Production of fertilizer is shutting down across Europe

August 24, 2022 — bunkerville

Natural gas in the U.S. is up a staggering 525% since closing at $1.48 in June 2020. Since June 2022 it has jumped 70 percent.

Europe is in dire straights. It is getting too costly to produce fertilizer. A comment: “So no food, no money no heat incoming, it will be an interesting year.” For others, famine comes fast to poor countries.

At the same time they are taking up to 40% of the farmers in the Netherlands out of business to use the land for other things.

While we remain focused almost exclusively at the price of gas at the pump it is natural gas that will be the U.S. and the world’s undoing. 

“Germany went full loon on the Left’s green energy fantasies: Producer prices rose 37.2% on year in July. Energy prices up 105.0% from a year earlier. Natural gas up 163.8% on year, electricity up 125.4% increase on year. This is where the US will go if we let the Left take us.”

London (CNN Business)The outlook for inflation and the global economy hinges in large part on where energy prices head next — which makes recent turbulence in natural gas markets a worrying development.

What’s happening: European natural gas prices finished at a record on Monday.
 
They remain close to that level on Tuesday after Russia’s Gazprom said it would suspend flows to Germany via the Nord Stream 1 pipeline for three days starting at the end of the month.
Natural gas prices in Europe are almost 10 times where they stood this time last year.
 

US natural gas reaches highest level since 2008

Prices have jumped almost 70% since the end of June.

Although natural gas futures cooled off a touch on Wednesday, they remain up about 70% just since the end of June. And natural gas is up a staggering 525% since closing at $1.48 in June 2020 when Covid-19 had shut much of the US economy down. (Source)

 
 
Prices in the United States are significantly lower, (than Europe) but they’re rising, too. On Monday, they hit their highest level in 14 years. They’ve been pushed up by increased energy use during heat waves, demand from Europe as countries try to stock up for winter and lagging production.
 
US natural gas prices have skyrocketed, a spike that threatens to offset the benefits of falling prices at the gas pump.
 
As temperatures drop this fall and winter, the natural gas spike signals sticker shock for families. Not only is natural gas a leading fuel source for the electric grid, it’s the most popular way to heat homes in America.
 
“Depending on the weather, it could be a challenging winter,” said Rob Thummel, senior portfolio manager at Tortoise Capital Advisors. “But not as challenging as in Europe. They are at risk of running out of natural gas. We aren’t.”
 
Back in June I posted:
 
 
In case you wonder why our nat gas is out of sight.
 
Which brings us to the production of fertilizer.
 

Natural gas is a key part of many types of fertilizer production. Natural gas represents 60 to 70 percent of fertilizer production costs. Record natural gas pricing for Grupa Azoty has driven the company to halt some, caprolactam, polyamide 6 (PA6), and nitrogen fertilizers production. As one trader put it, all EU plants are going down one by one.

Shares of Grupa Azoty SA tumbled after Poland’s biggest chemicals company halted production of nitrogen fertilizers and trimmed output of ammonia because of record gas prices.

“The current situation on the natural gas market that determines profitability of production is exceptional,” Grupa Azoty said in a statement Tuesday. It didn’t say how long the measures would last. The firm’s shares notched up an eighth day of declines, plummeting as much as 10% in Warsaw.

Grupa Azoty describes itself as the second-biggest producer of mineral fertilizers in the European Union. The company is among the largest buyers of natural gas in Poland, consuming more than 20 gigawatt hours of the fuel every year. Bloomberg

Production of fertilizer is shutting down across Europe right now.

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Look to the politicians who have caused this. What did anyone think the Russian Bear would do when poked over Ukraine? Europe is lucky Russia doesn’t complete pull the plug. Add to the problem is the greenies determined that a fossil free world will be just dandy. Better, look at the WEF… all going as planned.

Russia is not done with Asia either. Meanwhile Biden stalls nat gas hubs and impedes our expansion of our own resources that could be a boon to the U.S and to our workers.

Riots are occurring all over the world over rising costs of fuel and food yet we see hear nothing of it here in the States. Hunger stalks much of the third world. Just check YouTube for the action.

Russia is not done.

Russia’s push to consolidate control over its natural gas is beginning to curb supply to customers in Asia, a development that has implications for buyers the world over.

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