The ASX 200 shares energy in the spotlight amid a terrible global supply crisis

S & P / ASX 200 index (ASX: XJO) Energy Shares are in the spotlight as company management presents its views at today’s industry conference of the Australian Oil and Exploration Association (APPEA).

The hot topic, as expected, is the global energy crisis. The crisis, as a result of which Brent oil rose to $ 128 per barrel in March, and today will continue trading at $ 113 per barrel. A similar supply shortfall amid a resurgence of demand has led to LNG and coal prices reaching historic highs this year.

Pure zero ambitions face global conflicts

Environmentalists and investor activists are working hard to delay the development of new fossil fuel projects, looking at a zero-emission world by 2050.

While addressing global warming is clearly important, the lack of new research and development in recent years has left the world open for today’s crisis, according to ASX 200 Energy stock managers.

And it really came to the fore after Russia’s oil-rich invasion of Ukraine and the resulting embargo on Russian energy exports.

Speaking at the APEA conference, Santos Ltd (ASX: STO) Said CEO Kevin Gallagher (with permission Australian):

We are watching in Europe, the energy crisis unfolded right now, but we have on the door a vivid example of what will happen if the energy transition will focus only on stopping new oil and gas projects.

In resource-rich states and territories, we have had ten years of moratoriums, outages and lockouts. And, as I’ve said over the years, the shortage of new developments is ultimately scary, due to limited supply forecasts for the coming years.

Meg O’Neill, CEO of ASX 200 Energy share Woodside Petroleum Limited (ASX: WPL)said the world has not experienced such a level of energy crisis in 50 years:

I think that Russia’s invasion of Ukraine has really served as a catalyst for energy security talks, as it has not done since the 1970s with the Arab oil embargo.

Nations and political leaders think first of their home spot before thinking about their role in the global world. And the short-term consequence is that there are reliability issues and accessibility issues.

APPEA Chairman Ian Davis added that the cessation of new oil and gas projects has not affected global emissions:

The focus of our opponents on stopping fossil fuel projects has not affected consumer demand and has not affected emission reductions. What it has done is to push fossil fuel development to places like the Middle East and Russia. This has reduced supplies and raised prices, harming people and the economy around the world.

ASX 200 Energy shares invests in carbon capture

Although not everyone is convinced of this technology, Santos has carbon capture projects operating in 27 locations around the world.

“The new focus on stopping oil and gas projects in environmentally responsible jurisdictions, such as Australia, is focused on discrediting proven low-cost technology, large-scale emission reductions – carbon capture and storage,” Gallagher was quoted as saying. Australian).

“However, CCS has been done before. We now do this in 27 commercial projects around the world. And it works, ”he added.

How these ASX 200 energy shares are tracked

Due to some strong cross-winds caused by high energy prices, Santos shares have risen 25.4% since the beginning of the year.

The share of competition in the energy of the ASX 200 Woodside proved to be even better: in 2022, shares rose by 36.6%.

This is compared to a loss of 5.6% since the beginning of the year published by the ASX 200.