Leading non-integrated oil and gas producer Apache Corporation found itself in the spotlight in recent weeks, as the latest company to grapple with the question of how big a commitment to make to North America’s shale gas and tight oil revolution. Jana Partners LLC, a leading investor in Apache, published a letter to investors July 21 urging the company to exit its international investments and focus on exploring US shale formations such as the Permian Basin in Texas and New Mexico. Just last Friday, Apache announced plans reflecting this advice, as they intend to divest completely from two liquefied natural gas (LNG) projects in Western Australia and Canada in an effort to reduce international assets.
The Great Debate
Deepwater oil production in the Gulf of Mexico accounted for 23 percent of all oil produced in the United States last year, and 7 percent of all crude consumed in the nation’s refineries, according to the Energy Information Administration’s “Annual Energy Outlook.”