The Santos Ltd (ASX: STO) share price is in the red today amid falling oil prices.
Santos shares are currently trading at $7.86, a 0.76% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.74% in the green.
Let's take a look at what is happening at Santos.
Oil prices
Energy producers, including Santos, could be suffering due to turbulent oil prices. Brent Crude oil prices finished 2% lower in the United States on Tuesday amid Ukraine and Russia peace talks, Reuters reported. New COVID-19 lockdowns in China also sparked speculation demand for oil could be lower.
However, the oil price is now starting to pick up. Brent Crude is climbing 0.76% to US$111.07 a barrel, while WTI Crude Oil is up 0.78% to US$105.02 a barrel, according to Bloomberg.
Santos is not the only ASX energy share having a day in the red. The S&P/ASX 200 Energy Index (ASX: XEJ) is down 0.88% at the time of writing. Beach Energy Ltd (ASX: BPT) shares are down 0.62%, while the Woodside Petroleum Limited (ASX: WPL) share price is 0.52% lower.
Climate report
In other news, Santos has just released its 2022 climate report. The strategy sets out the company's climate transition strategy to become a net-zero emissions energy and fuels company by 2040.
This includes a plan to:
- Cut absolute emissions by 30% by the year 2030
- 40% reduction in emissions intensity
- Scope three target to reduce customer carbon dioxide emissions by 1.5 million tonnes per year
Further, Santos will only sell products to customers from countries that have a net-zero commitment or have signed the Paris agreement.
The company said final investment decisions on new offshore greenfield projects from 2025 will require abatement or offset of reservoir carbon dioxide emissions.
Commenting on the news, Santos chief executive officer Kevin Gallagher said the company is "well positioned" to decarbonise the natural gas business and generate new revenue streams via carbon solutions including capture and storage. He added:
It is vitally important that new supply investment happens in a sustainable way. Companies like Santos, which are publicly listed, subject to ESG scrutiny by their investors and which report transparently on carbon emissions and their climate transition plans, are best placed to supply critical fuels such as oil and gas more sustainably, striving for lower emissions intensity and better environmental outcomes.
Divesting assets and driving investment in new supply to less transparent producers will not reduce global emissions or advance the transition to Net Zero.
Santos share price snapshot
The Santos share price has risen 10% in the past 12 months, while it has gained 24% year to date.
In contrast, S&P/ASX 200 Index (ASX: XJO) has returned just under 1% in 2022 so far.
In the last month, Santos shares have soared nearly 10%.
Santos has a market capitalisation of about $26.6 billion based on the current share price.
