CERAWeek 2025 Insights
ExxonMobil’s expansion in the Permian Basin took center stage during CERAWeek 2025, where executives highlighted how technology is reshaping operations to maximize efficiency and production. Following its 2024 acquisition of Pioneer Resources, ExxonMobil has solidified its position as the largest producer in the Permian Basin, with 1.3 million barrels per day (bpd)—accounting for over 16% of the basin’s total production.
Unlocking the Permian’s Untapped Potential
The Permian Basin remains a critical driver of U.S. energy production, contributing 6.2–6.3 MMbpd, which is nearly half of the country’s total output. Despite extensive drilling over the years, ExxonMobil’s VP for Permian Operations, Rich Dealy, emphasized that there is still vast untapped potential. Of the 10-13 oil-bearing layers in the basin, the company is currently developing only 7-8 layers, leaving room for enhanced resource recovery.
With current recovery rates at just 6-8%, ExxonMobil sees a massive opportunity to deploy advanced recovery techniques and new drilling strategies to boost output while optimizing capital efficiency.
Reducing Emissions and Enhancing Efficiency
A major theme of the discussion was ExxonMobil’s commitment to sustainability and efficiency gains. Dealy shared that the company has made significant progress in reducing flaring, a key environmental concern in the region:
- Flaring intensity dropped from 4% in 2019 to ~1% in 2024 (Jan-Oct), supporting ExxonMobil’s goal of achieving net-zero flaring by 2030.
- Traditional flaring inspection methods—reliant on expensive flyovers and in-person technician visits—are being replaced by remote cameras and AI-driven monitoring, significantly reducing costs and inspection times.
The Role of Technology in Optimizing Production
James Ritchie, ExxonMobil’s VP of Upstream Technology Portfolio, outlined how new fracturing and AI technologies are enhancing operational efficiency:
- Frac proppant innovations have led to 15% greater Estimated Ultimate Recovery (EUR) and 20% larger fracture areas per well, boosting long-term production.
- Artificial Intelligence (AI) is playing a growing role in connecting remote monitoring systems with advanced data analytics, leading to faster, more informed decision-making.
- Scalability remains a challenge, but ExxonMobil’s expanded footprint after the Pioneer Resources acquisition provides the land and infrastructure necessary to implement these technologies at scale.
ExxonMobil’s Future in the Permian
ExxonMobil’s leadership believes that the regulatory environment will likely turn more favorable in the coming years, creating further opportunities for expansion. With its newfound scale and technological advancements, the company is well-positioned to increase recovery rates, reduce operational costs, and drive long-term sustainable growth in the Permian.
As global demand for energy continues to rise, ExxonMobil’s strategy showcases how cutting-edge technology, operational efficiency, and sustainability initiatives can coexist to maximize production while reducing environmental impact.
Final Thoughts
The Permian Basin remains a key pillar of ExxonMobil’s global energy strategy, alongside its offshore investments in Guyana’s Stabroek Block. With its commitment to AI, emissions reduction, and advanced recovery techniques, the company is not just securing its leadership in the U.S. shale industry but also setting the stage for the next era of energy production.
