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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 29
We know how to deliver energy.
July 23, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of July 16, 2010 to July 22, 2010.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, July 22, 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 July 16, 2010 to July 22, 2010.

Natural gas and electricity prices were relatively flat for the second week in a row. As you can see from the graphs below, prices are still “range bound.”  For this seven day report period, the 12 month average price for natural gas at the well-head rose by less than 1%, and the average 12 month price for peak power on the PJM fell 2%.  This pricing stalemate can be tied to the fact that continued strong domestic natural gas production was  offset by increased gas usage. For example, the natural gas rig count increased for the 4th week in a row but natural gas consumption for power generation jumped 24% compared to last year. (Gas demand spiked because of the abnormally hot temperatures that hit the U.S.) Stay tuned. All eyes are now focused on Tropical Storm Bonnie which is heading into the Gulf of Mexico. Gulf storms can place upward pressure  on energy prices because these storms disrupt the numerous production facilities  located in the Gulf.

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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

2,891

2,840

 51

2,943

2,630

Storage Update:  This week’s net injection of 51 Bcf was below the 5 year avg. of 64 Bcf and thus increased our deficit from last year.  We are 1.8% below last year’s levels. For now, natural gas is being burned for electric generation and is not going into storage. However, inventories are 9.9% above the 5 year average.

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Baker Hughes Rotary Rig Count

Weekly Drilling Rig Update:  Active rig count released by Baker and Hughes for week ending 7/16/10 was 979 rigs which was a net increase of 15 rigs.  The rig count is 314 higher than the rig count reported this same week last year. However, we are 22% below the 5 year average rig count of 1,261.

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

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

Nov-09

$0.4289

Mar-10

$0.4816

July-10 

$0.4717

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NYMEX Values: Thursday, July 22, 2010
(Price per therm at the well-head)

Aug-10

$0.4643

Jan-11

$0.5337

June-11

$0.5072

Sept-10

$0.4632

Feb-11

$0.5306

July-11

$0.5122

Oct-10

$0.4672

Mar-11

$0.5210

12-month

$0.5010

Nov-10

$0.4905

Apr-11

$0.5018

11/10-3/11

$0.5186

Dec-10

$0.5172

May-11

$0.5032

 Crude Oil

$79/barrel 

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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

47.0%

 35.7%

 

 

 

 

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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