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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 49
We Know Energy.
December 17, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of December 10, 2010 to December 16, 2010.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, December 16, 2010
NYMEX 12-Mo. Avg. Price Per Therm at the Well-Head
PJM Electricity
PJM 12-Month Average Peak Power Price
Weather
Local Heating 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 10, 2010 to December 16, 2010.

Since Thanksgiving, cold temperatures have placed upward pressure on energy prices. However, that trend line was unexpectedly interrupted this week as energy prices fell. For this report period, the 12 month average price for natural gas at the well-head fell 6% and the 12 month average price for peak power on the PJM fell 1%. For now, the cold weather news was trumped by an Energy Information Administration report that predicted a robust gas supply picture thanks to the shale gas discoveries. EIA stated that “the technically recoverable unproved shale gas resource is 827 trillion cubic feet (Tcf), which is 474 Tcf larger than estimated.” The question is whether they can get this gas without messing up the water supplies.

Due to the holidays, Energy Update may not be published on the next two Fridays.

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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

3,561

3,725

 -164

3,596

3,240

Storage Update:  The cold temperatures made a dent in the storage numbers. We had our first triple digit withdrawal of the season. For this period we saw a withdrawal of 164 Bcf which was bigger than the 5 yr. average. We are now 1% below last year’s levels, but we are still 9.9% over the 5 year average.

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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 12/10/10 was 948 rigs which decreased 13 rigs from the previous week.  The count is 191 higher than the count reported this same week last year. We are 24% below the 5 year average rig count of 1,240.

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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 16, 2010
(Price per therm at the well-head)

Jan-11

$0.4048

June-11

$0.4160

Nov-11

$0.4570

Feb-11

$0.4084

July-11

$0.4225

Dec-11

$0.4846

Mar-11

$0.4077

Aug-11

$0.4269

12-month

$0.4258

Apr-11

$0.4071

Sept-11

$0.4286

12/10-3/11

$0.40697

May-11

$0.4108

Oct-11

$0.4358

 Crude Oil

$88/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 Heating 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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