How we've harnessed the best of both in the Permian Basin

By integrating ExxonMobil's advanced technologies with Pioneer's Basin knowledge, we closed the transaction in record time with a 'best of both' mindset, achieving success through the hard work of our people.
Our people are the best in the business and when you combine their talent and abilities with the technology we're deploying, that's how you safely drive improved efficiency, maximize recoveries, and provide more of the domestically produced energy that we all need every day.
As one organization, we both share a deep commitment to being a responsible neighbor, driving local economic growth, and improving the quality of life in the communities where we work and live.

Topic

4 min read

• May 5, 2025

A year ago, we transformed our Upstream portfolio with the integration of Pioneer Natural Resources. This merger, the largest in the industry since our union with Mobil in 1999, solidified our position as the undisputed industry leader and more than doubled our footprint in the Permian Basin – the United States' largest oil-producing region, spanning Southeast New Mexico and West Texas.

At the heart of the integration is our work to solve the “and” equation: meeting society’s needs for energy and essential products and reducing emissions. Our work in the Permian Basin will play a key role in meeting the world's growing energy demand for years to come.

Better together: our competitive advantage

Our people are our biggest competitive advantage. By bringing together two experienced teams, we have fostered a culture of shared learning and innovation.

Pioneer’s differentiated Permian inventory and basin knowledge, combined with our technologies, financial resources, and industry-leading project development is expected to generate double-digit returns by recovering more out of the resource, more efficiently and with a lower environmental impact.

Our work in the Permian is ensuring energy security in the U.S. and helping raise standards of living worldwide.

And it’s not just what we do, but how we do it. We are committed to being a good neighbor, acting with integrity, and accomplishing results in the right way.

Optimizing our operations and increasing production

Our total Upstream production in 2030 is expected to be around 5.4 million oil-equivalent barrels per day, an increase of about 1 million barrels from 2024 and the highest production level since the 1970s.

Our Permian operations play a key role in making these plans a reality, and the integration with Pioneer will make it possible. By 2030, we plan to double production in the Permian to approximately 2.3 million barrels per day, with $25 billion of operating cash flow potential at constant prices and margins.

We have the largest contiguous acreage position in the Permian, with double the number of low-cost net drilling locations compared to our next closest competitor.

We’re leveraging our scale across our full value chain including our integrated chemical plants and refineries along the U.S. Gulf Coast, where we produce high-value fuel, lubricants and other essential products.

“Thanks to our people, the Pioneer integration has been a tremendous success. We’ve strengthened our position in the industry and created new opportunities for innovation and growth. Together, we are better equipped to produce the energy the world needs and deliver long-lasting value to our local communities."

Bart Cahir

Senior Vice President Upstream Unconventional

Driving innovation through technology

Not all barrels are created equal, and ours are increasingly advantaged. We’re driving meaningful innovation and efficiencies through our technology breakthroughs.

Using cube technology, we drill wells in multiple benches, targeting connected stacked resources simultaneously. This minimizes interference, optimizes long-term recovery, and increases value by up to 50% compared to typical industry outcomes. Leveraging our contiguous acreage and expertise, we can drill longer laterals and increase production.

Our proprietary lightweight proppant technology enhances production rates and reduces costs. Derived from refinery-coke, it opens greater fracture areas than traditional sand. Leveraging it has improved our resource recovery by up to 15%, making it crucial for boosting efficiency and lowering drilling and completion costs.

Our technology advantage also underpins our progress toward our net-zero goals. We've embraced digital transformation, expanded our continuous monitoring program, and deployed state-of-the-art technologies, including satellites, aircraft, drones, and both mobile and fixed-position cameras and ground sensors, as part of our industry-leading methane detection and response program.

ExxonMobil employee working in front of monitors in the Permian Basin

Incorporating sustainability into our operations

We're doing all this while striving to be the most responsible operator.

We aim to achieve net-zero Scope 1 and 2 greenhouse gas emissions from our Permian operated assets by 2030. Our progress is already evident: we've eliminated high-bleed pneumatic devices, eliminated routine flaring in our operated assets, electrified our drilling fleet and established the Center for Operations and Methane Emissions Tracking (COMET). In the years ahead, we are focused on expanding these continuous monitoring and response capabilities across our Upstream portfolio.

We’re also leveraging these GHG reduction plans and technologies to accelerate Pioneer’s Scope 1 and 2 net-zero emissions goal by 15 years to 2035.

We work to be good stewards of the resources we have and to be a leader in safeguarding water resources. Since January 2020, our combined ExxonMobil and Pioneer water programs have recycled nearly 1.3 billion barrels, demonstrating a commitment to sustainable water management. We remain on target to source 90% of water used in our Permian fracturing operations from recycled and reclaimed water by 2030.

Our commitment to delivering safe and reliable energy is matched only by our dedication to supporting the communities where we live and work. We are proud to support organizations and programs that provide critical services across the Permian Basin.

By harnessing the strengths of both ExxonMobil and Pioneer, we are delivering long-term value creation and achieving results that neither company could accomplish alone.

It's been a good first year. Stay tuned to see what the team does next.