Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 1
We Know Energy
January 6, 2012 Energy Update
In this Issue
Editor's Note
November and December Temperatures Were 20% and 22% Warmer Than Normal
Natural Gas Fundamentals
EIA Gas Storage Update: Data Released January 5, 2012
Baker Hughes Rotary Rig Count For Natural Gas
NYMEX Natural Gas Monthly Settlements For the Past 12 Months
NYMEX Values For the Forward 12 Months
NYMEX Graph For Natural Gas - 12 Month Average Price Per Therm at the Well-Head
PJM Electricity
Graph - PJM 12-Month Average Peak Power Price
Weather
Local Heating Degree Days*
Recent Features
D.C.'s Dumbarton House Reduces its Carbon Footprint with Purchase of Carbon Offsets from WGES (Dec. 30, 2011)

 



U.S. EPA Honors the District of Columbia with the Green Power Community of the Year Award (Dec. 9, 2011)

 



WGES Receives Prestigious Green Power Supplier of the Year Award (Nov. 18, 2011)

 


WGES Selected to Supply 1.5 Million Megawatt Hours Per Year to the Baltimore Regional Cooperative Purchasing Committee (Nov. 14, 2011)





WGES and Kent County, Maryland Announce 1.58 Megawatt Solar Project (Nov. 4, 2011)

 


EPA Recognizes Panera Bread of Maryland as a Top Retail Green Power Purchaser (Oct. 28, 2011)

Our New Wind Power Partners
Green Power Leadership Award Winner - U.S. Department of Energy

Panera Bread of Maryland (Lemek LLC)
Calvary Baptist Church
Mountain View Community Church
Caser Chavez Public School
PB Dye Golf Club
Behnke Nurseries
Townes of North Creek
Victory Racing Plate Company
Village Management, Inc.
Mt. Airy Bicycles
College Park Bicycles
Donatelli Development
Blue Ocean Realty
Mandarin Oriental
Bank of Georgetown
Embassy of Bosnia Herzogovina
Baltimore International College Foundation
The Shakespeare Theatre Co.
Kaiser Foundation Health Plans of Mid-Atlantic States
Carbon

Visit wges.com/partners for full list of WGES Wind Power Partners.

 
To find out more about a green power purchase for your organization, call 703-793-7578, or visit wges.com/commercialwind.

For more information, contact your WGES Account Manager or wges_lgc@wges.com.
Editor's Note
November and December Temperatures Were 20% and 22% Warmer Than Normal
Week in review for period of Dec. 30, 2011 - Jan. 5, 2012

During this seven day period, the 12 month average price for natural gas on the NYMEX fell 1%. The 12 month average price for peak power on the PJM fell 5%. Natural gas prices are trading near the nine-year low and electricity prices are trading near an eight-year low.

It is no secret why prices are low. Supplies are high and demand is low. On the supply side, according to the U.S. Energy Information Administration, "total supply remained 7.6% above year-ago levels signaling the continued strength in domestic production." This increased gas production is coming from the the shale gas discoveries. On the demand side, warm weather has reduced the need for space heating. During the last two months of calendar year 2011, temperatures across the country were much warmer than normal. In fact, in this region, the temperatures in November were 20% warmer than normal and the temperatures in December were 22% warmer than normal.

This robust gas production coupled with the minimal use of natural gas for space heating has created a natural gas bubble. Natural gas inventories ended 2011 at record high levels. Currently the year-to-year surplus has grown to 11%. The surplus over the five year average has grown to 15%. Warmer than normal temperatures over the last two months helped create this gas bubble.

The year 2011 was a great year for low natural gas and electricity prices. With natural gas prices trading near the nine-year low and electricity prices trading near an eight-year low, this is a great time to look at the early renewal strategy for 2012- 2013.

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