Woodside turns to natural gas to mop up its oil business

Woodside turns to natural gas to mop up its oil business

Welcome to another Energy Source.

Russia-Ukraine remains the focus of international energy markets. Diplomatic efforts to avert a full-scale war were enough yesterday to keep a stronger oil price rally at bay — until Vladimir Putin delivered a speech in which he recognised the autonomy of Moscow-backed breakaway regions in eastern Ukraine, a move that could hobble prospects for a negotiated resolution. Western leaders condemned Putin’s announcement.

As he spoke, oil soared. Brent, the international benchmark, was up 3 per cent to $96.35 a barrel in late trading in New York yesterday, while WTI was up to almost $94/b. The odds of $100 oil are suddenly very short indeed.

But oil prices are just one energy element now in the balance. If Russia invades, sanctions on Moscow will follow — and western energy companies will be affected. Russian retaliation would threaten gas supplies to Europe too, believe some politicians.

Our first note today, from Australia, is on Woodside Petroleum — a new entrant to the US oil and gas upstream that thinks it has found a fossil fuel pitch that will remain attractive to environmentally conscious investors.

Our second picks out the five biggest claims from Shell’s new liquefied natural gas outlook. Spoiler alert: one