(Bloomberg) Woodside Energy Group Ltd. said that surging oil and natural gas prices stem in part from years of insufficient investment in the energy industry.
“We’ve been under-investing for the past few years,” Meg O’Neill, chief executive officer of Australia’s largest natural gas exporter, said in a Bloomberg TV interview. “So we do expect prices to remain high for the period, but the long-term investment decision-making is one that will have a bit more of a sober price outlook.”
Oil, natural gas, diesel and gasoline prices have surged to multi-year highs this year as demand increased after the Covid pandemic and supplies were disturbed by Russia’s invasion of Ukraine. Prices for liquefied natural gas reached records even before the Russian aggression, O’Neill noted.
“We’ve seen the signs of underinvestment for a couple of years now,” she said.
The Perth-based producer, which operates Australia’s biggest LNG facility, recently closed its deal to acquire the oil and gas business of BHP Group to add more crude to its portfolio and broaden its global footprint with US Gulf of Mexico operations.