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Market Chatter: Exxon Plans to Automate Half of Permian Rigs by 2028

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Exxon Mobil (XOM) expects to automate up to half of its over 30 Permian rigs by 2028, compared with two automated units currently, Reuters reported Monday, citing Bart Cahir, Exxon's senior vice president.

The development comes as the energy major it seeks faster drilling and less worker exposure to potentially dangerous tasks.

Exxon's automated rigs are part of a broader push to raise output, while moving workers off the rig floor allows them to plan upcoming operations and improve drilling efficiency, according to the report. A contractor can operate robotic machinery from a small office to move 2,000-pound steel pipes, keeping workers off the rig floor, where most rig accidents occur.

By 2030, Exxon expects Permian output to reach 2.5 million barrels of oil equivalent per day, representing nearly 40% growth, according to the report. Exxon did not immediately reply to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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