Exxon Deploys Robotic Rigs To Boost Permian Output

Key Moments

Automated Drilling Transforms Rig Operations

In a sparsely populated stretch of west Texas, surrounded by pump jacks and drilling rigs, an ExxonMobil contractor sits inside a small office on a rig, directing robotic equipment through a control screen. The system maneuvers tall steel drill pipes that weigh roughly 2,000 pounds, a task traditionally overseen by workers standing on the rig floor – historically the most accident-prone area of the operation.

Exxon, the largest oil producer by volume in the United States, currently runs more than 30 drilling rigs across the Permian Basin. Two of these rigs are equipped with automated, robotic systems. An executive told Reuters that by 2028, the company wants to convert half of this fleet to automated rigs, with the dual goals of limiting workers’ exposure to hazardous tasks and speeding up well completion times.

Permian Growth Targets and Competitive Positioning

The Permian Basin, which spans Texas and New Mexico, is the largest U.S. oilfield and played a pivotal role in reshaping global energy markets when shale development surged roughly two decades ago, helping elevate the United States into the ranks of the leading oil-producing nations.

However, shale wells are known for their relatively fast production declines, prompting operators to pursue new technologies to enhance recovery from existing reservoirs. Within the industry, there is also unease over when output from the Permian itself could begin to taper off.

Amid this backdrop, Exxon aims to increase its Permian production by almost 40% to 2.5 million barrels of oil equivalent per day by 2030. By comparison, rival Chevron plans to keep its production around 1 million barrels of oil equivalent per day, emphasizing free cash flow rather than volume growth.

Technology as a Core Productivity Lever

Bart Cahir, Exxon’s senior vice president of unconventionals, said in an interview on the rig that automated drilling is one element of a broader toolkit the company is deploying to raise production.

“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,” he said. “This is the productivity play.”

Exxon’s first automated rig in the Permian, supplied by drilling contractor Helmerich & Payne, was deployed last year. It completed a horizontal section of two miles underground in just over six days, which ranks as the third fastest drilling time in the company’s history.

Exxon’s adoption of automated rigs in the Permian, and its intention to significantly grow this fleet, had not been disclosed prior to this report.

Enhancing Safety by Removing Workers From “Red Zones”

On one of the automated rigs in Midland, access to the drilling floor is controlled by a gate marked with a “Red Zone: Restricted Area” sign. A depiction of the Grim Reaper underscores the danger posed by heavy machinery and high-pressure systems.

Where personnel would typically guide and align drill pipe segments extending more than two stories high, robotic arms now handle the positioning and connection of these pipes to the drill string. This enables drilling to proceed deeper into the wellbore without placing workers in close proximity to the moving equipment.

Crew members on the rig coordinate with Exxon’s centralized operations center in Houston to define the exact motions that the robotic system should execute.

Cahir said that by removing workers from these so-called Red Zones, staff can concentrate on other tasks and the process becomes more consistent, allowing the operation to drill more feet per day.

“In the history of well drilling activity, about a third of significant injuries that occur happen on the rig floor,” he said. “By getting people out of that higher risk area, we’re essentially eliminating that risk.”

According to Cahir, Exxon targets expanding automated rigs to one-quarter of its fleet next year, progressing to half of the fleet by 2028.

Broader Technology Push to Lift Recovery

Beyond automated rigs, Exxon is advancing a portfolio of more than 40 technologies intended to double its oil recovery from the Permian by the early 2030s. The shale sector typically recovers only about 10% of the oil in place because of the dense, compact nature of the rock formations.