89 comments on Peak oil coverage on CNBC
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GAIA Host Collective
Most fertalizers are made of Natural Gas. If oil rose to $300, but NG stayed at $7 MCF, or even doubled to $14 MCF, food price increases will be much less than you think.
PartyGuy,
Only nitrogen fertilizer is made out of natural gas. Phosphorus is mined from phosphate rock deposits mostly located in Florida in the US and potash is from strip mines in New Mexico in the US. Its hard to call one-third of the fertilizer requirements "most fertilizers are made of natural gas".
Another big source of nitrogen fetilizer is bird guano. Mostly in the US agribusiness manure is a pollutant in water run-off although some is composted and sold in garden supply stores. Its a real wasted asset.
Bob Ebersole
Nitrogen fertilizer is the "dominant" fertilizer of the three nutrient fertilizers you refer to. Approximately 85% of all ammonia used in the US is used for nitrogen fertilizer, a substantial amount as anhydrous ammonia. At more than $500/ton, it has gotten quite expensive.
Phosphorus (as phosphate) and potassium (as potash) while "mined" also require substantial treatment to turn to suitable agricultural products. That means energy.
In addition to the phosphate mined from Florida (the highest point in Florida is actually a gypsum stack from the phosphate rock processing), you also have substantial deposits in eastern NC (Aurora, PCS Phosphate) and eastern ID (Soda Springs). In the case of the Eastern ID deposits, the rock is either hauled by dedicated haul road (the trucks on this road have the right of way when the cross "ordinary" roadways) or pipelined to the phosphate plant. PCS Phosphate in Aurora is the single largest phosphate mine in the US ( if not the world).
All "manures" tend to be high in nitrogen (and phosphorus) but there is a transportation/cost issue with the weights required for commercial agriculture.