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].

Oil Producers Set to Sink, Here’s Why

Overnight, US markets were belted with the S&P 500 slipping 3.3%, its biggest fall since 8 February 2018. The Dow Jones Industrial Average also copped a beating, losing 3.1%, also its biggest fall since 8 February 2018. There is a sense of frustration this morning as there is little agreement as to what comes next.

Why Crude Oil is Set to Turnaround

Some people believe crude will march to higher prices. Others say it’s overpriced… It’s tough to know who’s right. But, objectively speaking, the sector remains broadly ‘hated’ by the market. 

What to Watch for with Aussie Dollar Gold

Today, I’ll take a look at the Aussie dollar gold price, which adjusts for the difference between the US and Aussie dollar exchange rate. This is a far more important price to watch for Aussie gold stock investors.

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.
Money Morning Australia