(WO) - With the general sense of excitement about U.S. production carrying over from panels earlier in the week, ExxonMobil’s panel on operations in the Permian basin convened with great enthusiasm during day three of CERAWeek 2025 by S&P Global.
Exxon's acquisition of Pioneer Resources in 2024 enabled it to become the Permian's largest producer
ExxonMobil’s recent headlines have often been tied to their increasing successes and rapidly expanding prospects in offshore Guyana, ever since achieving first oil in 2019. The company is expected to add its sixth project in the Stabroek Block—the Whiptail Project—sometime in 2027, adding 250,000 bpd to production capacity. Yet the prolific offshore blocks are far from the only assets where the company sees opportunity to meeting rising global demand for energy. The Permian Basin is one such location, according to ExxonMobil VP for Permian basin Rich Dealy and ExxonMobil VP of Upstream Technology Portfolio James Ritchie.
The panel began with a swift rundown of the accelerating pace of operations in the shale basin, and while many topics were touched on throughout, the standout point was the remaining potential of the basin, according to Dealy. Of the “10–13 layers [of targeted oil resources], we’re probably developing only seven to eight of those today.” He added that this results in resource recovery of only about 6-8%, with a great deal of undrilled resources yet to be fully unlocked.
Considering the Permian represents 6.2–6.3 MMbpd of production, per Dealy—approximately half of U.S. production nation-wide—the prospect is a substantial one. This is particularly true in a regulatory environment that is likely to see more favorable turns in the coming years. Subsequently, ExxonMobil is pursuing efficiency gains where possible, such as in flaring and inspection practices. In the case of flaring, Dealy noted ExxonMobil’s plans for net zero by 2030; in line with this, Permian flare intensity has decreased from 4% in 2019 to approximately 1% during 2024 (Jan to Oct)—not only reducing emissions, but also reducing the amount of gas lost to flaring. Inspections have also seen efficiency gains, with practices evolving from expensive technician and flyover inspections to cameras and remote technicians, reducing time and costs.
Meanwhile, on the technical side, Ritchie introduced some of the technological advances made in frac proppant that can translate to greater production down the line, such as 15% greater EUR lift and a 20% larger fracture area per well. As with most other panels, A.I. was also mentioned with the brief time available, with Ritchie noting that the technology can present even further efficiency gains by connecting data and expertise sets within remote monitoring scenarios.
One of the challenges to these advancements, Ritchie noted, was scaling new technology up, but he also pointed out that “when you have acreage, you have much better chances at scale.” Following ExxonMobil’s acquisition of Pioneer Resources in second-half 2024, that additional acreage opened up just the kind of space needed to create new opportunities. The deal effectively doubled ExxonMobil’s existing footprint in the Permian basin, totaling 1.3 MMbpd worth of production—more than a sixth of the basin’s total production.
