ExxonMobil to Increase Permian Profitability Through Digital Partnership with Microsoft
- Permian application to generate billions of dollars in value over the next decade and drive capital efficiency
- Potential to expand production by as much as 50,000 oil-equivalent barrels a day by 2025
- Largest-ever oil and gas acreage to use cloud technology
IRVING, Texas--(BUSINESS WIRE)-- ExxonMobil said today a new partnership with Microsoft will make its Permian Basin operations the largest-ever oil and gas acreage to use cloud technology and is expected to generate billions in net cash flow over the next decade through improvements in analyses and enhancements to operational efficiencies.
The application of Microsoft technologies by ExxonMobil’s XTO Energy subsidiary – including Dynamics 365, Azure, Machine Learning and Internet of Things – is anticipated to improve capital efficiency and support Permian production growth by as much as 50,000 oil-equivalent barrels per day by 2025.
“The combination of Microsoft’s technologies with our unique strengths in oilfield technologies, production efficiency and integration will help drive growth in the Permian and serve as a model for additional implementation across the U.S. and abroad,” said Staale Gjervik, senior vice president, Permian Integrated Development for XTO. “The unconventional business is fast moving, complex and data rich, which makes it well suited for the application of digital technologies to strengthen our operations and help deliver greater value.”
ExxonMobil’s partnership with Microsoft includes an integrated cloud environment that securely and reliably collects real-time data from oil field assets spanning hundreds of miles. The data will enable ExxonMobil to make faster and better decisions on drilling optimization, well completions and prioritization of personnel deployment. Importantly, leak detection and repair response times could be further reduced with enhanced access to emissions data, strengthening XTO’s voluntary actions to manage methane emissions.
ExxonMobil’s application of these technologies in its Permian Basin acreage, which covers a 9.5 billion oil-equivalent barrel resource base and more than 1.6 million acres, represents industry’s largest acreage position using cloud technology.
Alysa Taylor, corporate vice president of Microsoft Business Applications and Industry, said ExxonMobil is taking a leadership approach in its digital strategy.
“ExxonMobil is leading the way for industry, grounding their goals in making data-driven decisions that will result in safer operations for their employees and more profitable activities for the company,” said Taylor. “Our cloud infrastructure and business applications will continue to support ExxonMobil as it fully realizes its strategy across the Permian.”
Microsoft’s platforms, including Azure Data Lake, will enable ExxonMobil to rapidly incorporate third-party solutions at scale across the Permian. Examples include mobile field data apps to optimize well performance, and AI algorithms for analyzing drilling and completions data to improve performance.
With the additional layer of Microsoft’s intelligent business applications, such as Dynamics 365, ExxonMobil and XTO will have a complete, end-to-end view of the Permian operations.
“Digital technology is a fundamental enabler for our Permian development,” said Gjervik. “Through our partnership with Microsoft, we’re combining our technical and engineering expertise with cloud and data analytics capabilities to develop the Permian resource in the most capital-efficient manner. Collaboration with Microsoft is key to our future development efforts, which include predictive maintenance capacities, innovative tools for employees, and artificial intelligence and machine learning integration.”
ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is one of the largest refiners and marketers of petroleum products, and its chemical company is one of the largest in the world. For more information, visit www.exxonmobil.com or follow us on Twitter www.twitter.com/exxonmobil.
Cautionary Statement: Statements of future events or conditions in this release are forward-looking statements. Actual future results, including project plans and timing, future production rates and cash flows, and the impact and results of new technologies, including productivity and efficiency gains and emission reductions, could vary depending on the outcome of further research and testing; the development and competitiveness of alternative technologies; the ability to scale pilot projects on a cost-effective basis; technical and operating factors; and other factors discussed in this release and under the heading “Factors Affecting Future Results” on the Investors page of ExxonMobil’s website at exxonmobil.com. References to oil equivalent barrels include quantities that are not yet classified as proved reserves but that are expected ultimately to be moved to the proved reserves category and produced in the future.
Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.
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Source: Exxon Mobil Corporation
Released February 22, 2019