Exxon Turns to Automated Drilling in Permian Push for Higher Oil Output

ExxonMobil is turning to automated drilling in the Permian Basin as part of its push for higher oil output. The company aims to transition half of its fleet to automated rigs by 2028, reducing the need for workers to perform potentially dangerous work and increasing efficiency.

The Permian Basin is a critical region for Exxon's operations, with the company planning to grow its production there by almost 40% to 2.5 million barrels of oil equivalent per day by 2030. In contrast, rival Chevron plans to hold production steady at about 1 million boepd.

The use of automated drilling rigs is part of a combination of technologies and strategies Exxon is using to boost production, including the development of a suite of more than 40 technologies to double its oil recovery from the Permian by the early 2030s. This is significant given that the shale industry typically extracts just 10% of the oil in the ground due to the tight, compacted rock.

According to Exxon's senior vice president of unconventionals, Bart Cahir, 'When we take people off the rig floor, those same individuals are now able to think ahead and plan for the next operation and that combination gives us efficiency. This is the productivity play.'