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The Santos (ASX:STO) share price is having a rough month

The oil producer’s shares have been struggling as its boss says emissions reductions are crucial to its business.
The post The Santos (ASX:STO) share price is having a rough month appeared first on The Motley Fool Australia. –

The Santos Ltd (ASX: STO) share price has been sliding over the last 30 days, despite no news from the oil and gas producer hitting the market. However, we’ve heard plenty from its CEO and managing director, Kevin Gallagher.

Additionally, Santos shares are struggling while the price of oil is rallying and has been predicted to reach US$100 per barrel.

Currently, the Santos share price is trading at $7.18 – around 6% lower than it was this time last month.

Let’s take a look at what Gallagher has had to say about Santos’ business.

What Gallagher has been saying

Over the last 30 days, Santos’ boss has spoken on challenges facing energy producers in the age of climate awareness.

On 15 June, Gallagher gave a speech at the annual oil and gas industry (APPEA) conference.

Within it, he said investors have “turned off the taps” to western fossil fuel companies. He also claimed environmental, social, and governance (ESG) concerns make it difficult for energy producers to access capital.

There’s no direct link between Gallagher’s assertions and the Santos share price. However, it’s possible the comments may have made market watchers more aware of the modern challenges facing oil and gas producers.

Gallagher said:

Russia, Qatar and the OPEC producers know that the developed world will find it increasingly difficult to develop new oil and gas reserves. And they know that demand for oil and gas is not going to decline as fast as the world might want…

He also called for Santos’ peers to implement greater decarbonisation measures, saying:

Decarbonisation, through technologies like carbon capture and storage (CCS), and hydrogen production using natural gas, is critical.

Last week, Gallagher reiterated his belief in the importance of carbon capture and storage initiatives.

He also said that Australia is better suited to CCS than other nations, as its size and exhausted oil and gas fields are ideal for CCS initiatives.

Santos share price snapshot

Despite a poor month’s performance, the Santos share price has gained around 15% year to date.

It is also around 38% higher than it was this time last year.

The company has a market capitalisation of around $15 billion, with approximately 2 billion shares outstanding.

The post The Santos (ASX:STO) share price is having a rough month appeared first on The Motley Fool Australia.

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More reading

5 things to watch on the ASX 200 on Monday

Santos (ASX:STO) share price slips as CEO says carbon storage crucial
5 things to watch on the ASX 200 on Friday

How new US oil forecasts could impact ASX energy shares

5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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