Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 12, Issue 13
We Know Energy
April 4, 2014 Energy Update
In this Issue
Editor's Note
Storage, Storage, Storage
Spotlight on Clean Currents Commercial Accounts
Clean Currents Customers can look to WGES for renewable energy products
Natural Gas Fundamentals
Natural Gas Storage Update: Levels at 11 Year Low. Data Released April 3, 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
Storage, Storage, Storage
Week in Review for March 28 - April 3, 2014

For this seven-day report period, the average 12-month closing price for natural gas on the New York Mercantile Exchange (NYMEX) came in at $0.454/therm, a 1% decrease from last week. Meanwhile, the 12-month average price for peak power on the PJM rose 2% from the previous week's close. 

Energy prices were unable to sustain any big rallies this week as traders seemed to recognize that winter has finally come to and end.  In the energy business, April 1st marks the start of the Spring season which we commonly call  the "shoulder season".  During the shoulder season there is generally little demand for either heating or cooling. In other words, this is a low demand period for energy. This week the traders were apparently looking forward to Spring and this variable was enough to keep a lid on any big price rallies for now.

Where do energy prices go from here? This is a good time to reflect on this past, very cold winter. In this area, November 2013 was 17% colder than normal,  January 2014 was 12% colder than normal,  February was 4% colder than normal and March was 19% colder than normal. Additionally, according to the U.S. Energy Information Administration (EIA) and Bentek Energy, "total natural gas consumption in the Unites States rose to a record average of 90.6 billion cubic feet per day (Bcf/d) this winter."  

As a consequence of this very cold winter and the subsequent energy demand, the natural gas industry entered the Spring shoulder season with an unusually low storage position. The U.S. Energy Information Administration (EIA) just reported that working gas in storage as of March 28, 2014 was 822 Bcf which was 55% below the five-year average. This marks an eleven year low.   

The current concern is that an unusually hot summer could place upward pressure on energy prices. What happens if  natural gas demand spikes at the power plants this summer, while, concurrently, more gas is needed to replenish the storage fields? This double demand component could place upward pressure on energy prices during the summer. Stay tuned. You may want to consider early renewal options during the months of April and May to avoid the possibility of summer-heat price spikes.

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