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living with
the land
sustainability Report
2011
2
letter from the ceo
letter
from the ceo
Apache Corporation is pleased to present our
second annual Sustainability Report for 2011.
Apache continually strives to achieve responsible and
sustainable operations across its worldwide asset base
spanning five continents. We empower our employees
to seek innovative solutions that create value to our
operations while also incorporating sustainability
initiatives, including reducing greenhouse gas (GHG)
emissions, protecting biodiversity in environmentally
sensitive areas, providing a safe operating environment
and giving back to the communities where we operate.
Among the past year’s sustainability highlights:
Apache and partner Encana received the 2011 Environmental
Performance Award from the Canadian Association
of Petroleum Producers for developing infrastructure
designed to reduce the environmental impact of natural gas
development in British Columbia’s Horn River Basin.
Apache employees worked safer. In an analysis of the
company’s safety performance including joint venture
operations over a three-year period ending in 2010,
employee recordable injuries declined by 88 percent
and work-restricting injuries by 90 percent.
Apache kicked off its “Give Where We Live” program,
presenting $100,000 in grants to non-profit organizations
in the Lafayette / Acadiana, La. area. The popular
Facebook campaign is a grassroots effort to unite
Apache employees and their local communities.
3
2011 sustainability report
At Apache, we believe increased use of
natural gas should play an important role in
any practical carbon policy because it emits
significantly less GHG than other fossil fuels.
In the United States, ample domestic supplies
make natural gas the only fossil fuel than can
simultaneously reduce the country’s trade
imbalance and improve the environment with
lower emissions.
For a growth company like Apache, reducing
our absolute GHG emissions can be a challenge,
but we have been successful at identifying
and implementing many initiatives that both
improve operations and reduce emissions
across the company’s operational regions.
In the North Sea and in Egypt, we replaced
fuel oil with natural gas to generate power to
substantially reduce costs and emissions.
In Canada, Apache sequesters carbon dioxide
from a coal-fired electric plant to increase
oil recovery at our Midale field. In the United
States, we built seven compressed natural gas
(CNG) fueling stations and converted 246 field
vehicles to operate on CNG with the goal of
converting the majority of our field vehicles
within five years. These and other efforts have
led to a reduction in greenhouse gas emissions
in 2010.
Apache is a leader in protecting biodiversity in
several environmentally sensitive areas around
the world, including nearly 270,000 acres of
wetlands in south Louisiana that are subjected
to continual coastal erosion. Apache spends
considerable resources to maintain freshwater
marsh habitats and ecosystems that support
substantial plant, wildlife and fish populations.
Safety is not negotiable at Apache, and we
demand high standards from our regular
and contract employees. All workers
are empowered to ensure a safe and
environmentally responsible operation.
Apache gives back to the communities
where we operate by providing monetary and
volunteer support to hundreds of civic and
philanthropic organizations. Apache supports
education through the Fund for Teachers
and Springboard: Educating the Future
and the arts through support of the Ucross
Foundation. We have donated more than two
million trees to local communities across the
United States.
Apache’s operations are underpinned with
identifiable programs that balance exploration
and production activities with environmental
stewardship, safety and corporate outreach.
Our employees are empowered, encouraged
and committed to deliver a sustainable future.
G. Steven Farris
Chairman and Chief Executive Officer
about the cover
Apache derives its benefit from the Earth and therefore we take our environmental responsibility
very seriously. This book highlights our efforts toward a sustainable future.
4
vision
vision
Apache’s commitments to
the environment, safety and
community are sustained by our mission
to build value for our shareholders.
5
2011 sustainability report
At Apache, our mission statement is a sustainability
statement: Our mission is to grow a profitable global exploration and
production company in a safe and environmentally responsible manner for the
long-term benefit of our shareholders. Each year, we renew our unwavering
commitment to these standards.
Taking a long-term view means that finding sustainable answers to the challenges
we face is an integral part of the business. It’s our culture, our values, how things
are done at the company, and what it takes to get the most out of our assets.
Apache explores for and produces crude oil and natural gas through operations
in the United States, Canada, the United Kingdom sector of the North Sea,
Egypt, Australia and Argentina. Our commitments to the environment, safety
and community are sustained by the primary motivations of the business:
Building value for our shareholders, developing a talented and motivated team
of employees, operating more efficiently and maintaining positive connections
with essential stakeholders.
We’ve learned that the right decisions for our business match up well with the right decisions for
the environment, the safety of our employees and our stakeholders:
We substitute natural gas for diesel
We empower workers to step in when
fuel to power our operations, reducing
a danger appears present, reducing
both costs and emissions.
costly accidents and making sure our
We seek non-potable sources for the
volumes of water necessary to find
people get home safely from work.
We help build sustainable communities
and produce oil and gas, and we
through employment, taxes and
recycle a significant amount.
royalties and involvement through
monetary and volunteer support.
Governance
Apache’s governance policies and practices
reflect our belief that accountability and
transparency, and not just stability, promote
sustainability. Good ideas come from many
sources, external and internal, and policies
and procedures that provide for the informed
exchange of ideas that accountability and
transparency encourage are prominent in
Apache’s governance profile.
Advocacy
Over the course of several years, Apache
has developed an extensive network of
relationships within the industry and is an active
member of several state and national industry
advocacy groups, with company representation
on the leadership level. The primary focus of
most industry advocacy groups is to promote
positive legislative and regulatory decisions.
This is best accomplished by ensuring decisionmakers at the local, state and federal levels are
informed about what the company does and
how it does it. These organizations work to
raise awareness and advocate for sound energy
policies and pro-business economic solutions.
6
environment
environment
Linking environmental responsibility
with sound industry operations
7
2011 sustainability report
biodiversity
Protecting and restoring
Louisiana marshlands
Helping nature heal
marsh land
Apache has owned nearly 270,000 acres of
land along the coast of Louisiana since 2002.
The state is losing about 34 square miles of
freshwater coastal marsh land each year, and
land ownership often is in dispute.
Since the 1930s, nearly 1,000 wells have been
drilled in the Golden Meadow field in South
Louisiana’s LaFourche Parish, some standing in
the water only about 40 feet apart. Apache has
been operating in Golden Meadow since 2002.
The causes of marsh erosion are complex
and subject to fierce debate. But for a land
owner like Apache, the potential financial
consequences are simple enough: If a marsh
turns into open water, it becomes public land
with mineral rights reverting to the state of
Louisiana.
Here the marsh has suffered from subsidence,
saltwater intrusion, erosion mainly from
hurricanes and extensive canal building from
the early days of oil exploration.
Apache’s business goal—maintaining the
marshes and recovering more of the oil and gas
resource beneath the acreage—is aligned with
broader environmental goals. The marshes are
a nursery for many of the most valuable fish
and shrimp catches in the Gulf of Mexico.
Shrimp spawned in fresh waters grow in
the grasses on the edges of marshlands in
the transition zone between fresh and salty
water. Vegetation provides nutrition and
protection for shrimp—a major money maker
for fisherman and a key food source for many
other species, including drum and snapper that
also seek protection in the marsh vegetation
when young. If open saltwater encroaches
on the freshwater marsh, the shrimp lose the
fragile ecosystem so crucial to their survival.
By protecting and restoring the marshes,
Apache protects its business assets and the
surrounding ecosystem, creating a win-win
situation for the environment and the company.
What is left of the freshwater marsh is in the
form of islands of grass on the borders of the
wide channels in a field where Apache has
been drilling wells and upgrading facilities to
extend the life of an oil field that has had many
operators over the years.
A visitor can spot the areas where there’s been
recent drilling—there’s more vegetation around
it. Apache uses the “spoil” that is dredged up to
allow drilling rigs on barges to move onto a well
site to rebuild the banks along the channels.
Using the spoil, or the soil removed during
an excavation, the goal is to create as much,
if not more, marsh than was lost. Grasses are
planted to hold the soil in place. Old channels
are closed off when they are no longer needed.
Pipelines are routed through open water rather
than disturbing marsh.
Scan the QR Code with your
smart phone to see an
interview with Tim Allen,
general manager of Apache
Louisiana Minerals.
For user instructions,
please see page 31.
8
environment
Lake DeCade: Rebuilding the
banks, defending against
saltwater intrusion
Apache and the previous owners have backed
projects creating barriers and water control
systems to preserve freshwater marshes in the
face of forces destroying marshes to the south.
The south bank of Lake DeCade is a low dirt
levee topped by a bristling barrier of oyster
grass and bullwhips. A handmade billboard on
a sheet of plywood proclaims that this is
“The Kajun Bahamas.” Every year on the Fourth
of July this is the home of a unique celebration
with grills, coolers and lawn chairs set up for a
party in the shallow water.
Lake DeCade has gotten saltier during some
A closer look shows how the choppy waters
have gouged the bank that divides the lake
from the increasingly salty marshlands to the
south. It’s a weak spot in an unbroken line
of defenses against salt water intrusions,
stretching nearly 18 miles from east to west
across Apache land.
Without reinforcement a strong storm could
wipe out the bank allowing salt water to pour
into the lake, threatening freshwater marshes
to the north. In 2010, Apache picked up 15
percent of the cost of a $3 million project to
line an 8,450-foot stretch of the south banks
with rocks. The federal government is covering
the balance of the cost. In a short period, salt
water can kill the vibrant vegetation found in
a freshwater marsh and drive out alligators,
bass, frogs and many of the types of ducks that
winter here.
The lake is at the heart of Apache’s largest
Louisiana land holding known as La Terre,
French for “the land,” in Terrebonne Parish.
This property combines marshes that are
breeding grounds for the fish and shrimp in the
Gulf of Mexico on top of oil and gas deposits.
An aerial photograph from 1945 shows an
hourglass-shaped lake with a nearly solid marsh
around it. A comparable shot of Lake DeCade
now would show a roughly oval shaped lake
with a lace work of ponds nearby.
periods because it’s linked by navigation
channels to the Houma Industrial Canal.
When the winds and tides are aligned, this
large canal to the Gulf of Mexico is an avenue
for salt water incursions.
Every year Apache rebuilds the bank of
Lake DeCade by dredging up dirt from the lake.
This low levee includes water control devices
that keep out salty water but allow shrimp
and fish in this natural nursery to move out
to the lake.
wheatstone lng
Apache and its partners are developing
the Wheatstone LNG project in
Western Australia under the strictest of
environmental conditions. The project,
a joint venture between the Australian
subsidiaries of Apache, Chevron, Kuwait
Foreign Petroleum Exploration Company
and Shell, received approval under national
environmental law in 2011. The project
partners will adhere to 70 environmental
conditions, including submitting plans
on how they will protect matters of
environmental significance and implement
a biodiversity offset strategy. The strict
conditions will help protect threatened and
migratory species such as dugongs, marine
turtles, sawfish, dolphins, whales and the
marine environment.
rigs to reefs
Apache supports the “Rigs to Reefs”
program, which is the heart of the Texas
Artificial Reef Program. It involves the
recycling of obsolete petroleum platforms
into permanent artificial reefs rather than
allowing them to be taken ashore as scrap.
Rigs make ideal artificial reefs because they
are environmentally safe, made of highly
durable and stable material and already
support a thriving reef ecosystem.
To date, more than 100 offshore
petroleum structures have been donated
by cooperating oil and gas companies.
Currently, the Artificial Reef Program
receives 50 percent of an oil company’s
savings from converting the jacket to a reef
instead of taking the structure to shore
where it is salvaged. The funds received are
used to finance research, administration,
maintenance, liability and construction of
new artificial reefs. The funds also make the
Texas Artificial Reef Program self-sufficient
with no need for taxpayer dollars.
Scan with your smart phone to
see the “Rigs to Reefs” video.
9
2011 sustainability report
greenhouse gases
Improved operations
bring lower costs,
reduced emissions
CO2-e Detail 2010
In Canada, Apache is among the leaders in
using carbon-dioxide rich exhaust gas from
electrical generation plants to extend the life of
aging oil fields.
(in metric tonnes)
2010 GHG Emissions by Region
Managing greenhouse gas emissions at
Apache has become an integral part of
improving operations.
Argentina
Canada
1,600,000
These improvements come from projects large
and small. Apache has built regional electric
grids for its facilities in Egypt and Argentina;
replaced diesel generators with high-efficiency,
natural-gas powered units; installed advanced
metering and monitoring systems; and
extended the life of its fields by injecting
carbon dioxide into underground reservoirs
that otherwise would have been emitted by
smokestacks. Some large reductions come
from improving basic operational efficiency.
Egypt
3,400,000
“We look for opportunities to run our
business better, and in the process we reduce
emissions,” said Cal Cooper, Apache’s
manager of Worldwide Greenhouse Gas.
Some businesses have fixed operational
facilities and can measure GHG reductions
by direct measurements year on year.
On the other hand, purchasing facilities can
sometimes make year-to-year comparisons
difficult. Even during a period of rapid
expansion, Apache is looking for ways to
reduce the amount of carbon dioxide (CO2)
emitted per barrel of oil equivalent produced.
Australia
North Sea
1,050,000
850,000
400,000
Central
500,000
GOM Onshore
400,000
GOM Shelf
1,700,000
Permian
1,000,000
TOTAL
10,900,000
In 2010, Apache reduced its emissions by
805,000 metric tonnes of C02 equivalent.
This figure isn’t the product of some algorithm
or clever rework of numbers, but rather a
straightforward and tangible amount. It comes
from projects large and small within our
existing facilities across a variety of regions.
Our feeling is that the numbers, as well as the
work they represent, speak for themselves.
Even in the midst of an impressive growth
spurt we have been able to reduce emissions in
our facilities by 800,000 tonnes.
Recently, with oil production climbing, Apache’s
Egypt Region spent millions to convert
inefficient diesel-burning generators to more
efficient electric generators burning lower-cost,
cleaner-burning natural gas.
All of these projects have been paid for
with benefits such as lower fuel costs,
greater energy efficiency and reduced
downtime and maintenance expenses,
with cleaner air as a bonus.
The project in Egypt points to the company’s
biggest target for emissions management—the
fuel burned to power this growing, energyintensive business.
Carbon Disclosure Project
There’s also a steady flow of smaller ideas
being put into action for more efficiencies.
At the Forties Field in the United Kingdom
sector of the North Sea, installing control
units in the compressors allows operators
to slow the speed of the fans during warm-up
to save energy.
Removing CO2 one tree at a time
Apache’s results-oriented approach to reducing emissions reaches to its advocacy for increased
use of cleaner-burning natural gas for electric generation and transportation, as well as its
charitable activities. Through the nonprofit Apache Foundation, the company has awarded
communities more than two million trees since 2005. We estimate that each tree will remove
110 pounds (50kg) of carbon dioxide per year for 50 years, or about 2.5 tonnes, during the life of
each tree.
Apache participates in the Carbon Disclosure
Project, an independent not-for-profit
organization holding the largest database of
primary corporate climate change information
in the world. Thousands of organizations from
across the world’s major economies measure
and disclose their greenhouse gas emissions,
water use and climate change strategies
through CDP.
Scan with your smart phone
to visit the Carbon Disclosure
Project.
10
environment
North Sea: A payoff for
converting to gas
Tracking emissions in
real time
The Forties Field is the largest and among the
oldest discoveries in the North Sea, dating
to 1970. At year-end 2010, it was the second
biggest producer in the United Kingdom sector
of the North Sea.
Apache’s Australian operations are required
to report emissions monthly to regulators, but
an engineer in the regional office in Perth can
now see what’s happening on the company’s
platforms in real time.
Maintaining production requires water floods,
natural gas injection, ongoing drilling and other
strategies. The energy needed to power all
those activities could easily translate into high
emissions of CO2, but that’s not the case.
What began as a way to reduce the labor
needed to comply with Australia’s National
Green House Emission Reporting Scheme,
or NGERS, is being used to find new ways to
reduce emissions and operating costs.
This single field represents approximately
8 percent of Apache’s worldwide production,
but only 3 percent of the company’s
greenhouse gas emissions.
The emissions report is based on a variety of
indicators of electric generator performance,
including fuel use, downtime and power output.
Since Apache bought the field in 2003, it has
invested more than $3 billion to drill wells and
improve operations. One key project called the
Ring Main improved the efficiency of power
generation in the face of increased power
requirements as oil output increased. Most of
the field’s power now comes from natural gas
that previously had been flared instead of diesel
delivered by boat from onshore refineries.
The data is being used to identify opportunities
to improve performance. For example, the data
indicated that a turbine on an offshore platform
had suboptimal efficiency and after further
investigation, it was discovered that a bit of
cleaning restored its output to optimal levels.
Investing in cleaner growth
Explosive growth in oil output in Egypt has quickly moved it to the top of the list of Apache’s
highest producing regions.
The growth of Apache’s carbon emissions in Egypt tracks the rise in its oil production; the
region represented about one-fourth of the company’s 2010 oil and gas output and also its
CO2 emissions. Apache’s Qarun Petroleum Co. joint venture with the Egyptian government
has been driving output higher using diesel generator sets to power the pumps that produce
the oil.
Apache has been moving to limit emissions by replacing many of the widely dispersed
diesel generators with a far more efficient electrical generation plants fired by
natural gas and linked to the wells by 75 miles (120 kilometers) of overhead
power lines.
Scan with your smart
phone to see a video
about Midale operations.
declining field emissions
(2008–2010)
Tonnes c02
per 1,000 barrels
of oil equivalent
year
total field
c02 emissions
2008
8,887,549
30
2009
11,542,000
29
2010
10,900,000
27
(MBOE)
* Gross production from Apache-operated fields
A cleanup operation with a
long-term reward
Apache’s Midale Field in Canada, which was
discovered 57 years ago, has become a test bed
for ways to extend the life of oil fields while
reducing carbon dioxide emissions.
The field in Saskatchewan just north of the
U.S. border is expected to produce an
additional 60 million barrels of oil, extending
its productive life, due to injections of carbon
dioxide (CO2) that otherwise would have gone
up a smokestack.
The payoff could go far beyond the value of
another couple decades of oil production.
This is one of the first fields in the world where
carbon dioxide emissions from a coal-fired
electric generation facility are being used for
enhanced oil recovery. And when all the oil is
gone, the CO2 will remain underground.
Midale and the nearby Weyburn field operated
by Cenovus are both part of the Plains CO2
Reduction (PCOR) Partnership, a crossborder, government/business effort to test
the feasibility of using industrial emissions
for enhanced oil recovery and ultimately
sealing them in the ground for the
long term.
11
2011 sustainability report
resources
Conserving nature’s
resources as we
provide energy
and environmentally responsible operations
in shale formations in the Horn River Basin,
Argentina and new areas where we are
exploring.
From efforts to preserve and restore
marshes in South Louisiana to developing
oil fields near a pristine reef of the Western
Australia coast, Apache works to develop
oil and gas resources in ways that match
its economic goals with what’s best for the
environment and communities.
As a significant producer of natural gas in
North America, Egypt, Argentina and Australia,
Apache is increasing its use of the fuel to
reduce its own emissions and operating costs.
We are also encouraging more reliance of gas
in the transportation and electric generation
sectors in North America, and developing LNG
resources that will help rapidly growing Asian
economies meet their soaring energy demand
with the cleanest-burning fossil fuel.
Water—an essential commodity for people,
agriculture and many industries—also is
important in drilling and producing oil and gas.
Across its operations, Apache is using new
and proven technologies to reduce our draw
on freshwater supplies. For example, we have
invested in a new water plant to process nonpotable water sources to limit the freshwater
impact of drilling and completion operations
in the Horn River Basin of northeastern British
Columbia, an abundant shale gas play.
Also at Horn River, pad-drilling techniques
enable Apache to tap large areas from a small
location, minimizing the impact on the surface.
The wells drilled there are clustered in a
relatively small area, allowing Apache to reach
out more than mile in each direction without
disturbing the land. To protect drinking water
aquifers close to the surface, Apache’s wells are
lined with corrosion-resistant steel and sealed
off from the surrounding rocks by cement to
prevent leaks.
Developing abundant natural gas resources
often requires hydraulic fracturing—the
process that uses water and sand to crack
gas-bearing formations and allow gas to flow
to the surface. Apache has been using this
technique in tight and unconventional natural
gas reservoirs in Oklahoma and Texas for more
than 30 years, and we are committed to safe
Apache’s nearly 270,000 acres along the
Louisiana coast present special challenges—
the impact of years of subsidence, salt water
intrusion, erosion, and the lasting impact
of extensive canal building in earlier years
when the importance of the marshes
to the ecosystem was not understood.
Today, Apache’s goal is to create as much,
if not more, marsh than was lost through a
range of strategies.
Apache’s business is developing resources
that can be used to improve the standard of
living for people and communities all over
the world. Our obligation is to preserve the
natural environment as best we can so that
it will continue to provide benefits to these
same communities.
12
Producing oil and gas and
protecting water resources
Securing large volumes of water needed to
develop unconventional formations like the
Horn River Basin in northeast British Columbia
is a key issue for Apache and other oil and gas
producers, along with the imperative to use
great care to prevent contamination of drinking
water aquifers penetrated on the way to
productive formations.
Applying two well-known and proven
technologies, horizontal drilling and hydraulic
fracturing, has unlocked previously untapped
natural gas resources in North America.
Environmentally responsible operations
and innovative solutions to water issues are
essential if natural gas is to fulfill its promise as
a means to reduce carbon emissions from the
electric generation and transportation sectors.
Apache has years of experience dealing
with water issues in drilling and production
operations and seeking solutions that rely
on non-potable water in its operations. This
reduces the impact on regional aquifers, lakes
and rivers used for local water supplies. In
mature oil fields, like Apache’s fields in the
Permian Basin of West Texas and New Mexico,
the largest component of what comes out of
the well is salt water that is separated from
the oil and frequently pumped right back into
the reservoir, enhancing the recovery of oil and
gas reserves while minimizing the disposal of
production by-products.
Eighty percent of the water used in hydraulic
fracturing operations required to complete
Apache’s shale gas wells at Horn River will
come from an aquifer sealed deep in the earth
and filled with non-potable water.
environment
Apache and partner Encana have gone to
extraordinary lengths to find a way to avoid
using water from nearby rivers and lakes.
And the investment includes doing what
it takes to ensure drilling and completing
wells won’t contaminate underground freshwater resources.
Tapping the plentiful supply of non-potable
water in the Debolt aquifer required drilling
more than 2,600 feet deep and designing
and building a water treatment plant to
remove the hydrogen sulfide (H2S), a
poisonous gas commonly found in
Canadian gas, in the salt water.
apache global water usage
88
percent
35
percent
comes from non-potable
water sources
is recycled or reused in secondary
oil recovery operations
Apache developed the water treatment
method and designed the plant that was built
by Encana. The $75 million project ensures
adequate supplies of water in a region where
droughts can lead to restrictions on surface
water use that shut down drilling.
Apache is taking lessons learned at the
Debolt aquifer and applying it to operations
in other areas.
2011 Environmental
Performance Award—
Debolt Water
Treatment Plant
Apache and Encana were recognized for
developing infrastructure designed to
reduce the environmental impact of natural
gas development in British Columbia’s
Horn River Basin.
Scan with your
smart phone to
learn more about the
2011 Environmental
Performance Award.
13
2011 sustainability report
Water Detail 2010
CDP Water
Country
Argentina
Australia
Canada
Egypt
UK
US
TOTAL
Units
ML/YR
ML/YR
ML/YR
ML/YR
ML/YR
ML/YR
ML/YR
Municipal Water
0
128
0
0
1
82
211
Waste Water
0
3,263
27
0
0
132
3,422
Rainwater
0
0
0
0
0
1
1
Ground Water
4,396
291
16,623
12,874
25,304
75,551
135,039
Surface Water
0
0
1,898
101
4,052
20
6,071
TOTAL
4,396
3,682
18,548
12,975
29,357
75,785
144,743
Water Recycled/Reused 2010/2009
(total volume of water recycled and reused)
Volume recycled (ML3/YR)
Total Volume
reused/recycled
(ML3/YR)
Total volume
recycled/reused as a
percentage of
withdrawals (%)
76,894
92,589
64%
52,948
85,064
35%
Volume reused (ML3/YR)
2010
15,695
2009
32,116
14
Hydraulic Fracturing:
Unlocking resources,
emphasizing safety
Developing gas resources trapped in lowpermeability shale formations has pushed
the oil and gas industry into areas beyond
traditional oil patch states and provinces and
into communities where the local population is
less familiar with the industry’s practices.
As shale plays draw the industry into unfamiliar
areas, residents in many communities have
become concerned about the possibility for
contaminating drinking water supplies and
drawing down water supplies currently
used for household, manufacturing and
agricultural uses.
Apache has been drilling wells in tight and
unconventional natural gas reservoirs in
Oklahoma and Texas for more than 30
years. We are applying this experience,
our commitment to safe and environmentally
responsible operations and proven
technologies to unlock gas in shale
formations in the Horn River Basin in
northeast British Columbia and Argentina.
When we plan wells in new areas, Apache
reaches out to elected and other governmental
officials, non-governmental organizations,
First Nations, other indigenous groups and
community leaders to explain Apache’s
practices and describe what the community
should expect during the process of drilling
and completing a well and the subsequent
production period.
environment
At the center of recent concerns is hydraulic
fracturing, the process of cracking the hard
rocks to release natural gas and allow it to
flow to the surface. The industry has been
“fracing” wells safely and successfully for
nearly 60 years. Combining the procedure
with another proven technology—horizontal
drilling—provided the breakthrough that has
enabled widespread, economic development
of shale formations with potentially
abundant reservoirs of gas and oil.
Scan with your smart
phone to learn more about
hydraulic fracturing.
What is hydraulic fracturing?
Hydraulic fracturing is a procedure that stimulates production from oil and gas wells,
particularly in shales and other tight or high density formations with low permeability.
The formation is cracked open by pumping a fluid that is almost all water and sand under
high permeability pressure into formations far below the surface and beneath potable
drinking water aquifers. The sand, or “propant,” stays in the cracks to keep them open and
create a channel for gas to escape to the surface. The more fractures in a well, the greater the
volume of gas that will flow to the surface.
What are the ingredients in frac fluid?
Water and sand constitute 99 percent of most frac fluids. In addition, there are small amounts
of other chemicals that each plays a critical role in the process. While some are potentially
dangerous, they make up a small percentage of the mixture.
Can these chemicals reach the drinking water supply?
Drinking water aquifers generally are located close to the surface a few hundred feet
deep while gas-bearing formations are found at much deeper levels, up to one to two miles.
After wells are drilled through a drinking water aquifer, steel casing and cement are set in
the wellbore to prevent contamination.
Scan with your smart
phone to learn more
about Sustainable
Shale Development in
the Horn River Basin.
15
2011 sustainability report
Hydraulic fracturing:
Full disclosure
In the United States, Apache has taken a lead
role encouraging the development of a national
chemical registry for hydraulic fracturing that is
now available online at www.fracfocus.org.
This web-based system publishes detailed
information concerning chemicals used in
hydraulic fracturing and their application on
a well-by-well basis. The project to protect
groundwater was initiated jointly by the
Interstate Oil and Gas Compact Commission
and the Ground Water Protection Council.
“Transparency and full disclosure are very
important in this process,” said Cal Cooper,
manager of Worldwide Greenhouse Gas.
“Apache has committed to placing all of its
U.S. hydraulic fracturing jobs in the registry
and fully disclosing the chemicals we use as
much as we can.”
Apache was a leader in successful legislative
efforts in several states to make disclosure
of hydraulic fracturing fluids mandatory. In
Texas, the company supported efforts by state
regulators who adopted rules requiring oil and
gas companies beginning in 2012 to disclose
on the national registry the chemicals used in
hydraulic fracturing. Apache also is encouraging
vendors and trade groups across the country to
participate in the voluntary registry.
Paper recycling efforts
Apache works to protect the environment on many fronts, including paper recycling.
The company was recognized for its efforts by Cintas Corporation.
According to Cintas, Apache’s environmentally responsible paper shredding operations at
its Houston headquarters helped save 814 trees, 96 barrels of oil, 335,160 gallons of water and
144 cubic yards of landfill in 2010.
Apache Energy recognized for
environmental performance
Apache Energy’s Devil Creek Development Project was a nominee in the prestigious 2011 Golden
Gecko Award sponsored by the Western Australian Department of Mines and Petroleum.
Apache’s nomination was for environmental and community activities undertaken at
Gnoorea Point on the Pilbara coast, close to Apache’s Devil Creek Gas Plant, where horizontal
directional drilling techniques were used to minimize the impact on an environmentally
sensitive area and maintain access to a popular stretch of beach during the construction
phase of the plant’s gas pipeline shore crossing.
16
Natural gas: An ideal
alternative fuel to meet
today’s challenges
Natural gas has gained widespread acceptance
as a transportation fuel with more than 12
million natural gas-fueled vehicles worldwide.
It is anticipated that more than 20 million will
be natural gas powered by year 2016.
In the United States—where advances in
drilling and completion techniques have
unlocked 100 years of gas resources at current
rates of consumption—only about 120,000
compressed natural gas (CNG) vehicles are in
use, and the lack of refueling infrastructure
limits opportunities to expand the fleet.
As a significant producer of natural gas in
North America, Egypt, Argentina and Australia,
Apache has engaged policymakers and
communities to increase their awareness of the
benefits of increased utilization of natural gas.
Apache has taken a leadership role in America’s
Natural Gas Alliance, the leading industry
organization advocating for greater use of
gas in transportation and power generation.
Natural gas is an extremely important source of
energy for reducing pollution and maintaining
a clean and healthy environment. In addition
to being a domestically abundant and secure
source of energy, the use of natural gas also
offers a number of environmental benefits
over other sources of energy, particularly other
fossil fuels, in the transportation and electric
generation sectors.
environment
Apache Builds CNG Station
for Houston’s Bush Intercontinental Airport
Apache Corporation announced in early 2011 that it was building a compressed natural gas
(CNG) refueling station for the ecoparkfleet of buses that carry passengers to and from the
city’s economy parking lots at Houston’s Bush Intercontinental Airport.
“At Apache, we are convinced that clean-burning natural gas must be a bigger part of
the solution to America’s ever increasing reliance on imported crude oil, while reducing
pollution caused by other, more carbon-intensive fuels used in transportation and power
generation,” said G. Steven Farris, Chairman and Chief Executive Officer at Apache.
Farris said the new CNG station is a win-win solution. It provides for a better environment in
Houston as natural gas burns cleaner than diesel or gasoline. It’s an abundant, domestic fuel
source with estimates of a 100-year supply. Developing domestic supplies also provides for local
jobs that produce a more economic fuel. Filling up a tank with CNG is a fraction of the cost
compared with gasoline or diesel.
In the United States, Apache has seven
operating CNG fueling stations with many
more planned. These stations enable its fleet
of 246 natural gas-powered field vehicles to
operate on this cleaner-burning and more
economical alternative to gasoline. Apache
also has rebranded its trucks in the Gulf Coast
Region, adorning vehicles with Apache decals
identifying them as powered by natural gas.
The company is exploring the feasibility of
expanding the CNG program to its worldwide
operations.
Scan with your smart phone to
learn more about compressed
natural gas.
17
2011 sustainability report
Apache Employee
CNG Vehicle Incentive
Program
Expanding the CNG focus to its employees,
Apache launched the Apache Employee
CNG Vehicle Incentive Program in 2011. This
program provides two significant incentives:
Free CNG for the first $5,000 of CNG fuel
purchases at Apache CNG stations or
any public-access stations, and
Reimbursement for half of the
additional cost of the CNG-dedicated
or CNG-converted vehicle from either
Apache or state incentives.
“I think that generally the prospect of getting more
natural gas out of the ground here in the United States
and allowing us to replace imports is something that we
should be pursuing. And we’ve got a lot of natural gas
deposits. So I am very interested in finding out how we
do, in an environmentally sound way, extract all that
natural gas.”
President Barack Obama during WTAE
Pittsburgh television interview July 11, 2011.
18
health and safety
health
and safety
At Apache, safety is not negotiable
19
2011 sustainability report
Individual initiative and sense Spill Response
of responsibility shape health Apache’s spill response capability has been
and safety programs
greatly enhanced by its membership in various
Working in the oil and gas production industry
can be intense so situational awareness is
critical, proper training is essential and safety
is not negotiable.
Rules, regulations, policies and procedures
have been designed to protect workers and the
environment, but merely knowing the rules will
not ensure safety and prevent incidents and
injuries unless this knowledge is translated into
action on a constant basis.
As Apache’s operations in the Gulf of Mexico
expands, the Apache culture of performing
tasks with a sense of urgency is embraced,
but not at the sake of safety or risk to the
environment.
The essential elements of Apache’s operating
culture—individual initiative and sense of
responsibility—infuse environmental, health and
safety (EH&S) programs across the company’s
global operations.
Apache has established Worldwide EH&S
Standards of performance across the company
that permit each region to adapt programs
and procedures to fit local rules and culture
while establishing high standards for training,
compliance, maintenance and environmentally
responsible operation. Apaches also plan and
prepare to respond to extraordinary events.
To raise the bar for safety standards in the
Gulf, Apache’s Gulf of Mexico Shelf Region is
deploying company personnel to lead crews
of contractors on each manned platform.
Like many Gulf operators, Apache has relied
on contractors to operate most offshore
production facilities.
response organizations, including the Marine
Well Containment Company, Helix Well
Containment Group, Clean Gulf, Oil Ltd. and
the Oil Spill Prevention and Response Advisory
Group in the UK.
Apache subsidiary Apache Deepwater LLC has
joined the Marine Well Containment Company
(MWCC), a not-for-profit, independent
organization committed to being continuously
ready to respond to a well control incident in
the deepwater Gulf of Mexico.
“We recognize we must be vigilant in
managing risks properly,” said G. Steven
Farris, chairman and chief executive officer.
“We also recognize that it is essential to have
the capability to respond rapidly to a subsea
well control incident even as we expect the
equipment will never be used.”
In the event of an incident, MWCC will
support equipment mobilization. An interim
containment system is ready for deployment
with the capacity to contain up to 60,000
barrels per day of fluid in up to 8,000 feet of
water. Work is also under way on an expanded
containment system for delivery in 2012 to
handle up to 100,000 barrels per day of fluid in
up to 10,000 feet of water.
Scan with your smart phone
to see Apache’s Worldwide
EH&S Standards.
20
Safer workplace
Apache employees are working safer.
Responding to an empowering environment set
forth by Chairman and CEO G. Steven Farris,
Apache employees have displayed a continuing
trend of reduced injuries and improved
compliance over the past three years.
“Safety is not negotiable at Apache and
we demand high standards from our
regular and contract employees,” Farris said.
“All workers are empowered to ensure a safe
and environmentally responsible operation.”
In a recent analysis of the company’s safety
performance over a three-year period ending
in 2010, employee recordable injuries declined
by 88 percent and work-restricting injuries by
90 percent. The safety data from 2008 to 2010
includes Apache’s joint venture operations.
John Williams, manager of Environmental,
Health and Safety, said the core elements of
the company’s safety culture are competence
and personal responsibility.
“Competence at Apache means not only
knowing how to do a job to achieve an
operational goal, but it also includes
knowing how to conduct work safely,”
Williams said.
health and safety
recordable injuries
(2008–2010)
recordable injuries (including joint ventures)
2008
2009
2010
Total Recordable Injuries
73
23
13
Total Hours Worked
8,560,807
11,587,530
12,744,997
Injury Rate
1.71%
0.40%
0.20%
Injury Decrease
0.720545165%
0.76722903%
-0.88141096%
-88%
TOTAL injury rate decrease
work-restricting injuries (including joint ventures)
2008
2009
2010
Total Restricted Work Cases
20
12
3
Total Hours Worked
8,560,807
11,587,530
12,744,997
Days Away, Restrictions and Transfers
0.47%
0.21%
0.05%
Injury Decrease
0.335583004%
0.55672312%
-0.77270434%
TOTAL injury rate decrease
-90%
21
2011 sustainability report
Apache’s unique culture:
Hard to describe,
harder to emulate
Apache’s record of creating shareholder value
is built on the contributions of a diverse and
motivated group of 4,770 employees and a
culture of empowerment across all levels of the
organization. Though we operate in six nations,
Apaches are united by our work ethic, sense of
urgency and values of integrity and respect for
human dignity.
The work is rewarding and turnover is low.
Apache’s technical teams have access to
seismic and other data, abundant acreage to
mine for opportunities, and adequate capital
to carry ideas through to drilling new wells
and adding production. Employees in the
field are encouraged to take ownership of
their wells, manage costs and seek ways to
increase production.
Our responsibility to our colleagues starts
with ensuring a safe workplace. Safety is not
negotiable and it will not be compromised.
Apache is also committed to equal employment
opportunity throughout its work force. Our
core policy states that the company will base
all employment-related decisions and actions
exclusively on employment-related criteria.
Harassment is not tolerated.
Honest dealing is a matter of respect for
our colleagues and others we encounter.
We conduct business fairly and ethically and
comply with applicable laws, regulations and
government requirements, including the
Foreign Corrupt Practices act.
Apache’s Code of Business Conduct sets out
our expectations.
Apache employees thrive in a culture that
values and rewards them for growth that
is both profitable and sustainable. We are
committed to long-term growth rather than
short-term gratification, and our compensation
systems include programs that align employees
with shareholder interests.
We provide competitive benefits packages
that are based on the laws and customs in
each of the countries in which we operate.
Our wellness programs encourage employees
to adopt a healthy lifestyle for themselves and
their families.
Scan with your smart phone
to see Apache’s Code of
Buisiness Conduct.
22
health and safety
Staying healthy
Finding, keeping
talent in a competitive environment
Apache is building the foundation for the future, developing the next generation of technical
and professional experts and field hands as senior employees move toward retirement.
“Apache trusts me with more responsibility, and with that comes more opportunities and
experience,” said Collin Currell, a former Apache intern who joined the company in January
2010 after graduating from the University of Texas. He is one of the young engineers in a
three-year development program, working alongside Apache’s veterans and experiencing a
range of assignments.
“The development program is designed to give a broad range of experience in engineering and
the Apache way of doing business,” said Chris Weatherl, one of the first to join the development
program after graduating from the University of Tulsa and currently a senior reservoir
engineer in Apache’s Egypt Region.
Our wellness programs encourage employees
to adopt a healthy lifestyle because it’s the
right thing to do for themselves and
their families. From oral health to stress
management to weight control, Apache’s
wellness program aims to give employees
the tools needed to lead healthy lives. Our
monthly newsletters and periodic updates
provide information, authoritative sources
and opportunities for Apaches to stay on a
healthy track and participate in such programs
as Workplace Partnership for Life, which
promotes organ donation.
“I worked in reservoir, production and drilling engineering in the Southern and Central regions
and I still use those experiences,” Weatherl said. “Knowing what is required to be an Apache
production engineer or drilling engineer has made me a better reservoir engineer.”
Mark McClelland, improved recovery and resource assessment manager and leader of the
development program, said Apache is laying the foundation for the continued success of
the company.
Apache is committed to being a good corporate
citizen by operating responsibly, safely and
by building enduring relationships
with our communities.
2011 sustainability report
community
Respecting our communities and
building relationships
23
24
Innovative, local solutions
for stakeholders across
the world
Across six nations on five continents,
Apache develops resources essential to
economic growth and improved living
standards. Along this path, we build enduring
relationships with the communities in which
we operate through our commitments to
environmental stewardship, sustainable
development, education, civic improvement
and philanthropic causes.
community
Give Where We Live
kicks off in 2011
Apache Foundation
Tree Grant Program
In an effort to give back to the communities in
which the company operates, Apache kicked
off its “Give Where We Live” program, offering
$100,000 in grants to non-profit organizations
in the Lafayette/Acadiana, La. area.
Since 2005, Apache has awarded more than
two million trees to nonprofit institutions
and communities across 14 states through
grants from the Apache Foundation, our
philanthropic affiliate. These trees will improve
the environment and the quality of life in
these communities for decades to come.
The company has set a goal to plant three
million trees and is encouraging more
communities to participate.
“Give Where We Live” is a grassroots effort
to unite Apache employees and their local
communities. Apache’s Gulf of Mexico Deep
Water, Shelf and Onshore regions sponsored
the first challenge.
Non-profit organizations submitted
applications and were narrowed to five finalists
by employee committees. Voting via Facebook,
employees and the public cast their ballots for
the five contenders, which competed for grants
of $50,000, $25,000, $10,000 and two $5,000
grants. The remaining $5,000 was divided
equally among the five semifinalists that did not
qualify for the final voting round.
The campaign drew fans from across the globe
and more than 20,000 votes. “Thank you,
Apache. You deserve a huge round of applause!
May God bless your company. Hopefully, others
will follow in your footsteps,” fan Tami Stiteler
said on Facebook. “Thanks Apache. Your
generosity will touch so many lives,” said fan
Donielle Gaubert Watkins.
Scan with your smart phone to
see television coverage of the
“Give Where We Live” campaign.
Apache’s corporate giving program is regionbased and employee-driven. In each of our
communities, Apache employee committees
determine which programs and high-impact
projects will receive funding from the company.
trees awarded by year
year
trees
2005
1,521
2006
3,949
2007
204,778
2008
132,521
2009
696,805
2010
461,533
2011
522,824
25
2011 sustainability report
Investing in education and
building our future
During the past 11 years, Fund for Teachers has
given more than $17.2 million in grants to some
4,500 teachers, enabling them to travel the
world to enrich the experiences they bring to
their classrooms. In 2010, 455 teachers from
272 schools received fellowships to expand
their horizons, helping to make them more
passionate and effective teachers.
Fund for Teachers, which like Apache was
established by Raymond Plank, aims to enrich
the personal and professional growth of
teachers by recognizing and supporting them
as they pursue opportunities around the globe
that will have the greatest impact on their
vocation, the academic lives of their students
and in their schools.
“Our goal is to inspire the inspirers,” says
Karen Kovach Webb, Fund for Teachers
executive director. “We believe that teachers
are the catalyst to make change for their
students, their schools, their districts and
their communities.”
Fund for Teachers’ projects range from
language and cultural immersion to art and
web design to math and science.
Two teachers from Deer Park, TX., Terri
See and Sheila Schatzke, spent two weeks
in Europe creating lesson plans for art and
technology classes. They also created virtual
field trips to provide students a closer
experience with many historical places,
priceless works of art and stunning
architecture found in Rome and Paris.
The teachers’ odysseys typify a Fund for
Teachers fellowship: Providing opportunities
and experiences outside the confines of
a textbook. Other teachers used their
opportunities to engage in service learning,
spending time in other classrooms or with
groups such as Global Volunteers and
Earthwatch.
Supporting Fund For Teachers is one element
of Apache’s wide-ranging commitment to
the communities in which it operates, and
reflects the specific emphasis on education.
The company also supports Ucross
Foundation, an artist-in-residence program
in Wyoming, and Springboard: Educating the
Future, which funded construction of schools
for young girls in poor rural villages in Egypt.
Scan with your smart phone
to learn more about Fund
for Teachers.
springboard:
educating the future
In Egypt, Apache continues to enhance the
educational opportunities for 7,000 young
girls attending more than 200 Apachebuilt one-room schools in remote rural
areas, where girls traditionally have been
deprived of educational opportunities
due to geographic, social and economic
realities, and have little opportunity for a
better future.
These schools provide girls with an
opportunity learn to read and write, to
add numbers and to learn skills that
will help them make life better for them,
their families and their villages. Apache
and Springboard: Educating the Future
have partnered with Egypt’s National
Council for Childhood and Motherhood
and the Sawiris Foundation for Social
Development to continue to enhance the
girls’ educational experience.
26
Supporting
our neighbors
At MD Anderson Cancer Center in
Houston, Apache has made a long-term
commitment to support a new stateof-the-art advanced imaging center as
well as to provide funds for its critically
important data management efforts
and preventative care.
In Perth, Western Australia, Apache
Energy is providing funding for research
to investigate a rare, very aggressive and
almost invariably fatal form of tumor
called NUT midline carcinoma.
In Argentina’s Mendoza Province,
Latin America’s most prolific wineproducing region, Apache employed a
new cableless imaging technology for
a 3-D seismic survey in order to avoid
disrupting extensively cultivated areas
with irrigation systems, factories and
settlements.
community
Helping those in need
Apache’s Australia Region helped the
youngest victims of the Japan earthquake
and tsunami by presenting a $150,000
check to Save the Children Australia’s
relief efforts in Japan. About 74,000
children were left homeless when the giant
tsunami struck the northeast coast of
Japan following a massive 9.0 magnitude
earthquake. The disaster prompted a
worldwide relief response to help the
earthquake victims.
Apache’s Australia Region also donated
$100,000 to help boost tourism efforts in
Mission Beach, a popular tourist attraction
along the Coral Sea in Queensland that
was hit hard when Cyclone Yasi, one of the
most powerful cyclones on record, slammed
into Australia’s northeast coast.
27
2011 sustainability report
Apache lends a helping hand
to local firefighters
As wildfires raged across the Southwest United
States during the hot summer months, Apache
stepped up to help firefighters by donating
much-needed fire trucks, equipment and cash.
In the Midland, Texas., area, Apache donated
fire trucks to the Northeast Midland County
Volunteer Fire Department and the Greenwood
Volunteer Fire Department.
In Elk City, Okla., the company donated a
Chevrolet Silverado 3500HD four-wheel drive
truck to the Elk City Fire Department.
Apache also donated $50,000 to help rural
Oklahoma firefighters stretched to their limits
by the scores of wildfires.
And Apache employees made donations
to help several different volunteer fire
departments northeast of Midland purchase
equipment for battling the fires. The donations
were made through the company’s matching
gift program.
Tulsa Transit gets donated
CNG vehicles
Apache donated two new paratransit vans
powered by compressed natural gas to the
Metropolitan Tulsa Transit Authority.
The MV-1 vans are the first factory-built
and assembled vehicles that meet or exceed
the vehicle guidelines of the Americans
with Disabilities Act (ADA). The vehicles
are powered by CNG, which costs less than
gasoline and produces fewer greenhouse
gas emissions.
Tulsa Transit plans to use the new wheelchairaccessible vans as part of its door-to-door
Lift Program for disabled individuals.
The donated vans were decorated in vivid
graphic designs depicting the ecologically
friendly nature of compressed natural gas
by graphic arts students at Tulsa Technology
Center.
Apache Matching
Gift Program
The Apache Matching Gift Program is an
essential part of an effective community
outreach program. In 2010, Apache and
its employees donated a total of $703,149
in matching gift funds. Apache matches
employee contributions to charitable
organizations on a dollar-for-dollar basis
up to $10,000 per employee per year until
the annual match budget is depleted.
The program matches donations to
charitable organizations in social welfare,
education, conservation and ecology, health
and human services, arts and culture, and
civic improvements.
28
Human Rights
This is an excerpt of the letter written by
Sarah Teslik, senior vice president, Corporate
Governance, reflecting Apache policies on
human rights. It was written in response to an
inquiry received from an Apache shareholder.
“First, you note that human rights are most
at risk in countries with oppressive regimes,
weak governance and conflict. We agree
with you, and in general we avoid doing
business in such places. It is not without
reason that the bulk of our operations are in
the United States, Canada, Australia and the
United Kingdom.
In our two additional regions—Argentina and
Egypt—we are entwined with the interests
and needs of the people. It is not accidental
that, as the people of Egypt change their
government, our operations continue as
usual. We have built and fund hundreds
of schools for Egyptian girls, created jobs
for unskilled Bedouin as well as skilled
professionals and assisted some of the most
lowly paid textile workers in expanding their
markets. But we do much more helping
individual Egyptians individually.
Our activities in Argentina also reflect our
reluctance to rely exclusively on systems
to promote human rights. While we run
or support a large number of programs
whose reach is broad and deep, such
as providing scholarships for children in
situations of social vulnerability, running
social development projects in rural villages,
funding a variety of training and capacity
building programs for teachers, operating
programs that help indigenous peoples
and supporting programs for the
handicapped, it is many of the individual
projects in which our people engage of
which we are most proud.
community
When one of the local indigenous
communities needed a water well, we
drilled it. When the child of one of the
local indigenous leaders was burned in
an accident, the spouse of one of our
employees volunteered free care. We could
not operate a system that mandated that
we drill free wells and dispense free medical
care, but we can create a culture that keeps
the human in human rights.
In all of our regions we are known for
being committed to the place and the
people. Each region develops its own way
to be a good corporate citizen in its part of
the world.
Ultimately, our ability to make a difference
in the lives of others comes from our ability
to hire and retain the sorts of people who
want to make the world a better place while
making us a better company. To achieve
this, we consciously rely less on some of
the standard hiring systems that other
companies use and rely more on our own
employees to find and bring us the best.”
Respecting
Indigenous Culture
Apache’s efforts in Argentina and Egypt are
only part of the human rights initiatives the
company has forged in the communities where
it works. Two examples include:
Respecting the indigenous culture of
the Aboriginal traditional owners,
Apache chose to change the location
of its Devil Creek Gas Processing plant
in Australia, moving it 40 kilometers
away from the Burrup Peninsula
to avoid any impact to culturally
significant rock art.
Working closely with First Nations,
Apache Canada joined with the
governments of Canada and British
Columbia, EOG Resources and the
Haisla Nation Council to celebrate the
signing of an agreement to proceed
with a $4.5 billion Kitimat LNG
project on Haisla reserve land on the
Douglas Channel.
2011 sustainability report
indicators
Performing safely,
responsibly and socially
29
30
our performance
In Apache’s second sustainability report,
we have reported on our performance in a
number of areas including environmental
responsibility, health and safety and social
involvement. We plan to continue the practice
and improve our reporting each year. Unless
otherwise noted, the performance indicators
are 2010 data.
This report was prepared using the Oil
and Gas Industry Guidance on Voluntary
Sustainability Reporting published in 2010
by the International Petroleum Industry
Environmental Conservation Association
(IPIECA) and the American Petroleum
Institute. We also used as a reference the
Global Reporting Initiative (GRI) Sustainability
Reporting Guidelines.
For a look at our first sustainability report
available on the company web site, please
visit www.apachecorp.com. Unless otherwise
noted, the performance indicators in our first
report are 2009 data.
indicators
report sections
ipieca
Vision
SE1, SE14
gri
SO5
Advocacy
Governance
Environment
E1, E2, E3, E5, E6,
E8, E9
EN3, EN5, EN6,
EN7, EN8, EN10,
En11, EN12,
EN13, EN14,
EN16, EN18,
EN23, EN26
HS1, HS2, HS3,
SE5
LA7, LA8, LA11
SE1, SE2, SE4,
SE5, SE8, SE11,
SE12, SE15, SE16,
SE17, SE18
SO1, SO5
Biodiversity
Greenhouse Gases
Resources
Health and Safety
Safety
Building Careers
Community
Education
Economic Performance
SE11, SE12, SE13,
SE14
31
2011 sustainability report
environmental indicators
financial and operational indicators
Greenhouse Gas Emissions
(metric tons CO2 equivalent)
10,900,000
Flared and Vented Gas
(metric tons CO2 equivalent)
3,042,000
Tax Expense ($millions)
2,174
Revenues ($millions)
12,092
Net Income ($millions)
3,000
8.46
Energy Use (Mwh)
15,800,000
Earnings per Diluted Common Share ($)
Water Use (ML/YR)
144,743
6,726
Hydrocarbon Spills to Environment (>1 barrel)
436
Net Cash Provided by Operating Activities
($millions)
Barrels Spilled
8,248
Exploration & Development Capital ($millions)
4,741
safety indicators
DART Injury Rate
(lost-time and restricted-duty injuries
per 200,000 work hours)
Employees
0.05
0.09
(excludes Joint Ventures)
0.85
(includes Joint Ventures)
1.13
(excludes Joint Ventures)
Recordable Injury Rate
(incidents requiring medical treatment per
200,000 work hours (includes DART injuries)
Employees
0.20
(includes Joint Ventures)
0.34
(excludes Joint Ventures)
Contractors
Natural Gas
1,644
Liquid Hydrocarbons
1,309
TOTAL
2,953
Production
(includes Joint Ventures)
Contractors
Proved Reserves (MMboe)
1.59
Gas (MMcf per day)
1,889
Liquids (barrels per day)
343
TOTAL (Mmboe per day)
657,634
Dividends paid ($millions)
206
Employment (full-time)
4,770
United States
2,491
Canada
927
Argentina
352
Australia
312
Egypt
371
United Kingdom
317
(includes Joint Ventures)
1.91
(excludes Joint Ventures)
in this book
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models of Android and BlackBerry phones come with an app pre-installed. IPhone, iPad and other smartphone and tablet owners can download
one of the many apps available free at the Apple App Store, the Android Market, BlackBerry App World or other app stores online.
To scan, simply open the app and hold your device’s camera up to the QR code. Keep your hand steady and try to center the image of the QR code
on your phone or tablet screen. Once the camera locks onto the QR code, the Web page, video or other data linked to the QR should automatically
open up.
2000 Post Oak Boulevard,
Suite 100
Houston, Texas
77056-4400
www.apachecorp.com