Woodside Abandons Climate Targets and Green Investment Plan as Middle East Conflict Drives Profit Surge

Woodside Energy has abandoned its long-term emissions reduction and clean energy investment commitments, even as the company reaps substantial profits from soaring oil prices triggered by the Iran conflict.

Australia’s largest oil and gas producer reported a 27% jump in sales revenue to US$1.67 billion (A$2.33 billion) for the first half of the year, according to financial results released Tuesday. The gain was driven by a surge in crude prices following disruptions to global supply.

The company anticipates further trading gains by redirecting cargoes to markets commanding premium prices.

Simultaneously, the Perth-based group confirmed it would drop a pledge to invest US$5 billion (A$7 billion) in new energy products, including hydrogen, by 2030. It has also placed its US ammonia business — previously cited as one of Woodside’s most promising options for decarbonising power generation — under strategic review.

Under new chief executive Liz Westcott, Woodside is pivoting decisively back toward fossil fuels and away from decarbonisation goals. Westcott told analysts Tuesday the company would “retire” its so-called Scope 3 investment and abatement targets — which cover emissions generated by customers using its products — arguing they “were established in a different market context.”

“The reality is that markets for emerging lower-carbon opportunities, including hydrogen, ammonia, and carbon capture and storage, have developed more slowly than anticipated,” Westcott said.

The company stated its new energy business would now be guided strictly by “customer demand and commercial markets.”

Woodside joins a growing list of major oil companies posting windfall gains from the Iran conflict even as emissions-driven climate change intensifies impacts on communities worldwide. A recent series of deadly northern hemisphere heatwaves — made more likely and severe by fossil fuel combustion — has renewed demands for producers to bear the mounting environmental costs of rising temperatures.

Brett Morgan, investor campaigns manager at climate advocacy group Market Forces, said major polluters must be held accountable for environmental damage.

“Woodside has ditched its already feeble Scope 3 emissions reduction and new energy investment targets, despite years of investor pressure demanding stronger climate action,” Morgan said.

He urged major Woodside shareholders, including Australian superannuation funds, to respond by demanding an end to the company’s fossil fuel expansion plans.

Woodside declared an interim dividend of US57 cents per share, up from US53 cents a year earlier.

Source link