Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 11, Issue 49
We Know Energy
December 20, 2013 Energy Update
In this Issue
Editor's Note
Cold Weather Leads to Record-High Gas Storage Withdrawal
Natural Gas Fundamentals
Natural Gas Storage Update: Storage Withdrawal Sets Record. Data Released December 19, 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
Washington Gas Energy Services Acquires More Than 20,000 Electricity and Natural Gas Customers from Castlebridge Energy Group (November 1, 2013)


 



Washington Gas Energy Services to Offset Carbon Impact of Upcoming RETECH Conference (August 30, 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
Cold Weather Leads to Record-High Gas Storage Withdrawal
Week in Review for December 13-19, 2013

As winter officially arrives tomorrow, cold weather continues to drive demand early in the heating season. This seven-day report period marks the sixth consecutive week of rising energy prices. For this seven-day report period, the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) rose 0.8% and the 12-month average price for peak power on the PJM rose 0.4%. At first glance, these prices may appear relatively flat compared with the increases we witnessed last week. However, it is important to note that this week's settlement price of $4.46/MMBtu for January 2014 delivery is the highest recorded price in nearly two-and-a-half years (July 20, 2011, to be exact).

The announcement of this week's natural gas storage withdrawal was likely a factor causing this surge in the near-month futures market. This week's withdrawal of 285 Bcf easily exceeded the previous record (274 Bcf) set in January 2008. Again, cold weather across most of the country is largely to blame for this massive withdrawal. The low temperatures that continue to drive the demand for heating have also caused interruptions in natural gas production. During the past few weeks, frozen equipment has stalled gas production in North Dakota, Texas and Oklahoma.

Some analysts have expressed concerns that natural gas prices could approach the $5 mark in coming months if the cold weather and related production interruptions persist. However, other factors could help push prices back down and ramp natural gas production back up to historic high levels. These factors include new supplies of gas from hydraulic fracturing in the Marcellus Shale fields, and the return of warmer weather.

At this point weather is the wild card. The weekend forecast calls for warmer, even balmy temperatures in the mid-Atlantic region to coincide with the winter solstice. However, this warm up may prove short lived. The National Oceanic and Atmospheric Administration's (NOAA) 8 to 14 day forecast predicts the return of colder-than-normal temperatures east of the Mississippi. Stay tuned.

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.

© Washington Gas Energy Services, Inc. (WGES). Headquarters located at 13865 Sunrise Valley Drive, Suite 200, Herndon, VA 20171-4661 (USA).