Is This Industry Ripe for Using Autonomous Trucks?

• Atlas Energy Systems teams up with Kodiak Robotics to field SAE Level 4 driverless truck tech in its vehicles starting in 2025.

• The production of sand for the oil industry in Texas relies on off-road routes that feature little traffic, with heavy-duty rigs and semitrucks making regular, predictable runs between production facilities and oil drilling sites.

• The harsh working conditions and remote location of the Permian Basin oil production sites have sparked industry demand for more automation—beyond trucks, just as Texas takes the first steps toward regular routes for driverless semis.

It has generally been held that advanced driver-assist systems (ADAS), as well as more capable autonomous tech, require very good road markings and signage to operate properly. This has definitely been true for SAE Level 4 robotaxis that can otherwise get trapped or freeze with indecision in the places where they have been fielded thus far.

But the opposite end of the road infrastructure spectrum could be just as suitable in one particular industry with no paved roads and little signage, as Kodiak Robotics and Atlas Energy Systems plan to demonstrate in real-world conditions starting next year.

The autonomous tech developer Kodiak has teamed up with the proppant producer Atlas Energy, which provides sand to oil companies in Texas and New Mexico's remote and harsh Permian Basin, to outfit its fleet of trucks with Kodiak's own SAE Level 4 hardware and software that will permit driverless operation.

"The Permian Basin's expansive private lease road network, which expands across the Delaware and Midland Basins, is an ideal environment in which to introduce autonomous trucking in North America," said Chris Scholla, Chief Supply Chain Officer for Atlas.

"With average traffic speeds of under 20 MPH on these large swaths of private roads, we can safely deliver a more reliable last-mile solution to our customers in the Permian Basin. This truly represents a step-change in oilfield logistics."

The dry and hot environment found in west Texas can be notoriously difficult for trucks and drivers alike, while the predictable routes of the sand deliveries are easy to manage with little other traffic to worry about and virtually no pedestrians.

That makes these routes, often far from paved public roads, prime candidates for going autonomous.

In fact, the dirt road infrastructure itself is not too different from the environment in which the very autonomous DARPA challenges started to compete two decades ago, crossing harsh, unpaved terrain for hours on end.

Kodiak has experience in on-road autonomous trucking as well, having first performed a 205-mile run between Dallas and Houston back in 2020 without system disengagements.

Kodiak and Atlas' partnership highlights a couple of important industries that have gotten relatively little attention in the race to SAE Level 4 technology. But mining operations in difficult environments that involve heavy machinery and little other traffic to take into account are seen as being prime for adoption of autonomous technology in the coming years.

A driver shortage in this part of the country is also motivating industries that serve oil production sites.

"According to the Texas Department of Transportation, in 2021 the Permian Basin accounted for 7% of all traffic fatalities in Texas, despite making up less than 2% of Texas' population," says Don Burnette, Kodiak founder and CEO. "These challenges make recruiting and retaining drivers incredibly hard—and autonomous technology incredibly compelling."

The autonomous trucks will still require a staff to monitor their operation and to provide truck maintenance. But the prospect of 24/7 operations, especially in difficult conditions, could deliver some readily felt benefits for proppant producers.

Texas has become a hotspot for testing and operational debuts of autonomous trucks, with a number of startups eyeing the busy Dallas to Houston route for wider-scale driverless operations. Kodiak is certainly not alone in the Lone Star state with hopes of delivering reliable Level 4 systems, even if long-haul interstate trucking isn't quite in the picture yet for regulatory reasons.

It remains to be seen how affordable SAE Level 4 tech will be for companies that work with the oil industry in west Texas in the coming years, but it's clear that on-road long-haul trucking and last-mile delivery aren't the only logistics segments that might benefit from autonomous tech.

Will we see demand for autonomous tech in this industry grow in the coming years, or could this tech prove too expensive or experimental for mining and proppant companies? Let us know what you think in the comments below.