Exxon Deploys Automated Drilling in Permian Basin to Boost Oil Production

In the flat, arid landscape of West Texas, ExxonMobil is shifting toward robotic automation to transform its drilling operations. On one of its active rigs, a contractor now sits in a controlled office, using digital screens to direct robotic machinery that maneuvers steel pipes weighing approximately 2,000 pounds—a task traditionally performed by workers on the hazardous rig floor.

As the largest oil producer in the United States, Exxon currently runs over 30 drilling rigs in the Permian Basin, two of which utilize this advanced robotic automation. The energy giant plans to convert half of its active fleet to automated rigs by 2028. According to Bart Cahir, Exxon’s Senior Vice President of Unconventionals, the transition aims to eliminate high-risk manual labor and accelerate drilling speeds to maximize output. This strategic expansion of automated drilling has not been previously reported.

The Permian Basin, spanning parts of Texas and New Mexico, remains the most prolific oilfield in the U.S. However, because shale wells suffer from rapid depletion rates, operators are increasingly relying on new technologies to sustain and increase production. Exxon intends to boost its Permian output by nearly 40% to reach 2.5 million barrels of oil equivalent per day (boepd) by 2030. In contrast, competitor Chevron plans to maintain its production at approximately 1 million boepd, prioritizing free cash flow over volume growth.

Exxon deployed its first automated rig, built by Helmerich & Payne, last year. The rig successfully drilled a two-mile horizontal section in just over six days, marking the third-fastest drilling time in the company’s history. “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, describing the technology as a major productivity driver.

Safety is a primary motivator for the transition. The drilling floor, often designated as a high-risk “Red Zone,” is historically responsible for about one-third of all severe drilling injuries due to heavy machinery and high-pressure systems. By replacing manual pipe handling with automated robotic arms, Exxon aims to eliminate these hazards entirely while standardizing operations to increase daily drilling footage.

Exxon plans to implement automated systems across 25% of its fleet next year before reaching the 50% target by 2028. Additionally, the company is developing a portfolio of more than 40 proprietary technologies designed to double its oil recovery rate in the Permian by the early 2030s, addressing the industry-wide challenge where standard shale operations recover only about 10% of the oil trapped in tight rock formations.