Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 19
We Know Energy
May 20, 2011 Energy Update
In this Issue
Editor's Note
How much longer will prices remain range bound?
Spotlight on Solar
Wilmington Friends School announces installation of a new campus solar power system
Natural Gas
EIA Gas Storage Update - Data Released May 19, 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
Weather
Local Heating Degree Days*
Term of the Week
Dekatherm
Renewable Energy

 

For more information, contact your WGES Account Manager or wges_lgc@wges.com.
Editor's Note
How much longer will prices remain range bound?
Week in review for period of May 13 - May 19, 2011

Natural gas prices fell slightly for the third consecutive week while electricity prices broke ranks and inched upward. For this seven day report period, the 12-month average price for natural gas at the well-head fell 1.7%. The 12-month average price for peak power on the PJM rose a meager .7%.

Natural gas and electricity prices have floated down over the last few weeks because there was minimal demand for heating or cooling. But prices were up prior to this recent downward trend. If you look at the pricing graphs in this newsletter, you will see that prices are range bound as they continue to hover around  this seven year low. Over the last year, natural gas and electricity prices have gone up slightly one week and dropped slightly the next week. Prices are low because natural gas supplies are abundant (thanks to the shale gas discoveries) and energy demand is low for now. However, there are some things on the horizon that could place upward pressure on prices. Here are some things to watch. After the next five days, warmer than normal temperatures are expected east of the Mississippi. Hot weather creates high demand for energy. Additionally, gas supply shut-ins in the Gulf of Mexico due to the Mississippi flooding or future hurricanes could place upward  pressure on prices. Lastly, a strong economic recovery could begin to place upward pressure on prices.

The good news, for now, is that prices are still near a seven year low.   

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