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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 42
We know how to deliver energy.
October 22, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of October 15, 2010 to October 21, 2010.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, October 21, 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 October 15, 2010 to October 21, 2010.

Energy prices for the month of October had been uneventful until this week. This week’s robust natural gas storage report coupled with lackluster energy demand placed downward pressure on energy prices. For this seven day report period, the 12 month average price for natural gas at the well-head fell 4.9% and the12 month average price for peak power on the PJM fell 1.4%.  The main story is that natural gas storages are near record high levels again, gas production is high and energy demand is low this time of year. Natural gas production is much higher than expected because the recently discovered shale gas formations are very fruitful and are transforming the industry.  Natural gas and electricity prices remain near seven year lows for now. Winter is the next wild card. 

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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

3,683

3,590

 93

3,731

3,397

Storage Update:  We have two weeks left in the injection season. This week’s injection of 93 Bcf was well above average.   Last year at this time the injection was 23 Bcf.  As a result, the deficit from a year ago is still shrinking. We are now only 1.2% below last year’s levels.  The surplus relative to the 5 year average has grown to 8.4%.

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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 10/15/10 was 966 rigs which was a net decrease of 5 rigs.  The count is 245 higher than the count reported this same week last year. We are 23% below the 5 year average rig count of 1249.

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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, October 21, 2010
(Price per therm at the well-head)

Nov-10

$0.3368

Apr-11

$0.3992

Sept-11

$0.4221

Dec-10

$0.3750

May-11

$0.4028

Oct-11

$0.4301

Jan-11

$0.4018

June-11

$0.4088

12-month

$0.4016

Feb-11

$0.4056

July-11

$0.4156

11/10-3/11

$0.38416

Mar-11

$0.4016

Aug-11

$0.4200

 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%

38.0%

 

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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