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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 8, Issue 30
We know how to deliver energy.
July 24, 2009 Energy Update
In this Issue
Editors Note
Week in review for period of July 17, 2009 to July 23, 2009.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, July 23, 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 period of July 17, 2009 to July 23, 2009.

This week’s Wall Street rally placed some upward pressure on crude oil prices. However, natural gas and electricity prices were relatively flat. Crude oil rose to $66/barrel this week. The 12 month avg. price for natural gas at the well-head fell 1% and the avg. 12 month price for peak power on the PJM rose 1%. As noted on the graphs above, natural gas and electricity prices have been hovering at this five year low for a few months. However, hot weather, hurricanes or a rebounding economy can place upward pressure on energy prices.  Although gas storages are near record high levels, gas production cuts will slow the growth of this gas bubble. Gas rig counts have dropped 56% in the last 12 months. 

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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

2,952

2,886

66

2,384

2,494

Storage Update:  According to EIA Estimates, working gas in storage for the week ending 7-17-’09 was 2,952 Bcf following this week’s injection of 66 Bcf.  Inventories are 23.8 % above last year’s levels. We are 18.4% above the 5 year avg. Although storages are near record high levels, over the past four weeks, we injected 17% less than the same four weeks a year ago. Are production cuts taking hold?

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Baker Hughes Rotary Rig Count
Drilling Rig Update: Active rig count released by Baker Hughes for week ending July 17 was 665 rigs.  This count is 879 lower than the count reported this same week last year.  We are now 49% below the 5-year avg. rig count of 1308.
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NYMEX Natural Gas Monthly Settlements
(Price per therm at the well-head)

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

Nov-08 

$0.6469

Mar-09  

$0.4056 

July-09 

$0.3939

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NYMEX Values: Thursday, July 23, 2009
(Price per therm at the well-head)

 Aug-09

$0.3550

Jan-10

$0.5547

Jun-10

$0.5589

Sep-09

$0.3710

Feb-10

$0.5577

July-10

$0.5709

 Oct-09

$0.3939

Mar-10

$0.5517

12-month

$0.4995

 Nov-09

$0.4605

Apr-10

$0.5446

11/09-3/10

$.53012

 Dec-09

$0.5260

May-10

$0.5496

Crude oil

$66/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

Jun-09

                 

     

 Actual

93

272

        

       

        

        

 Normal

107

304

  

 

 

 

 Departure from Normal

15.1%

11.8%

 

 

 

 

Cooler

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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