Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 30
We Know Energy
July 27, 2012 Energy Update
In this Issue
Editor's Note
Power Sector Demand Puts Squeeze on the Gas Bubble
Natural Gas Fundamentals
Natural Gas Storage - Gas Bubble Shrinks for 13th Week in a Row- Data Released July 26, 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 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

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
Power Sector Demand Puts Squeeze on the Gas Bubble
Week In Review For July 20-26, 2012

Although natural gas and electricity prices were relatively flat over the last two weeks, natural gas prices made a small move upward this week. For this seven-day report period, the 12-month average price for natural gas on the NYMEX rose 3.4% while the 12-month average price for peak power on the PJM remained flat.

This week's price increase in the natural gas market can be tied to the weather. When it gets hot, the air conditioners run at full speed. In order to meet this cooling demand, the power plants burn coal and natural gas to power the turbines that create our electricity. These demand spikes can place upward pressure on fossil fuels like natural gas.

Additionally, because natural gas is displacing coal as the fuel of choice for the power plants, less natural gas is available for injection into the storage fields. Although gas storage fields are still near record high levels for this time of year, the storage surplus is shrinking. For the thirteenth week in a row, the natural gas storage surplus shrunk. The natural gas storage surplus is now only 15.7% above the five year average. On May 3, 2012, the gas surplus was 55% above the five-year average.

Stay tuned. All eyes are on August. Will it be hot enough to eliminate the record gas surplus in the storage fields?

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