ExxonMobil Aims to Boost Permian Basin Output with Automation
ExxonMobil (XOM) is increasing its use of automation in drilling operations within the Permian Basin. The company produced over 1.8 million barrels per day (bpd) from the region in Q2 and plans to raise this output by nearly 40% to reach 2.5 million bpd by 2030. By automating half of its fleet—currently operating more than 30 rigs, two already automated—the company aims to improve efficiency, reduce costs, and enhance worker safety. The automation strategy is expected to help ExxonMobil meet production cost targets in the Permian Basin: $35 per barrel this year and $30 by 2030. However, challenges remain due to the steep decline rates of shale wells, which could require increased spending just to maintain output levels if conditions worsen. Despite these efforts, ExxonMobil's overall production dipped slightly in Q2 to 4.5 million boepd from 4.6 million boepd a quarter earlier, partly due to geopolitical risks affecting its operations in the Middle East and Qatar’s LNG industry.
Tickers: $XOM