Natural gas is a primary feed stock in the production of anhydrous ammonia, a nitrogen fertilizer.
By December 2000, approximately 40 percent of U.S. anhydrous ammonia manufacturers ceased production. That number rose to over 50 percent in January. The decline in production has reduced the supply of anhydrous ammonia in the United States by approximately 2 million metric tons, a little over 10 percent of annual capacity. Unfortunately, that number continues to rise every day and could approach 3 million tons as the spring fertilizer season commences. As a result of the shortfall in anhydrous ammonia production, nitrogen fertilizer prices have skyrocketed.