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Google, Amazon And Netflix Are Scrambling for This Uncommon Fuel 


This could possibly be one of the vital important provide squeezes of our lifetimes … for a fuel that’s oddly each ample and uncommon.

And tech giants are about to seek out themselves preventing for who will get the leftovers, whereas the following explorer to make a discovery will in all probability reward buyers a number of occasions over.

This fuel is a vital a part of laborious drives.

It’s the linchpin of massive knowledge storage, which we will’t get sufficient of.

It’s important to IBM (NYSE:IBM), the king of quantum computing.

Tesla CEO Elon Musk’s SpaceX wants tons of it. Musk says this fuel prices him greater than liquid oxygen, and costs are about to skyrocket.

Google, owned by Alphabet (NASDAQ:GOOGL) wants this fuel for a novel strategy to supply rural areas internet–from the stratosphere, and streaming large Netflix (NASDAQ:NFLX) has joined the listing of main customers of this fuel for its huge knowledge storage.

A brand new discovery would assist science and drugs.

It is going to get monetary savings for giant knowledge, too.

And is important for fiber optic cables, semiconductor chips, and superconductors.

It would even be the lifetime of the occasion …

NASA and House X house missions want it.

And with no new discovery, tech giants like Alphabet, SpaceX, Microsoft, IBM, and even Netflix will immediately discover that what was once a commodity taken with no consideration is now priced to mirror a brief squeeze.

The fuel is helium. And we’re operating out–fast.

It’s ample within the universe, however extra uncommon on earth, and nearly nobody’s been significantly exploring for it. Till now.

The workforce at Avanti Vitality Inc. (TSX: AVN.V; US OTC: ARGYF) has already made a discovery in Canada’s prized Montney, for Encana. That’s one of many richest pure fuel deposits on the planet. And the workforce is utilizing the identical methodology to probe for what it hopes will show to be among the richest helium deposits on the planet.

Now, they’re again to discover once more, however this time, they’re not simply searching for helium as a by-product of pure gas–they’re searching for the mom lode of helium to feed the large tech, large knowledge wants.

Three Prime-Time North American Helium Prospects

In simply the previous month, Avanti has made three key acquisitions–two in Alberta and one in Montana–that it hopes will put it on monitor to turn out to be the following potential chief in new helium discoveries.

That’s vital as a result of we’re in the midst of the world’s third main helium scarcity in 14 years, and this time it might be a provide squeeze like we’ve by no means seen earlier than.

Why? As a result of we at the moment are formally out of our helium consolation zone. Till now, we’ve all the time had the U.S. Federal Helium Reserve (FHR) in Amarillo, Texas, to depend on. For the reason that Chilly Struggle, the Fed has been stockpiling helium, offering some 40% of the world’s provide.

However we’ve used most of that up, and in September, the reserve will likely be shut down, whereas the present value ceiling will disappear.

With out new discoveries, we’ll fall in need of what large tech, drugs, and house exploration want, and costs may skyrocket.

That’s why Avanti has jumped on three main acquisitions.

First, on March twenty ninth, Avanti acquired the license for over 6,000 acres from the Authorities of Alberta in extremely potential helium territory.

A beforehand deserted pure fuel properly on the property confirmed 2.18% helium and 96% nitrogen within the Cambrian and 0.3% helium and as much as 98% nitrogen within the Devonian.

Offsetting wells within the space have a number of assessments in Cambrian and Devonian intervals with as much as 1.79% helium and 83-93% nitrogen content material, and drill stem assessments (DSTs) point out reservoir high quality rock within the Cambrian and Ordovician zones.

Subsequent, on April sixteenth, Avanti made its transfer on ~12,000-acre potential helium land package deal, this time in Montana, with a letter of intent to accumulate.

It is a giant land place within the northern a part of Montana, and it’s proper near–and on-trend with–an energetic, nitrogen-rich helium drilling space in Saskatchewan.

Basement highs mapped with 2D and 3D seismic knowledge present a number of constructions potential for helium trapping in overlying sedimentary formations. A number of fuel analyses additionally present notable concentrations of helium, suggesting upward migration of helium and good potential for deeper helium-rich zones. It’s all on-trend with helium-producing areas on this area.

Excessive-grade helium wells drilled close by within the Seventies by USGS within the Maison formation yielded commercially viable helium at right this moment’s costs.

Then, on Might 10th, Avanti (TSX: AVN.V; US OTC: ARGYF) acquired an further strategic license in Alberta for ~2,500 acres that’s extremely potential for potential helium extraction.

The newly acquired property resides over an space with a closed structural excessive that’s ultimate for trapping helium and a number of helium exhibits have been recognized in and across the property with exhibits as much as 2%.

Beforehand drilled oil and fuel wells confirmed excessive nitrogen content material of ~95% in a number of zones. Nitrogen at this focus is essential as a result of it’s typically related to producible portions of helium and the manufacturing of helium is a comparatively easy course of.

With helium operating low, demand on the rise, and costs which may soar within the squeeze, Avanti is out in entrance of this recreation with the exploration benefit.

And so they’re shifting quick …

They plan to spud their first properly in by the top of 2021.

A World With out Helium?

Not if Avanti may also help it. And all the higher, geopolitically, if the following large helium discovery comes from North America.

Helium powers our most crucial tech initiatives. It’s a fuel that helps superpower standing, which makes the looming shutdown of the federal helium reserve all of the extra profound for explorers.

Past our breakthrough helium-powered laborious drives that allow our huge knowledge storage, superconductors, semiconductors, and house exploration, Google’s Venture Loon initiative seeks to deploy a community of helium-filled balloons to supply web connections to the agricultural world from the stratosphere. It hopes to attach the whole world utilizing a fuel we’re nearly out of.

And Netflix wants huge knowledge storage capabilities (as does everybody within the streaming trade). With out helium, it’s a lot more durable. Helium will increase laborious drive storage capability by 50% and reduces energy consumption whereas doing it.

Everybody needs helium-powered laborious drives.

That’s on prime of helium’s important use in scientific and medical analysis, and even medical gear. No extra helium. No extra MRIs.

The helium narrative is now the perfect commodity story on the market for some buyers, and if a small-cap miner makes the following large discovery … properly, that’s the place the largest rewards (and dangers) come from.

That’s why Beacon Securities Restricted not too long ago initiated protection on Avanti, calling it an “engaging funding alternative” due to its “world-class workforce” and “supportive He market fundamentals”.

Pointing to the Avanti workforce’s previous high-profile pure fuel exploration and discovery monitor file, Beacon sees the payout on this one in solely 2-8 months, with targets of as much as 122-635% return on funding.

With Avanti’s (TSX: AVN.V; US OTC: ARGYF) plans to make use of each “standard” exploration to determine structural Cambrian-aged traps and the excessive level of drilling, and 80% proprietary strategies, Beacon sees vital potential netbacks from this of C$309/mcf (with $300 helium costs) and C$548/mcf (with $500 helium costs).

With a transparent helium provide squeeze looming giant, a Fed helium reserve shut down, and rising demand, that is shaping as much as be the Avanti benefit, they usually could possibly be in prime place for the following large commodity supercycle.

Different Provide Shortages To Watch

Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is the world’s largest contract chip producer, that means it’s tasked with making chips for dozens of fabless tech corporations together with Apple, Qualcomm, Nvidia and Superior Micro Units amongst others. Which means Taiwan Semiconductor’s duty is unparalleled. If it could actually’t sustain with demand, there could possibly be some critical issues. The truth that solely a handful of chip producers really personal chip-making services has made the scenario much more dire. Certainly, many main prime semiconductor corporations are “fabless,” that means they solely design the chips however depend on different corporations, often known as foundries, to truly make the chips. The shift to outsourcing has been having a giant impact on structural adjustments and associated capability as a result of corporations that minimize orders within the early days of the pandemic have been pressured to go to the again of the road.

Taiwan Semiconductor is a key participant to observe in each the helium scarcity and the semiconductor scarcity. Because the world’s largest chipmaker, it wants helium to outlive. And with a semiconductor provide squeeze looming, it may stand to profit large when Massive Tech comes knocking.

Superior Micro Units (NASDAQ:AMD) is one other one of many world’s prime chipmaker and semiconductor producers. And it’s set to play a serious position in producing the tech that can drive the longer term. Whereas it’s primarily often known as a gaming firm, AMD, together with Nvidia are current in most fashionable computer systems, whether or not it’s a Dell, Lenovo, Razer and even an Apple, a minimum of one part in that pc will probably be constructed and manufactured by both AMD or NVDA.

The businesses aren’t simply constructing house computer systems, both. AMD, for its half, is constructing CPUs for use in huge knowledge facilities, the sort propping up Microsoft’s Azure cloud-based workstations and desktops. And its GPUs are offering the pace, safety, and scalability to maintain these knowledge facilities performing on the stage wanted to push fashionable tech into the longer term.

AMD’s greatest competitor, Nvidia (NASDAQ:NVDA), can also be pushing new tech into the longer term. It’s even setting new data with the introduction of its A30 and A10 enterprise server GPUs. Because of its innovation and dedication to its shoppers, Nvidia is current inside the highest ranges of tech in nearly each trade possible. From Massive Finance and Fintech to robots, engineering, and even constructing the cities of tomorrow, Nvidia’s {hardware} is on the core of among the most enjoyable improvements being rolled out into the world right this moment.

With increasingly demand coming for semiconductors and new chip know-how hitting the market, corporations like Nvidia, AMD, Taiwan, Samsung and Intel are going to be among the greatest benefactors. They’re already well-known within the trade, and this might simply be their time to essentially shine. However a looming helium scarcity may current various issues for the booming tech giants.

Maxar Applied sciences (NYSE:MAXR, TSX:MAXR) is a high-flying house inventory with plenty of pores and skin within the recreation. Whereas house agency focuses on satellite tv for pc and communication applied sciences, additionally it is a producer of infrastructure required for in-orbit satellite tv for pc providers, Earth statement and extra. So what does Maxar should do with the useful resource trade? Really, so much.

SSL, a designer and producer of satellites utilized by authorities and business enterprises, is one in all Maxar’s wholly owned subsidiaries. It has pioneered analysis in electrical propulsion techniques, lithium-ion energy techniques and using superior composites on business satellites. These improvements are key as a result of they permit satellites to spend extra time in orbit, lowering prices and growing effectivity.

Maxar’s tech and progressive strategy to the already-extremely difficult house trade, has helped the corporate see its share value climb the place lots of its friends have struggled. The truth is, in simply the previous two years, Maxar has seen its share value improve by properly over 1000%. And because the firm secures extra offers within the nice past, the progressive agency will probably preserve its upward trajectory for a while.

Magna Worldwide (NYSE:MGA, TSX:MG) is an fascinating roundabout manner get in on the thrilling useful resource and battery markets with out betting large on one of many new unproven shares fascinating millennials proper now. The six-decade-year-old manufacturing large gives mobility know-how for automakers of every kind. From GM and Ford to luxurious manufacturers like BMW and Tesla, Magna is a grasp at hanging offers. And it’s clear to see why. The corporate has the expertise and popularity that automakers are searching for.

Over 10 years in the past, Magna was already making main strikes within the battery market, investing over half a billion {dollars} in battery manufacturing whereas the market was nonetheless in its infancy. On the time, electrical automobiles as we all know them had barely hit the scene, with Tesla launching its premiere automobile simply two years prior.

Magna’s huge funding has paid if in a giant manner, nevertheless. Since its battery guess, the corporate has seen its valuation soar by tens of billions of {dollars}, and it has solidified itself as one of many leaders within the enterprise. With the semiconductor trade in chaos, and one other looming lithium and helium scarcity, it is going to be fascinating to see how Magna offers with these challenges.

Canada’s tech sector could possibly be impacted by looming shortages as properly. Take Shopify Inc (NYSE:SHOP, TSX:SH), for instance. It’s an absolute beast within the e-commerce world. The truth is, due to its simple-to-use platform, it might be laborious to haven’t stumbled onto a store constructed with its know-how.

Along with its revolutionary strategy on e-commerce, Shopify can also be delving into blockchain know-how, making it a promising decide for buyers, particularly on condition that the sector is pink sizzling proper now. Its shoppers are even in a position to settle for bitcoin and quite a lot of different cryptocurrencies as funds with just a few clicks.

If there’s a chipmaker scarcity or a helium, Shopify, although it doesn’t produce any {hardware}, could possibly be impacted not directly. Whether or not it’s via restricted demand from its quite a few tech shoppers or disruptions in infrastructure shortages.

Blackberry Restricted (NYSE:BB, TSX:BB) is one other one in all Canada’s tech giants that could possibly be impacted. Whereas it has pivoted away from its iconic cell telephones of yesteryear, it’s nonetheless very a lot concerned in pushing the tech trade. It’s even constructing a world digitized healthcare database leveraging blockchain know-how. From its high-profile partnerships with the likes of Amazon and extra, to its key posturing within the Web of Issues explosion, BlackBerry is a good inventory that could possibly be buying and selling at a relative low cost in comparison with a few of its friends.

The corporate even launched a brand new R&D arm, BlackBerry Superior Expertise Labs. “At this time’s cybersecurity trade is quickly advancing and BlackBerry Labs will function as its personal enterprise unit solely centered on innovating and growing the applied sciences of tomorrow that will likely be crucial for our sustained aggressive success, from A to Z; Synthetic Intelligence to Zero-Belief environments,” defined Charles Eagan, BlackBerry CTO.

Provide disruptions can affect anybody, even fossil gasoline producers. Westshore Terminals (TSX:WTE) is a coal export terminal situated at Roberts Financial institution Superport in Delta British Columbia. It’s Canada’s largest coal export facility, surpassing the mixed coal shipments of all different terminals in Canada. The corporate exports thermal and metallurgical coals to markets around the globe, together with Japan, South Korea, China, India and Taiwan. Westshore additionally gives providers to ship numerous bulk cargoes via its marine services. Westshore Terminals has been working for over 30 years and employs greater than 240 workers that work 24/7 shifts to make sure steady operation.

By. Terry Church

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

Ahead-Trying Statements

This publication incorporates forward-looking data which is topic to quite a lot of dangers and uncertainties and different components that might trigger precise occasions or outcomes to vary from these projected within the forward-looking statements. Ahead trying statements on this publication embody that costs for helium will considerably improve resulting from world demand and use in a wide selection of industries and that helium will retain its worth in future because of the demand will increase and total scarcity of provide; that Avanti can pursue exploration of the not too long ago acquired licenses of property in Alberta; that Avanti’s licenses in respect of the Alberta property can obtain drilling and mining success for helium; that Avanti will likely be ready purchase the rights to helium on 12,000 acres of potential land in Montana pursuant to its not too long ago introduced letter of intent; that the Avanti workforce will be capable of develop and implement helium exploration fashions, together with their very own proprietary fashions, that will lead to profitable exploration and improvement efforts; that historic geological data and estimations will show to be correct or a minimum of very indicative of helium; that top helium content material targets exist within the Alberta and Montana initiatives; and that Avanti will be capable of perform its enterprise plans, together with timing for drilling and exploration. These forward-looking statements are topic to quite a lot of dangers and uncertainties and different components that might trigger precise occasions or outcomes to vary materially from these projected within the forward-looking data. Dangers that might change or forestall these statements from coming to fruition embody that demand for helium isn’t as nice as anticipated; that various commodities or compounds are utilized in functions which at the moment use helium, thus lowering the necessity for helium sooner or later; that the Firm might not fulfill the necessities below its Alberta licenses for numerous causes or in any other case can not pursue exploration on the mission as deliberate or in any respect; that the Firm might not be capable of purchase the helium rights to the Montana lands as contemplated within the letter of intent or in any respect; that the Avanti workforce could also be unable to develop any helium exploration fashions, together with proprietary fashions, which permit profitable exploration efforts on any of the Firm’s present or future initiatives; that Avanti might not be capable of finance its meant drilling packages to probe for helium or might in any other case not elevate ample funds to hold out its enterprise plans; that geological interpretations and technological outcomes primarily based on present knowledge might change with extra detailed data, evaluation or testing; and that regardless of promise, there could also be no commercially viable helium or different sources on any of Avanti’s properties. The forward-looking data contained herein is given as of the date hereof and we assume no duty to replace or revise such data to mirror new occasions or circumstances, besides as required by legislation.

DISCLAIMERS

This communication is for leisure functions solely. By no means make investments purely primarily based on our communication. Oilprice.com and its house owners and associates (“Oilprice.com”) haven’t been compensated by Avanti however might sooner or later be compensated to conduct investor consciousness promoting and advertising and marketing for TSXV:AVN. The data on this report and on our web site has not been independently verified and isn’t assured to be right.

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ALWAYS DO YOUR OWN RESEARCH and seek the advice of with a licensed funding skilled earlier than investing. This communication shouldn’t be used as a foundation for making any funding.

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