Apache Corp. reached its goal on Oct. 11 to end routine flaring in its U.S. onshore operations, a cornerstone of the 2021 ESG goals set by its parent company Houston-based APA Corp.
Going forward, future wells in the U.S. onshore will not be brought online by Apache without adequate gas takeaway capacity, according to John J. Christmann IV, APA’s CEO and president.
“In early 2021, we set out to eliminate routine flaring in U.S. onshore operations as part of our broader efforts to continuously reduce our environmental footprint,” Christmann commented in the release. “We established an aggressive goal, and I am proud to announce we have achieved the goal ahead of schedule.”
Founded in 1954, APA owns consolidated subsidiaries that explore for and produces oil and gas in the U.K., U.S., Egypt and offshore Suriname. The company’s U.S. operations, which are primarily focused in the Permian Basin, are managed by Apache.
In early 2021, APA announced new ESG goals that tie directly to incentive compensation for all employees and are aligned with the company’s ESG focus areas of air, water, communities and people. A cornerstone of the 2021 ESG goals was the elimination of routine flaring in U.S. onshore operations by the end of 2021.
APA credited its ability to reach its flaring goal three months ahead of schedule to the capacity investment made by Apache’s majority-owned midstream company, Altus Midstream, prior to 2021.
According to the company release, Altus Midstream invested more than $850 million in two new natural gas pipelines, and Apache made firm transportation commitments on both pipelines to help underwrite and ensure construction of that infrastructure. These efforts significantly reduced the practice of flaring for operators throughout the Permian Basin, the company release said.
“We attained the goal through a concentrated effort, which included communicating clear objectives along with adding compression and optimizing facilities so more gas could enter the gathering system for sale,” Christmann added.
APA also announced on Oct. 11 that it is tracking ahead of other U.S. onshore environmental goals this year, including overall flaring intensity of less than 1% of gas produced and limiting freshwater consumption to less than 20% of total water use.
“Our collective challenge as an industry is reducing emissions while continuing to deliver the abundant, reliable energy the world needs,” Christmann continued. “We are committed to the responsible production of natural gas and oil and helping to elevate people around the globe to higher standards of living.”
Recommended Reading
CERAWeek: Exxon Mobil CEO Says Not Trying to Acquire Hess
2024-03-18 - CEO Darren Woods said Exxon Mobil is trying to secure preemption rights over Hess Corp.'s Guyana assets in its dispute with Chevron, not buy the company itself.
EIA: E&P Dealmaking Activity Soars to $234 Billion in ‘23
2024-03-19 - Oil and gas E&Ps spent a collective $234 billion on corporate M&A and asset acquisitions in 2023, the most in more than a decade, the U.S. Energy Information Administration reported.
UAE's ADNOC Recently Eyed BP as Takeover Target, Sources say
2024-04-11 - The Emirati giant, Abu Dhabi National Oil Co., considered all options when looking at BP, including buying a big stake.
Ohio Oil, Appalachia Gas Plays Ripe for Consolidation
2024-04-09 - With buyers “starved” for top-tier natural gas assets, Appalachia could become a dealmaking hotspot in the coming years. Operators, analysts and investors are also closely watching what comes out of the ground in the Ohio Utica oil fairway.
California Resources Corp., Aera Energy to Combine in $2.1B Merger
2024-02-07 - The announced combination between California Resources and Aera Energy comes one year after Exxon and Shell closed the sale of Aera to a German asset manager for $4 billion.