Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 12, Issue 43
We Know Energy
December 5, 2014 Energy Update
In this Issue
Editor's Note
Mother Nature Is In The House
Renewable Energy
WGES Recognized with EPA Green Power Leadership Award
Natural Gas Fundamentals
Natural Gas Storage Update: Tiny Withdrawal
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*
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
Mother Nature Is In The House
Weeks in Review for November 21- December 4, 2014

Due to the Thanksgiving Holiday, this week's Energy Update covers the last two weeks. For this fourteen day report period, the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) dropped 12.9% closing at $0.353//therm while the 12-month average price for peak power on the PJM fell 9%. 

There are many factors that influence energy prices. However, weather is arguably the biggest factor this time of the year. Below are some examples of Mother Nature's influence on prices.  

From Oct. 31 to Nov. 20, 2014,  the "Polar Vortex II" dropped into the lower 48 states and created a huge surge in heating demand. In fact, it was so cold that EIA reported a 162 Bcf storage withdrawal for the week ending  November 21, 2014. This was a record high gas withdrawal for November. As temperatures dropped, energy prices rose. During this period, the average 12-month price for natural gas on the NYMEX rose 7% while the 12-month average price for peak power on the PJM rose 2%. 

However, guess what happened over the last two weeks? Both the National Oceanic and Atmospheric Administration (NOAA) and Accuweather released an updated forecast that predicted the return of moderate temperatures in December. As temperatures rose to more moderate levels, energy prices began to fall.  In the last two weeks, the average 12-month price for natural gas on the NYMEX dropped 12.9% and the 12-month average price for peak power on the PJM fell 9%. 

Although winter does not officially start until December 21st, we have already seen the impact that weather can have on energy prices. Stay tuned. Mother Nature is in the house.

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