Oil and Gas

There are a significant number of listed oil and gas stocks in Australia. They range from multi-billion-dollar companies like Woodside Petroleum Ltd [ASX:WPL], all the way down to tiny explorers with a part interest in one exploration permit. You can break the companies in the sector down into three parts. They can be producers, developers, or explorers. The larger producers cover the whole spectrum. They usually have a portfolio of producing assets, as well as assets in the development stage and exploration targets.

Oil & Gas Prices

Oil and gas discoveries have a finite life, so it is important for companies to be on the lookout for new reserves to replace production. For this reason, the oil and gas sector is capital intensive. That is, it requires a lot of money to explore for oil and gas, and then to develop the resource. For explorers, it can be years between discovery and first production (when the cash flow finally starts). Daily movements in the international oil price, represented by Brent Crude or West Texas Intermediate, primarily drive the sector. If the oil price has a decent fall or rise, you can bet the oil and gas sector will follow.

Best Oil & Gas Companies?

When it comes to producers or developers, you want to look for assets with a long production life and low costs. That way, if the price of oil falls significantly, the company will be able to cope and not go out of business. With explorers, the best bet is to look at the experience of the board and the geologist, and to see whether they have had prior successes. In Australia, most large oil and gas stocks are involved in the production of liquid natural gas (LNG). There has been a huge amount of investment in this sector in recent years. Stocks involved include Woodside, Santos Ltd [ASX:STO], Oil Search Ltd [ASX:OSH], and Origin Energy Ltd [ASX:ORG].

Crude Oil

Crude oil is a naturally occurring, unrefined petroleum product, formed from the remains of small animals and plants found at the bottom of the ocean.…

Natural Gas

Australia’s gas industry is experiencing an exceptional period of growth, cementing its place as an important component in our resource sector. Australia’s natural gas is…

Oil Prices

Now that coal has taken the back seat in our energy market, oil is one of our most sacred commodities. But because of this scarily…

Related articles

What the End of the Petrodollar Could Mean for You

In today’s Money Morning…an untimely demise…how bitcoin achieves its ultimate goal…don’t miss out on this vital knowledge…and more…

Europe Rethinks Its Energy Supply Chains

REPowerEU will look at importing more liquified natural gas after a ban on all imports of Russian oil and gas by the US

Money Morning Podcast — What War in Europe Means for Your Investments

On the today's podcast, we look at the growing conflict between Russia and the West. The economic war is already under way. 

Forget about Oil, This Energy Solution Is What Investors Should Be Watching

Oil appears to be ready for a breakout. A factor that could be far direr for markets than many think. Read on to find out why.

A Booming Market Not Many Are Talking about

We’ve talked here in Money Morning about some booming trends in the energy transition such as lithium and graphite, but we haven’t yet talked much about the carbon market.

Is Oil About to Go Ballistic?

If you’ve filled up your car at the servo recently, you don’t need me to tell you that oil prices are on the up.In fact, they just hit levels not seen since 2014.