Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 27
We Know Energy
July 6, 2012 Energy Update
In this Issue
Editor's Note
Hot Weather Is The Story.
Natural Gas Fundamentals
Natural Gas Storage: Gas Surplus Shrinks For Tenth Week in a Row. Data Released July 6, 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
Weather
Local Cooling 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)

 

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
Hot Weather Is The Story.
Week in review for period of June 29 - July 5, 2012

The upward trend continues. Last week, the12-month average price for natural gas on the NYMEX rose 4.2%, while the 12-month average price for peak power on the PJM rose 2%. This week, the 12-month average price for natural gas on the NYMEX rose 4.9%, while the 12-month average price for peak power on the PJM rose 1.1%. Since May 3, 2012, natural gas prices are up 14% and electricity prices are up 2.5%.

Hot weather is a big variable that places upward pressure on energy prices. We see demand spikes during a hot summer because many power plants burn natural gas to produce the electricity that is needed to power our beautiful air conditioners. These demand spikes can spook the markets and place upward pressure on energy prices.

Hot weather can also impact the natural gas storage levels. Summer is the time of year that natural gas is injected into the storage fields. The traditional injection season runs from April 1 to Oct.1. If you have an unusually hot summer, the natural gas that would normally go into the storage fields is burned by the power plants. A hot summer can delay the injection process and place upward pressure on prices.  

This year, for example, both May and June were warmer than normal. During this hot spell some natural gas was diverted from the storage fields to the power plants. Over the last 10 weeks gas injections were far below normal. Since May 3, 2012 the natural gas surplus has gone from 55% above the five-year average to 22% above the five-year average. 

The big question is whether or not the summer temperatures will be hot enough to erase the gas bubble?

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