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
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