Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 16
We Know Energy
April 29, 2011 Energy Update
In this Issue
Editor's Note
Energy Prices Have Now Risen Six Out Of Seven Weeks
Spotlight on Carbon Offsets
The Royal Netherlands Embassy Becomes the First Large Commercial Customer to Purchase WGES CleanSteps℠ Carbon Offsets
Renewable Energy
Spring Promotion: Sign up for Wind Power and Receive Free Print Advertising!
Natural Gas
EIA Gas Storage Update - Data Released April 28, 2011
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements For the Past 12 Months
NYMEX Values For the Forward 12 Months
NYMEX 12-Month Average Price Per Therm at the Well-Head
PJM Electricity
PJM 12-Month Average Peak Power Price
Local Heating Degree Days*
Term of the Week
Carbon Offset
e- Poll
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Renewable Energy


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Editor's Note
Energy Prices Have Now Risen Six Out Of Seven Weeks
Week in review for period of April 22-28, 2011

Energy prices rose for the third consecutive week. At this point, natural gas and electricity prices have now risen six out of the past seven weeks. For this seven day report period, the 12-month average price for natural gas at the well-head rose 2.3%, and the 12-month average price for peak power on the PJM rose 1.1%. Crude oil prices rose to a 31 month high of  $112 per barrel.

The recent price increases for electricity and natural gas are attributed to a temporary spike in natural gas demand.  During the spring, you expect a decrease in gas demand because you do not need gas for heating or cooling.  However, over the last few weeks, natural gas demand has not dropped as much as expected because the natural gas is being burned to produce electricity. Analysts note that a large number of nuclear power plants have gone off-line for routine maintenance work over the last few weeks. Gas Daily references a quote by Tim Evans, an analyst from City Futures Perspective, quoting "nuclear capacity taken off-line has increased by roughly 40% from the same time last April."  Instead of gas getting injected into storage, it is burned to produce electricity.

Natural gas storage levels are now 11% below last year's levels. On March 24, 2011,  we were 1% below last year's levels.  We will need to keep an eye on the storage levels as they can impact prices.

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