The partnership is reported to be centered around the Permian Basin, where Exxon is focusing most of its energy to accelerate its stagnant oil production.
In an effort to maximize profits from the ongoing shale oil boom in America, ExxonMobil, the biggest publicly traded oil company in the world, recently announced that it will be commencing a digital partnership with Microsoft.
In what can become a model for the energy industry, Exxon has declared that it will be using Microsoft’s Azure cloud platform, internet of things and machine learning to collect real-time oilfield data, prioritize personnel deployments, make faster drilling decisions, monitor greenhouse gas emissions and detect leaks.
Reuters reports that the value of the agreement has not yet been disclosed but it is arguably the largest in the industry when it comes to the inclusion of cloud computing. The partnership is reported to be centered around the Permian Basin, where Exxon is focusing most of its energy to accelerate its stagnant oil production.
Staale Gjervik, one of the executives at Exxon has been reported to say that the application of digital technologies is suitable to strengthen the shale business which is complex, fast moving and data rich, to extract greater value. Exxon expects to boost its oil production to reach 50,000 barrels per day by 2025 with the able application of Microsoft’s cloud technology. Exxon will also be using third-party solutions such as artificial intelligence algorithms and mobile field data apps.
Securing Exxon as a client is being considered a significant triumph for Microsoft’s Azure platform which contends against Amazon Web Service and other cloud platforms. Microsoft’s cloud business has posted a 48% jump in revenue last quarter to reach $9 billion as the company focused its resources in cloud technology.
Alysa Taylor, corporate VP of business applications and industry, Microsoft, has been reported to say that ExxonMobil’s approach of giving their goals a data-driven foundation will necessarily lead the way for the industry that will set the precedent for safer operations for employees and more lucrative activities for the company.
Incidentally, Exxon is not the first major oil company to deploy cloud in its operations. Previously Chevron decided to digitize its oilfields and improve its drilling efficiency with the use of Microsoft Azure platform in 2017.