Australian Oil and Gas Stocks Shine Amid Rising Inflation

Australia's energy sector is gaining attention as inflation accelerates and interest rates reach a 15-year high. The Reserve Bank has increased interest rates to 4.6% in response to rising housing and transport costs, which are closely tied to oil prices.

The surge in oil prices puts local energy exposure under the spotlight, with three stocks from global oil and gas producers catching attention: Tamboran Resources (ASX:TBN), Woodside Energy Group (ASX:WDS), and Santos (ASX:STO). These companies offer direct exposure to Australian natural gas, LNG output, and crude oil production.

Tamboran Resources is developing unconventional natural gas projects in Australia's Beetaloo Basin. The company expects first gas from the Beetaloo Basin Pilot Area in the third quarter of 2026, supported by an 88% complete compression facility and APA-owned pipeline. However, future returns will depend on unit costs and pricing power after a capital-intensive build-out phase.

Woodside Energy Group is a Perth-based producer and seller of LNG, pipeline gas, crude oil, and condensate across global projects. The company reports around US$7.3 billion from Australia, US$4.6 billion from international operations, and US$1.9 billion from marketing activities. Woodside's valuation allows for Scarborough and Pluto Train 2 to begin production as planned in the fourth quarter of 2026.

Santos is an Adelaide-based hydrocarbon producer focused on upstream natural gas and LNG, plus crude oil and related liquids across Australia and Papua New Guinea. The company generates revenue mainly from Papua New Guinea, with a low operating break-even of below $35 per barrel, solid cash flows, and major projects including Barossa LNG and Pikka.