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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 1
We Know Energy.
January 7, 2011 Energy Update
In this Issue
Editors Note
Week in review for period of December 17, 2010 to January 6, 2011.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, January 6, 2011
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 17, 2010 to January 6, 2011.

December was 20% colder than normal. These colder than normal temperatures have lead to higher heating demands. In fact, a few weeks ago the natural gas storage surplus was  9.9 % above the 5 year average. The storage surplus has shrunk. We are now 6.5% above the 5 year average. The increased demand has placed upward pressure on energy prices. For this report period, the 12 month average price for natural gas at the well-head rose 8% and the 12 month average price for peak power on the PJM rose 3.7%.  For now, weather is driving the energy market. The 11-14 day forecast predicts that the colder than normal temperatures will stay in the forecast. Stay tuned. This is a great time to look at the early renewal strategy.

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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

3,097

3,232

 -135

3,145

2,907

Storage Update:  The colder than normal temps. reduced the storage surplus. For the fifth week in a row, we experienced a larger than normal withdrawal.  This week’s withdrawal was 135 bcf which surpassed the 5 yr. avg. of 79 bf. We are now 1.5% below last year’s levels, and only 6.5% 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 12/30/10 was 919 rigs. This was a decrease of 12 rigs from the previous week and marks the fourth decrease in a row.  The count is 160 higher than the count reported this same week last year. We are 26% below the 5 year average rig count of 1,237.

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

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

May-10

$0.4271

Sept-10

$0.3651

Jan-11

$0.4216

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NYMEX Values: Thursday, January 6, 2011
(Price per therm at the well-head)

Feb-11

$0.4434

July-11

$0.4513

Dec-11

$0.5023

Mar-11

$0.4404

Aug-11

$0.4545

Jan-12

$0.5170

Apr-11

$0.4375

Sept-11

$0.4556

12-month

$0.46073

May-11

$0.4410

Oct-11

$0.4620

1/11-3/11

$0.44190

June-11

$0.4451

Nov-11

$0.4786

 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

933 

 

 Normal

477

775 

 

 

 

 Departure from Normal

10%

20% 

 

 

 

 

Warmer

Colder

 

 

 

 

 

** 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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