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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 8, Issue 34
We know how to deliver energy.
August 21, 2009 Energy Update
In this Issue
Editors Note
Week in review for period of August 14, 2009 to August 20, 2009.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, August 13, 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 August 14, 2009 to August 20, 2009.

Weak demand, forecasts for cooler temperatures in the Northeast and high natural gas inventories kept the downward pressure on natural gas and electricity prices for the second straight week . For this report period, the 12 month avg. price for natural gas at the well-head fell 5% while the avg. 12 month price for peak power on the PJM fell 2%. It is interesting to note that oil prices were up for the second straight week. Crude oil prices rose $1/barrel this week closing at $72/barrel. One reason for the price increase in oil was that the weekly govt. report showed that U.S. crude oil inventories fell 8.4 million barrels compared to the previous week. Overall, energy prices are trading in a tight band because the market does not know when the economy will recover, and the marketplace does not know the future impact of the large cut in drilling rigs.

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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

3,204

3,152

52

2,642

2,691

Storage Update:  Inventories are at 3,200 Bcf with 2.5 months left in the injection season. Last year, we did not hit the 3,200 Bcf mark until Oct. 3. This is a high level for this time of year.  Working gas in storage for the week ending 8/14/09 was 3,204 bcf following this week’s injection of 52 bcf. The inventories are 21% 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 and Hughes for week ending August 14 was 688 rigs. Wow, that is an increase of 7 rigs. Is this the bottom for the rig count numbers ? This count is 898 lower than the count reported this same week last year.  We are now 47% below the 5-year avg. rig count of 1303.
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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 13, 2009
(Price per therm at the well-head)

Sep-09

$0.2945

Feb-10

$0.5386

July-10

$0.5623

Oct-09

$0.3320

Mar-10

$0.5369

Aug-10

$0.5719

Nov-09

$0.4241

Apr-10

$0.5341

12-month

$0.4937

Dec-09

$0.5052

May-10

$0.5403

11/09-3/10

$0.5078

Jan-10

$0.5342

Jun-10

$0.5503

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

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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