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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 31
We know how to deliver energy.
August 6, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of July 30, 2010 to August 5, 2010.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, August 5, 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 July 30, 2010 to August 5, 2010.

Natural gas and electricity prices are still trading in a tight range as you can see from the graphs below However, the Bears won the wrestling match this week as prices fell.  For this seven day report period, the 12 month average price for natural gas at the well-head fell 2.6%, and the average 12 month price for peak power on the PJM fell 1.8%.  Some analysts predicted a price increase after the EIA storage report noted below showed that the year-to-year storage deficit grew from 94 Bcf to 132 Bcf. However this bullish storage news was quickly countered by bearish labor reports that indicated our economy and energy demand were growing slower than expected. Additionally, downward pressure was placed on energy prices after the NOAA Forecasters reduced the number of storms they predicted for the Atlantic Hurricane season.  But do not be lulled to sleep. The hurricane season is very young and does not end until Nov, 30. Weather is one of many factors that impact energy prices.  

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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

2,948

2,919

 29

3,080

2,727

Storage Update:  This week’s injection was a mere 29 Bcf. The injection was below the 5 year average injection of 47 Bcf and well below last year’s injection of 67bcf.  The year to year deficit continues to grow. We are now 4.3% below last year’s levels. The gas is being burned for electric generation and is not going into storage. Luckily we are 8.1% 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 7/30/10 was 972 rigs which was a net decrease of 10 rigs.  The rig count is 295 higher than the rig count reported this same week last year. However, we are 23% below the 5 year average rig count of 1,259.

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

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

Dec-09

$0.4486

Apr-10

$0.3842

Aug-10 

$0.4774

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NYMEX Values: Thursday, August 5, 2010
(Price per therm at the well-head)

Sept-10

$0.4598

Feb-11

$0.5155

July-11

$0.5023

Oct-10

$0.4622

Mar-11

$0.5058

Aug-11

$0.5065

Nov-10

$0.4795

Apr-11

$0.4909

12-month

$0.4946

Dec-10

$0.5047

May-11

$0.4925

11/10-3/11

$0.5047

Jan-11

$0.5184

June-11

$0.4967

 Crude Oil

$82/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 

566

 

 

 

 Normal

107

 304

  456

 

 

 

 Departure from Normal

47.0%

 55.6%

19.4%

 

 

 

Warmer

 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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