How are Woodside shares avoiding the market selloff today?

This energy giant's shares aren't sinking like the market today. But why?

| More on:
Happy man standing in front of an oil rig.

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

Woodside Energy Group Ltd (ASX: WDS) shares are having a better day that most on Wednesday.

In afternoon trade, the energy giant's shares are trading flat.

As a comparison, the ASX 200 index is currently down 1%.

Why are Woodside shares avoiding the selloff?

There are a couple of reasons why Woodside shares are faring well today. The first is an increase in oil prices overnight despite the hotter than expected inflation reading.

Another reason is that the company has released an announcement relating to the Trion oil and gas project in Mexico.

According to the release, the company has received approval for its Social Impact Assessment from the Mexican Ministry for Energy.

Woodside's Social Impact Assessment was submitted in May 2023. It provides a comprehensive assessment of the project and outlines the ways in which the company will manage social impacts.

Management believes that the approval is an important milestone for Trion. Woodside Executive Vice President of Projects, Matthew Ridolfi, said:

This approval marks an important milestone on the pathway to developing this nationally significant resource project. We appreciate the ongoing support we have received from the Mexican government for Trion.

The approval also validates Woodside's approach to how we engage with communities wherever we work and recognises our high operating standards. It reflects the excellent work of our technical team, our consultants, and the strong professional relationships we have established with Mexico's regulatory authorities.

What is Trion?

Trion is a greenfield development that would represent the first oil production from Mexico's deepwater once operational.

It is located in the Gulf of Mexico at a water depth of 2,500m, approximately 180km off the Mexican coastline.

It is being developed by Woodside Energy in a joint venture with PEMEX, with first oil targeted for 2028.

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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 Energy Shares

Happy man standing in front of an oil rig.
Energy Shares

Broker says Woodside share price weakness is a buy opportunity

Now could be a buying opportunity for investors according to Wilsons.

Read more »

2 workers standing in front of a wind farm giving a high five.
Energy Shares

Origin shares fall despite 'highly strategic' $300m renewable energy acquisition

Origin is taking a big step in its clean energy transition.

Read more »

Copal miner standing in front of coal.
Energy Shares

Should ASX investors buy the dip in Whitehaven stock?

We review the latest broker ratings on this ASX coal share.

Read more »

A young man stands facing the camera and scratching his head with the other hand held upwards wondering if he should buy Whitehaven Coal shares
Energy Shares

Are Paladin Energy shares really surging 900% today?

What's going on with this uranium stock today?

Read more »

sad looking petroleum worker standing next to oil drill
Energy Shares

Why is the Santos share price tanking on Tuesday?

Santos shares are missing out on today's market gains.

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Energy Shares

How ASX 200 energy stocks could soon enjoy US$100 oil prices

A range of factors are lining up to support higher oil prices, offering tailwinds for ASX 200 energy stocks.

Read more »

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Energy Shares

Here is the earnings forecast to 2026 for Pilbara Minerals shares

Should investors be excited about the lithium stock’s outlook?

Read more »

Oil worker using a smartphone in front of an oil rig.
Share Fallers

Guess which ASX 200 energy share is imploding 18% today on cost blowouts

ASX 200 investors are rushing to hit the sell button on this popular energy stock on Monday.

Read more »