What's boosting the Woodside share price on Tuesday?

Resources players such as Woodside are front and centre amid the election result.

| More on:
Workers inspecting a gas pipeline.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Woodside shares are rangebound today as traders evaluate the new policy changes around climate change after the weekend's election result 
  • Whilst Labor has committed to large emissions cuts by 2030, some say Woodside's Scarborough project must push ahead 
  • In the last 12 months the Woodside share price has held a 32% gain 

Shares of Woodside Petroleum Limited (ASX: WPL) are rangebound on Tuesday and now trade less than 1% higher at $29 apiece.

Earlier in the session, Woodside had crept up to $29.28 apiece, before receding back down to its current levels. It had closed the day at $28.91 yesterday.

Meanwhile, Brent Crude trades at US$112 per barrel after gyrating upwards in the last few weeks. In wider market moves, the S&P/ASX 300 Metals & Mining Index (ASX: XMM) has climbed 81 basis points on the day.

What's up with the Woodside share price?

Woodside's Scarborough project has caused its fair share of controversy along its very short lifecycle to date.

With the newly-elected government now sworn in, Labor leader Anthony Albanese has made commitments to reduce climate emissions by roughly 40% compared to 2005 levels.

However, with a large swing of support towards independents and The Greens simultaneously gripping the election's result, the new ministry might face pushback as both of these groups are seeking a 60% and 70% reduction respectively.

Greens leader Adam Bandt – whose party picked up three seats in the Senate – was adamant the new government had an obligation for Labor to work with the Greens.

"We've been very clear that in this parliament we have to come up with a plan for coal and gas," Bandt told The Australian Financial Review.

"This has to be the year that Australia's pollution starts peaking and that we keep coal and gas in the ground."

However, potential minister for the climate, Chris Bowen has assured that the Labor government will carry its election commitments forward and won't necessarily be swayed by the other parties.

This sentiment was echoed by former WA premier Colin Barnett, who also told The AFR that "it will be difficult to achieve a tougher target for 2030 when you've got a big project like Scarborough."

"The [Scarborough] project needs to happen, but it's going to be a dilemma for Albanese because a lot of people would say he'd be breaking his word – the emissions out of Scarborough dwarf everything else," he added.

"It's a major project. It guarantees the continuance of the Northwest Shelf at its current production levels and allows the expansion of Pluto," Barnett concluded.

The Woodside share price has clipped a 32% gain this year to date amid a sector-wide commodity boom that's seen prices for oil and gas shoot north.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »