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].

What Is Going on With the Oil Price?

Oil market has become a crowded trade. Any correction in the oil price could see a swag of hedge funds selling to lock in profits. And that is what we saw this week as oil had its biggest price drop in more than two years.

Lakes Oil Share Price Flies up 50%

Today, shares of Lakes Oil NL [ASX:LKO] increased by 50% after its Victorian exploration activities turned over many promising discoveries throughout 2017 and early 2018.Commercial gas and hydrocarbons were located throughout its sites, which contributed to the development of Lakes’ Portland Energy Project.

88 Energy Share Price Rises due to Icewine Project

Project Icewine — an Alaskan-based 3D seismic survey extending to 450 kilometres —had been finalised back in April, and remains on schedule for the rest of the year. The project’s contents and accessibility have now been properly analysed by head office, and further contracts have been set.

Where Do All the LNG Dollars Go?

The massive investment into liquid natural gas (LNG) over the past decade has resulted in the development of a new export industry. It may finally start to pay off over the next few years.

Sundance Energy Share Price Rises

Shares of Sundance Energy Limited [ASX:SEA] are no longer as stagnant as they were during the beginning of the year. Its shares rising by 5.97% shows investors that they’re capable of turning over efficient production results.
Money Morning Australia