Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 11, Issue 12
We Know Energy
March 22, 2013 Energy Update
In this Issue
Editor's Note
Has Spring Really Sprung?
Free Webinar
Sustainable Print Matters: An Introduction to Green-e re:print
Natural Gas Fundamentals
Natural Gas Storage: Large Withdrawals are Depleting the Bubble. Data Released March 21, 2013
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 Louisiana Well-Head
PJM Electricity
PJM Graph for Electricity - 12 Month Average Peak Power Price
Weather
Local Heating Degree Days*
Recent Features
New Contract with WGES Helps D.C. Retain Position as the Nation’s #1 Green Power Community (March 8, 2013)


 


WGES and Sterling Planet Renew Unique Partnership and CleanSteps® Carbon Offsets Agreement (March 1, 2013)


 


WGES and Shell Energy Enter Into Strategic Supply Arrangement (Feb. 22, 2013)


  

Washington Gas Energy Services Receives Green-e Energy Certification of New WGES PA WindPower Renewable Energy Product (Feb. 8, 2013)


 



Ridgewells, the D.C. Area's Largest Catering Company, Purchases WGES Green Products (Feb. 1, 2013)




Our Wind Power Partners
Green Power Leadership Award Winner - U.S. Department of Energy


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
Has Spring Really Sprung?
Week in Review for March 15-21, 2013

Technically, spring has sprung. On Wednesday, March 20, 2013, at 7:02 a.m., the vernal equinox occurred signaling the start of spring in the Northern Hemisphere. Normally, at this time of the year, as earth begins to tilt more towards the sun in the northern hemisphere, we expect the onset of warmer temperatures.

However, this March came in like a lion and is expected to leave like a lion. March has been much colder than normal, and the 8-14 day forecast from the National Oceanic and Atmospheric Administration (NOAA) predicts that late March will continue to be colder than normal east of the Mississippi.

This cold weather is placing some upward pressure on energy prices. For the fourth week in a row, energy prices inched upward. The average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) rose 2.5% and the 12-month average price for peak power on the PJM rose 1.5%. Since the start of the month, natural gas prices have increased by $.035/therm or 9%. Peak power prices on the PJM have increased by 4.2%.

The recent cold snap is also drawing attention to the natural gas storage fields. Thanks to this cold weather, the last four gas withdrawals have been larger than normal. As a result, the gas storage bubble continues to shrink. To date, we have 21% less gas in storage than we did last year at this time. However, the gas bubble has not completely disappeared. The storage fields are still 9.5% above the five-year average, but this number is also shrinking. As you may recall, last year at this time the natural gas storage levels were 54% above the five year average. This shrinking gas bubble may be partially responsible for these recent price increases.

It appears that we will have much less gas in storage at the end of this heating season than we did a year ago. This means the demand for gas may be higher this summer than last summer as more gas will be directed towards the storage fields during the summer injection season. This event could place more upward pressure on prices, especially if we have a hot summer.

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