Apache Corp. (NYSE: APA) Bets Big on Australia
After selling approximately $4 billion in Gulf of Mexico assets in July, Apache Corp. will spend $1.9 billion this year to expand operations in Western Australia. Operations are expected to cost between $1.8 billion and $2.1 billion next year. Australia’s natural-gas industry is facing high operational costs and fierce competition from North America for Asian LNG customers. The expansion also comes after Apache announced its Bianchi reserve discovery off Western Australia.
North American Oil Boom: A Saudi’s Nightmare?
With U.S. oil wells pumping as much as 7.3 million barrels of crude in a single month, Saudi Arabia has been forced to lower its production targets. And with oil revenue accounting for more than 80% of the government’s annual budget, the OPEC kingpin is facing strong economic pressure.
So while the Saudis are shaking in their boots, there are major gains to be made over here in the U.S., where little-known players are taking advantage of the ongoing shale boom.