USA: Could Technology Exxon Mobil Collaborates with Microsoft to Use Digital Technology
Claimed to be the largest-ever oil and gas acreage to use cloud technology, the move is expected to generate billions of dollars in value over the next decade and improve capital efficiency. By 2025, production is also anticipated to grow by 50,000 oil-equivalent barrels per day.
Texas/USA – Exxon Mobil recently stated that its new partnership with Microsoft will make its Permian Basin operations the largest-ever oil and gas acreage to use cloud technology. The move is also 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 Exxon Mobil’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.”
Exxon Mobil’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 the company to make faster and better decisions on drilling optimisation, well completions and prioritisation 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.
Exxon Mobil’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.
Microsoft’s platforms, including Azure Data Lake, will enable the firm to rapidly incorporate third-party solutions at scale across the Permian. Examples include mobile field data apps to optimise 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, Exxon Mobil and XTO will have a complete, end-to-end view of the Permian operations.