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Why is the Woodside share price climbing today?

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The Woodside Petroleum Limited (ASX: WPL) share price is in the green today.

The energy giant’s shares are currently swapping hands at $31.70, a 1.8% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.58% today.

Let’s take a look at what’s impacting the Woodside share price today.

Oil prices higher

Woodside shares could be rising amid higher oil prices. The S&P/ASX 200 Energy Index (ASX: XEJ) is up 1.56% at the time of writing after oil prices surged in global markets overnight. This was prompted by news of a potential European ban on Russian oil imports.

According to the Wall Street Journal, the European Union has proposed a ban on imports of Russian crude within six months. It has also suggested a ban on refined oil products from Russia by year’s end.

This is sending crude prices higher as member states look for alternatives. Brent crude oil and West Texas Intermediate (WTI) crude oil futures both soared more than 5%.

Europe imports about 3.5 million barrels of Russian oil daily, Reuters reports. Price Futures Group senior analyst Phil Flynn was quoted as saying:

Inventories are so tight, so against this backdrop, when you’re talking about this ban, there are a lot of questions on how (Europe) is going to make up for this.

Brent crude oil is currently US$110.49 a barrel while WTI crude oil is $108.12 a barrel, Bloomberg figures show.

Carbon re-use project

Meanwhile, in other news, Woodside will collaborate with Perth’s Eastern Metropolitan Regional Council on a carbon re-use pilot project. The agreement includes an option to lease land.

The Carbon Capture and Utilisation facility will aim to convert greenhouse gases into ethanol using technologies developed by US-based ReCarbon and LanzaTech.

Commenting on the news, Woodside CEO Meg O’Neill said:

Woodside believes CCU is an emerging field as customers seek lower-carbon solutions. CCU has the potential to contribute to both elements of our climate strategy.

To have a pilot CCU facility right here in Western Australia, where Woodside has pioneered other technologies, is also very exciting.

The project is subject to a final investment decision earmarked for the second half of 2022.

The Woodside share price has ascended 38% in the past year and 40% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned 3% over the past year.

Woodside has a market capitalisation of roughly $30.64 billion based on today’s share price.

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