ExxonMobil has announced plans to transition half of its drilling fleet in the Permian Basin to automated rigs by 2028. The company currently operates more than 30 rigs in the region, which spans parts of Texas and New Mexico, and has already deployed two rigs featuring robotic machinery. The initiative seeks to improve drilling efficiency and reduce the risk of workplace injuries by moving workers away from high-risk areas.
The Permian Basin is the largest oilfield in the United States, though energy producers have noted that shale wells in the region typically have a quick decline rate and a low recovery rate of approximately 10%. Exxon reported that its first automated rig, which was supplied by drilling contractor Helmerich & Payne and installed last year, completed a two-mile horizontal drill in just over six days. This was the third-fastest drilling time in the company's recorded history.
On the automated rigs, robotic arms handle and position 2,000-pound steel pipes, tasks previously performed by workers on the rig floor. A contractor now operates the machinery from a small office using screen controls. According to Bart Cahir, Exxon's senior vice president of unconventionals, approximately one-third of significant drilling injuries historically occur on the rig floor. Cahir stated that removing personnel from these "Red Zones" eliminates that specific risk and allows employees to focus on planning subsequent operations.
For the energy market and the regional economy, the push for automation is tied to a significant production target. Exxon aims to increase its Permian output by nearly 40% to reach 2.5 million barrels of oil equivalent per day by 2030. This represents a different strategy compared to competitors like Chevron, which intends to maintain production at 1 million barrels per day. The increased efficiency from automated rigs, which Exxon claims can drill thousands of horizontal feet in less than a week, is intended to help the company double its oil recovery from shale by the early 2030s.
The move sets a precedent for how major producers may address the inherent limitations of shale extraction, where 90% of oil often remains trapped in compact rock. If successful, the adoption of these 40 new technologies could influence future industry-wide standards for both safety and extraction volumes. The next phase of this rollout is scheduled for next year, when Exxon plans to have one-quarter of its Permian fleet automated, followed by the 50% target deadline in 2028. Producers will be monitoring whether these efficiency gains can offset the natural decline rates of aging shale wells.