I would rather they underright the cost of uk makers to get started making nitrogen and get their factories running flat out, then if the world market price drops below the cost to make the nitrogen the government cover the difference.As above really. Can't see much appetite at current price so reduction in output follows. Very simple logic. Surely they will try something????
The reality is North Sea gas is about 48% of uk consumption the cost of getting it out of the ground is I expect not going up as much as it’s prices is, so fossil fuel companies will be raking it in. . .Subsidise wholesale gas, bring the energy cost for most consumers down.
Nationalise CF factories.
I agree I don’t see them subsidising fert, but we could see a price spiral, fert goes up, wheat goes up as farmers around the world cut production to stay profitable, and government intervention can steady the ship.This government subsidise fertiliser
trouble is the big oil companies BP, Shell etc. are going to need every penny they can find to make up for the write downs in Russia.The reality is North Sea gas is about 48% of uk consumption the cost of getting it out of the ground is I expect not going up as much as it’s prices is, so fossil fuel companies will be raking it in. . .
I can think of one way to cap gas and oil prices to some extent, and not cost tax payers much. Maybe they are already doing so
India has always subsidised their small farmers millions of people with a large vote sharethink I’m right saying India is subsidising fertilizer coz their people need food to eat
The lack of the “by-product” CO2 was what prompted the restart of fert production. Never forget that.I would rather they underright the cost of uk makers to get started making nitrogen and get their factories running flat out, then if the world market price drops below the cost to make the nitrogen the government cover the difference.
If it doesn’t then the government has nothing to pay.
the problem for CF is if they make nitrogen and later nitrogen prices fall they are stuck holding nitrogen they have to sell at a loss, it’s safer at the moment for CF to sit on the fence and not make nitrogen because that stops them making nitrogen with expensive natural gas with the risk of if world prices fall they have to sell it at a loss.
so if the government under rights the production so the risk is not on CF then they can get started and if they do it’s more than likely they could cover most of the uk nitrogen needs.
I will say we will still be at the mercy of world prices but availability should be less of a problem.
While I am sure your right, those pensions are worth zip, if food production around the world spirals out of control.trouble is the big oil companies BP, Shell etc. are going to need every penny they can find to make up for the write downs in Russia.
I see the Blackstone Asset management are writing their Russian holding down from $18 to $1 Billion
you may think why should we have any sympathy with those people, well that is your and I's pensions
They produce enough bull sh1tThis government subsidise fertiliser
I'm surprised that nobody has brought up G. Useless' infallible plan that he brought up at the NFU Conference of carting all of the shite produced by livestock in the west to the arable country in the east. Slightly uneconomic, especially at today's fuel prices I think.