U.S. Energy Corp. is transforming into an integrated helium, carbon management, and energy company, leveraging its Big Sky Carbon Hub to strengthen domestic critical gas supply and support industrial decarbonization. In an exclusive interview, CEO Ryan Smith discussed the company's helium strategy, long-term offtake agreement, pricing outlook, and vision for enhancing U.S. energy security and high-tech supply chains.
ChemAnalyst Talks with Ryan Smith, President, CEO & Director
U.S. Energy Corp. is building an integrated energy and carbon management platform positioned at the intersection of critical industrial gas supply, domestic energy production, and emerging carbon capture solutions. The Company owns and operates the Big Sky Carbon Hub and the Cut Bank oil field in Montana, generating three diversified revenue streams—helium, carbon management, and oil—from a fully owned and operated asset base. Through its strategic focus on helium development and carbon sequestration, U.S. Energy is advancing a model that aligns traditional subsurface energy expertise with next-generation industrial gas demand and decarbonization objectives. ChemAnalyst spoke with Ryan Smith, President, CEO & Director of U.S. Energy Corp., about the Company’s strategic transition from conventional oil and gas toward helium and industrial gas development, and the underlying geological and commercial drivers behind this shift. He discussed how the recognition of helium as a critical input for semiconductors, artificial intelligence infrastructure, aerospace, healthcare, and defense has reshaped the Company’s long-term outlook, as well as the importance of supply chain security amid concentrated global helium production. Smith also elaborated on the significance of the Company’s long-term helium offtake agreement for the Big Sky Carbon Hub, its CPI-linked pricing structure, and how it provides revenue stability and third-party validation. Further, he highlighted U.S. Energy’s integrated approach to helium production and carbon management, its role in strengthening domestic supply chains for high-tech industries, and its long-term vision of becoming a key U.S. supplier of critical resources while supporting industrial decarbonization and energy security.
Complete Interview with Ryan Smith
Q1: Ryan, you have deep roots in traditional energy, an industry built on barrels and BTUs. Lately, your focus has pivoted toward industrial gases and carbon capture. What was the defining moment or data point that made helium a cornerstone of U.S. Energy’s future?
Ryan Smith: My team and I have a strong background in the oil and gas industry, and we have always focused on continuously evaluating our asset portfolio to identify long-term value opportunities. A few years ago, while reassessing our Montana asset, we developed a strong thesis that we were potentially sitting on one of the most significant helium resources and carbon management opportunities in the United States.
Everything begins with the quality of the asset. Even with a compelling market opportunity, execution is impossible without the right geological foundation. We became highly confident in the geology and potential of our Montana asset.
Around early to mid-2023, helium began receiving significantly greater attention as industries increasingly recognized it as a critical industrial gas rather than a niche product. Pricing began reflecting its strategic importance, while federal support for carbon capture and storage continued to strengthen.
After extensive technical, commercial, and economic evaluation, we concluded this was not just another energy project. It represented an opportunity to build a domestic industrial gas and carbon management platform supporting some of the most important industries of the future.
While many describe this as a pivot, the capabilities required—drilling, processing, and subsurface resource management—are consistent with our core oil and gas expertise. We redirected capital accordingly and developed a strategic platform around it.
Q2: What critical market vulnerability did you identify that others were overlooking, which made you prioritize domestic industrial gas development?
Ryan Smith: The key realization was that helium is far more than a gas used for balloons. Its true importance lies in the industries that depend on it.
Helium is essential for semiconductor manufacturing, artificial intelligence infrastructure, advanced medical technologies such as MRI systems, aerospace applications, and national defense. These sectors will define the future global economy.
At the same time, the global helium supply chain is highly concentrated, with major supply originating from regions such as Russia, Qatar, and the United States. This concentration creates strategic and economic vulnerability.
When we combined rising demand from high-tech industries with supply security concerns, a clear market gap emerged. That insight became the foundation of our strategy to establish U.S. Energy as a domestic industrial gas provider.
Q3: You recently secured a five-year helium offtake agreement for your Big Sky Carbon Hub. How does this de-risk the project?
Ryan Smith: The offtake agreement was a transformational milestone. In emerging helium production, a key question is who will purchase and distribute the product to end users.
We partnered with a major investment-grade industrial gas company with global infrastructure and established distribution networks. This was critical for long-term success.
The agreement provides predictable future cash flows and third-party validation of both our asset quality and execution capability. It demonstrates strong industry confidence and establishes a commercial foundation for scaling the Big Sky Carbon Hub.
Q4: How do you explain U.S. Energy’s role to investors from SaaS or biotech backgrounds?
Ryan Smith: Every advanced technology depends on critical raw materials that are difficult to secure and bring to market.
Artificial intelligence, aerospace, semiconductor manufacturing, healthcare innovation, and defense systems all rely on helium. Without it, these industries cannot scale.
Our role is to provide foundational infrastructure and secure domestic supply chains for these technologies. We are not just producing a commodity—we are enabling the modern economy.
Q5: Is the helium market experiencing a short-term disruption or a long-term structural squeeze?
Ryan Smith: Long-term demand for helium remains strong. The global economy is becoming increasingly dependent on advanced technologies across AI, semiconductors, aerospace, healthcare, and defense.
While commodity markets will always cycle, the structural demand base is expanding. Helium will remain strategically important and increasingly valuable over time.
Q6: How critical is domestic helium production in today’s geopolitical environment?
Ryan Smith: While not discussed as a standalone topic, domestic helium production is increasingly important for strategic industries such as semiconductors, AI, healthcare, aerospace, and defense.
Reducing reliance on uncertain international supply chains enhances both economic stability and national security.
Q7: What happens to helium pricing amid inflation and rising global demand?
Ryan Smith: Historically, very few commodities become cheaper over time. Inflation and rising demand place upward pressure on industrial gas pricing.
While cycles will continue, the long-term trend points toward increasing value for critical gases like helium.
Q8: How important is CPI-linked pricing in your offtake agreement?
Ryan Smith: The structure is extremely important. It provides revenue visibility and inflation protection.
For large infrastructure projects, predictable cash flows are essential. The CPI-linked mechanism strengthens project economics and improves investor confidence.
Q9: Is the helium market shifting from spot pricing to long-term contracts?
Ryan Smith: The helium market has historically relied on long-term contracts. What is changing is the strategic importance of those agreements.
Supply security is now a priority, making long-term contracts more attractive and commercially stronger.
Q10: Are procurement teams prioritizing reliability over cost?
Ryan Smith: Yes. There is a clear shift toward valuing supply security. Customers increasingly prioritize reliable domestic sources over volatile spot pricing.
Q11: How do geopolitical disruptions affect customer engagement?
Ryan Smith: Global disruptions reinforce the importance of domestic supply. They often accelerate conversations around long-term agreements with reliable producers.
Q12: How does combining helium production with carbon management strengthen your business model?
Ryan Smith: The Big Sky Carbon Hub is not solely a helium project. Helium has traditionally been produced as a by-product of natural gas, but our model is different.
We also capture and manage CO2 generated during processing, creating additional revenue streams through carbon sequestration and utilization, including enhanced oil recovery.
This multi-revenue structure improves resilience across commodity cycles and strengthens long-term project economics.
Q13: What are the key execution risks you are currently focused on?
Ryan Smith: Our primary focus is disciplined execution. We have secured capital, advanced construction, and finalized long-term offtake agreements.
Moving forward, priorities include maintaining timelines, controlling costs, and ensuring scalable infrastructure design. Execution discipline remains critical.
Q14: What is your long-term vision for U.S. Energy Corp?
Ryan Smith: Our goal is to become a reliable domestic supplier of critical resources supporting U.S. industry. We aim to contribute meaningfully to helium supply while building a leading carbon management platform. Beyond production, we want to strengthen domestic supply chains and support growth in semiconductors, AI, healthcare, aerospace, and defense, while advancing decarbonization solutions.
