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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 7
We Know Energy.
February 18, 2011 Energy Update
In this Issue
Editors Note
Gas prices hit 8 year low. Electricity prices hit 7 year low.
Renewable Energy
The University of Maryland College Park announces 631 KW solar project
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, February 17, 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*
Word of the Week
Well head
 

 

For more information, contact your WGES Account Manager or wges_lgc@wges.com.
CleanSteps(SM) Windpower
Editors Note
Gas prices hit 8 year low. Electricity prices hit 7 year low.
Week in review for period of February 11-17, 2011.

Energy prices fell for the second week in a row thanks to the recent appearance of mild weather and the prediction of abundant supplies coming from the recently discovered shale formations. (Note: Mild temperatures reduce the demand for natural gas because gas is used for space heating and electric generation.)  For this report period, the 12 month average price for natural gas at the well-head fell 3% and the 12 month average price for peak power on the PJM fell 2.7%. Over the last 14 days, natural gas prices have fallen 8% and electric prices have fallen 5%. Is this the low point? Natural gas prices are at an eight year low and electricity prices are at a seven year low. But do not be lulled to sleep. There are a number of variables in play that can place upward pressure on energy prices. For example, the tensions in the Middle East can spook the energy markets and thus place upward pressure on energy prices. Plus we need to keep an eye on natural gas inventories which are now below the 5 year average. Stay tuned. Now is a great time to look at the early renewal strategy.

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Renewable Energy
The University of Maryland College Park announces 631 KW solar project

COLLEGE PARK, Md. — More than 2,600 solar panels will be installed on a University of Maryland, College Park (UMD) building this summer, resulting in one of the largest rooftop solar power systems in Maryland.

UMD was selected as a Maryland Energy Administration Project Sunburst Initiative Partner and awarded a grant aimed at promoting the installation of renewable energy systems on public buildings in Maryland. As a result of a competitive bid process, Washington Gas Energy Services, Inc. (WGES) will finance the remainder of the project cost and UMD will purchase the electricity generated by the solar panels under a 20-year agreement with WGES.  Read More

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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

1,911

2,144

 -233

2,052

2,039

Storage Update:  For the 11th week in a row, we had a larger than normal withdrawal.  This week’s withdrawal was 233 Bcf.  The 5 year average withdrawal   was 150 bcf.  Last year's withdrawal at this time was 190 bcf. The gas bubble continues to shrink.   Inventories are now 6% below the 5 year average and are 6.8% below last year’s levels.

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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 2/11/11 was 906 rigs. This was a decrease of 5 rigs from the previous week.  The count is 15 higher than the count reported this same week last year. We are 26% below the 5 year average rig count of 1,230.

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

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

June-10

$0.4155

Oct--10

$0.3837

Feb-11

$0.4316

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NYMEX Values: Thursday, February 17, 2011
(Price per therm at the well-head)

Mar-11

$0.3868

Aug-11

$0.4118

Jan-12

$0.4742

Apr-11

$0.3901

Sept-11

$0.4130

Feb-12

$0.4732

May-11

$0.3968

Oct-11

$0.4176

12-month

$0.4228

June-11

$0.4030

Nov-11

$0.4371

11/11-3/12

$0.40721

July-11

$0.4087

Dec-11

$0.4613

 Crude Oil

$87/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 

965 

 Normal

477

775 

917 

 

 

 Departure from Normal

10%

20% 

5% 

 

 

 

Warmer

Colder

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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Word of the Week
Well head

Well head is a term used in the oil and gas industry to describe the equipment located at the top of a well. The usual equipment is a control or choke valve to control oil/gas flow and pressure and temperature gauges. (Source: http://www.wordiq.com/definition/Well_head)

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