DEAR APA STAKEHOLDERS,
In 2021, we demonstrated our commitment to efficient, safe and responsible operations by achieving a number of impactful goals across the company. We progressed important initiatives designed to reduce our emissions and protect the environment, as well as to advance the health and wellbeing of our employees and people in the communities in which we operate.
Recent global events underscore the importance of affordable, reliable and abundant sources of energy. People around the world are facing some of the highest electricity, fuel and heating costs in recent times, and the energy supply to Europe is now at risk. These drastic changes in global energy markets, amid calls for an energy transition, reinforce the need to balance affordability and reliability with efforts to deliver cleaner, lower-carbon solutions.
The energy industry continues to evolve, as it has done many times in modern history. We believe that an “energy expansion,” rather than an “energy transition,” will be the likely outcome, in which both traditional and alternative energy sources will be necessary to meet rising global demand. Specifically, we strongly believe that the world will need oil and natural gas for decades to come and are committed to helping deliver those needed resources in cleaner, more innovative ways.
For APA, reducing our GHG emissions is a top priority, and one we are urgently addressing. While we appreciate the symbolic importance of long-term, net zero commitments that have become common in ESG disclosures, we believe that absent the purchase of direct emissions offset credits or significant asset sales, viable pathways to delivering on these commitments are generally not feasible without a substantial step change in cost-effective, easily implementable technologies.