Volume 18, Issue 10 | May 2, 2022

WGL Energy Gives Back on Earth Day

WGL Energy participated in a two-day tree planting event for Earth Day 2022. The event was sponsored by the Chesapeake Bay Foundation (CBF) and held along Friends Creek in Frederick County, MD. Approximately 137 volunteers came together to plant around 1,600 trees.

Friends Creek is a tributary to the Monocacy River which flows into the Potomac River and Chesapeake Bay. It has a high quality, cold water fishery that is stocked with trout by the Maryland Department of Natural Resources. This area will be restored to a forested stream buffer. The CBF and volunteers have planted over 12 acres of trees at this farm, and this planting completed the restoration project.

To learn more about how you can give back with WGL Energy, visit http://wglenergy.us/gogreen or call 1-833-61-GREEN (1-833-614-7336) to speak with one of our energy experts.

 

 


Editor's Note

Can US Production Respond to High Prices?

Week in review for April 24 - April 30, 2022

Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday April 22, 2022, was 1,490 Bcf. This was an increase of 40 Bcf from the previous week, in-line with expectations. Inventories are now 405 Bcf lower than this time last year and 305 Bcf (or 17%) below the 5-year average.  

Industry estimates vary a bit but, US natural gas production appears to be remaining relatively flat despite the huge price run up in recent months. The lack of significant production increase coupled with high LNG exports (taking advantage of even higher European and Asian natural gas prices) and little US demand shifting from natural gas to other sources all contribute to the growing storage deficit and related pressure on near-term prices.

Prices were mixed for the week ending 4/28/2022 but have been swinging wildly and remain near the 5-year highs set recently. The 12-month NYMEX natural gas strip (Jun22-May23) was down 2.8% and the 12-month PJM STD 7x24 up 3.2% for the week, though power was lower for months Apr 2023 and later. Both natural gas and power prices for the near term are significantly higher than further out (Apr 2023 and beyond) as shown in the natural gas graph below. Something is likely to give as the huge spreads between near- and mid-term prices will be hard to maintain. 



Weather

Washington, D.C. Area Cooling/Heating Degree Days

  

 

Aug-21

Sep-21

Oct-21

Nov-21

Dec-21

Jan-22

Normal 

445

255

55

467

669

848

 Actual

492

241

92

513

541

943

Departure from Normal 

6%
Cooler

11%
Warmer

6%
Cooler

10%
Cooler

19%
Warmer

11%
Cooler

Cooling degree day (CDD) data is for the Washington, D.C. area and is calculated by comparing the day’s average temperature to a 65-degree baseline. If the day’s average temperature is below 65, there are no cooling degree days that day. If the day’s average temperature is greater than 65 degrees, then subtract 65 from the average temperature to find the number of cooling degree days.

*Heating degree day (HDD) data is for the Washington, D.C. area and is calculated by comparing the day’s average temperature to a 65 degree baseline. If the day’s average temperature is above 65, there are no heating degree days that day. If the day’s average temperature is less than 65 degrees, then subtract that average temperature from 65 to find the number of heating degree days.