Exxon Automates Drilling Rigs in Permian Push for Higher Output

ExxonMobil is transitioning to automated drilling in the Permian Basin, aiming to automate half of its rigs by 2028. The company's senior vice president of unconventionals, Bart Cahir, said automation improves safety and allows workers to focus on other tasks.

The first automated rig installed by Exxon last year drilled two miles horizontally in about six days, the third fastest time in the company's history. Automated drilling reduces the need for workers to perform potentially dangerous work, allowing them to focus on planning and operation.

Exxon plans to expand its use of automated rigs to a quarter of its fleet next year and then half by 2028. The company is also developing over 40 technologies to double oil recovery from the Permian Basin by the early 2030s, as shale wells typically extract only 10% of available oil.

Exxon aims to increase production in the Permian by almost 40% to 2.5 million barrels of oil equivalent per day by 2030, while rival Chevron plans to hold production steady at about 1 million boepd.