Oil and gas are key energy fuels, and ASX-listed Australian oil and gas companies could benefit from their price moves.
For the most part, 2024 was a volatile year for both the oil and gas markets. In the first half of the year, oil prices were riding an uptrend, spurred on by rising tensions in the Middle East amid tightening supply.
However, after prices peaked at US$91.70 per barrel in early April, demand-side challenges weighed oil down, with levels sinking to US$77 in early June. In the second half of the year, oil prices took a hit as global economic uncertainties continued to grow.
By September 10, oil fell to a year-to-date low of US$69.09 as investors anticipated interest rate cuts in the US and the Israel-Hamas war continued to threaten supply chains. Weakness in demand from China also suppressed oil prices. By late December, prices were holding in the US$72.40 range.
In mid-2024, natural gas prices surged to US$3.12 per million British thermal units based on increased demand during above-normal temperatures, but they pulled back in the third quarter to below US$2. However, seasonal demand amidst colder weather pushed natural gas prices up in the fourth quarter to flirt with the US$4 level in late December.
Market cap: AU$47.8 billion
Share price: AU$25.49
As the biggest ASX-listed oil and gas stock by market cap, Woodside Energy Group leads the country in natural gas production and is considered a pioneer in Australia’s liquefied natural gas (LNG) industry.
Under the agreement, Woodside would acquire Chevron Australia’s interest in several projects in Western Australia in which Woodside already holds interest, namely the North West Shelf project, the North West Shelf oil project and the Angel carbon capture and storage project. These would bring Woodside’s interests to 50 percent, 66.7 percent and 40 percent respectively. Chevron Australia will also pay Woodside up to US$400 million reliant on certain milestones.
In exchange, Chevron would receive Woodside’s 13 percent non-operating interest in the Wheatstone project and 65 percent operating interest in the Julimar-Brunello project.
Market cap: AU$22.29 billion
Share price: AU$6.86
Australian energy company Santos is the operator of multiple joint ventures with significant LNG production, including the Papua New Guineau LNG project and the Gladstone LNG project in Queensland, Australia. The company supplies its products to markets located across Australia and Asia.
Market cap: AU$4.36 billion
Share price: AU$2.68
Viva’s third quarter 2024 update highlighted total group sales volumes of 4.16 billion litres, up 3 percent compared to the same quarter in the previous year.
Market cap: AU$3.27 billion
Share price: AU$1.42
Oil and gas exploration and production company Beach Energy has a diverse portfolio, with onshore and offshore oil and gas production in five basins across Australia and New Zealand.
Looking ahead, Beach Energy is targeting early in the 2025 calendar year for first gas production at its Waitsia gas plant, which is currently under construction.
Market cap: AU$1.1 billion
Share price: AU$1.44
Karoon Energy is focused on continued company growth through a broad pipeline of exploration and development projects in Brazil, including its producing Baúna and Piracaba oil fields.
Crude oil is a mixture of hydrocarbons in liquid form that is found in natural underground reservoirs in the Earth’s crust. This petroleum liquid is refined to produce a variety of energy and industrial products, including asphalt, diesel and jet fuels, gasoline, heating oils, lubricants and propane.
“Most of Australia’s known remaining oil resources are condensate and liquefied petroleum gas associated with giant offshore gas fields in the Browse, Carnarvon and Bonaparte basins,” according to the government agency.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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