Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 11, Issue 16
We Know Energy
April 19, 2013 Energy Update
In this Issue
Editor's Note
Prices Climb for the Seventh Time in Eight Weeks
Natural Gas Fundamentals
Natural Gas Storage: First Injection of The Season Not Impressive. Data Released April 18, 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
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
Prices Climb for the Seventh Time in Eight Weeks
Week in Review for April 12-18, 2013

For the seventh time in eight weeks, energy prices climbed. During this seven-day report period the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) rose 5.2%. The 12-month average price for peak power on the PJM rose 3.9%.

You can easily argue that the recent price increases were fueled by the natural gas storage reports and the natural gas rig counts. Both reports would lead you to believe that the energy markets were no longer oversupplied.

On the natural gas storage front, the U.S. Energy Information Administration (EIA) reported our first injection of the refill season. However, the injection was below expectations. We saw an injection of 31 Bcf. The five-year average injection for this time period was 39 Bcf. We now have 32% less gas in storage than we did last year at this time. Even more concerning was the fact that storage levels were now 4.2% below the five-year average.

On the natural gas supply side, supplies leveled off because the rig counts are down. The recent Baker Hughes rig count reported that there were only 377 active natural gas rigs in the United States. Last year at this time, we had 624 active gas rigs. This means that the natural gas rig count was 39% below last year's levels.

These reports tend to spook the marketplace and place upward pressure on energy prices. The next wild card to watch is summer demand. The concern is that demand for natural gas may be higher this summer than last because more gas will be needed to refill the storage facilities. If we experience a hotter than normal summer, we may see more upward pressure on energy prices.

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