, helium volumes remain under economic pressure due to feedstock supply constraints.