Australia’s largest producers join the cutback bandwagon
Developers have begun delaying new gas projects in response to oil price pressures and further capex cuts may be necessary
Australian independents Woodside Petroleum and Santos have both announced major capex cuts and deferral of several multi-billion dollar LNG projects, following plunging industrywide oil prices. The downgrade may have been triggered by an escalating oil price war between Saudi Arabia and Russia. But Asia’s spot LNG prices have also been in the doldrums for months—first due to unseasonably warm winter temperatures and then the Covid-19 demand shock, which triggered a Chinese shutdown in January. The combination of demand destruction and market oversupply has driven Brent down to a 20-year low, while the JKM futures prices on the CME are below $3/mn Btu for monthly contracts from May through t
Also in this section
17 October 2024
Experts debate carbon pricing and fossil fuel subsidies in the MENA region on second day of summit
17 October 2024
In our final look back into the Petroleum Economist archives, we turn the clock back to September 2016
17 October 2024
Keynotes on first day of Dii Desert Energy Leadership Summit celebrated 15 years of progress and outlined strategies for accelerating clean energy
16 October 2024
The impact from Libya’s lost barrels versus the threats to Iranian supply highlight the type of buffer in the oil market and the demand implications