Energy markets face uncertain environment: oil producer
The country’s largest oil and gas producer says the US-Israeli war against Iran is creating an uncertain environment that will have far-reaching impact on global energy markets.
The US-led conflict in the Middle East, now in its third week, has caused oil prices to rise sharply from US$71 per barrel to over US$100 per barrel, resulting in increased onshore oil prices for drivers and businesses.
“This is yet another reminder that we operate in an unstable and uncertain environment,” Woodside Energy acting chief executive Liz Westcott told investors on Monday.
“Today, more than ever, shareholders and stakeholders trust companies like Woodside to do business responsibly.”
Woodside shares rose almost 2.5 percent to $31.80 in morning trading.
Woodside fell 24 per cent to US$2.7 billion ($3.8 billion) in calendar 2025 after the impact of soft commodity prices outweighed record production and falling unit costs.
Looking ahead, Ms Westcott said global energy demand was clearly increasing and Woodside was positioning itself to become an international LNG power plant.
“The volatile situation in the Middle East has demonstrated that global energy markets can be quickly and significantly affected by geopolitical events,” he said at the company’s annual sustainability briefing in Sydney.
“At the same time, recent policy and market developments suggest that the pace and scale of the global energy transition is becoming less certain, not more.”
The current conflict, which has also affected LNG supply flows, has shown that countries attach great importance to the affordability and reliability of energy in the context of the energy transition.
At the same time, Woodside remains confident that its customers can meet decarbonization targets by selling more LNG, although it acknowledges that coal demand continues to grow in the Asia-Pacific region.
Ms Westcott reiterated on Monday that Woodside was optimistic about crude oil demand in timetable 2026 despite the shift away from fossil fuels.
Market Forces Australia head of campaigns Brett Morgan said increased LNG supplies to Asia could undermine the clean energy transition by slowing the uptake of renewable energy.
“Woodside lives in a gas-powered fantasy, pushing a false narrative of a ‘coal-to-gas transition’ in Asia, despite there being no evidence that this is happening,” he said.
“Gas is predicted to play a small and diminishing role in the global clean energy transition as the world seeks to meet the climate goals of the Paris Agreement, but Woodside continues to green its massive fossil fuel expansion plans.”
Woodside has achieved its internal goal of a 15 percent reduction in emissions by 2025.
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