WEBVTT - Simon Beaumont questions whether the Woodside community image is all smoke and mirrors

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<v Speaker 1>Alex Hillman is with the Ostralations Center for Corporate Responsibility.

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<v Speaker 1>What does this decision mean for Woodside? Get a Alex

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<v Speaker 1>good to talk to.

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<v Speaker 2>You, Hice something good to be on the station.

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<v Speaker 1>Yeah, thank you. We're running a yes no poll today,

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<v Speaker 1>Is it over for the Woodside processes? The yes are

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<v Speaker 1>five and the nose are twenty And I think you

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<v Speaker 1>would agree with that this this could really exacerbate and

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<v Speaker 1>inflame the hardline activists.

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<v Speaker 2>Yeah, there's obviously a number of aspects to this. You know,

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<v Speaker 2>the environmental aspects are pretty clear. You're talking a lot

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<v Speaker 2>about the Yeah, the protests that that Woodsid's receiving. You know,

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<v Speaker 2>we spend a lot of time thinking about investor perspectives

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<v Speaker 2>and speaking to investors as well. Woodside doesn't have a

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<v Speaker 2>strong record of generating strong shareholder returns. It's invested in

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<v Speaker 2>a number of projects that we think have lost money,

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<v Speaker 2>and we're actually concerned that's that's just going to happen

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<v Speaker 2>again if it proceeds with brows.

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<v Speaker 1>That So that's the next bad, isn't it. That's the

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<v Speaker 1>next part of the puzzle. We suspect the browse basis.

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<v Speaker 2>Yeah, yeah, I think so. So, you know, this can

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<v Speaker 2>do small approval. We haven't seen what the conditions are,

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<v Speaker 2>but that's to operate craft the gas plant or the

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<v Speaker 2>Northwest Shelf which can process gas. But that's running out

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<v Speaker 2>of gas. So you know, if this approval is granted,

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<v Speaker 2>then you know Woodside is going to be looking for

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<v Speaker 2>other gas sources and you know, probably the most prominent

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<v Speaker 2>is Brows.

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<v Speaker 1>So you know, I had a little phone around yesterday

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<v Speaker 1>and talked to people who are on the protest activism

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<v Speaker 1>side of it, Alex and they I think they're a

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<v Speaker 1>little rattled. They weren't expecting the decisions to be so

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<v Speaker 1>quick and so clear and so brutal. Conditions notwithstanding if

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<v Speaker 1>I can ask you about that part of it, the

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<v Speaker 1>social license part of I guess for Woodside and their

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<v Speaker 1>corporate responsibility thereof you mentioned that there hasn't always been

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<v Speaker 1>a great investor return. People like me seduced by the

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<v Speaker 1>fact that they sponsored the Nippers, they had a nice,

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<v Speaker 1>big building in the city, they sponsored the Frio Dockers.

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<v Speaker 1>People like me seduced that by their community image.

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<v Speaker 2>I can't talk to what suggests you, you know.

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<v Speaker 1>What, thank you, but yeah, you know what I mean,

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<v Speaker 1>they've got to I think they've got a good rep

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<v Speaker 1>in a brand in the community, haven't they, which which

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<v Speaker 1>goes to corporate responsibility.

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<v Speaker 2>I think they act like they need to protect their brands.

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<v Speaker 2>You know that they do face a lot of Cruiz's criticism.

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<v Speaker 2>I think, you know, maybe counter and trial intuitively to

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<v Speaker 2>some of your listeners. They actually don't generate strong returns.

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<v Speaker 2>So over the last fifteen years they've actually generated less

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<v Speaker 2>shareholder return they haven't generated enough shareholder returns to keep

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<v Speaker 2>up with inflation. They've generated point seven percent per year.

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<v Speaker 2>So they've got they've got a weak brand that they

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<v Speaker 2>feel they need to protect, and they've got a business

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<v Speaker 2>model which which doesn't generate strong returns for investors.

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<v Speaker 1>Seen as a w A company too, aren't they? And

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<v Speaker 1>they are based here, they're employee about four thousand people aregain.

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<v Speaker 1>That's that goes to branding, I suppose, doesn't it.

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<v Speaker 2>Yeah, Yeah, they are w based. They're increasingly focused on Houston,

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<v Speaker 2>so you that currency Meg is US based. Their last

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<v Speaker 2>major investment was US based, So I think they like

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<v Speaker 2>to play up the fact that they're a West Australian company. Yeah,

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<v Speaker 2>and they still are headquartered here. But you know, I

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<v Speaker 2>think that there is a gradual pivot towards them being

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<v Speaker 2>increasingly Americanized.

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<v Speaker 1>This is Alex Hillman from the Australasian Center for Corporate Responsibility.

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<v Speaker 1>If I were to ask you as a citizen, Alex,

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<v Speaker 1>or even is an edgy in doing your day job

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<v Speaker 1>as you are now? Yes?

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<v Speaker 2>No?

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<v Speaker 1>Is it over for the Woodside protests? Are you yes?

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<v Speaker 1>Or are you and no? No?

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<v Speaker 2>So I think climate change climate science is getting more certain,

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<v Speaker 2>the impacts are getting more real. You know, we're seeing

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<v Speaker 2>massive floods in New South Wales at the moment. We're

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<v Speaker 2>seeing massive droughts in South Australia at the moment. You know,

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<v Speaker 2>the Australian government is both sides of government have a

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<v Speaker 2>net zero policy. So the energy transition is happening. Woodside

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<v Speaker 2>doesn't seem to accept this. They're still developing new fossil

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<v Speaker 2>fuels against what we would say is their shareholder interests.

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<v Speaker 2>And again it's the accelerating energy transition that the world's

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<v Speaker 2>going through.

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<v Speaker 1>PM mentioned firming capacity this week. Alex. He seems to

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<v Speaker 1>think or hint that we still we're going to need

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<v Speaker 1>gas for a while.

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<v Speaker 2>Yeah, that's true. So you know that the energy transition

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<v Speaker 2>is happening. The vast bulk of energy or increase energy

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<v Speaker 2>supply each year and is now coming from renewables. And

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<v Speaker 2>what we're seeing in Australia and the East Coast and

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<v Speaker 2>the West Coast in Japan, in China and Europe, what

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<v Speaker 2>we're seeing is that renewables are backing out coal and

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<v Speaker 2>then as that happens, we're seeing less less demand for gas.

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<v Speaker 2>So although we need some gas to you know, while

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<v Speaker 2>we transition to a fully renewable grid, the amount of

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<v Speaker 2>gas we need is decreasing over time and we already

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<v Speaker 2>have enough developed So the International Energy Agency says that

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<v Speaker 2>we have enough developed gas reserves that we don't need

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<v Speaker 2>to develop anymore on our way through the energy transition.

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<v Speaker 1>Thanks for the chat today, Alex. Very good tacnical move.

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<v Speaker 1>Not to comment on the seduction stuff, but thanks for

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<v Speaker 1>thank you.

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<v Speaker 2>Great to thank you.

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<v Speaker 1>Thanks cheers, my Alex Hillman