WGES Home  |  Forward to a Friend  |  Plain Text Version  |  Past Issues
Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 34
We know how to deliver energy.
August 27, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of August 20, 2010 to August 26, 2010.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, August 26, 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*
e- Poll
Do you like the new Energy Update format ?
Yes
No
Not sure yet
 

 

For more information, contact your WGES Account Manager or wges_lgc@wges.com.
CleanSteps(SM) Windpower
Editors Note
Week in review for period of August 20, 2010 to August 26, 2010.

I think it is fair to say that the Bears are now in control of the pricing trends as energy prices fell for the fourth straight week. For this seven day report period, the 12 month average price for natural gas at the well-head fell 5.4%, and the average 12 month price for peak power on the PJM fell 3.4%.  Since July 29, 2010 natural gas prices have fallen 14% and electricity prices have fallen 8.9%. Crude oil prices have dropped from $83/barrel to $73/barrel in the last three weeks. The most notable reasons for the price decline are tied to the weather and the economy. For example, Fall temperatures translate into less demand for natural gas. This correlation exists because natural gas is used to produce electricity. Thus, as Fall approaches, people turn off their ac units and the demand for gas falls. The other notable factor affecting demand is the economy.  A sluggish economy translates into lower demands for energy. However, the trend line can change quickly. If we get a cold winter or an expanding economy, some analysts predict that prices will quickly rise again. This is a good time to review the early renewal option.

Return to Top
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

3,052

3,012

 40

3,250

2,875

Storage Update:  This week’s injection was 40 Bcf. Once again, the injection was below the 5 year average injection of 59 Bcf.  We are 6.1% below last year’s levels. Normally small injections place upward pressure on gas prices. However, the lackluster demand for gas has neutralized the below average storage injections. Plus stocks are still 6.2% above the 5 yr avg.

Return to Top
Baker Hughes Rotary Rig Count

Weekly Drilling Rig Update:  Active rig count released by Baker and Hughes for week ending 8/20/10 was 985 rigs which was a net decrease of 7 rigs.  The rig count is 290 higher than the rig count reported this same week last year. However, we are 22% below the 5 year average rig count of 1,256.

Return to Top
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

Return to Top
NYMEX Values: Thursday, August 26, 2010
(Price per therm at the well-head)

Sept-10

$0.3817

Feb-11

$0.4559

July-11

$0.4567

Oct-10

$0.3843

Mar-11

$0.4496

Aug-11

$0.4621

Nov-10

$0.4093

Apr-11

$0.4409

12-month

$0.4359

Dec-10

$0.4403

May-11

$0.4436

11/10-3/11

$0.44240

Jan-11

$0.4569

June-11

$0.4495

 Crude Oil

$73/barrel 

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

       

Return to Top
PJM Electricity
PJM 12-Month Average Peak Power Price
On-Peak 1 Year Forward Price

  ">
Return to Top
1\clip_image001.jpg">

Return to Top
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

Return to Top
Washington Gas Energy Services strives to provide concise and accurate information from dependable sources for information contained in this report. Nevertheless, Washington Gas Energy Services does not warrant the authenticity of such information. This report is not intended to serve as a trading tool for customers or for potential customers. If you would like to like to receive this information via email, please send your request to wges_lgc@wges.com.

To ensure delivery of the ENERGY UPDATE, please add wges_lgc@wges.com to your email address book or Safe Sender List.
If you are still having problems receiving our communications, see our white-listing page for more details.