In a recent interview on CNBC, ExxonMobil Chairman and CEO Darren Woods shared compelling insights into the company’s long-term strategy for unlocking greater value from unconventional oil and gas resources—specifically through advanced fracking technology and the goal of doubling recovery rates.
As the company moves forward with its $59.5 billion acquisition of Pioneer Natural Resources, Woods emphasized how innovation—not just scale—is at the heart of ExxonMobil’s growth plans, especially in the Permian Basin.
🔍 The Problem: Low Recovery Rates in Shale
Fracking has revolutionized U.S. oil and gas production, but it’s far from perfect. In fact, the industry typically recovers only 5% to 10% of the oil in place from shale reservoirs. That leaves a tremendous amount of hydrocarbons untapped.
“Today, if you look at unconventional resources, recovery rates are fairly low within the industry, given the challenges associated with fracking — extracting that resource out of the rock,” said Woods.
🚀 The Ambition: Double the Recovery Rate
To tackle this challenge, ExxonMobil has set an aggressive internal target: double the recovery rate in shale plays like the Permian.
“The work we have been doing… is challenging our technology organization to double the recovery rate,” Woods said.
This means going beyond the traditional hydraulic fracturing model—leveraging digital technologies, advanced well monitoring, simulation tools, and potentially new drilling or completion designs to extract more oil from the same rock.
💸 Lower Costs + More Oil = Win-Win
This isn’t just about producing more—it’s also about doing it cheaper and cleaner. Woods highlighted the double benefit of these efforts:
“We’ve got a lot of work we’ve been doing to reduce the cost of that recovery… so we have a double benefit here — lower cost to drill and complete wells and higher recovery.”
By combining ExxonMobil’s technical expertise with Pioneer’s Tier 1 Permian acreage, the company expects to unlock more value per well—improving margins and reducing environmental impact per barrel produced.
🧠 Technology is the Differentiator
ExxonMobil is placing a major strategic emphasis on R&D and data-driven solutions in shale development. While the company hasn’t publicly disclosed specific technologies in development, it’s clear from Woods’ comments that a shift is underway in how the oil and gas giant approaches shale extraction.
“There are a number of emerging technologies that we’re trialing in the field that we think will continue to improve the recovery rate.”
This push for efficiency and performance will be essential as global energy demand continues and investor pressure grows around capital discipline and emissions.
⚡ Final Thoughts
Fracking may be a mature technology, but as Darren Woods made clear, the next big gains in oil and gas won’t come from drilling more wells—but from drilling smarter ones.
With its acquisition of Pioneer, ExxonMobil is betting that by applying cutting-edge technology to some of the best shale acreage in the world, it can reshape what’s possible in the Permian—and redefine the economics of U.S. shale for years to come.
