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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 48
We Know Energy.
December 10, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of December 3, 2010 to December 9, 2010.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, December 9, 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 December 3, 2010 to December 9, 2010.

For the second week in a row, energy prices rose. For this report period, the 12 month average price for natural gas at the well-head rose 1.7% and the 12 month average price for peak power on the PJM rose by 2%. Crude oil prices rose by $1 to close at $89/barrel. The recent price surge was due to the extremely cold temperatures that hit the nation’s consuming regions.  However, analysts say the price rally will likely be short lived unless the cold weather lingers for another month. If it stays cold, the gas surplus will begin to shrink and thus place more upward pressure on prices. (Gas storages are 9.8% above the 5 year average.) However, if winter is short-lived, the price rally will likely be short-lived.

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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

3,725

3,814

 -89

3,782

3,393

Storage Update:  The withdrawal season is getting into high gear thanks to the onset of cold temperatures. Last week we had a withdrawal of 23 Bcf. This week we had a withdrawal of 89 Bcf.  We are now 1.5% below last year’s levels. The surplus over the 5 year average shrunk from 10% to 9.8%.

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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 12/3/10 was 961 rigs which increased 8 rigs from the previous week.  The count is 213 higher than the count reported this same week last year. We are 23% below the 5 year average rig count of 1,242.

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

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

Apr-10

$0.3842

Aug-10

$0.4774

DEC-10 

$0.4267

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NYMEX Values: Thursday, December 9, 2010
(Price per therm at the well-head)

Jan-11

$0.4435

June-11

$0.4449

Nov-11

$0.4828

Feb-11

$0.4440

July-11

$0.4504

Dec-11

$0.5088

Mar-11

$0.4413

Aug-11

$0.4542

12-month

$0.4557

Apr-11

$0.4379

Sept-11

$0.4559

12/10-3/11

$0.44293

May-11

$0.4409

Oct-11

$0.4637

 Crude Oil

$89/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 Heating Degree Days* 

 

Nov10

Dec-10

Jan-11

Feb-11

Mar-11

April-11

 Actual

428

 

 

 Normal

477

 

 

 

 

 Departure from Normal

10%

 

 

 

 

 

Warmer

 

 

 

 

 

 

** Heating degree days are calculated by comparing the day’s average temperature to a 65 degree baseline.  If the day’s average temperature is above 65, there are no heating degree days that day.  If the day’s average temperature is less than 65 degrees, subtract the day’s average temperature from 65 to find the number of heating degree days for that day.

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