Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 42
We Know Energy
October 19, 2012 Energy Update
In this Issue
Editor's Note
The Five-Week Price Spike Halted
Natural Gas Fundamentals
Natural Gas Storage: Why Does the Bubble Continue To Shrink? Data Released Oct. 18, 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
Renewable Energy Markets 2012 Conference Highlights WGES Staff and Customers (Oct. 5, 2012)


The Brick Companies Converts Entire Maryland Portfolio to 100 Percent WGES CleanSteps® WindPower and Reduces its Carbon Footprint (Sept. 28, 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.
Natural Gas Fundamentals
Natural Gas Storage: Why Does the Bubble Continue To Shrink? Data Released Oct. 18, 2012



Current Week

Last Week 

Net Change 

This Week Last Year 

Prior 5 Year Average 


Stocks (Bcf) 

Stocks (Bcf) 


Stocks (Bcf) 

Average (Bcf) 

Total Lower 48 






Storage Update: With two weeks left in the traditional injection season it does not appear that storage capacity will max out. It's likely that the storage season will end with approximately 4,000 Bcf. in storage.

Throughout the summer months, the gas injections were well below average because natural gas was consumed by the electric power generators, leaving less gas available for injection into the storage caverns.

For this report week, natural gas injections were, once again, below average. This week's injection was only 51 Bcf. Last year at this time we saw an injection of 106 Bcf. The five-year average injection for this week was 71 Bcf. Thus, the natural gas storage surplus, on a year-to-year basis, shrank from 6.8% above last year's levels to only 5% above last year's levels. The natural gas storage surplus over the five-year average shrank from 7.8% to 7.1%.

Even though the gas injections were below normal all summer, the natural gas storage fields will still be near capacity on November 1. Of concern, however, is how fast the gas bubble shrank over the summer months. Since May 3, 2012, the gas surplus has shrunk from 55% above the five-year average to only 7% above the five-year average.

The conclusion from this year's injection season is that natural gas, at these price levels, is in high demand during the summer months to generate electric power and in the winter months for heating.

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