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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 24
We know how to deliver energy.
June 18, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of June 11, 2010 to June 17, 2010.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, June 17, 2010
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 June 11, 2010 to June 17, 2010.

Last week energy prices were flat. However, the bulls returned this week.  For this report period, the 12 month average price for natural gas rose 5.6%, and the average 12 month price for electricity on the PJM rose 3.7%. This means natural gas and electricity prices have risen 3 out of the last 4 weeks. Since May 21, 2010, natural gas prices have risen 13.7% and electricity prices have risen 10%.  The most likely reason for this week’s price spike was weather. According to EIA, temperatures across the country for this report period were warmer than normal. Plus, NOAA forecasted warmer than normal temperatures east of the Mississippi for the next 8-14 days. Natural gas is used for electric power generation. Hot temperatures create higher energy demands and higher energy prices. Although prices are on the rise, energy prices are still low relative to the last 5 years. This is a great time to look at the early renewal option.

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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

2,543

2,456

 87

2,541

2,230

Storage Update:  This week’s reported injection of 87 bcf was below expectations. Inventories are now 14.0% above the 5 year average.  We are now only 0.1% above last year’s storage number. The “year to year” surplus is dwindling as six of the last seven injections were lower than a year ago.

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Baker Hughes Rotary Rig Count

Weekly Drilling Rig Update:  Active rig count released by Baker and Hughes for week ending June 11, 2010 was 954 rigs which was a net increase of 7 rigs.  The rig count is 269 higher than the rig count reported this same week last year.  We are now 25% below the 5 year average rig count of 1,265.

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NYMEX Natural Gas Monthly Settlements
(Price per therm at the well-head)

July-09

$0.3939

Nov-09  

$0.4289

Mar-10

$0.4816

Aug-09 

$0.3379

Dec--09 

$0.4486

Apr-10 

$0.3842

Sept-09 

$0.2843

Jan-10 

$0.5814

May-10 

$0.4271

Oct-09 

$0.3730

Feb-10

$0.5274

June-10 

$0.4155

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NYMEX Values: Thursday, June 17, 2010
(Price per therm at the well-head)

July-10

$0.5162

Dec-10

$0.5727

May-11

$0.5339

Aug-10

$0.5212

Jan-11

$0.5897

June-11

$0.5376

Sept-10

$0.5241

Feb-11

$0.5827

12-month

$0.5468

Oct-10

$0.5299

Mar-11

$0.5709

11/10-3/11

$0.5720

Nov-10

$0.5500

Apr-11

$0.5329

Crude oil

$76/bl.

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

  

                                                   Trade Date

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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-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

 Actual

201

 

 

 

 

 

 Normal

107

 

  

 

 

 

 Departure from Normal

47%

 

 

 

 

 

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 day

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