Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 12, Issue 21
We Know Energy
June 6, 2014 Energy Update
In this Issue
Editor's Note
Spring Was Your Friend But Summer Is On The Way
Natural Gas Fundamentals
Natural Gas Storage Update: A Long Way To Go. Data Released June 5, 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 Cooling 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
Spring Was Your Friend But Summer Is On The Way
Week in Review for May 30 - June 5, 2014

For this seven day period, the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX)increased 2% closing at $0.456/therm, while the 12-month average price for peak power on the PJM fell 1%.

As you can see from the pricing graphs included in this newsletter, both natural gas and electricity prices have been trading in a relatively tight range over the last five weeks. Prices decreased a couple weeks in a row then increased a couple of weeks in a row. However, since May 2, 2014 the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) has decreased by 2% and the 12-month average price for peak power on the PJM has decreased by 3%.  

Spring is almost over and we are happy to exit spring with a price decrease. However, analysts are very worried about the upcoming months. The first day of summer arrives on June 21, 2014.

Although the spring weather was uneventful and generally kind  with regard to prices, summer poses all sorts of threats to energy prices. The first concern is that we are still dealing with a very large storage deficit. The natural gas storage fields are 37% below the five-year average. 

We have a long way to go to refill the caverns to 3,400 Bcf by November 1st. We need 23 consecutive injections above 82 Bcf if we want to overcome the deficit created by this past winter's huge heating demand. If we have a hot summer and natural gas is directed to the power plants instead of the storage fields, it may be difficult to reach a respectable storage level by Nov. 1. If we don't minimize the storage deficit in the next few months, we  could see upward pressure on energy prices.

The other summer threat to watch is the hurricane season. Sunday, June 1, 2014 marked the official start  of the hurricane season. Luckily, the National Oceanic and Atmospheric Administrations "predicts a relatively inactive June-November hurricane season this year."

So where do we go from here? For now it seems the answer is still highly dependent on the summer weather. If you can lock-in a rate now that is close to last year's rate, you may want to consider the early renewal option.

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).