ExxonMobil’s latest innovation in the Permian Basin is paying off. By deploying its proprietary lightweight proppant—a low-cost material produced from petroleum coke—the company is reporting up to 20% higher recovery rates across more than 100 wells. Initially piloted with a 15% uplift, the technology is now proving even more effective as Exxon scales deployment, with plans to expand to over 200 wells by year-end. This breakthrough highlights how ExxonMobil is leveraging its integrated refining and upstream capabilities to drive greater efficiency, lower costs, and extend the life of its vast Tier 1 acreage in the Permian.
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In the Q2 2025 Earnings Call & Related Commentary
- During the Q&A, Exxon’s leadership highlighted deployment of lightweight proppant in the Permian and the positive results: “…we’ve deployed this in over 100 Permian wells and are seeing improved recoveries up to 20%. That’s up 5 percentage points from what we announced last December.”
— from CEO Darren Woods during the Q2 earnings call.
This indicates that not only is the lightweight proppant being scaled in their operations, but it’s also yielding better-than-expected recovery gains—now up to 20%, a jump from a prior 15% figure.
Additional Technical Insights
- Hart Energy coverage (June 2025):
- The proppant is made from petroleum coke (petcoke), a low-value by-product of refining, making it a “viable low-cost lightweight proppant” option.
- Field results show production improvements ranging from 7% to 18%.
- The lower density (about 60% of sand) makes it easier to transport within fracturing fluids. It’s also inert and strong enough to withstand reservoir conditions.
- Hart Energy (Dec 2024):
- Deployment in ~50 Permian wells during pilot phase delivered up to a 15% increase in recovery.
- Exxon expects to roll out the proppant in 200+ wells over the next 12 months, with a full-scale annual usage of up to 2 million tons.
Summary of Key Details
| Attribute | Details |
|---|---|
| Material | Made from petroleum coke—utilizing refinery by-products |
| Advantages | Low cost, lighter than sand (~60% density), strong and inert |
| Field Impact | Recovery gains: ~7–18% in early pilots; up to 15% initially; now seeing up to 20% in broader deployment |
| Deployment Scale | >50 wells in pilot; scaling to 100+; aiming for 200+ in next year and up to 2 million tons/year at full scale |
| Integration | Uses Exxon’s downstream supply chain to feed the upstream process |
Conclusion
ExxonMobil’s lightweight proppant—manufactured from petcoke—is playing a tangible role in enhancing oil recovery in the Permian Basin. After fruitful pilot results (~15% recovery uplift), its expanded deployment in over 100 wells has delivered even stronger performance—up to a 20% increase in recovery. Exxon plans continued roll-out, with ambitions to supply it across 200+ wells and scale to 2 million tons annually, pairing innovation, cost-efficiency, and supply chain integration to boost production and capital efficiency.
