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].

Woodside Share Price Rises as Oil Spikes

Shares for Woodside Petroleum Ltd [ASX:WPL] are up 6% since last Friday after a sudden spike in oil prices. Woodside is the largest independent oil and gas company in Australia. Shares for Woodside are trading at $33.26 today, at time of writing.

Attack of the Drones

With the startling news over the weekend of an attack on key oil infrastructure in Saudi Arabia, the week has started off with a bang. Whether it turns into a whimper or not remains to be seen.

Pickens Has Changed His Mind on Oil, Should You?

The T Boone Pickens Exchange Traded Fund (ETF) is getting out of oil and into the renewables business instead. Yes, you read that right, an ETF that bears the name of the ‘oil legend’ and trades under the ticker BOON is now a way to invest in green energy.

What happened to the BHP share price? (ASX:BHP)

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Money Morning Australia