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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 37
We know how to deliver energy.
September 17, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of September 10, 2010 to September 16, 2010.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, September 16, 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*
 

 

For more information, contact your WGES Account Manager or wges_lgc@wges.com.
CleanSteps(SM) Windpower
Editors Note
Week in review for period of September 10, 2010 to September 16, 2010.

During the month of August, natural gas prices fell 14% and electricity prices fell 9%. However, during the first 21 days of September, the energy markets have been relatively calm but are trying to inch upward. For this 7 day period, the 12 month average price for natural gas at the well-head rose 2%. The 12 month average price for peak power on the PJM also rose 2%. September is known as a “shoulder” month where you have very little demand for cooling and very little demand for heating.  Fundamentally, there is nothing noteworthy happening in the market for now. The market is still awaiting the next story line. During this time of year, one of the biggest variables to watch is the hurricane. In Sept. 2005, Hurricane  Rita hit the Gulf of Mexico and placed lots of upward  pressure on energy prices. Luckily, the hurricane season ends Nov. 30.

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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

3,267

3,164

 103

3,449

3,075

Storage Update:  This week’s injection was a whopping 103 Bcf.  This was the first above average injection in 13 weeks.  As a result, the deficit from a year ago finally shrunk from  6.4 % to 5.3%.  The surplus relative to the 5 year average finally grew from 5.5% to 6.2%.  Now that the extreme heat  is gone, gas is available for storage. The injection season ends Nov. 1.

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Baker Hughes Rotary Rig Count

Weekly Drilling Rig Update:  Active rig count released by Baker and Hughes for the week ending 9/10/10 was 980 rigs which was a net increase of 3 rigs. This is the 2nd week out of 4 that the rig count increased. The count is 281 higher than the count reported this same week last year. We are 22% below the 5 year avg. rig count of 1254.

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

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

Jan-10

$0.5814

May-10

$0.4271

Sept-10 

$0.3651

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NYMEX Values: Thursday, September 16, 2010
(Price per therm at the well-head)

Oct-10

$0.4062

Mar-11

$0.4542

Aug-11

$0.4641

Nov-10

$0.4238

Apr-11

$0.4456

Sept-11

$0.4667

Dec-10

$0.4450

May-11

$0.4478

12-month

$0.4489

Jan-11

$0.4605

June-11

$0.4528

11/10-3/11

$0.44882

Feb-11

$0.4606

July-11

$0.4592

 Crude Oil

$74/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

479

 

 

 Normal

107

 304

  456

402

 

 

 Departure from Normal

47.0%

 55.6%

19.4%

16.1%

 

 

Warmer

 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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