Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 19
We Know Energy
May 11, 2012 Energy Update
In this Issue
Editor's Note
The Gas Bubble Is Shrinking For Now
Natural Gas Fundamentals
The Natural Gas Storage Surplus Is Contracting: Data Released May 10, 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
The Gas Bubble Is Shrinking For Now
Week in review for period of May 4-10, 2012

The Bulls are making a run. The energy market experienced the third straight week of price increases. For this seven-day report period, the12-month average price for natural gas on the NYMEX rose 4.6%. The 12-month average price for peak power on the PJM rose 1%. Over the last three weeks, the 12-month average price for natural gas on the NYMEX has risen 19.3% and the 12-month average price for peak power on the PJM has risen 6.2%.

This week's price increase was fueled by the natural gas storage report. The natural gas storage surplus decreased for the second week in a row. Over the last two weeks, the natural gas surplus on a year-to-year basis has shrunk from 52% to 44%. The gas surplus over the five-year average shrunk from 55% to 44.58%.

The big question is whether or not the natural gas surplus will continue to contract. On the supply side, the producers are threatening to shut-in more natural gas wells in an effort to shrink the gas bubble. On the demand side, we see more coal-fired power plants that are switching over to natural gas. The power plants in the southeast region of the Unites States are leading the charge in the coal-to-gas switch because large amounts of shale gas are coming from this region.

The wild card is the upcoming summer temperatures. A hot summer will reduce storage levels and influence the direction of energy prices.

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