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.

Image

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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Posted in Energy. Tags: , , , , , . 14 Comments »

Canada Moves to Reduce Fertilizer Use by 30 Percent

July 28, 2022 — bunkerville

Why not repeat what has already happened in the Netherlands. Better yet, look what happened to Ghana and Sri Lanka not using fertilizer.

They used to export food. Now the people are starving.

Oh yeah, it worked great in Sri Lanka.

The Trudeau government is on a push to get farmers to drop fertilizer use by 30% even as farmers, provinces and industry groups say it will lead to less food produced and higher prices for families at the grocery store. You think? Of Course a bureaucrat makes this decision. All by 2030.

There she goes-

All is well in the swamp.

Posted in Liberal Loonies. Tags: , , , . 36 Comments »

U.S. wants more purchases of Russian Fertilizer as Commodities prices Soar

June 15, 2022 — bunkerville

So how are things working out with our Ukraine adventure? Sure sounds like Russia is making out just fine. Three months into this war, Ukraine is ravaged. Russia controls major parts of E. Ukraine. Russia’s oil profits are higher than ever. Ruble is strong. Much of the world rejected US/NATO policy. Billions in US funds: gone, who knows where. Untraced weapons are flooding the region.

We sure are teaching the Russian oligarchs a lesson now  aren’t we? Snagging all of those big boats. A couple of their big mansions. It is working swell. By the way, all of these food processing plants biting the dust by fire? Anyone wonder if there could be any cause and effect? Just thinking out loud.

And now? A looming food shortage on the horizon. Not to worry, the Biden savants have a plan. Buy more Russian fertilizer. Yes.

The US wants companies to buy Russian fertilizer as agricultural commodities markets spiral and a global food crisis looms: report

Wheat Fields

The US wants companies to ramp up purchases of Russian fertilizer as global food costs rise and shortages loom, according to a Monday Bloomberg report.

The EU and the US have built exemptions into their restrictions on doing business with Russia to allow trade in fertilizer, of which Moscow is a key global supplier. But many shippers, banks and insurers have been staying away from the trade out of fear they could inadvertently fall afoul of the rules. Russian fertilizer exports are down 24% this year. US officials, surprised by the extent of the caution, are in the seemingly paradoxical position of looking for ways to boost them.

Sources told Bloomberg that the government is quietly pushing companies to buy and carry more Russian fertilizer. Sanctions fears have created a supply shortage and have fueled a global food crisis, and the US is moving to alleviate pressure with the United Nations by boosting  deliveries of fertilizer, grain, and other supplies from Russia.

This year, Russian fertilizer exports have dropped 24%, per Bloomberg data. Russia and Ukraine together account for a quarter of global grains trade.

According to Russia’s Grain Union, wheat exports doubled in May. At the same time, Bloomberg reports that over 25 million tons of grain, sunflower oil, and other goods are stuck in Ukraine due to security concerns.

Read more

Breadbasket to the World

Russia and Ukraine account for a quarter of global grains trade

Source: International Grains Council

And will the U.S. be able to pitch in and help out with the shortage of grain and  energy? Not so much. Actually the U.S. is burning up its food supply in order to keep our massive amount of energy resources in the ground.

Biden Mandates Increased Ethanol in Gas – Raises Corn Prices by 30 Percent

June 7, 2022 — bunkerville

Smart. Burning your food to make “renewable” fuels that will raise the price of corn by 30 percent when there is a looming food shortage. Better, it will requirer more fertilizer which is in short supply and that price too is soaring. Best? Probably put smaller refineries out of business. And the coup de grace? Causes engine wear and damages your car. All this to force the issue of EV’s.

The EPA, after gathering comments since releasing it proposed blending requirements in December, said Friday it will require refiners to blend 20.77 billion gallons of ethanol, biodiesel and other renewable fuel this year.

Additionally, the oil industry must blend 250 million more gallons of renewable fuel, both this year and next, after a federal court found the Obama administration inappropriately reduced the 2016 blending requirements.

The agency also denied roughly 70 exemptions for small refineries, many of which had been granted under former President Donald Trump.

Everything just fine in the swamp today.

BONUS: 

Posted in Energy. Tags: , , , , . 24 Comments »