The Santos Ltd (ASX: STO) share price closed 0.94% lower at $7.36 on Thursday.
The energy sector as a whole was the heaviest weight on the S&P/ASX 200 Index (ASX: XJO) today. The S&P/ASX 200 Energy Index (ASX: XEJ) fell 2.06%, while the ASX 200 gained 0.19%
Let's take a look at what else might be affecting the ASX energy share.
What's going on with the Santos share price?
It's been a tough week for the Santos share price, which has now finished in the red in five of the last six sessions.
On Wednesday, the oil and gas giant's legal appeal to restart drilling operations at its Barossa gas project was concluded in the Federal Court.
The $4.7 billion project in the Timor Sea will remain on hold until a ruling has been made.
In September, the project was ruled invalid after the court decided the Munupi clan of the Tiwi Islands should have been consulted before drilling began at the Northern Territory project.
Santos appealed the decision, claiming the clan did not legally count as "relevant persons" and that it was unreasonable to expect the company to consult with "each and every" individual clan member.
On Wednesday, Federal Court Justice Debra Mortimer questioned the claim by Santos's lawyers that it was "unworkable" to consult with the clan.
Mortimer said:
The only category which is said to be unworkable are Aboriginal and Torres Strait Islander people who have interests in this area. It's not said to be unworkable to contact a department. It's not said to be unworkable to consult an organisation. It's not said to be unworkable to consult a fisheries body [which] has hundreds of members. It's only said to be unworkable to consult with Aboriginal and Torres Strait Islander people.
A date for the judgment is yet to be set.
EU to propose natural gas price cap
Some more potentially bad news for Santos came this week amid the EU proposing a price cap on natural gas, reports Reuters.
A cap will be proposed after a meeting of EU energy ministers on 24 November, with a goal of putting a lid on the European energy crisis.
EU energy commissioner Kadri Simson said this could help stabilise the problem in Europe, stating:
We will move swiftly and we will make a legal proposal immediately after ministers will mandate us to do so. We have done our homework. I think that this kind of price cap can allow us to calm the market. It also removes the risk that we will not receive cargos at all.
The price level of the cap is undisclosed at this stage, and it's unknown how it will affect Santos's earnings in European markets moving forward.
However, in March, the company suggested it was interested in exporting more Australian LNG to the continent, 7 News reported. That could help wean Europe off its dependence on Russian oil and gas as the war in Ukraine rages on.
The comments were made at a federal inquiry into taxpayer subsidies for Beetaloo Basin gas exploration in the Northern Territory.
Santos share price snapshot
The Santos share price is up almost 17% year to date. The ASX 200 is down 4% over the same period.
The company's market capitalisation is around $24.73 billion.
