Download now: King Coal Triple Play

Apache Corp. Assets May Contain 3 Billion Barrels of Oil

Aim for 41% Domestic Production in 4 Years

Written by Brianna Panzica
Posted June 18, 2012

In 2011, BP's Statistical Review of World Energy showed the U.S. consumed 18.8 million barrels per day of oil equivalent. That same year, the nation imported 11.3 million barrels per day.

But this level of imports, though high, has fallen 3% from 2010, a product of U.S. shale oil and gas production and horizontal drilling.

Companies continue to estimate high levels of recoverable oil and natural gas in their acreage, estimates that will contribute to increasing domestic production and decreasing foreign oil dependence.

One of these companies is Apache Corp. (NYSE: APA), a Houston-based company that explores for and produces oil and natural gas.

Apache has holdings in the U.S., Canada, Egypt, Argentina, and Kenya. Egypt is currently the company's highest production site, but new estimates indicate that this all could change.

The company is placing more focus on the U.S. now after estimating 3 billion barrels of crude contained within its acreage in Kansas, Nebraska, and Montana in the Mississippian Lime and Williston Basin.

With this potential, Apache estimates it could raise production to 1 million barrels per day by 2016, with U.S. production accounting for 41% of this. Last year, Apache produced 748,000 bpd in total, of which 21% was in the U.S.

The best part of the potential is this estimated increase would be done only with current acreage, according to CEO Steve Farris.

From Nasdaq:

“We don't have to make acquisitions anymore,” Mr. Farris said at the company's annual analyst meeting. He said that the company has plenty of resources available for development, and that large purchases were not part of his plan.”

Farris called it “the beginning of a new life cycle” for the company.

The Best Free Investment You'll Ever Make

Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the newsletter below.


Enter your email:
We never spam! View our Privacy Policy

You'll also get our free report, "Two Stocks to Play The Coming U.S. Oil Export Surge" by our resident expert Keith Kohl.

Apache's other U.S. holdings include assets in the Permian Basin in Texas and New Mexico and in the Anadarko Basin.

It also had success in British Columbia, Canada, where one well in the Liard Basin extracted 21.3 million cubic feet daily in just the first 30 days.

From Reuters:

“This is probably the best shale gas reservoir in the world,” John Bedingfield, the company's vice president of worldwide exploration, said at a company presentation on Thursday.

Apache estimates the reservoir could hold 48 trillion cubic feet of recoverable natural gas.

According to Apache's central region president Rob Johnston, the company's recent success was largely due to a change in “the way we do business.” Switching from vertical to horizontal wells, something that really only started occurring in Apache assets in 2008, made a huge difference in the total production.

And now the company is seeing record growth in production, creating jobs at its expanding sites and aiming for high domestic production.

Apache was down 2.14% on Monday to $85.92.


Energy demand will increase 58% over the next 25 years.

Trillions will be spent to secure the world's energy supply over the next two decades... and all sources are on the table.

Oil, Natural Gas, Solar, Wind. There will be money made.

Follow the money trail. Sign up for Energy and Capital now--It's free.

We never spam! View our Privacy Policy

By signing up, you'll also get our latest report, Six Oil & Gas Steals.


Related Articles

Apache to Buy Cordillera Energy
Apache will acquire Cordillera's thousands of acres in a shale play.
Oil Alternatives
Call me jaded, but I just don't see a huge place in the market for alternative liquid fuels right now.
The Downside of a Williston Basin Boomtown
The oil rush in the Williston Basin has brought wealth to Williston, ND, as well as woes.
America's Fracking Boomtowns
Thanks to advances in horizontal drilling and hydraulic fracturing (fracking), the United States is producing more barrels of oil per day than it has in a decade, bringing all the jobs and newfound wealth that come with it.


Invest in the Lithium Revolution
Lithium Demand is Going Berserk
Investing in the Tesla (NASDAQ: TSLA) Powerwall
Tesla (NASDAQ: TSLA) Just Killed Your Power Company
Tesla (NASDAQ: TSLA) Powerwall Investing
How to Make $800 Million in One Week!
Putin and Saudi Arabia: Oil Dream Team Meet
Marijuana Bank Investing
3 Guaranteed Profits: Gambling, Prostitution, and...