Aug 23, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin

Why Natural Gas Won’t Soar

December 11, 2009
By: Sara Schafer, Farm Journal Media Business and Crops Editor

Linda H. Smith, Top Producer Executive Editor
Petroleum's price recovery into the $70/barrel area (West Texas Intermediate) has brought ethanol back and biodiesel production back into the black, reports Stewart Ramsey of IHS Gobal Insight. "Natural gas will recover, too, but not to the extent of petroleum,” he says. That spells moderation in ammonia prices.
The reason: Tremendous amounts of nonconventional gas have been found in the U.S.—four times as much—and it is cheaper to harvest. "A huge supply of gas is feeding into the fertilizer market at reasonable prices. U.S. nitrogen production is not dead and is quite profitable.” However, we will still import some of our nitrogen needs, and the world will still set nitrogen prices due to long-term contracts, he cautions.


You can e-mail Linda Smith at

See Comments


Log In or Sign Up to comment


No comments have been posted



Receive the latest news, information and commentary customized for you. Sign up to receive the AgWeb Daily eNewsletter today!.

Enter Zip Code below to view live local results:
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by|Site Map|Privacy Policy|Terms & Conditions