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Exxon to automate half of Permian drilling fleet by 2028 in output push

Oil major targets 2.5 million boepd in Permian by 2030 as robotic rigs cut costs and injuries. Automated fleet expansion follows early success with two robotic rigs.

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David Chen · Commodities Desk · 24 Aug 2026 · 12:37 · 1 min read
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Exxon to automate half of Permian drilling fleet by 2028 in output push

ExxonMobil plans to automate half of its drilling fleet in the Permian Basin by 2028, accelerating a shift toward robotic rigs to boost output and improve safety. The U.S. oil major, the country's largest producer by volume, currently operates more than 30 rigs in the basin and has deployed two automated rigs equipped with robotic machinery that moves 2,000-pound steel pipes without human intervention.

By 2030, Exxon aims to grow Permian production to 2.5 million barrels of oil equivalent per day, a nearly 40% increase from current levels. The company’s senior vice president of unconventionals, Bart Cahir, said the automation initiative eliminates high-risk exposure on rig floors—where about a third of significant injuries historically occur—and allows workers to focus on operational planning. 'When we take people off the rig floor, those same individuals are now able to think ahead and plan for the next operation,' Cahir said. 'This is the productivity play.'

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The first automated rig, supplied by drilling contractor Helmerich & Payne, drilled a two-mile horizontal well in just over six days—the third fastest time in Exxon’s history. Exxon’s central operations team in Houston remotely coordinates robotic movements with on-site contractors, who monitor progress from a small office on the rig. The company is developing more than 40 technologies to double oil recovery from the Permian, though industry estimates suggest only about 10% of oil in place is typically extracted due to the basin’s tight, compacted rock formations.

Exxon’s push comes as rivals like Chevron plan to maintain steady Permian production near 1 million boepd. The Permian, spanning Texas and New Mexico, remains the largest U.S. oilfield, with automated drilling expected to reduce variability and improve drilling efficiency. The shale revolution, which began two decades ago, transformed energy markets and continues to drive investment in operational innovation.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
David Chen
Commodities Desk

David reports on energy, metals and agricultural markets, tracking how supply signals and safe-haven demand move prices across the commodities complex.

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