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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 8, Issue 32
We know how to deliver energy.
August 7, 2009 Energy Update
In this Issue
Editors Note
Week in review for period of July 31, 2009 to August 6, 2009.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, August 6, 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 31, 2009 to August 6, 2009.

Energy prices rose again this week with crude oil prices leading the way.  Crude prices rose 6% closing at $71/barrel. The 12 month avg. price for natural gas at the well-head rose 1%. The avg. 12 month price for peak power on the PJM rose 2%.  Despite high supply levels for natural gas and crude oil, energy prices rose again this week because the recent economic news was less frightening than expected. For example, U.S. employers cut far fewer jobs than expected in July. This was the smallest job cut in 12 months. Another reason for the recent price increases is that the natural gas industry is experiencing a huge contraction in gas rigs. (See drilling rig update below.) In summary, the Bears and Bulls are equally matched for now. Weak demand created the gas/oil surplus but   production cut backs have been implemented to reduce the surplus.

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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

3,089

3,023

66

2,509

2,593

Storage Update:  Inventories are above 3,000 Bcf.  This is an extremely high level for this time of year.  Working gas in storage for the week ending July 31, 2009 was 3,089 bcf  following this week’s larger than expect injection of 66 bcf. The Inventories are 23.1% above last year’s levels. We are 19.1% above the 5 year average.

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Baker Hughes Rotary Rig Count
Drilling Rig Update: Active rig count released by Baker Hughes for week ending July 31 was 677 rigs.  This count is 873 lower than the count reported this same week last year.  We are now 48% below the 5-year avg. rig count of 1305.
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NYMEX Natural Gas Monthly Settlements
(Price per therm at the well-head)

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

Dec-08 

$0.6888

Apr-09  

$0.3631

Aug-09 

$0.3379

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NYMEX Values: Thursday, August 6, 2009
(Price per therm at the well-head)

Sep-09

$0.3743

Feb-10

$0.5771

July-10

$0.5910

Oct-09

$0.4007

Mar-10

$0.5716

Aug-10

$0.6003

Nov-09

$0.4768

Apr-10

$0.5646

12-month

$0.5358

Dec-09

$0.5485

May-10

$0.5703

11/09-3/10

$.54968

Jan-10

$0.5744

Jun-10

$0.5795

Crude oil

$71/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

Jul-09

           

     

 Actual

93

272

   378  

       

        

        

 Normal

107

304

  456

 

 

 

 Departure from Normal

15.1%

11.8%

20.1%

 

 

 

Cooler

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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