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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 39
We know how to deliver energy.
October 1, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of September 24, 2010 to September 30, 2010.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, September 30, 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 24, 2010 to September 30, 2010.

During the month of August, natural gas prices fell 14% and electric prices fell 9%. For the month of September, trading volatility was less noticeable but the downward trend continued. Over the last 30 days, natural gas prices fell 5% and electricity prices on the PJM fell 1%. The month of September was uneventful because we had minimal heating demand, minimal cooling demand and minimal hurricane activity in the Gulf of Mexico.  Natural gas prices closed the month at a seven year low and electricity prices closed at a six year low. The big news story for this 7 day report period  is that crude oil prices jumped from $74/barrel to $81/barrel which is a 7 week high.  Oil prices jumped upward as economic news indicated that new jobless claims fell last week and consumer spending was stronger than expected. Some analysts think the economic recovery has started. Stay tuned. The pace of the economic recovery and the severity of the upcoming winter will drive prices over the next few months.

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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

3,414

3,340

 74

3,580

3,212

Storage Update:  We have five weeks left in the injection season. This week’s injection was 74 Bcf.   Last year at this time the injection was 65 Bcf.  As a result, the deficit from a year ago is still shrinking. The deficit shrunk from 4.9% to 4.6%.  The surplus relative to the 5 year average remained the same at 6.2%.

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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 9/24/10 was 967 rigs which was a net decrease of 15 rigs.  This is the first decrease we have experienced in the last four weeks.  The count is 261 higher than the count reported this same week last year. We are 21% below the 5 year average rig count of 1225. 

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

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

Feb-10

$0.5274

June-10

$0.4155

Oct-10 

$0.3837

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NYMEX Values: Thursday, September 30, 2010
(Price per therm at the well-head)

Nov-10

$0.3872

Apr-11

$0.4220

Sept-11

$0.4457

Dec-10

$0.4122

May-11

$0.4255

Oct-11

$0.4535

Jan-11

$0.4294

June-11

$0.4316

12-month

$0.4289

Feb-11

$0.4313

July-11

$0.4387

11/10-3/11

$0.41720

Mar-11

$0.4259

Aug-11

$0.4435

 Crude Oil

$81/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

323

 

 Normal

107

 304

  456

402

200

 

 Departure from Normal

47.0%

 55.6%

19.4%

16.1%

0.38

 

Warmer

 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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