Natural gas industry influences fertilizer producers
Thursday, May 21, 2015
One way that the shale gas industry intersects with the agricultural sector is through fertilizer production.
Pittsburgh Tribune-Review reports that the United States fertilizer industry is experiencing its largest growth in 25 years at a time when the shale industry is struggling through low prices and a supply glut.Nitrogen fertilizer, which is the most common type used by farmers, consists of 90 percent natural gas. When natural gas prices are low, so is fertilizer production.
According to the newspaper, while fertilizer manufacturers have seen huge price breaks, farmers have only seen small ones. The major fertilizer companies in the U.S. are planning on building new plants, and once that happens, fertilizer prices will likely decrease further.
Via: Pittsburgh Tribune-Review > Fertilizer industry soars amid gas glut
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.