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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 8
We Know Energy.
February 25, 2011 Energy Update
In this Issue
Editors Note
Crude Oil Prices Rise But Natural Gas and Electricity Prices Stay Low
Renewable Energy
The University of Maryland College Park announces 631 KW solar project
Natural Gas
EIA Gas Storage Update - Data Released February 24, 2011
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, February 24, 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
Spring Equinox
 

 

For more information, contact your WGES Account Manager or wges_lgc@wges.com.
CleanSteps(SM) Windpower
Editors Note
Crude Oil Prices Rise But Natural Gas and Electricity Prices Stay Low
Week in review for period of February 18-24, 2011.

From Feb. 3, 2011 to Feb. 17, 2011 natural gas prices fell 8% and electric prices fell 5%. However, the downward pricing slide ended this week. For this report period, the 12 month average price for natural gas at the well-head closed flat and the 12 month average price for peak power on the PJM remained flat. Some analysts argue that natural gas and electricity prices were flat because the 8-14 day forecast called for the return of normal weather. Plus some analysts think prices are now trading at the floor. Is this the low point? Natural gas prices are at an eight year low and electricity prices are at a seven year low.

It is interesting to note that crude oil prices rose from $87/barrel to more than $95/barrel this week. Crude oil prices increased because of the unrest that has occurred in the Middle East. Most of the crude oil produced in the world comes from the Middle East. At this time, the surge in oil prices has not impacted our natural gas prices because almost all of our natural gas is produced within the United States.

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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 - Data Released February 24, 2011

 

 Current Week

Last Week 

Net Change

 Last Year 

 5 Year

 

 Stocks (Bcf)

Stocks (Bcf)

 (Bcf)

Stocks (Bcf)

 Average (Bcf)

 Total Lower 48

1,830

1,911

 -81

1,878

1,891

Storage Update:  The 11 week record of larger than normal withdrawals is over.  For the first time in 12 weeks, we had  a below normal withdrawal  of natural  gas from storage.  This week’s withdrawal was 81 Bcf.  The 5 year average withdrawal  was 148 bcf.  Last year's withdrawal at this time was 174 bcf.  The gas bubble did not shrink this week.  Inventories are now only 3.2% below the 5 year average and 2.5% 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 2/18/11 was 905 rigs. This was a decrease of 1 rig from the previous week.  The count is 12 higher than the count reported this same week last year. We are 26% below the 5 year average rig count of 1,228.

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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 24, 2011
(Price per therm at the well-head)

Mar-11

$0.3793

Aug-11

$0.4103

Jan-12

$0.4744

Apr-11

$0.3872

Sept-11

$0.4117

Feb-12

$0.4733

May-11

$0.3940

Oct-11

$0.4166

12-month

$0.4209

June-11

$0.4007

Nov-11

$0.4354

11/11-3/12

$0.40469

July-11

$0.4070

Dec-11

$0.4606

 Crude Oil

$95/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
Spring Equinox

Definition: The spring equinox and the fall equinox are the two days in the year when the hours of daylight and darkness are exactly equal.  For 2011, Spring Equinox is on March 20.

(Source:  http://www.kidsturncentral.com/holidays/glossary/defsequinox.htm)

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