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.