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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 43
We know how to deliver energy.
October 29, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of October 22, 2010 to October 28, 2010.
Renewable Energy
Green Power at the University of Maryland - College Park
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, October 28, 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 22, 2010 to October 28, 2010.

During the first two weeks of October, energy prices were flat. However, the last two weeks of the month were very volatile. For example, for the period of Oct.15- 21 2010, 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%. However, for this period, the 12 month average price for natural gas at the well-head rose 5% and the 12 month average price for peak power on the PJM rose 3%. Analysts were baffled by this week’s price increase. One analyst said the “bounce was caused by speculators covering massive short positions.” Most analysts thought the mild weather, high storage levels and robust gas production would place downward pressure on prices. Natural gas is the most volatile commodity in the world. Even the analysts can guess wrong.

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Renewable Energy
Green Power at the University of Maryland - College Park

The student body at the University of Maryland - College Park (UMD) voted overwhelmingly to support the creation of a sustainability fund for environmental projects on campus. This year students used this fund to purchase green power.

UMD’s green power purchase of more than 66,000,000 kWh of wind energy a year through Washington Gas Energy Services is equivalent to avoiding 47,399 metric tons of CO2 and taking 9,063 cars off the road for one year.

According to the EPA’s Green Power Partnership “Top 20 College & University” list, UMD - College Park would rank number five nationwide for their green power purchase.

In 2007, over ninety-percent of the UMD student body voted to start a Green Fund, supported by a “green fee” that began at $4 per student and will be capped at $12 in 2010.  Using this green fund, students purchased over 66 million kWh of their power in 2010 from WGES CleanStepsSM WindPower for Large Commercial Customers. This purchase of wind energy credits is the equivalent to offsetting over 60% of the campus’s total electricity load. 

Wind power helps to reduce emissions produced by conventional electricity sources and supports the development of wind farms. WGES CleanStepsSM WindPower for Large Commercial Customers is Green-e Energy certified, the nation's leading voluntary certification program for renewable energy. Large Commercial customers, including colleges and universities,  have the option to purchase CleanStepsSM WindPower for any portion of their energy portfolio.


 

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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

3,754

3,683

 71

3,755

3,442

Storage Update:  We have one week left in the injection season. This week’s injection was, once again, above average coming in at 71 Bcf.  Last year at this time the injection was 25 Bcf.  As a result, the deficit from a year ago has almost disappeared.  We are near the same level as last year.  The surplus relative to the 5 year average has grown to 9.1%.

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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 10/22/10 was 965 rigs which was a net decrease of 1 rig.  The count is 240 higher than the count reported this same week last year. We are 23% below the 5 year average rig count of 1248.

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

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

Mar-10

$0.4816

July-10 

$0.4717

Nov-10 

$0.3292

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NYMEX Values: Thursday, October 28, 2010
(Price per therm at the well-head)

Dec-10

$0.3890

May-11

$0.4125

Oct-11

$0.4396

Jan-11

$0.4134

June-11

$0.4183

Nov-11

$0.4636

Feb-11

$0.4157

July-11

$0.4253

12-month

$0.4217

Mar-11

$0.4116

Aug-11

$0.4300

12/10-3/11

$0.4074

Apr-11

$0.4091

Sept-11

$0.4319

 Crude Oil

$82/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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