Energy markets will continue to be affected by the Russian invasion of Ukraine and the Israel-Hamas conflict, according to Woodside Energy Group, Australia’s largest oil and gas producer.
“The fallout has been massive, and the volatility is not over,” CEO Meg O’Neill said in a speech prepared for the Australian Energy Producers Conference scheduled for Tuesday in Perth. “It is instability absolutely nobody wants.”
Although oil and gas prices have retreated from their initial spikes following the 2022 invasion, they remain elevated.
Liquefied natural gas prices are currently at their highest levels since early January, and Brent crude, the global oil benchmark, has risen around 10% this year.
O’Neill emphasized the need to provide consumers with better security of supply amid rising energy demand in Asian economies. This factor, along with recent challenges, supports the outlook for natural gas.
Earlier this month, Australia’s government endorsed the development of new gas resources, arguing that fossil fuel production is essential to sustain the nation’s export sector and to avoid domestic energy shortfalls as coal plants are phased out.
“To my mind, the best solution to a shortage is always supply, supply, supply,” O’Neill said. She highlighted Woodside’s advancements in projects like the $12 billion Scarborough LNG project in Australia.
