Patrick McKenzie (patio11) is joined by Austin Vernon, a petroleum engineer, to discuss the technology and economics of fracking. Austin explains the evolution of drilling technology, the financial ecosystem supporting the oil industry – including the unique "doctor and lawyer money" funding model – and the complex interplay of mineral rights laws and state/local politics in the United States. Patrick and Austin also discuss the cross-pollination of technologies between fracking and emerging fields like geothermal energy extraction.
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Full transcript available here: www.complexsystemspodcast.com/fracking-austin-vernon/
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Links:
Austin Vernon's Blog: https://austinvernon.site/
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Twitter:
@patio11
@Vernon3Austin
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Timestamps:
(00:00) Intro
(01:38) Fracking technology and horizontal drilling
(05:12) The history and development of fracking techniques
(12:26) Communication methods in drilling operations, including mud pulse technology
(15:50) The economics of drilling operations
(17:28) Scale and cost comparisons between different types of drilling projects
(19:30) Safety considerations in onshore vs offshore drilling
(20:50) Sponsors: WorkOS | Check
(24:04) Discussion of small-scale "mom and pop" oil operations
(27:13) The impact of oil drilling on local economies
(31:45) The lifecycle of fracked wells and their long-term production
(36:15) Financing in the oil and gas industry
(39:19) Unique aspects of US mineral rights laws and leasing practices
(42:38) The process of setting up and funding new drilling operations
(52:55) Environmental concerns and groundwater protection measures in fracking
(56:40) The physical footprint of drilling operations
(59:12) Learning curves in fracking and geothermal energy extraction
(59:56) Diamond drill bits are not quite forever
(01:03:59) Where fracking goes from here
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Complex Systems is part of the Turpentine podcast network.
