We take a first look at Australia’s oil and gas major, Woodside’s climate strategy and 3Q results. Woodside’s targets are focused on scope 1 and 2 emission reduction and a US$5 bn target for ‘New Energy’ (hydrogen, ammonia, and CCS) investments between FY22-30.

Key findings

• Woodside is investing significantly more in oil and gas compared to European majors, with an average oil and gas capital expenditure estimated to be US$27/boe, ~60% higher than majors' average. 

• Group capital expenditure over the last seven quarters has been primarily directed to oil and gas (US$8 bn between 1Q22-3Q23).

• Woodside has made little progress towards its US$5bn investment goal with no disclosed New Energy investment FY23 YTD, and its contribution to FY22 capex just ~2% of group.

• Offsets play a pivotal role in Woodside's decarbonisation strategy for Scope 1 and 2 emissions, accounting for nearly all reductions in FY22.