Exxon Turns to Automated Drilling Rigs to Boost Permian Oil Output

ExxonMobil is rolling out robotic drilling technology across its West Texas operations, aiming to make its rigs faster and safer as it pushes for higher oil production in the country’s biggest oilfield.

Exxon’s Automation Plans for the Permian Basin

Exxon currently runs more than 30 drilling rigs in the Permian Basin, with two already automated using robotic equipment. The company plans to expand that to a quarter of its fleet next year and half by 2028, according to Bart Cahir, Exxon’s senior vice president of unconventionals. The goal is to reduce the need for workers to perform dangerous tasks on the rig floor while drilling wells faster.

First Automated Rig Sets Speed Record

Exxon installed its first automated rig, built by drilling contractor Helmerich & Payne, last year. That rig drilled two miles horizontally underground in just over six days, the third-fastest time in company history. Robotic arms now handle steel drill pipes weighing roughly 2,000 pounds, work that previously required employees standing in high risk zones on the rig floor.

Why Exxon Is Betting on Automation

Cahir said about a third of serious rig injuries happen on the rig floor, so removing workers from that area cuts risk while letting them focus on other tasks. Exxon aims to grow Permian production by nearly 40% to 2.5 million barrels of oil equivalent per day by 2030, and is also developing more than 40 technologies to double oil recovery from the region by the early 2030s.