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WA LNG producers Woodside and Chevron, beset by low prices and COVID-19 work restrictions, are maintaining dividends to shareholders and gas to customers as they shed workers, with unions describing Woodside’s actions as “brutal, cold, and unnecessary.”
The iron ore price that had held up in the economic chaos of 2020 is beginning to fall, and the worst case of $US50 a tonne would shatter government revenue just when it is needed the most.
Delay to Woodside's big growth bet on the "Burrup Hub" Scarborough and Browse LNG projects looks more likely with Woodside warned not to overspend as its partners trim their budgets.
Woodside has heavily pruned its critical offshore maintenance teams leaving casual workers facing an uncertain future.
Woodside's Scarborough and Santos' Barossa LNG projects unlikely to happen this year as planned according to oil and gas experts Wood Mackenzie.
Casual workers taken off Ichthys offshore facilities by Inpex will be paid at least until next week under a standby deal similar to workers from the troubled Prelude LNG vessel.
Hazer's combination of two WA exports - gas and iron ore - to produce the clean energy products hydrogen and graphite has been supported by $9 million from the Federal Government.
Woodside risks LNG demand squeezed by cheaper renewables not lasting long enough for decent payback from its Scarborough and Browse projects.
Inpex is reducing its offshore workforce to tackle COVID-19 risk leaving casual workers not knowing when they will next have paying work.
The WA Government wants to lure industry to WA with cheap gas just as the oil price plunge puts further supply from Woodside's Scarborough and Browse projects in doubt.
The first bill of $10 million bill is due for the failed Northern Endeavour as it is revealed that Woodside's sale of the vessel four years ago required no government approval.
Chevron boss Mike Wirth is not distracted by renewables as he pushes for more and lower cost production and looks to move gas through Woodside's Scarborough project.
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