Exxon Mobil Expands Automated Drilling in the Permian Basin to Increase Oil Production
ExxonMobil (NYSE:XOM) is increasing its use of automated drilling technology across its operations in the Permian Basin, aiming to enhance safety and efficiency while boosting oil production. The company currently operates over 30 rigs in the region, with two already using robotic automation. Exxon plans to expand this number to a quarter of its fleet by next year and half by 2028 as part of broader efforts to increase output from one of America’s largest oil-producing regions. The shift is driven by declining shale well productivity and growing pressure on operators to adopt more efficient technologies. Exxon aims to raise Permian production by nearly 40% to reach 2.5 million barrels of oil equivalent per day (boepd) by 2030, a target that contrasts with Chevron’s strategy of maintaining stable output while focusing on free cash flow generation. Exxon's first automated rig drilled one of its fastest wells in under six days for two miles horizontally underground. The automation not only improves safety—by removing workers from high-risk areas—but also allows teams to focus more on planning and operations, enhancing overall productivity.
Topics: automated drilling ExxonMobil strategy Permian Basin production increase