Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 32
We Know Energy
August 10, 2012 Energy Update
In this Issue
Editor's Note
July 2012 Was the Hottest Month in History
Natural Gas Fundamentals
Natural Gas Storage: Gas Bubble Shrinks for 15th Week in a Row - Data Released August 9, 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-owned Solar Projects in Maryland Dedicated, Activated (July 20, 2012)

WGES Announces Special Offers to Support Philadelphia’s Quest to Become the Nation’s #1 Green Power Community (June 22, 2012)

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)

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
July 2012 Was the Hottest Month in History
Week In Review For August 3-9, 2012

The roller coaster ride continues for the third straight week. From July 20-26, 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. Then, from July 27-August 2 the average price for natural gas on the NYMEX fell 3.5% while the 12-month average price for peak power on the PJM remained flat again. Now for this week, the average price for natural gas on the NYMEX rose 2.8% and the 12-month average price for peak power on the PJM rose 1%.

Energy prices are "range-bound" for now and are still trading near the nine-year low. The marketplace cannot makeup its mind. On one hand, we are experiencing some brutally hot weather this summer which normally places upward pressure on energy prices. According to National Oceanic and Atmospheric Administration (NOAA), July 2012 was the hottest month ever recorded in the United States. Because of this hot weather the gas burn from the power plants during the period of April to June 2012 was up 27% from the same period last year.

However, natural gas and electricity prices are unable to sustain any significant price increases because the gas surplus from this past winter is still in play. Although the natural gas surplus has shrunk from 55% above the five-year average to 13.5% above the five-year average in 15 weeks, the market has not panicked because the natural gas storage fields are still near record high levels for this time of year. Currently, the natural gas storage fields are approximately 78% full. Since the injection season runs from April 1 to October 31 the market seems to believe that storages will still be full well before winter hits on November 1.

Where do prices go from here? All eyes are on the weather. Will August be hot enough to eliminate the record gas surplus in storage? How will hurricane season impact the Gulf of Mexico?

spacer spacer
Print This Article Print This Issue
Print This Article Print This Article
spacer spacer
Next Article Next Article
Return to Top Return to Top
spacer spacer
WGES Home  |  Forward to a Friend  |  Plain Text Version  |  Past Issues
Washington Gas Energy Services strives to provide concise and accurate information from dependable sources for information contained in this report. Nevertheless, Washington Gas Energy Services does not warrant the authenticity of such information. This report is not intended to serve as a trading tool for customers or for potential customers. If you would like to like to receive this information via email, please send your request to wges_lgc@wges.com.

To ensure delivery of the ENERGY UPDATE, please add wges_lgc@wges.com to your email address book or Safe Sender List.
If you are still having problems receiving our communications, see our white-listing page for more details.