At close on Monday, Woodside was down 3.34% at $31.47 per share, while Santos had fallen 1.6% to $6.74 per share. Beach Energy dropped just over 3% to $1.28.

It followed announcements from the Albanese government that it had secured enough votes to pass its overhaul of the safeguard mechanism with the support of the Greens.

These reforms will require all major oil and gas projects, including Woodside's Browse and Santos' Barossa projects, to be net zero from day one of production.

The Greens were also successful in lobbying for a "climate trigger". This will require the climate change minister to assess each new or expanded gas project.

Another win for the Greens is requiring all gas projects being developed in the Beetaloo Sub-Basin to have net-zero emissions from first day of production. 

The biggest gas explorer in the Beetaloo, Tamboran Resources saw its shares crater by 6.66% to 21 cents. Meanwhile, Empire Energy shed 6.25% settling at 15 cents per share.

The Energy Sector was down 2.30%.