ASX Oil and Gas Stocks: 5 Biggest Companies in 2023

In 2023, the global oil market saw a significant upturn in prices, while global gas demand slowed slightly.

Thanks to factors including Saudi Arabia's voluntary production cuts and a drop in U.S. commercial crude oil inventories, Brent crude oil prices rose to an average of US$94 per barrel in September.

While oil prices surged this year, global natural gas prices decreased in the first three quarters of 2023. This shift was particularly evident in mature markets, such as Asia Pacific, Europe and North America, which experienced a decline in gas demand and sought alternatives like renewables and improved energy efficiency.

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Looking forward to 2024, oil prices are expected to continue to rise, while natural gas demand is projected to remain slow.

With compelling reasons to enter the oil and gas sector, what's the best way for Australian investors to get exposure? The biggest ASX-listed oil and gas stocks by market cap are one place to start. Data for the list below was obtained on October 29, 2023, using TradingView’s stock screener. All market cap and share price data was accurate at that time.

1. Woodside Energy Group 

Market cap: AU$66.76 billion; current stock price: AU$35.20

As the biggest ASX oil and gas stock by market cap, Woodside Energy Group (ASX:WDS) leads the country in natural gas production and is considered a pioneer in Australia’s liquefied natural gas (LNG) industry.

In June 2022, Woodside Petroleum merged with BHP's (ASX:BHP,NYSE:BHP,LSE:BHP) oil and gas business to form Woodside Energy Group. The new company's natural gas production accounts for 5 percent of global LNG supply. With its newly expanded portfolio, Woodside saw a record H1 net profit after tax of US$1.74 billion in the first half of 2023.

2. Santos

Market cap: AU$25.37 billion; current stock price: AU$7.83

Australian energy company Santos (ASX:STO) is the country’s second biggest oil and gas producer. The ASX-listed firm supplies its products to markets located across Australia and Asia.

Last year, Santos partnered with SK E&S and others to develop carbon capture and storage (CCS) projects in Australia. “Already partners in the Barossa Gas Project and Darwin LNG, the agreement further strengthens the deep and expanding relationship between SK E&S and Santos,” Santos Managing Director and CEO Kevin Gallagher stated in a press release. “We look forward to progressing this partnership to develop and commercialise CCS projects in our region on our path to a lower-emissions future.”

In the first half of 2023, Santos demonstrated robust performance with significant free cash flow of US$1.1 billion and an underlying profit of US$801 million.

3. Viva Energy Group

Market cap: AU$4.45 billion; current stock price: AU$2.89

Viva Energy Group (ASX:VEA), based in Melbourne, owns the Geelong oil refinery and distributes Shell-branded (LSE:SHEL,NYSE:SHEL) fuels throughout Australia. Viva Energy oversees a vast network of over 1,300 Shell and Liberty service stations nationwide.

In its 2023 half-year report, Viva Energy reported a year-over-year increase in fuel sales of 11 percent for the period, as well as an increase in EBITDA of 40 percent, reaching AU$362 million.

4. Beach Energy

Market cap: AU$3.56 billion; current stock price: AU$1.56

Oil and gas exploration and production company Beach Energy (ASX:BPT) has a diverse portfolio, with onshore and offshore oil and gas production in five basins across Australia and New Zealand.

In 2022, the company announced that the first two wells of its offshore Otway Basin campaign had been connected to the Otway gas plant and were delivering gas to market. According to Beach Energy, the new wells doubled the plant’s production capacity to 180 terajoules per day. During its 2022 fiscal year, the firm's total revenue increased by 13 percent to AU$1.8 billion.

In May 2023, the company announced the connection of two new wells, meaning that four of the six wells that were initially drilled in 2022 are now connected and delivering gas. Additionally this year, the company made gas discoveries at both Tarantula Deep 1 and Trigg Northwest 1, as part of its ongoing Perth Basin gas exploration campaign.

In its fiscal year 2023, Beach Energy reported AU$1.62 billion in sales revenue.

5. Karoon Energy

Market cap: AU$1.43 billion; current stock price: AU$2.54

Karoon Energy (ASX:KAR) is focused on continued company growth through a broad pipeline of exploration and development projects in Brazil, including its producing Baúna and Piracaba oil fields.

In its 2023 annual report, Karoon reported production of 7.04 million barrels, up 52 percent from the previous year. This resulted in sales revenue of AU$566.5 million, representing an increase of 47 percent year-over-year.

FAQs for oil and gas investing 

What is crude oil?

Crude oil is a mixture of hydrocarbons in liquid form that is found in natural underground reservoirs in the Earth's crust. This petroleum liquid is refined to produce a variety of energy and industrial products, including asphalt, diesel and jet fuels, gasoline, heating oils, lubricants and propane.

Does Australia have oil?

Geoscience Australia states that the country hosts about 0.3 percent of global oil reserves.

“Most of Australia's known remaining oil resources are condensate and liquefied petroleum gas associated with giant offshore gas fields in the Browse, Carnarvon and Bonaparte basins,” according to the government agency.

Where does Australia get its oil?

Australia’s domestic oil production does not cover its oil consumption; for that reason, the country receives oil imports from Singapore, South Korea, China, Malaysia and India.

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Securities Disclosure: I, Matthew Flood, hold no direct investment interest in any company mentioned in this article.

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