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Santos Surges on Oil Rally

Oil and gas giant Santos is leading the energy sector today, ending the first day of the week over 3% higher trading at $7.97 a share.

The start of the week has been led by energy stocks as commodities continue their strong tailwinds led by oil. Brent Crude Oil is up more than 1.43% to US$94.35/Bbl and continues to trend upwards. Similarly, natural gas futures is up more than 2% to US$8.97/MMBtu, which is close to 10 year highs.

Due to the energy supply glut since the beginning of the year, Santos has been one of the key beneficiaries in the sector, as shown in the graph below.

Santos also announced that the company was awarded permits for evaluation and appraisal work for the potential storage of carbon dioxide in the offshore Carnarvon and Bonaparte basins. Both of these are off the coast of Western Australia and the permits allow Santos to “pursue potential carbon capture and storage (CCS) opportunities with its joint venture partners”.

Santos CEO Kevin Gallagher stated:

“Carbon capture and storage is critical for the world to reduce emissions and in line with Santos’ net-zero scope 1 and 2 equity-share emissions by 2040 target, we are committed to looking at all options for CCS capabilities.

At Santos, we have the technology, infrastructure and knowledge to be able to deliver lowcost CCS competitively on a global scale. We know a large scale-up of CCS is required to meet the world’s climate objectives.”

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