The Best ASX Oil And Gas Stocks
to buy now In
June 2024

Check out our industry experts’ report and analysis on
the best oil and gas stocks to buy right now on ASX

The Best ASX Oil And Gas Stocks to buy now In june 2024

Check out our industry experts’ report and analysis on the best oil and gas stocks to buy right now on ASX

High Demand, Rising Oil Prices, and the Effect on ASX Oil Stocks

Australia's oil and gas industry is bustling with opportunities. As oil prices rise and global demand increases, ASX oil stocks are emerging as attractive options for investors. Several oil companies on the ASX have shown promising growth and substantial market cap, making them excellent choices for portfolio development. The energy sector, including oil and gas companies, plays a significant role in driving the Australian economy. A combination of high demand, rising oil prices, and increased economic activity have stirred interest in ASX oil stocks. Natural gas and crude oil, primary fuels, are sought-after commodities, experiencing a surge in prices.

This trend is projected to continue in the near term, especially in the second half of the year when the Northern Hemisphere experiences a spike in oil consumption. Global oil prices have seen a steady rise in the recent past due to various factors like geopolitical tensions, decreasing supply, and increasing demand. As these factors persist, crude oil prices are expected to continue upward. High demand, coupled with rising crude oil prices, paves the way for growth in ASX oil stocks. Interestingly, this trend is not confined to Australia but extends to petroleum-exporting countries worldwide, underscoring the importance of the energy sector in the global economy.

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Increasing Demand and the Role of ASX Oil Stocks

ASX oil stocks are expected to play a significant role in meeting the increasing demand for oil. Companies like Byron Energy, BHP Group, and other oil producers are ramping up their production efforts to keep the supply on pace with demand. As the global economy recovers from the pandemic, demand for oil and gas is expected to surge. This increasing demand for oil equivalent is likely to boost ASX oil stocks as companies ramp up their production efforts. Companies like Byron Energy and BHP Group, known for their exploration and production capabilities, are strategically positioned to capitalize on this trend in oil consumption. Investors can thus expect ASX oil stocks to play a crucial role in meeting the global demand for oil in the coming years.

Sustainable Practices and the Shift away from crude oil

The energy sector, underpinned by oil companies, is expected to see significant growth in the coming several years too. With high oil prices, companies in the sector are experiencing an influx of investments, leading to growth and industry development. Oil companies, with their enormous market cap, are integral to the growth of the energy sector. As oil prices rise, companies in the sector are expected to see an influx of investments, leading to growth and industry development.

The increased revenue from oil shares can fund further exploration and production activities, thereby bolstering Australia's energy production company and sector's overall strength. The development of this sector holds substantial implications for Australia's economic activity and the prospects of investors interested in ASX oil stocks.

Innovation and Development in the Oil and Gas Industry

Innovation and technological advancements have become an intrinsic part of the oil and gas industry. Oil and gas companies listed on ASX, like Woodside Energy Group, are investing heavily in cutting-edge technologies to enhance oil and gas exploration and production capabilities. Advanced energy equipment is being utilised to streamline operations and increase efficiency. Furthermore, the implementation of new technologies has allowed these companies to explore previously inaccessible reserves, thereby boosting their oil equivalent production.

Significantly, a new wave of development is also seen in the field of carbon capture and storage. Companies are investing in this technology to capture carbon dioxide emissions from fossil fuel use and store it underground. This not only reduces the company' environmental impact but also the dividends and enhances the company's reputation as an environmentally conscious entity. Companies that successfully implement this technology may see their market cap and dividends increase as they become more appealing to environmentally conscious investors.

Challenges and Opportunities in the Oil and Gas Companies

The oil and gas sector, while rewarding, also comes with its fair share of challenges. Fluctuating oil and gas prices often, regulatory hurdles, and the pressing need to transition to renewable sources of energy are a few issues faced by oil and gas companies. However, these challenges also present opportunities.

Frequently Asked Questions

Woodside Energy Group, Beach Energy, and Santos are among the largest oil companies listed on the ASX.

Our Top 3 ASX Oil Stocks

Woodside Energy Group (ASX:WDS)

As the largest ASX oil and gas stock by market cap, Woodside Energy Group stands as a strong contender for investors' portfolios. Following its merger with BHP's oil and gas business in 2022, Woodside' portfolio now accounts for a significant 5% of the global LNG supply. This strategic move resulted in a substantial increase in Woodside's production, sales volume, and revenue. In 2023, it made a record post-tax profit of US$1.7bn.

Beach Energy (ASX: BPT)

Beach's focus on gas production in South Australia and its steady growth make it an attractive investment. The company recently announced the successful connection of two new wells, adding to the existing production and promising increased output in the near term future. Operating both onshore and offshore in five basins across Australia and New Zealand, Beach Energy has shown steady growth. In the past 12 months, it delivered A$1.6bn in sales revenue.

Santos (ASX: STO)

Santos is Australia's second largest oil and gas producer, supplying its products to markets across Australia and Asia. Santos also partnered with SK E&S and others to develop carbon capture and storage (CCS) projects in Australia. Santos has also demonstrated its commitment to sustainable energy solutions, partnering with SK E&S to develop carbon capture and storage (CCS) projects in Australia​.

Our Top 3 ASX Oil Stocks

Woodside Energy Group (ASX:WDS)

As the largest ASX oil and gas stock by market cap, Woodside Energy Group stands as a strong contender for investors' portfolios. Following its merger with BHP's oil and gas business in 2022, Woodside' portfolio now accounts for a significant 5% of the global LNG supply. This strategic move resulted in a substantial increase in Woodside's production, sales volume, and revenue, making it an attractive investment. In 2023, it made a record post-tax profit of US$1.7bn.

Beach Energy (ASX: BPT)

Beach's focus on gas production in South Australia and its steady growth make it an attractive investment. The company recently announced the successful connection of two new wells, adding to the existing production and promising increased output in the near term future. Operating both onshore and offshore in five basins across Australia and New Zealand, Beach Energy has shown steady growth. In the past 12 months, it delivered $1.6bn in sales revenue.

Santos (ASX: STO)

Santos is Australia's second largest oil and gas producer, supplying its products to markets across Australia and Asia. Santos also partnered with SK E&S and others to develop carbon capture and storage (CCS) projects in Australia. Santos has also demonstrated its commitment to sustainable energy solutions, partnering with SK E&S to develop carbon capture and storage (CCS) projects in Australia​.

Our Analysis on Oil and Gas Stocks

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