Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 18
We Know Energy
May 4, 2012 Energy Update
In this Issue
Editor's Note
Natural Gas Prices Have Jumped 14.7% in Two Weeks
Natural Gas Fundamentals
Natural Gas Storage At Record High Level: Data Released May 3, 2012
Baker Hughes Rotary Rig Count For Natural Gas
NYMEX Natural Gas Monthly Settlements For the Past 12 Months
NYMEX Values Per Month 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
Local Heating Degree Days*
Recent Features
WGES and Sterling Planet Donate $126,000 to the Chesapeake Bay Foundation’s Carbon Reduction Fund; Help Plant 1,500 Trees in Frederick, Md. (April 27, 2012)

WGES Provides Green Energy Products to Mandarin Oriental, D.C. (April 20, 2012)

WGES Renewable Energy Products Are Now Green-e Energy Certified (April 6, 2012)

New MSN Video Features a WGES Customer's Green Power Commitment (March 23, 2012)

WGES' Parent Company Announces Plans to Jointly Develop 200-mile Interstate Gas Pipeline (March 2, 2012)


WGES Customers Show How Small Changes Make a Big Difference (Jan. 27, 2012)


D.C.'s Dumbarton House Reduces its Carbon Footprint with Purchase of Carbon Offsets from WGES (Dec. 30, 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

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
Natural Gas Prices Have Jumped 14.7% in Two Weeks
Week in review for period of April 27-May 3, 2012

The Bulls are trying to make a run. The energy market experienced a second straight week of price increases. For this seven-day report period, the12-month average price for natural gas on the NYMEX rose 10%. The 12-month average price for peak power on the PJM rose 2.7%. Over the last two weeks, the 12-month average price for natural gas on the NYMEX has risen 14.7% and the 12-month average price for peak power on the PJM has risen 5.2%.

The recent price increases are fueled by reports that indicate supplies will decrease and demand will increase. On the supply side, the fear is that natural gas producers are shutting-in their gas rigs because it is financially unattractive to drill at these pricing levels. The gas-directed rig count is 269 rigs lower than the rig count reported this same week last year. We are 45% below the five-year average gas rig count of 1,109.

On the demand side, analysts are projecting an increase in gas demand because the electric power plants are switching from coal to natural gas at record levels. Plus, according to J.P. Morgan, we may see additional demand coming from liquefied natural gas as "the potential to join global markets through liquefied natural gas (LNG) exports" continues to grow.

For now, natural gas and electricity prices are trading a 10-year low because we have a huge supply of natural in storage. Stay tuned. Summer is on the way, and a hot summer can impact storage levels.

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