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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 8, Issue 36
We know how to deliver energy.
September 4, 2009 Energy Update
In this Issue
Editors Note
Week in review for period of August 28, 2009 to September 3, 2009.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, September 3, 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 28, 2009 to September 3, 2009.

For this report period, the 12 month avg. price for natural gas at the wellhead fell 5.5%. The avg. 12 month price for peak electricity on the PJM fell 4%.  Crude oil prices fell 5.5% closing at $68/barrel. Weak demand and record high supplies for natural gas and crude oil placed downward pressure on energy prices this week. One sign that the demand for energy is still weak is that unemployment is still at a 26-year high. This slow demand for energy has translated into a glut of oil and natural gas supplies. At some point, the large decline in rig counts may impact prices. In addition, OPEC meets next week in Vienna to discuss their output strategy. Stay tuned. The "bears" won this week but the "bulls" could place upward pressure on prices if cold weather arrives early or a  hurricane disrupts production  in the Gulf of Mexico.

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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

3,323

3,258

65

2,834

2,822

Storage Update:  Inventories are at record high levels with eight  weeks left in the injection season. We may hit 4,000 bcf which is near the full mark. Working gas in storage for the week ending 8/28/09 was 3,323 bcf following this week’s injection of 65 bcf. The inventories are 17.3% above last year’s levels. We are 17.8% 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 28 was 699 rigs. That is an increase of 4 rigs. This is the sixth increase in a row. However, the rig count is still 907 lower than the count reported this same week last year.  We are now 46% below the 5-year avg. rig count of 1300.
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NYMEX Natural Gas Monthly Settlements
(Price per therm at the well-head)

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

Jan-09 

$0.6136

May-09 

$0.3321

Sep-09 

$0.2843

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NYMEX Values: Thursday, September 3, 2009
(Price per therm at the well-head)

Oct-09

$0.2508

Mar-10

$0.4879

Aug-10

$0.5304

Nov-09

$0.3662

Apr-10

$0.4894

Sep-10

$0.5377

Dec-09

$0.4509

May-10

$0.4964

12-month

$0.4674

Jan-10

$0.4819

Jun-10

$0.5081

11/09-3/10

$0.45496

Feb-10

$0.4879

July-10

$0.5209

Crude oil

$68/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

Aug-09

     

     

 Actual

93

272

   378  

467

        

        

 Normal

107

304

  456

407

 

 

 Departure from Normal

15.1%

11.8%

20.1%

12.8%

 

 

Cooler

Cooler

Cooler

Warmer

 

 

 

* 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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