2022 - An eventful year

It’s been quite an eventful year for the energy industry.?As the world came out of COVID restrictions and business activity started to get back to normal, we here in Western Australia were finally allowed to leave our sunny, but oh so cut off, state.

With the Russian invasion of Ukraine, energy markets were in turmoil.??In Australia we saw government intervention in the energy market, unprecedented in recent times.??History shows that few such interventions have been successful, often with dire consequences.?We wait with concern to see the results here.

And there was plenty of interesting M&A activity.?Santos acquired Oil Search to establish a strong regionally focussed player. ?For Oil Search it was the end of an era after 92 years in PNG.?For Santos, it’s a good fit with their portfolio.

Likewise Woodside acquired BHP’s petroleum assets, establishing a stronger player of global significance.??For Woodside it’s a huge step up in one hit.??But initial indications are good, and Woodside management is applying a disciplined, focussed approach.

The year is ending with a real spotlight on the Perth Basin.??There’s suddenly intense interest in this region’s prospects.??Currently there’s a bidding war underway for Warrego, with the various suitors spruiking their offers.

Rather an eventful year.??We wait to see what 2023 holds.

Jeanette Roberts is an energy industry leader and Non-Executive Director.??She is interested in global energy issues, and their impact on the Asia Pacific region.2022