Can Woodside shares keep delivering stellar gains in 2023?

These experts reckon Woodside is just getting started…

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The Woodside Energy Group Ltd (ASX: WDS) share price was one of the best-performing ASX 200 blue chip shares in 2022. Over the year just passed, Woodside shares went from $21.93 to $35.44. That's a rise worth an extraordinary 61.61%.

Throw in Woodside's record dividend payments worth $4.66 per share, and we have one heck of a lucrative investment.

That's even more impressive considering the S&P/ASX 200 Index (ASX: XJO) went backwards by 5.5% last year.

But those returns are now in the past and are of little use to investors today. So what might 2023 bring for Woodside shares?

Well, 2022's stellar returns had a lot to do with fortunate timing. Last year, Woodside finalised a mega-merger with the energy division of BHP Group Ltd (ASX: BHP). This saw BHP investors issued additional Woodside shares when the company took over BHP's old energy assets.

The timing turned out to be excellent for investors, with this merger coinciding with rocketing energy prices. These were primarily caused by the war in Ukraine and high global inflation last year. Just take a look at the Woodside share price below for a visual representation of this:

So the most important factor for Woodside shares in 2023 will continue to be the price of crude oil.

But time now to see what some ASX experts reckon about all of this.

A man in a hard hat puts his finger up to say 'number one' in front of an oil mine

Image source: Getty Images

ASX experts rate Woodside shares

As my Fool colleague shared earlier this month, one expert who remains bullish on oil is hedge fund trader Pierre Andurand of Bloomberg.

Andurand predicts that global oil demand could rise by 4 million barrels in 2023 if the world fully emerges from COVID restrictions, possibly leading to an oil price as high as US$140 per barrel. That would be almost double the current price of US$75 per barrel for WTI crude.

But Bloomberg isn't the only expert bullish on oil. As we covered earlier this month, ASX broker AllianceBernstein lifted its 12-month share price target for Woodside shares to $46. If that occurs, it will result in a potential upside of more than 27% from where the shares are today.

This is due to a belief that Woodside can benefit from "a potential spike in gas prices on lower Russian gas exports to Europe and a recovery of oil prices on a China reopening".

So more than one ASX expert reckons there are more good things to come for Woodside shares and their investors. But let's wait and see what 2023 has in store for this ASX 200 energy giant.

Motley Fool contributor Sebastian Bowen 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.

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