Why is the Beach Energy share price falling on Wednesday?

The Beach Energy Ltd (ASX: BPT) share price is trading lower on Wednesday.

In afternoon trade, the energy producer’s shares are down 1% to $1.53.

Why is the Beach share price falling?

The weakness in the Beach share price today has been driven by a pullback in oil prices overnight, which has offset some positive news out of the company.

According to Bloomberg, overnight the WTI crude oil price was down 3.1% to US$88.31 a barrel and the Brent crude oil price fell 2.8% to US$93.49 a barrel.

This was driven by global recession fears and a COVID outbreak in China. The latter has sparked fears that it could bring back lockdowns.

It isn’t just the Beach share price that is falling. Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) shares are also in the red today.

What did Beach announce?

This morning Beach advised that it has completed a pre-feasibility study on a carbon capture and storage (CCS) opportunity adjacent to its Victorian Otway Basin operations and is now moving into the assess/select phase.

According to the release, subject to joint venture approvals, the next phase will refine the pre-feasibility study with an aim of establishing a facility that can capture ~200kt CO2e per annum. This is greater than Beach’s current Otway Basin scope 1 and 2 emissions combined. This is anticipated to be completed by the end of FY 2023.

Later stages will examine the potential for the facility to become a regional hub for third-party CO2 sequestration.

Beach Energy’s CEO, Morné Engelbrecht, commented:

As a key supplier of energy for Australia and New Zealand, it is important that Beach explores all sensible opportunities to reduce our portfolio emissions. We know that natural gas will enable a steady transition to a clean energy future as it displaces coal in our energy mix, supplying a reliable source of power with lower emissions.

The post Why is the Beach Energy share price falling on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why is the Woodside share price suffering on Tuesday?
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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