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ExxonMobil has forged a digital partnership with Microsoft to use cloud technology to increase oil production and profitability in its key growth area, the Permian, the U.S. oil supermajor said on Friday.
Under the deal with Microsoft, Exxon will use 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, the oil giant said.
According to Exxon, the partnership will make its Permian operations the largest-ever oil and gas acreage to use cloud technology. The application of the cloud technology is expected to generate billions of U.S. dollars in net cash flow for Exxon over the next decade, as data analysis and operational efficiencies improve.
The partnership has the potential to expand Exxon’s production in the Permian by 50,000 oil-equivalent barrels a day by 2025.
“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,” said Staale Gjervik, senior vice president, Permian Integrated Development for Exxon.
“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,” Gjervik noted.
Exxon’s unconventional production in the Permian continued to ramp up in the fourth quarter of 2018, the supermajor said earlier this month, noting that production surged by more than 90 percent from the same quarter of 2017.
Exxon’s total global liquids production in Q4 rose by 4 percent from prior-year quarter, driven by growth in the Permian. Oil-equivalent production was 4.010 million bpd in Q4, exceeding 4 million bpd for the first time in nearly two years. A major growth driver of production came from the Permian, where Exxon plans to triple its production by 2025 to more than 600,000 oil-equivalent barrels.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.