Exxon partners with Microsoft to increase Permian production
ExxonMobil has forged a digital partnership with Microsoft to use cloud technology to increase oil production and profitability in its key growth area, the Permian, the U.S. oil supermajor saidon Friday.Exxon was slow to see the potential of shale wells in the Permian Basin, but is now one of the major players in the area and is using its significant resources to improve production and get its product to market. Exxon is also building refining capacity to take full advantage of the light crude being produced in the Permian.
Under the deal with Microsoft, Exxon will use an integrated cloud environment that securely and reliably collects real-time data from oil field assets spanning hundreds of miles. The data will enable ExxonMobil to make faster and better decisions on drilling optimization, well completions, and prioritization of personnel deployment, the oil giant said.
According to Exxon, the partnership will make its Permian operations the largest-ever oil and gas acreage to use cloud technology. The application of the cloud technology is expected to generate billions of U.S. dollars in net cash flow for Exxon over the next decade, as data analysis and operational efficiencies improve.
The partnership has the potential to expand Exxon’s production in the Permian by 50,000 oil-equivalent barrels a day by 2025.
“Through our partnership with Microsoft, we’re combining our technical and engineering expertise with cloud and data analytics capabilities to develop the Permian resource in the most capital-efficient manner,” said Staale Gjervik, senior vice president, Permian Integrated Development for Exxon.