http://www.tfi.org/industry-resources/fertilizer-economics/us-fertilizer-
production
Slide 2
http://en.wikipedia.org/wiki/Haber_process The Haber process
now produces 500 million short tons (454 million tonnes) of
nitrogen fertilizer per year, mostly in the form of anhydrous
ammonia, ammonium nitrate, and urea. 35% of the world's natural gas
production is consumed in the Haber process (~12% of the world's
annual energy supply). [15][16][17][18] In combination with
pesticides, these fertilizers have quadrupled the productivity of
agricultural land:fertilizerammoniaammonium nitrateurea
[15][16][17][18]
Slide 3
ammonia production plants worldwide, producing a total of 131
million tonnes of ammonia in 2010. [1] China produced 32.1% of the
worldwide production, followed by India with 8.9%, Russia with
7.9%, and the United States with 6.3%. 80% or more of the ammonia
produced is used for fertilizing agricultural crops.tonnes [1]
Slide 4
http://finance.yahoo.com/news/essential-fertilizer-trends-natural-gas-170003904.html
http://www.eia.gov/dnav/ng/hist/rngwhhdm.htm Gasprice 1997-2013; as
low as in 1997
Slide 5
http://www.soil.ncsu.edu/publications/Soilfacts/agw439_60.pdf
fertlizer-gas prize; 1999-2007 Not so clear in this example
Slide 6
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&ved=0CFAQFjAF&url=http%3A%2F%2Fwww.ers.usda.gov
%2FersDownloadHandler.ashx%3Ffile%3D%2Fmedia%2F198815%2Fwrs0702_1_.pdf&ei=67P8Uoq3IOXR7Aa8moCYCg&usg=AFQj
CNFG8rj5VfYIUsmKPComUS0zuVbyag&bvm=bv.61190604,d.ZGU&cad=rja
Long term-strong relation ship of natural gas and NH3 price; Price
fluctuation of factor 3 are possible (gas and ammonia price)
Slide 7
http://www.icis.com/resources/news/2013/04/13/9658384/market-outlook-shale-gas-boom-fosters-
growth-for-fertilizers/
http://www.icis.com/resources/news/2013/04/13/9658384/market-outlook-shale-gas-boom-fosters-
growth-for-fertilizers/ Thyssen-Krup Nitrogen fertilizer production
in the US was in a state of decline, but is now in a period of
transition. After 20 years of rising raw material costs and players
closing and relocating plants, there is renewed impetus among
domestic producers to invest in their own country. "The high demand
for fertilizer plants in the US is clearly a consequence of the
shale gas boom," says Klaus Noelker, head of process department for
ThyssenKrupp Uhde's Ammonia and Urea Division. Thyssen-Krup
Nitrogen New production in US even farmers start producing No net
import; or even next export? Gulf states need to sell somewhere
else Prize fluctuation of factor 2 within 2 years possible
(NH3)
Slide 8
http://www.theglobeandmail.com/report-on-business/breakthrough/why-cheap-
natural-gas-is-a-boost-to-farmers/article14227180/
http://www.theglobeandmail.com/report-on-business/breakthrough/why-cheap-
natural-gas-is-a-boost-to-farmers/article14227180/ Low natural gas
prices and increased supply resulting from an expanding shale gas
industry have created new opportunities in other sectors such as
the fertilizer industry where a string of new nitrogen fertilizer
plants are being planned across the United States and Canada.
Natural fertilizer production and prices are closely tethered to
the price and supply of natural gas through the Haber-Bosch
industrial process. Simply put, when natural gas is compressed,
combined with air, and then heated over an iron oxide catalyst, it
produces ammonia a key ingredient in nitrogen fertilizer.
Approximately 80 per cent of the cost of producing nitrogen is the
cost of natural gas, so natural gas is the key ingredient to
producing nitrogen fertilizer, Mr. Downey says. The world needs two
to three nitrogen plants built per year at a minimum just to meet
growing global demand and historically that has tended to be built
in the Middle East or some other areas where theres trapped gas,
Mr. Downey explains. Now people are looking at North America as a
place to build because of the long-term, low-cost gas.