ExxonMobil has partnered with Microsoft to deploy Cloud technology to enhance operational efficiencies and generate increased profits from the Permian Basin.
Through the digital partnership, ExxonMobil hopes to generate billions in net cash flow over the next decade.
The company stated that the collaboration will make its Permian Basin operations the largest-ever oil and gas acreage to use Cloud technology.
The US oil and gas major aims to use the technology to increase production by as much as 50,000boe/d by 2025.
As part of the deal, ExxonMobil’s subsidiary XTO Energy will deploy Microsoft technologies, including Dynamics 365, Azure, machine learning and Internet of Things, to improve capital efficiency and support output growth from the Permian operations.
XTO Energy Permian Integrated Development senior vice-president Staale Gjervik said: “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 US and abroad.
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By GlobalData“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.”
The technology will enable the company to collect real-time data from oil field assets. The data will be used to make faster drilling decisions, well completions and prioritise personnel deployment.
ExxonMobil also noted that greater access to emissions data will help detect leaks and reduce response times. This will boost the company’s efforts to manage methane emissions.
Microsoft’s Azure Data Lake will allow ExxonMobil to use third-party solutions such as mobile field data apps to optimise well performance and AI algorithms to analyse drilling and completions data.
The deployment of Microsoft’s intelligent business applications such as Dynamics 365 is expected to provide a complete end-to-end view of the Permian operations.
Gjervik added: “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.”
Last January, the company unveiled plans to triple Permian production by 2025.
