Occidental Petroleum’s Q2 2025 earnings call showcased a company hitting its stride in Permian Basin drilling and completions. Even with softer oil prices, Oxy drove significant cost reductions, accelerated drilling cycles, and maintained production guidance—all while high-grading its portfolio and advancing AI-driven operational strategies.
Permian Basin Operator Account Directory – $10
Includes: Account Name, Wells Drilled, Rig Count, Location…..
Drilling Times Down 20% in the Delaware
In Q2 2025, Oxy reported a 20% improvement in drilling times in the Delaware Basin. This translated into well costs coming in below targets set at the start of the year. Across the Permian, year-to-date unconventional well costs fell 13% compared to 2024, a testament to the “best of the best” approach for sharing operational learnings across Midland, Crown Rock, and Delaware assets.
Completions Efficiencies Drive Savings
On the completions front, Oxy is moving from 2–3 well pads in early 2025 to 4–6 well pads in the second half of the year. Frac teams are delivering faster, more efficient completions, while infrastructure reuse in secondary benches is enabling robust economics without significant new capital.
AI as a Drilling & Completions Multiplier
Technology integration—particularly AI—is central to these gains:
- Automated well planning uses AI to optimize drilling parameters in real-time, cutting nonproductive time.
- AI-powered subsurface modeling in the Permian and Gulf of America is improving reservoir targeting and CO₂ injection efficiency in EOR operations.
- Predictive analytics for equipment health and supply chain logistics reduce downtime and keep drilling programs on schedule.
- Field automation and sensors allow 40% of Oxy’s onshore production to be “route-less,” eliminating unnecessary site visits and lowering LOE.
By embedding AI teams into operations, Oxy is shifting from reactive decision-making to predictive and prescriptive workflows—turning data into a competitive advantage.
Quarterly Drilling Trends in the Permian
An analysis of Oxy’s Permian drilling activity in 2024–2025 shows a clear pattern of efficiency:
Quarter Wells Drilled Unique Rigs 2024 Q1 140 29 2024 Q2 129 27 2024 Q3 163 26 2024 Q4 91 25 2025 Q1 108 25
The sharp improvement in drilling speed in 2025 suggests Oxy is achieving more wells per rig without increasing its active rig fleet—a hallmark of capital discipline.
Top 10 Rigs in Oxy’s Permian Operations
Based on 2024–2025 data, these rigs have been the workhorses in Oxy’s Permian program:
- NorAm 22 – 45 wells
- Citadel 1 – 41 wells
- NorAm 34 – 39 wells
- Citadel 2 – 38 wells
- NorAm 27 – 37 wells
- H&P 252 – 37 wells
- H&P 423 – 37 wells
- H&P 620 – 37 wells
- H&P 244 – 36 wells
- Citadel 5 – 36 wells
These rigs exemplify the consistent performance Oxy relies on to sustain high efficiency and maintain cost leadership in the basin.
The Bottom Line
Oxy’s 2025 Permian program is a masterclass in operational execution. Drilling times are down, costs are lower, and completions are more efficient—without sacrificing production targets. With AI, automation, and cross-asset learning embedded into its workflows, Oxy is not just optimizing today’s operations—it’s building a scalable model for next-generation drilling efficiency in the Permian Basin.
