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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 38
We know how to deliver energy.
September 24, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of September 17, 2010 to September 23, 2010.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, September 23, 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 17, 2010 to September 23, 2010.

The month of September has been uneventful. As a result, energy prices during the month have remained relatively flat. For this 7 day period, the 12 month average price for natural gas at the well-head fell 1%. The 12 month average price for peak power on the PJM also fell 1%. Natural gas prices remain at a seven year low and electricity prices remain at a six year low because heating demand has not started, cooling demands are very low, the natural gas inventories are still 6% above the 5 year average and the economy is still in a slow growth mode.  Is this the bottom for prices? Fundamentally, there is nothing noteworthy happening in the market to dramatically move prices for now.  However, all eyes are focused on the new tropical storm named Mathew that has developed in the Caribbean. The storm appears to be headed for the Gulf where the oil rigs are located. Stay tuned. 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

3,340

3,267

 73

3,515

3,145

Storage Update:  We have six weeks left in the injection season. This week’s injection was 73 Bcf.   As a result, the deficit from a year ago shrunk from 5.3 % to 4.9%.  The surplus relative to the 5 year average remained the same at 6.2%.  Now that the extreme heat is gone, the need for gas fired generation is down and thus more gas is going into storage.

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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 9/17/10 was 982 rigs which was a net increase of 2 rigs.  This is the 3rd week in the row it has increased.  The count is 277 higher than the count reported this same week last year. We are 20% below the 5 year avg. rig count of 1227.

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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 23, 2010
(Price per therm at the well-head)

Oct-10

$0.4019

Mar-11

$0.4466

Aug-11

$0.4572

Nov-10

$0.4156

Apr-11

$0.4399

Sept-11

$0.4595

Dec-10

$0.4374

May-11

$0.4422

12-month

$0.4423

Jan-11

$0.4536

June-11

$0.4469

11/10-3/11

$0.4415

Feb-11

$0.4543

July-11

$0.4528

 Crude Oil

$73/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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