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Exxon Mobil Corporation XOM has reached a milestone by completing 1,000 horizontal wells in the New Mexico Delaware Basin since 2017. This achievement highlights the company's dedication to safe, efficient and innovative energy production, enhanced by its advanced technology and expertise in the Permian Basin.
ExxonMobil’s Completion of 1,000 Wells
Since commencing operations in the New Mexico Delaware Basin, ExxonMobil’s team has demonstrated exceptional commitment and collaboration. The accomplishment highlights the efforts of thousands of professionals, spanning engineering, administration and other crucial functions, all aligned with the company's core values of safety and operational excellence.
XOM Leverages Technology and Scale of Operations
ExxonMobil’s success in the Permian Basin is rooted in its use of advanced technology and strategic operational efficiencies. A key innovation was the completion of 4-mile horizontal laterals in Poker Lake. These extended wells, paired with low-emission central vessel batteries and fully electrified compressor stations, reduce surface footprints and align with the company’s commitment to achieving net-zero emissions in Delaware-operated assets by 2030.
Horizontal drilling is central to ExxonMobil’s approach. By drilling through reservoirs laterally, ExxonMobil can access hard-to-reach resources, boosting resource recovery while reducing environmental impact.
ExxonMobil has also embraced cube drilling, an approach involving the simultaneous drilling of multiple wells within a single section of land. This technique optimizes resource recovery while reducing the logistical challenges and costs associated with moving rigs and equipment between sites.
Here’s Why the Permian Basin is Central to XOM’s Strategy
The Permian Basin’s abundant resources and ExxonMobil’s contiguous acreage provide a significant competitive edge. The recent acquisition of Pioneer Natural Resources has more than doubled ExxonMobil’s Permian footprint, solidifying its position as an industry leader in unconventional oil and gas development. This expanded acreage not only enhances ExxonMobil’s ability to deploy advanced technologies but also unlocks greater scale and operational synergies.
With a focus on technological innovation, operational excellence and environmental stewardship, ExxonMobil continues to shape the future of the Permian Basin while contributing to global energy security.
XOM’s Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).