Summer 2005 Energy Price Review: Gulf Coast Storms Exacerbate Tight Natural Gas Supplies; Already High Prices Driven Higher Staff Report State of the Natural Gas Infrastructure Conference October 12, 2005

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Summer 2005 Energy Price ReviewGulf Coast
Storms Exacerbate Tight Natural Gas
SuppliesAlready High Prices Driven
HigherStaff ReportState of the Natural Gas
Infrastructure ConferenceOctober 12, 2005
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Prices for Energy Increased Through the Summer
Price Changes (April to Late August) Price Changes (Late August to Late September)
Natural Gas (Henry Hub) 33 44
Crude Oil (West Texas) 21 0
Coal (Powder River Basin) 16 8
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Late Summer 2005 Was Much Hotter than 2004
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Resulting Electric Generation Was Much Stronger
as Well
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Early Storage Inventory Surpluses Eroded with
Summer Demand
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Combined Effects of Katrina and Rita Far
Surpassed 2004s IvanIn Combined Natural Gas
Shut-Ins
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Natural Gas Prices are Likely to Remain High
Through Winter

• Current storage inventories remain above 5-year
  averages
• Timing for repair of infrastructure from the Gulf
  is not clear will continue to stress system
• Supply tightness largely a function of winter
  weather