Apache Corporation initially forecast its Permian Basin spending for 2012 at $1.7 billion, an increase from $1.1 billion in 2011. Speaking at the Howard Weil Energy Conference in New Orleans in March, Steve Farris, Apache’s chief executive officer said, “I’d be really surprised if it doesn’t go up to $2 billion by the end of the year”. “It’s been a big win for us”, Farris told investors.
Apache has steadily been acquiring acreage for minerals development in the oil-rich Permian Basin since 1991. Apache has 3 million acres in the area, which is booming again as exploration and production companies use technology such as horizontal drilling to extract oil. The company forecasts spending $9.5 billion overall this year.