Woodside scraps long-term emissions and clean energy targets despite windfall oil profits caused by Iran war

Woodside Energy has decided to scrap its long-term emissions and clean energy targets, a move that comes despite the company enjoying significant profits driven by the Iran conflict and subsequent surge in oil prices. Australia's largest oil and gas producer saw its sales profit jump 27% to $1.67 billion in the latest six-month reporting period.

The company announced it would also abandon its commitment to invest $US5 billion in new energy products like hydrogen by 2030. Furthermore, its US ammonia business, previously seen as a key option for decarbonizing power sources, is now under strategic review. Under its new chief executive, Liz Westcott, Woodside appears to be doubling down on fossil fuels, distancing itself from clean energy goals.

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The reality is that markets for emerging lower carbon opportunities, including hydrogen, ammonia, and carbon capture and storage, have developed more slowly than anticipated.

Westcott explained to analysts that the company would "retire" its scope 3 investment and abatement targets, which relate to emissions from its customers. She stated these targets were set in a "different market context" and that markets for lower-carbon opportunities such as hydrogen and carbon capture have developed more slowly than expected. The company's new energy business will now be guided by "customer demand and commercial markets."

This decision places Woodside among a growing number of major oil companies profiting from global supply disruptions while climate change intensifies. Climate activists are calling for accountability, with Brett Morgan of Market Forces urging major investors to demand an end to Woodside's fossil fuel expansion plans. Despite these environmental concerns, Woodside declared an increased interim dividend of US57 cents per share.

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Woodside has ditched its already feeble scope 3 emissions reduction and new energy investment targets, despite years of investor pressure demanding stronger climate action.