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North American agriculture is deeply dependent on natural gas. Nitrogen fertilizer is chemically produced using a process that -- currently -- cannot be conducted efficiently without large amounts of natural gas. This fertilizer, in turn, is an essential nutrient in North America's food production system. "In a fairly direct way," says Darrin Qualman, Director of Research at the National Farmers Union, "natural gas is a primary feedstock for our food supply."
While "peak oil," the point at which global production of oil begins to decline, is subject to speculation, natural gas peaked in North America in 2003. Since then, more wells have been added, but production has declined slowly, while prices have increased sharply. As a result, says Qualman, fertilizer companies are closing up shop and are moving their operations to places like Qatar, Egypt and Trinidad, where natural gas is cheap and plentiful, for now.
Canada has thus begun to import natural gas. At least 10 Liquid Natural Gas (LNG) terminals are planned in Quebec, British Columbia, Newfoundland, Nova Scotia and New Brunswick, where liquified gas will be brought in from Saudi Arabia, Russia and other producers. It is, he says, a cause for concern in the coming decades. "If you're farming in Saskatchewan or Manitoba, using a fertilizer supply based on natural gas from Alberta looks workable," says Qualman. "But if tomorrow our fertilizer is made from natural gas sourced in Russia or the Middle East, we in effect become dependent on offshore, highly unstable supplies for our food system."
In terms of fueling the current food system, there are few compelling alternatives to natural gas. Coal is a possible source of nitrogen but is not nearly as efficient. In some scenarios, nuclear power plants can be used to produce fertilizer. A more fundamental alternative, says Qualman, is to begin restructuring the food system. Traditionally, nitrogen fixing is performed by crops like beans and chickpeas. Or, it is recycled to cropland from animal manures. Using crop rotation and natural sources to provide nitrogen and reducing energy inputs to agriculture requires changes to diets and far more intensive use of human labour. Says Qualman, "Given the industrial food system and given a meat-based diet, nitrogen and natural gas are absolutely essential."
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http://www.dominionpaper.ca/articles/1462