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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 8, Issue 25
We know how to deliver energy.
June 19, 2009 Energy Update
In this Issue
Editors Note
Week in review for the period of June 12, 2009 to June 18, 2009.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, June 18, 2009
NYMEX 12-Mo. Avg. Price Per Therm at the Well-Head
PJM Electricity
PJM 12-Month Average Peak Power Price
Weather
Local Cooling Degree Days*
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Editors Note
Week in review for the period of June 12, 2009 to June 18, 2009.

Energy prices for this report period were all over the board. Prices rose during  the first part of the week but fell during the latter half of the week. For this report period, the 12 month average price for natural gas at the well-head rose $.007/therm and the average 12 month price for peak power on the PJM rose $.001/kwh. Crude oil prices closed at $72/barel for the second week in a row.  Prices rose during the first part of the week because weather forecasts called for above normal temperatures in the Southeast and Southwest parts of  the U.S. (Hot weather increases the demand for fossil fuels because fossil fuels are burned by generation plants to meet space cooling demands.)   However, energy prices fell during the end of  the week after  the Energy Information Administration reported that we have ample supplies of natural gas in storage. Stay tuned. Analysts say that declining rig counts will begin placing upward pressure on natural gas and electricity prices by early 2010.  The natural gas rig count fell again during this report period for the 30th consecutive week.  

 

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Natural Gas
EIA Gas Storage Update

 

 Current Week

Last Week 

Net Change

 Last Year 

 5 Year

 

 Stocks (Bcf)

Stocks (Bcf)

 (Bcf)

Stocks (Bcf)

 Average (Bcf)

 Total Lower 48

2,557

2,443

114

1,935

2,085

Storage Update:  According to EIA Estimates, Working gas in storage for the week ending June 12, 2009 was 2,557 Bcf following the week's large injection of 114 Bcf.  Inventories are 32.1% above last year’s levels and are 22.6% above the 5 year average.   We have a record surplus of gas in storage for this time of year.

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Baker Hughes Rotary Rig Count
Drilling Rig Update: Active rig count released by Baker Hughes for week ending June 12 was 685 rigs.  This count is 819 lower than the count reported this same week last year.  We are now 48% below the 5-year average rig count of 1313. This is 30th consecutive week in which gas rig counts have decreased.
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NYMEX Natural Gas Monthly Settlements
(Price per therm at the well-head)

July-08

$1.3100 

Nov-08 

$0.6469

Mar-09  

$0.4056 

Aug-08

$0.9217 

Dec-08 

$0.6888 

Apr-09 

$0.3631

Sep-08

$0.8394 

Jan-09 

$0.6136 

May-09 

$0.3321

Oct-08

$0.7472 

Feb-09 

$0.4476 

Jun-09 

$0.3538

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NYMEX Values: Thursday, June 18, 2009
(Price per therm at the well-head)

 July-09

 $0.4093

Dec-09

$0.5944

May-10

$0.6102

 Aug-09

 $0.4278

Jan-10

$0.6242

Jun-10

$0.6199

 Sep-09

 $0.4414

Feb-10

$0.6267

12-month

$0.5473

 Oct-09

 $0.4614

Mar-10

$0.6197

11/09-3/10

$.59832

 Nov-09

 $0.5266

Apr-10

$0.6062

Crude oil

$72/bl.

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NYMEX 12-Mo. Avg. Price Per Therm at the Well-Head
(excludes Interstate Transportation)

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PJM Electricity
PJM 12-Month Average Peak Power Price
On-Peak 1 Year Forward Price

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Weather
Local Cooling Degree Days*

 

Local Cooling Degree Days* 

 

May-09

                 

     

 Actual

543

        

       

        

        

 Normal

477

 

  

 

 

 

 Departure from Normal

12.2%

 

 

 

 

Cooler

        

 

 

 

 

 

* Cooling degree days are calculated by comparing the day’s average temperature to a 65 degree baseline.  If the average temperature is below 65, there are no cooling degree days that day.  If the average temperature is greater than 65 degrees, then subtract 65 from the average temperature to find the number of cooling degree days

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