The energy sector has been a rollercoaster in 2026, with oil and natural gas prices experiencing significant volatility. Geopolitical tensions, particularly in the Middle Easthave played a pivotal role in shaping market dynamics. For investors, understanding these fluctuations and identifying key players in the sector is crucial.
In this article, we’ll explore the current state of the oil and gas market, the factors driving price movements, and the top ASX-listed companies that are making waves in the industry. Whether you’re a seasoned investor or new to the energy sector, this guide will provide valuable insights into the world of oil and gas in 2026.
Market dynamics and price fluctuations
The first half of 2026 has been marked by significant price swings in both the oil and natural gas markets. The blockade of the Strait of Hormuz has been a major factor, causing supply-side challenges and driving oil prices above US$90 to US$100 per barrel during the spring. As we move into the second half of the year, global economic uncertainties are weighing on prices, but they remain relatively high, consolidating in the US$85 to US$95 range.
Natural gas prices have also been volatile, with extreme price spikes evident in global markets, particularly in late winter. However, the US natural gas market has remained stable, insulated from supply concerns elsewhere. At the start of 2026, natural gas prices were at US$3.61 per million British thermal units, jumping to a three-year high of US$5.04 on January 22. Prices then fell to a low of US$2.59 in mid-April before rebounding to the US$3.10 to US$3.30 range in early June, driven by the prospect of higher temperatures and increased demand for electricity generation.
Top ASX-listed oil and gas companies
For investors looking to gain exposure to the oil and gas sector, understanding the biggest ASX-listed companies is a good starting point. Here, we’ll explore the operations, financial results, and dividends of the top players in the industry.
Woodside Energy Group (ASX:WDS)
With a market cap of AU$58.7 billion and a share price of AU$30.91, Woodside Energy Group is the largest ASX-listed oil and gas stock. The company is a pioneer in Australia’s LNG industry and leads the country in natural gas production, accounting for 5 percent of the global LNG supply. In June 2026, Woodside Petroleum merged with BHP’s oil and gas business to form Woodside Energy Group.
Woodside achieved first production at the Sangomar project in Senegal, its first offshore oil project, in 2026. The company’s standalone floating production storage and offloading facility has a nameplate capacity of 100,000 barrels per day. In the March quarter of 2026, Woodside achieved revenues of US$3.26 billion and produced 45.2 million barrels of oil equivalent. The company pays at least 50 percent of its net profit after tax back in the form of twice-yearly dividends, with its most recent dividend being AU$0.835 per share on March 27.
Santos (ASX:STO)
Santoswith a market cap of AU$25.34 billion and a share price of AU$7.82, is another key player in the Australian energy sector. The company is part of multiple joint ventures with significant LNG production, including the Papua New Guinea LNG project and the Gladstone LNG project in Queensland. Santos brought the Angore LNG project into production in November 2026 alongside its joint venture partners.
In the first quarter of 2026, Santos reported production of 22.5 million boe, up 3 percent year-over-year. Sales revenue for the first quarter came in at US$1.27 billion, and its free cash flow totaled US$383 million. The company pays dividends twice a year, with its most recent final dividend being AU$0.145 per share on March 25.
Viva Energy Australia (ASX:VEA)
Viva Energy Australiawith a market cap of AU$3.67 billion and a share price of AU$2.24, owns the Geelong oil refinery and distributes Shell fuels throughout Australia. The company oversees a vast network of over 1,300 Shell and Liberty service stations nationwide. In its results for the first quarter of the year, Viva Energy highlighted that its Geelong refinery operated at full production with a crude intake of 10.2 million barrels of oil.
The company’s most recent dividend was a final dividend of AU$0.034 per share paid on March 31, 2026. Viva Energy is also heading towards a final investment decision on the commercial case for an LNG import facility in Geelong, with a goal of delivering first gas for the Victorian winter of 2028.
Beach Energy (ASX:BPT)
Beach Energywith a market cap of AU$2.48 billion and a share price of AU$1.09, has a diverse portfolio of onshore and offshore oil and gas production in five basins across Australia and New Zealand. In December 2026, Beach Energy reported its first delivery of sales gas from its Waitsia gas plant into the pipeline network. In March 2026, the company announced a final investment decision to proceed with the Moomba Central Optimisation project in the Cooper Basin of South Australia.
During its fiscal Q3 2026, which ended March 31, Beach Energy posted AU$419 million in sales revenue. The company paid its fully franked 2026 interim dividend of AU$0.01 on March 31.
Karoon Energy (ASX:KAR)
Karoon Energywith a market cap of AU$1.38 billion and a share price of AU$1.94, is focused on growth through a broad pipeline of exploration and development projects in Brazil. The company has interests in the US Gulf of Mexico and completed the transition of operatorship for the Baúna Cidade de Itajaí floating production, storage, and offloading facility in Brazil in May 2026.
In its Q1 2026 report, Karoon outlined production volume of 1.96 million boe and generated US$128.2 million in sales revenue. The company paid its fully franked 2026 final dividend of AU$0.031 per share on March 31, 2026.
FAQs for oil and gas investing
What is crude oil?
Crude oil is a mixture of hydrocarbons in liquid form that is found in natural underground reservoirs in the Earth’s crust. This petroleum liquid is refined to produce a variety of energy and industrial products, including asphalt, diesel and jet fuels, gasoline, heating oils, lubricants, and propane.
Does Australia have oil?
Geoscience Australia states that Australia hosts about 0.3 percent of global oil reserves. Most of Australia’s known remaining oil resources are condensate and liquefied petroleum gas associated with giant offshore gas fields in the Browse, Carnarvon, and Bonaparte basins.
Where does Australia get its oil?
Australia produces oil domestically and also receives oil imports from Singapore, South Korea, China, Malaysia, and India. This is because Australia’s domestic oil production does not cover its oil consumption.
