Natural Gas Price Meltdown

[errolanderson]

This is getting ugly . . . .

North American nat gas prices have been in a summer freefall. Suffield spot have tubed below $1 per gigajoile. Texas spot has gone negative. U.S. producers now moving nat gas as low as -$4 per gig. Producers are now paying buyers to take it away.

Oversupply into an already flooded spot market the culprit. On Friday, some nat gas stocks collapsed 10 percent or more in one day.

[farmaholic]

Is nitrogen fertilizer really made with natural gas?

Both as an ingredient and process?

Does that mean cheaper fertilizer?

[Herc]

Is nitrogen fertilizer really made with natural gas?

Both as an ingredient and process?

Does that mean cheaper fertilizer?

[ATTACH]4611[/ATTACH]

Yup fill the bins with $300/tonne 46-0-0

Bahahahaha.......

[bucket]

Because of the late fall in 218 and the wet spring 2019 ....fertilizers haven't been applied as heavy....the demand is there for high usage....

No deals on fertilizer. ...made of natural gas ....that's only the excuse when natural gas goes to 9 dollars a gigajoule....

[furrowtickler]

Low gas and very late crops in North America.........
hmmmm , May be cheap to dry every bushel of late frozen corn
But nope the fukers will not drop the price of fert as we head into fall .

[farmaholic]

Let's not talk about the double standards that apply to Primary Producers when it comes to the laws of supply and demand.

Manufactured bullshit.

[bucket]

While they are studying climate change maybe they should put as much effort into things like collusion on farm inputs ....then maybe we wouldn't have to keep begging....

[SASKFARMER]

Anhydrous should be 17 cents a lb

[SASKFARMER]

If it doesn’t that tells you the whole system is rigged.

[jazz]

If it doesn’t that tells you the whole system is rigged.

So much for that solar and wind. Crank up the heat baby.

[AlbertaFarmer5]

So much for that solar and wind. Crank up the heat baby.

I was going to say, Too bad the world isn't in need of a cheap, plentiful, reliable, clean, low CO2 source of energy right now.

But Chuck is probably right, We are much better off flaring the gas or paying to get rid of it, then Paying again for grossly expensive unreliable energy, for the sake of "the environment". I wonder it he has occurred to any of these green warriors that the gas is getting burnt either way?

[farmaholic]

So much for that solar and wind. Crank up the heat baby.

WRONG, NatGas is cheap because no one wants it and is being displaced by wind and solar.

[Blaithin]

What?!

You mean when there's no longer such a strong monopoly for one energy source.... the price of it will drop?!

I'm sure they never teach that. It can't be realistic. Must be leftist media lies.

[AlbertaFarmer5]

WRONG, NatGas is cheap because no one wants it and is being displaced by wind and solar.

Exactly... you've just made chuck so proud, but may have forgotten the sarc tag. US nat gas usage only up 30% in the past 10 years.

https://www.eia.gov/dnav/ng/hist/n9140us2a.htm https://www.eia.gov/dnav/ng/hist/n9140us2a.htm

[AlbertaFarmer5]

What?!

You mean when there's no longer such a strong monopoly for one energy source.... the price of it will drop?!

I'm sure they never teach that. It can't be realistic. Must be leftist media lies.

As a fellow Albertan, I am giving you the benefit of the doubt that you are also being sarcastic. But in case you aren't, here is a brief explanation.

You've likely heard of a phenomenon called fracing, and how it has revolutionized the NA energy industry. They are looking for oil, but in most formations, there is also copious amounts of gas. This quantity quickly overwhelmed the existing infrastructure, and available markets, causing prices to crash, likely not to recover to previous levels for many decades to come. Capitalists being opportunists, have been finding no end for new and increased uses of this now nearly free energy source. Hence the massive increase in use since the fracing revolution started. Energy intensive industries are coming back onshore, coal power plants are being converted, buses and trucks are being converted. petrochemical industries are being built or expanded using Nat gas as a feedstock, heating is being converted etc. etc. But nowhere close to fast enough to use the ever increasing surplus, for which there are very very limited ways or places to store it, and limited opportunities ( so far) to export it. All is being exacerbated by anti pipeline and anti industry policies both in Canada and in many states. But mostly it is being flared since it is not cost effective to get rid of it any other way. An absolute crime against our children and grandchildren.

In the meantime we have twits such as the misguided politicians in Berkely, banning new natural gas installations:
https://www.theguardian.com/environment/2019/jul/23/berkeley-natural-gas-ban-environment https://www.theguardian.com/environment/2019/jul/23/berkeley-natural-gas-ban-environment

Have to force people to use the more expensive options when natural gas became so cheap that nothing can compete, not even free wind or sunshine. Meanwhile the same gas is still being burnt in flares releasing the same amount of CO2, but doing absolutely no good to anyone...