Woodside chief executive, Meg O’Neill, says Australia needs new gas developments to protect against an energy shock, and has warned that well-funded protest groups risk choking supplies.
The oil and gas company head said Woodside projects were also needed for decarbonisation, with gas used as an alternative to coal for electricity generation as the international community works to meet climate goals.
“A vocal minority wants to shut down the industry and the jobs and livelihoods that go with it,” O’Neill said in an address to the National Press Club on Wednesday.
“We respect every Australian’s right to express their opinion – and we share the commitment to decarbonisation – but extremism is not the answer. We need confidence in stable regulatory outcomes, or we risk choking our energy industry, impacting both domestic and international supply.”
As Australia’s largest oil and gas company, Woodside has long been a focus of fossil fuel protests.
But it has also recently attracted more attention from major investors, unhappy with its climate policies.
LGIM, one of Europe’s largest asset managers, will vote against the re-election of Woodside’s most senior director, former resources minister Ian Macfarlane, at the company’s annual general meeting late next week.
It is citing a “lack of commitment to aligning with the Paris objectives and net zero” for its position, referring to the global framework designed to limit global heating.
Investors and climate groups are also seeking more clarity about Woodside’s proposed decarbonisation plans, and want the company to hold itself accountable for scope 3 emissions, representing those produced by its oil and gas customers.
O’Neill cited the recent interruptions in energy supplies, exacerbated by the Russian invasion of Ukraine, as evidence of a need to expand operations.
“The longer-term answer is development of new supply to keep energy affordable and reliable as we transition to a lower carbon future,” O’Neill said.
“But new gas supply and infrastructure cannot just be turned on when a crisis happens. It requires a clear investment framework and regulatory certainty to attract the capital from international markets that is needed for large-scale projects.”
O’Neill also referenced concerns recently raised by Japanese energy producer Inpex that Australia risked undermining global security through a decision to “quietly quit” the international gas trade.
Japan is heavily reliant on gas supplies from Australia.
after newsletter promotion
Climate Energy Finance, a consultancy firm that advocates for reducing emissions, said in a new report that Woodside will expose itself to a multi-billion dollar liability if it progresses plans to expand gas operations in Western Australia’s north-west.
“This is a clear commercial signal for Woodside to invest in decarbonisation,” the report said.
The forecast liability is tied to the government’s safeguard mechanism, a policy designed to make major industrial and resources companies cut their emissions intensity.
Woodside has said it includes a cost of carbon in its business analysis and decision-making.
On Wednesday, O’Neill affirmed the company’s support to enshrine an Indigenous voice to parliament in the constitution.
Woodside has had a troubled relationship with traditional custodians given it has significant industrial operations on the Burrup Peninsula, the site of renowned rock engravings.
O’Neill said ongoing developments did not require the removal of Murujuga rock art, a practice it engaged in during past operations.
“We did it in a way that was culturally sensitive at the time, but in the light of hindsight, it’s not something we would repeat,” O’Neill said.
Indigenous groups, environmentalists and archaeologists opposed Woodside’s actions at the time and unsuccessfully sought a heritage listing to protect the site in 2006.
#Extremism #answer #decarbonisation #Woodside #chief #Gas
