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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 26
We know how to deliver energy.
July 2, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of June 25, 2010 to July 1, 2010.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, July 1, 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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CleanSteps(SM) Windpower
Editors Note
Week in review for period of June 25, 2010 to July 1, 2010.

The Bears and the Bulls fought to a draw during this report period.  Prices ran up three days and then fell two days. The closing prices on July 1, 2010 looked almost identical to the closing prices reported in the June 24,2010 newsletter. The upward pressure on natural gas and electricity prices has come from Mother Nature. The hotter than normal temperatures experienced over the last two months have increased the demand for gas-fired power generation and placed upward pressure on prices. Plus the fear of an active hurricane season has also placed upward pressure on energy prices. However the price increases have been slowed by the fact that gas production is now at a 36 month high. According to EIA, gas production rates are at the highest levels since 1974 thanks to the discovery of on-shore shale gas. The future direction of energy prices over the next 60 days will be tied to Mother Nature.

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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

2,684

2,624

 60

2,711

2,397

Storage Update:  This week’s injection of 60 bcf was below average due to hot weather demand that diverted gas from storage to the power generators.  Inventories are 12% above the 5 year average. However we are 1% below last year’s levels. This is the 2nd time in 2 months that storages fell below last year’s levels

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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 25, 2010 was 958 rigs which was a net increase of 5 rigs.  The rig count is 271 higher than the rig count reported this same week last year. However, we are 21% below the 5 year average rig count of 1,219.

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

Aug-10

$0.4548

Dec-10

$0.5239

Apr-11

$0.5074

Sept-10

$0.4587

Jan-11

$0.5427

May-11

$0.5093

Oct-10

$0.4673

Feb-11

$0.5384

June-11

$0.5144

Nov-10

$0.4944

Mar-11

$0.5291

July-11 

$0.5206

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NYMEX Values: Thursday, July 1, 2010
(Price per therm at the well-head)

Aug-10

$0.4854

Jan-11

$0.5565

June-11

$0.5212

Sept-10

$0.4880

Feb-11

$0.5525

July-11

$0.5272

Oct-10

$0.4939

Mar-11

$0.5415

12-month

$0.5212

Nov-10

$0.5158

Apr-11

$0.5155

11/10-3/11

$0.5413

Dec-10

$0.5401

May-11

$0.5168

Crude oil

$72.55/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-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

 Actual

201

473 

 

 

 

 

 Normal

107

 304

  

 

 

 

 Departure from Normal

87.9%

 55.6%

 

 

 

 

Warmer

 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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