Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 36
We Know Energy
September 7, 2012 Energy Update
In this Issue
Editor's Note
Prices Are Range Bound
Spotlight on Green Power
WGES Customers Are Invited to a Lunch and Learn Program
Natural Gas Fundamentals
Natural Gas Storage: Bubble Shrank But Remained at Record High in August. Data Released September 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 Louisiana 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
Prices Are Range Bound
Week in review for August 31 - September 6, 2012

The weather in the Gulf of Mexico is turbulent, but energy prices have been relatively stable. For now, natural gas and electricity prices are trading in a tight range. For this seven-day report period, the average price for natural gas on the NYMEX fell less than1%. The 12-month average price for peak power on the PJM rose 1.7%.

As you can see from the graphs elsewhere in this newsletter, natural gas and electricity prices have been range bound over the last seven weeks.

In the past, a hurricane like Isaac in the Gulf of Mexico would have spooked the marketplace and placed upward pressure on energy prices. Producers fear hurricanes. During Hurricane Isaac 72% of the offshore gas rigs in the Gulf were shut-in.

So, why did the natural gas and electricity rates remain relatively flat during this hurricane? According to the U. S. Energy Information Administration, "the impact on the domestic market was less severe than it might have been in the past because Gulf of Mexico production represents a smaller portion of total U.S. production today than 5 to 10 years ago due to the dual effect of waning Gulf of Mexico production and increasing onshore production."

In other words, onshore shale gas formations have diversified our country's supply assets. Onshore natural gas production from the shale formations now account for more than 25% of the United States' gas production.

However, do not be lulled to sleep. The Gulf of Mexico supplies are still a big part of the supply chain. Hurricane season runs from June 1 to Nov. 30.

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