Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 12, Issue 8
We Know Energy
February 28, 2014 Energy Update
In this Issue
Editor's Note
That Was A Surprise.
Spotlight on Clean Currents Commercial Accounts
Clean Currents Customers can look to WGES for renewable energy products
Natural Gas Fundamentals
Natural Gas Storage Update: Storages 40% Below Last Year's Level. Data Released Feb. 27, 2014
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
That Was A Surprise.
Week in Review for Feb. 22-27, 2014

For this seven-day report period the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) fell 6% and the 12-month average price for peak power on the PJM fell 5%.

It was a nice surprise to see energy prices fall this week, but a one-time price drop does not constitute a trend. It is difficult to pinpoint one specific reason for this week's price decline. Perhaps it is due the fact that Spring, officially beginning March 20th, is right around the corner, bringing with it hope for warmer weather. Or, perhaps it was the bearish storage report released by the Energy Information Administration. This week's storage withdrawal was only 95 Bcf. As you may recall, the last four withdrawals were over 200 Bcf. This was the smallest withdrawal since the first week of December 2013. 

However, do not let this week's surprise price drop lull you into a sense of security. Because of the other huge withdrawals we saw this winter, the natural gas storage fields were still operating 34% below the five-year average and marked a 10 year low. 

If the unusually cold temperatures follow us into March, analysts fear that we may end the traditional winter heating season on March 31st with less than 1,000 Bcf of natural gas in the storage caverns. If these fears are realized, analysts wonder how difficult it will be to re-fill the caverns to the 3,800 Bcf level during the traditional summer re-fill season (The traditional refill season runs from  April 1st-October 31st). 

Here is the concern: If we have an unusually hot summer whereby the power plants need more natural gas than usual to fuel their electric turbines, and the gas industry is forced to inject more gas than usual into the storage caverns to get ready for next winter, we may see more upward pressure on energy prices this summer. 

As usual, weather has a huge impact on energy prices. If you want to protect your energy budget from the price volatility that will come with a hot summer, it may make sense to look at some early renewal options this Spring.

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).