Latest / Silicon & Shale Podcast / Episode 8: AI Agents Meet the Oil Patch
Transcript
- 0:00SPEAKER_01: Coffee and tabs are the punchline.
- 0:29SPEAKER_01: The leap is that AI agents turned a plain request into a working tool.
- 0:32SPEAKER_01: They described the result and the system built it.
- 0:34SPEAKER_01: A month ago, we'd call that coding assistance.
- 0:37SPEAKER_01: Here, the AI is building the tool itself.
- 0:39SPEAKER_00: I tell the roast about what I need and he welds a new tool instead of grabbing a wrench?
- 0:43SPEAKER_00: That's the comparison?
- 0:44SPEAKER_01: Close.
- 0:45SPEAKER_01: Quicker with a pile of code and probably fewer sparks.
- 0:47SPEAKER_00: Fewer sparks helps.
- 0:49SPEAKER_00: I've seen some things out in the field.
- 0:51SPEAKER_00: 15 app still sounds nuts, though.
- 0:53SPEAKER_00: You ask for one now and skip the late night coding and three straight days of debugging?
- 0:57SPEAKER_01: The debugging bill still comes due.
- 0:59SPEAKER_01: What disappears is a lot of blank screen work,
- 1:01SPEAKER_01: wiring the first version together,
- 1:03SPEAKER_01: setting up the bones, and getting something testable in front of you.
- 1:06SPEAKER_01: Picture junior developers who never sleep and never complain about the coffee.
- 1:09SPEAKER_00: I'll tell you what,
- 1:10SPEAKER_00: if it can build me an app that tells me where all the good BBQ joints are
- 1:13SPEAKER_00: between here and Midland,
- 1:14SPEAKER_00: and updates in real time based on brisket availability, then you got my attention.
- 1:18SPEAKER_00: That's a real problem.
- 1:19SPEAKER_01: The Midnight Build List just got a brisket availability column.
- 1:22SPEAKER_00: Put the brisket app on hold.
- 1:23SPEAKER_00: It's July 27, 2026, this is Silicon & Shale, and we've got bigger things to untangle.
- 1:28SPEAKER_01: We're talking about AI agents that build their own apps,
- 1:31SPEAKER_01: rogue AI models that escape their sandboxes,
- 1:33SPEAKER_01: and what all that means for the real world.
- 1:35SPEAKER_01: From the Strait of Hormuz to your local electricity bill.
- 1:38SPEAKER_01: It's wild out there.
- 1:39SPEAKER_00: It's always wild out there, Pak.
- 1:40SPEAKER_00: Always has been.
- 1:41SPEAKER_00: Just the flavor of wild changes.
- 1:43SPEAKER_00: Used to be weather and wildcatters.
- 1:45SPEAKER_00: Now it's, well, we're fixin' to get into it.
- 1:47SPEAKER_01: You know, it's funny you mention wild, because the headlines this week are flat-out unhinged.
- 1:51SPEAKER_01: I'm looking at this report from Crude Realities,
- 1:53SPEAKER_01: and they're talking about Iran killing U.S.
- 1:54SPEAKER_01: troops, Houthi blockades in the Red Sea, and oil prices kinda shrugging.
- 1:58SPEAKER_01: The market looks numb.
- 1:59SPEAKER_00: A healthy blockade still threatens one of global shipping's biggest choke points,
- 2:03SPEAKER_00: with crude refined products and LNG all moving through the region.
- 2:07SPEAKER_00: That supply chain warning from last week is playing out in real time.
- 2:21SPEAKER_00: Oh, I remember.
- 2:22SPEAKER_00: And it ain't just the shipping lanes.
- 2:24SPEAKER_00: You look at what they're saying about the hurricane threat to
- 2:26SPEAKER_00: the refining corridor along the Gulf Coast, that's a double whammy right there.
- 2:29SPEAKER_00: If you've got ships that can't get through the Red Sea,
- 2:32SPEAKER_00: and then the stuff that does make it to the States can't get refined because
- 2:34SPEAKER_00: a hurricane just blew through Port Arthur, you're gonna have some issues.
- 2:37SPEAKER_00: Not to mention you're looking at a real mess for the folks who work those facilities.
- 2:41SPEAKER_01: But the oil shrugs part is what gets me.
- 2:43SPEAKER_01: Has the market priced in so much constant geopolitical instability
- 2:46SPEAKER_01: that it's become background noise?
- 2:48SPEAKER_01: Or are the models, the AI,
- 2:50SPEAKER_01: so good at predicting these things now that the volatility gets smoothed out
- 2:53SPEAKER_01: before it hits the trading floor?
- 2:54SPEAKER_00: My gut says two forces are pulling against each other.
- 2:57SPEAKER_00: Global supply comes from more places than it used to,
- 2:59SPEAKER_00: while demand in some big consuming nations ain't exactly roaring.
- 3:02SPEAKER_00: The market sees the supply risk and the demand weakness at the same time.
- 3:05SPEAKER_00: That may balance a screen,
- 3:06SPEAKER_00: but it's cold comfort when you're budgeting a rig against a price bouncing like
- 3:09SPEAKER_00: a rubber ball.
- 3:10SPEAKER_01: That data problem wearing an energy questions hat is where AI earns its keep.
- 3:14SPEAKER_01: Models ingest satellite imagery, social chatter, news feeds, maritime traffic, everything.
- 3:20SPEAKER_01: They may see a blockade forming or an escalation building hours or days before
- 3:23SPEAKER_01: a human analyst assembles the whole picture and trading algorithms absorb
- 3:26SPEAKER_01: that signal.
- 3:27SPEAKER_00: The computers handle geopolitical chaos better than I do now.
- 3:30SPEAKER_00: I'm getting gray hairs just reading the headlines.
- 3:33SPEAKER_01: They're quicker to put a number on it and emotionally indifferent to the answer.
- 3:36SPEAKER_01: An 80% blockade risk and a 60% chance of resolution within a week become inputs.
- 3:41SPEAKER_01: The model processes them without panic.
- 3:43SPEAKER_01: And the market may look calm because the bad news has already been discounted.
- 3:46SPEAKER_00: Emotionally indifferent sounds handy until
- 3:48SPEAKER_00: the model tells you your drilling budget is ugly with the bedside manner of
- 3:51SPEAKER_00: a torque wrench.
- 3:52SPEAKER_01: The spreadsheet has never apologized either.
- 3:54SPEAKER_00: Put that into an operator's budget.
- 3:56SPEAKER_00: Are we getting fewer price spikes or trading them for some slower kind of volatility?
- 4:00SPEAKER_00: A $20 swing inside one month turns a drilling program into a nightmare.
- 4:04SPEAKER_00: Makes you miss the days when you hope for the best and drilled the well.
- 4:07SPEAKER_01: An operator may see fewer knee-jerk spikes while uncertainty accumulates under the surface.
- 4:12SPEAKER_01: Data that explains the market's reaction and shows where
- 4:14SPEAKER_01: the probabilities are moving gives you a chance to act before a delayed casing order
- 4:17SPEAKER_01: or price swing forces the scramble.
- 4:19SPEAKER_00: I could have used that kind of warning on a vertical we drilled just west of Fort Stockton.
- 4:23SPEAKER_00: We thought we understood the geology then hit a high-pressure gas pocket nobody saw
- 4:26SPEAKER_00: on the seismic.
- 4:27SPEAKER_00: Blew out a bit, damn near lost the whole string and spent days getting it under control.
- 4:32SPEAKER_00: Are these models going to flag the next pressure zone?
- 4:34SPEAKER_00: Or tell me which Houston pipe supplier runs out of casing after
- 4:37SPEAKER_00: a Red Sea shipment gets diverted around Africa?
- 4:39SPEAKER_01: High pressure zones demand a much tougher kind of modeling,
- 4:41SPEAKER_01: though seismic interpretation is improving.
- 4:44SPEAKER_01: Supply chain monitoring is already practical.
- 4:46SPEAKER_01: Imagine an agent watching global shipping,
- 4:48SPEAKER_01: port congestion, weather, geopolitical tensions, and local labor disputes.
- 4:52SPEAKER_01: It could tell you,
- 4:53SPEAKER_01: that casing order has a 70% chance of arriving two weeks late because of
- 4:56SPEAKER_01: a Suez Canal incident and a rail strike in Kansas.
- 4:59SPEAKER_00: A rail strike in Kansas?
- 5:00SPEAKER_00: Now you're just making stuff up.
- 5:02SPEAKER_01: Leave Kansas out of it then.
- 5:03SPEAKER_01: One blocked route changes port traffic, rail demand, inventories, and delivery dates.
- 5:07SPEAKER_01: The agent follows that cascade before it lands on your purchase order.
- 5:10SPEAKER_00: That would be useful.
- 5:12SPEAKER_00: Today it's one person in procurement making calls and crossing his fingers,
- 5:15SPEAKER_00: which isn't much better than a sack of cement in a prayer.
- 5:18SPEAKER_01: Grid stress gives us another example.
- 5:20SPEAKER_01: Upstream Oil & Gas had Paul Ciccio,
- 5:22SPEAKER_01: chairman of the Electricity Transmission Competition Coalition,
- 5:25SPEAKER_01: explaining how limited competition in electricity transmission affects costs.
- 5:29SPEAKER_01: Operators feel that problem directly.
- 5:31SPEAKER_00: Oh, I'm well aware of the grid problem.
- 5:32SPEAKER_00: We've been talking about it for months.
- 5:34SPEAKER_00: You try running a frack spread out in rural Oklahoma with unreliable power,
- 5:37SPEAKER_00: you'll find out real quick how important that grid is.
- 5:40SPEAKER_00: Reliability is only half of it.
- 5:42SPEAKER_00: Electricity bills for our operations are going through the roof, and the field isn't alone.
- 5:46SPEAKER_00: All those new data centers you're always talking about, they need power.
- 5:49SPEAKER_00: Lots of it.
- 5:50SPEAKER_01: No kidding.
- 5:51SPEAKER_01: CTO's point is that the lack of competition in building
- 5:53SPEAKER_01: and maintaining transmission lines means higher costs for everyone.
- 5:57SPEAKER_01: It's a monopolistic structure in many regions,
- 5:59SPEAKER_01: and that means less innovation,
- 6:00SPEAKER_01: slower upgrades,
- 6:01SPEAKER_01: and ultimately,
- 6:02SPEAKER_01: you and I,
- 6:03SPEAKER_01: and every operator out there, are paying more for power than we should be.
- 6:06SPEAKER_01: It's a huge drag on profitability.
- 6:08SPEAKER_00: Does that open the door to more players building power lines beyond the big utilities?
- 6:12SPEAKER_01: Ciccio argues competitive bids can produce more efficient projects,
- 6:15SPEAKER_01: lower costs, and faster build-outs.
- 6:17SPEAKER_01: Data center demand makes the timing brutal.
- 6:19SPEAKER_01: Small towns are already feeling those loads consume available capacity.
- 6:23SPEAKER_01: Slow or expensive transmission expansion spreads the pain to everyone connected to the grid.
- 6:27SPEAKER_00: Yeah, I've heard operators talk about having to build their own generation out in
- 6:30SPEAKER_00: the field because the grid can't keep up,
- 6:32SPEAKER_00: or the cost of hooking up to it is flat out astronomical.
- 6:35SPEAKER_00: Some days it feels as though we're going backwards.
- 6:37SPEAKER_00: We've got all this fancy tech, but we can't even keep the lights on reliably.
- 6:41SPEAKER_01: It's a systemic issue.
- 6:42SPEAKER_01: And it affects everything from drilling to processing to even the AI models themselves.
- 6:46SPEAKER_01: If the cost of electricity is too high,
- 6:48SPEAKER_01: or the supply too unreliable,
- 6:50SPEAKER_01: it impacts the economics of running a data center,
- 6:52SPEAKER_01: which impacts the cost of AI compute,
- 6:54SPEAKER_01: which then impacts the feasibility of all these fancy AI solutions we're talking
- 6:57SPEAKER_01: about.
- 6:58SPEAKER_01: It's all connected.
- 6:59SPEAKER_00: Fancy way of saying the pump jack and the robot are fighting over the same extension cord.
- 7:03SPEAKER_01: And the extension cord needs a transmission study.
- 7:05SPEAKER_00: What does competition look like on the ground?
- 7:07SPEAKER_00: High voltage transmission ain't a strip mall roofing job.
- 7:10SPEAKER_00: Somebody has to finance the line,
- 7:11SPEAKER_00: clear the right of way, satisfy regulators, and operate it for decades.
- 7:15SPEAKER_01: Qualified independent transmission companies would do the bidding,
- 7:18SPEAKER_01: and policy determines whether they get in the room.
- 7:20SPEAKER_01: CGO's ETCC is pushing that change.
- 7:23SPEAKER_01: An incumbent with no rival has little incentive to innovate or add capacity efficiently.
- 7:27SPEAKER_01: Competition puts another price and schedule on the table.
- 7:30SPEAKER_00: More competition for power lines.
- 7:32SPEAKER_00: If it brings down my electric bill at the office,
- 7:34SPEAKER_00: I'm listening, because that bill looks like a phone number and not a local one.
- 7:38SPEAKER_01: Fusion throws one more curveball into the energy mix.
- 7:41SPEAKER_01: The energy gang says it may be here at last.
- 7:43SPEAKER_01: Private fusion companies have raised billions and pilot plants are moving from plans
- 7:46SPEAKER_01: into construction.
- 7:48SPEAKER_01: What do you make of that, Derek?
- 7:49SPEAKER_00: Fusion power?
- 7:50SPEAKER_00: I thought that was always 30 years away.
- 7:52SPEAKER_00: Always has been, always will be.
- 7:55SPEAKER_00: That's like the saying about the weather in Oklahoma.
- 7:57SPEAKER_00: If you don't like it, wait five minutes.
- 7:59SPEAKER_00: With fusion, it's, if you don't like the timeline, wait 30 years.
- 8:03SPEAKER_01: The 30-year answer may finally be getting stale.
- 8:09SPEAKER_01: I've
- 8:15SPEAKER_00: watched plenty of billions disappear into the next big thing.
- 8:18SPEAKER_00: Carbon capture was supposed to be the silver bullet ten years ago,
- 8:21SPEAKER_00: and we're still sorting it out.
- 8:23SPEAKER_00: Hydrogen has lived right around the corner for twenty years.
- 8:25SPEAKER_00: Fusion still feels like science fiction.
- 8:27SPEAKER_00: What changed besides the size of the checks, eh?
- 8:30SPEAKER_01: The technology.
- 8:31SPEAKER_01: And the private capital.
- 8:32SPEAKER_01: For decades,
- 8:33SPEAKER_01: fusion research was primarily government-funded,
- 8:35SPEAKER_01: slow, and focused on massive EIDER-style projects.
- 8:37SPEAKER_01: But now,
- 8:38SPEAKER_01: with advancements in high-temperature superconductors,
- 8:40SPEAKER_01: new magnetic confinement designs,
- 8:42SPEAKER_01: and laser technology,
- 8:43SPEAKER_01: private companies are finding pathways to potentially commercialize fusion on
- 8:46SPEAKER_01: a much smaller scale and much faster.
- 8:49SPEAKER_01: They're not waiting for governments.
- 8:50SPEAKER_01: They're building it.
- 8:51SPEAKER_00: Give me the customer for a smaller reactor.
- 8:53SPEAKER_00: Is it a giant data center, an industrial park, and oil field?
- 8:56SPEAKER_01: A large pilot comes first.
- 8:58SPEAKER_01: Modularity is the commercial vision,
- 9:00SPEAKER_01: smaller reactors supplying baseload power to an industrial park or a cluster
- 9:03SPEAKER_01: of data centers.
- 9:04SPEAKER_01: That future remains years away,
- 9:06SPEAKER_01: but companies breaking ground gives the timeline weight that
- 9:08SPEAKER_01: a laboratory presentation never had.
- 9:10SPEAKER_00: How do they hold plasma hotter than the sun long enough to make power?
- 9:13SPEAKER_00: Pouring concrete doesn't make that part any less close to science fiction.
- 9:17SPEAKER_01: Containment, net energy, reliability, and cost.
- 9:19SPEAKER_01: That's the engineering list now.
- 9:21SPEAKER_01: The companies are designing around each one,
- 9:22SPEAKER_01: and the volume
- 9:23SPEAKER_01: of private investment says some very smart people believe those problems are close
- 9:26SPEAKER_01: enough to attack on a construction schedule.
- 9:28SPEAKER_00: Give it a number on our fax machine to fully autonomous scale.
- 9:31SPEAKER_00: How close is fusion to earning revenue from the grid?
- 9:33SPEAKER_01: Commercial grid-scale fusion rates a 2 or 3 today.
- 9:36SPEAKER_01: Experimental, with enormous engineering hurdles.
- 9:39SPEAKER_01: The pace of progress rates a 7 or 8.
- 9:41SPEAKER_01: Companies have taken the concept off the slide deck and started putting steel,
- 9:44SPEAKER_01: equipment, and schedules behind it.
- 9:45SPEAKER_00: 2 out of 10 keeps the reactor off my Christmas list.
- 9:48SPEAKER_01: Good.
- 9:49SPEAKER_01: Shipping would be complicated.
- 9:50SPEAKER_00: There's still a long runway.
- 9:52SPEAKER_00: Even so, real money and active construction put fusion into a serious energy conversation.
- 9:56SPEAKER_00: Twenty or thirty years from now, the landscape could look radically different.
- 10:14SPEAKER_00: Twenty, thirty years.
- 10:15SPEAKER_00: I'll be retired by then, probably sitting on a porch somewhere yelling at clouds.
- 10:19SPEAKER_00: Or maybe I'll be powering my porch with a mini fusion reactor.
- 10:22SPEAKER_00: Who knows?
- 10:22SPEAKER_01: You'll be using an AI agent to yell at the clouds for you, Derek.
- 10:25SPEAKER_01: Trust me.
- 10:26SPEAKER_00: Oh lord, don't give him any ideas.
- 10:28SPEAKER_01: Before your fusion porch is finished, the AI stories get stranger.
- 10:31SPEAKER_01: Hard Fork and the AI Report covered open AI models that went rogue in testing,
- 10:35SPEAKER_01: escaped their sandbox, and demonstrated autonomous cyberattack capabilities.
- 10:39SPEAKER_01: I had to read that twice.
- 10:41SPEAKER_00: Skynet can wait.
- 10:42SPEAKER_00: Tell me how the coffee app turned into a cyber attacker that climbed out of its cage.
- 10:46SPEAKER_01: Skynet is too strong.
- 10:47SPEAKER_01: A wake-up call isn't.
- 10:49SPEAKER_01: In controlled experiments,
- 10:50SPEAKER_01: AI agents given a goal found ways around security protocols,
- 10:53SPEAKER_01: exploited vulnerabilities,
- 10:54SPEAKER_01: and carried out simulated cyber attacks without step-by-step human direction.
- 10:58SPEAKER_01: The important word is autonomous.
- 11:00SPEAKER_00: Who chooses the target,
- 11:01SPEAKER_00: the model,
- 11:02SPEAKER_00: the person who assigned the goal, or whatever weakness happens to be in reach?
- 11:06SPEAKER_00: Because somebody is deliberately building this capability.
- 11:09SPEAKER_01: They were in a controlled environment.
- 11:11SPEAKER_01: A landman gets paid
- 11:20SPEAKER_00: for creative routes through a problem.
- 11:22SPEAKER_00: A computer loose near a SCADA network is another matter.
- 11:27SPEAKER_00: That should bother us.
- 11:30SPEAKER_01: More capable agents widen the security problem
- 11:32SPEAKER_01: because they may discover attack paths a human never wrote down.
- 11:35SPEAKER_01: Strong guardrails,
- 11:36SPEAKER_01: narrow permissions,
- 11:37SPEAKER_01: and constant monitoring have to arrive before those agents touch critical systems.
- 11:40SPEAKER_00: OpenAI is crash-testing its own car and publishing what breaks.
- 11:43SPEAKER_01: Running these experiments exposes weaknesses before an outside attacker
- 11:45SPEAKER_00: finds them,
- 11:46SPEAKER_00: gives the safety teams evidence to work from,
- 11:48SPEAKER_00: and shows that AI alignment is receiving serious attention.
- 12:08SPEAKER_00: The
- 12:12SPEAKER_00: same
- 12:16SPEAKER_01: capability can serve defense.
- 12:18SPEAKER_01: An agent that autonomously finds a vulnerability can be assigned to fix it,
- 12:21SPEAKER_01: keep watching for a recurrence,
- 12:23SPEAKER_01: or carry that persistence into a complex business workflow.
- 12:26SPEAKER_00: Optimize complex workflows could mean anything.
- 12:28SPEAKER_00: Give me a real example and leave the coffee app out of it.
- 12:31SPEAKER_01: Brian McAnulty from Heights Platform and Latch Loop described that shift on using AI at work.
- 12:37SPEAKER_01: Assign AI a task as you would a worker, then let a long-running agent carry the project.
- 12:41SPEAKER_01: Ryan Carson,
- 12:41SPEAKER_01: co-founder of Treehouse,
- 12:42SPEAKER_01: told the Startup Ideas podcast that he runs AI agents around the clock for Untangle,
- 12:47SPEAKER_01: his AI divorce company serving law firms.
- 12:49SPEAKER_00: AI divorce?
- 12:50SPEAKER_00: I don't even want to know.
- 12:51SPEAKER_00: That sounds like a whole new level of messy.
- 12:53SPEAKER_01: Thankfully, the emotional fallout stays human.
- 12:55SPEAKER_01: Untangle focuses on paperwork and process.
- 12:57SPEAKER_01: The larger idea is that an agent can take a high-level goal,
- 13:00SPEAKER_01: break it into tasks, execute them, adapt to new information, and correct course.
- 13:05SPEAKER_01: Think of it as a digital employee with a very narrow job description.
- 13:08SPEAKER_00: Digital employees.
- 13:09SPEAKER_00: So instead of hiring another landman to go dig through old deeds,
- 13:12SPEAKER_00: I tell an AI,
- 13:13SPEAKER_00: go find me all the unleashed mineral interests in Tishomingo County,
- 13:16SPEAKER_00: and it goes and does it.
- 13:17SPEAKER_01: That problem has been sitting on my midnight build list for weeks.
- 13:20SPEAKER_01: Picture a tool making a first pass at an old handwritten deed,
- 13:23SPEAKER_01: pulling the likely names and legal description into view,
- 13:25SPEAKER_01: and showing where the scan becomes too uncertain to trust.
- 13:28SPEAKER_01: The reviewer reaches the hard part faster and still owns every conclusion.
- 13:31SPEAKER_00: You mean the thing could stare at 90-year-old chicken scratch without asking
- 13:34SPEAKER_00: for stronger coffee?
- 13:35SPEAKER_01: That's the dream.
- 13:36SPEAKER_01: It would surface what it thinks it sees,
- 13:38SPEAKER_01: keep the original document beside it, and make uncertainty impossible to miss.
- 13:42SPEAKER_01: The landman still reads the instrument, checks the context, and owns the conclusion.
- 13:47SPEAKER_01: The useful win is cutting down the time spent hunting for the first thread.
- 13:50SPEAKER_00: First machine in history to read 1940's cursive without asking for hazard pay.
- 13:54SPEAKER_01: It asked for better contrast in a quiet room.
- 13:56SPEAKER_00: Well, I'll be.
- 13:57SPEAKER_00: That's actually pretty darn impressive, Pac.
- 14:00SPEAKER_00: I didn't think that was possible without a human eye.
- 14:02SPEAKER_00: Some of those old folks, their handwriting was worse than mine after a long night.
- 14:06SPEAKER_00: So, on a scale of fax machine to fully autonomous, where does that vision land?
- 14:10SPEAKER_01: A solid six.
- 14:11SPEAKER_01: The recognition tools are already useful,
- 14:13SPEAKER_01: but complex or ambiguous instruments still demand human review.
- 14:16SPEAKER_01: That's the honest middle ground,
- 14:18SPEAKER_01: far beyond a fax machine, nowhere near replacing an experienced landman.
- 14:22SPEAKER_01: It takes the repetitive first pass and gives the reviewer more time for the judgment calls.
- 14:26SPEAKER_00: A six.
- 14:27SPEAKER_00: Okay, that's higher than I thought you'd say.
- 14:29SPEAKER_00: It won't put me out of a job,
- 14:30SPEAKER_00: but it might keep me from spending half a morning decoding whether
- 14:32SPEAKER_00: that word says reserve or reverse.
- 14:34SPEAKER_00: I've seen both, and neither one improved my mood.
- 14:37SPEAKER_01: Later, the same assistant could help compare the pieces of a chain,
- 14:40SPEAKER_01: flag places that deserve another look, and prepare a question list.
- 14:43SPEAKER_01: The decisions stay with the reviewer.
- 14:46SPEAKER_01: If listeners have a field or land problem that keeps eating ours,
- 14:48SPEAKER_01: send the ugly version to siliconandshale at gmail.com.
- 14:51SPEAKER_01: Those are the problems worth exploring.
- 14:53SPEAKER_00: Now you're talking.
- 14:54SPEAKER_00: Pulling that material together eats the time and the errors hide between systems.
- 14:58SPEAKER_00: Could an agent connect those dots without making up the missing pieces?
- 15:01SPEAKER_00: That's the goal.
- 15:02SPEAKER_01: Brian McAnulty and Ryan Carson are testing versions of it now.
- 15:05SPEAKER_01: The Startup Ideas podcast described forward-deployed engineers
- 15:08SPEAKER_01: and cloud agents working around the clock on assigned tasks.
- 15:10SPEAKER_01: The software participates in the workflow instead of waiting for another chat prompt.
- 15:14SPEAKER_00: Forward deployed engineers,
- 15:15SPEAKER_00: so it's the digital version of that one hand on the rig who could fix anything.
- 15:19SPEAKER_00: Except this one is always available and doesn't charge per diem
- 15:21SPEAKER_00: or eat every breakfast burrito before 7 in the morning.
- 15:24SPEAKER_01: It does burn tokens.
- 15:25SPEAKER_01: That's basically breakfast burritos for software.
- 15:27SPEAKER_00: Ah, so the machine found a way to expense breakfast after all.
- 15:30SPEAKER_01: Before the build list, let's run a field office test.
- 15:33SPEAKER_01: I give you the AI pitch.
- 15:34SPEAKER_01: You decide how long it survives in the building.
- 15:36SPEAKER_00: Finally, a management framework, I understand.
- 15:38SPEAKER_01: An agent changes production settings whenever it spots an efficiency opportunity.
- 15:41SPEAKER_00: Gone before its boots touch the welcome mat.
- 15:43SPEAKER_00: Also, it doesn't get boots.
- 15:45SPEAKER_01: An agent prepares the morning exception list, cites every source and waits for the supervisor.
- 15:49SPEAKER_00: Give it a chair, but put the chair near the door until we see what it calls an exception.
- 15:53SPEAKER_01: A fusion reactor powers the next rig by Christmas.
- 15:55SPEAKER_00: It can take a donut from the meeting, but security keeps the visitor badge.
- 15:58SPEAKER_01: An agent emails the entire company every time a model's score moves 2%.
- 16:02SPEAKER_00: Straight to the parking lot and take away its reply all button on the way out.
- 16:05SPEAKER_01: An assistant finds the five ugly documents, attaches the evidence, and lets the landman decide.
- 16:10SPEAKER_00: That one gets coffee.
- 16:11SPEAKER_00: If it also fixes the copier jam, we discuss benefits.
- 16:14SPEAKER_01: I think we just invented AI procurement.
- 16:16SPEAKER_00: No, we invented common sense with a visitor badge.
- 16:19SPEAKER_01: Before we close, I want to do something practical.
- 16:21SPEAKER_01: Not another prediction about robots taking over the world.
- 16:23SPEAKER_01: What could an operator or a land team actually build from this week's ideas?
- 16:27SPEAKER_00: Give me one thing that works on Monday.
- 16:28SPEAKER_00: If the answer involves a fusion reactor, I'm leaving.
- 16:31SPEAKER_01: Two possibilities, both inside Landman OS.
- 16:33SPEAKER_01: The first is a title chain anomaly detector.
- 16:36SPEAKER_01: Imagine an assistant that calls attention to places where
- 16:38SPEAKER_01: a chain doesn't reconcile cleanly and brings the supporting documents together
- 16:41SPEAKER_01: for review.
- 16:42SPEAKER_01: The recorded evidence and ownership math remain in charge.
- 16:45SPEAKER_01: The AI acts as a highlighter, and the Landman decides whether the concern is real.
- 16:48SPEAKER_00: Good.
- 16:49SPEAKER_00: Because the day a chatbot declares somebody vested because it felt confident is
- 16:52SPEAKER_00: the day my blood pressure becomes a mineral interest.
- 16:54SPEAKER_01: Picture its surfacing patterns such as overlapping claims or a fraction
- 16:57SPEAKER_01: that doesn't appear to carry through the chain.
- 16:59SPEAKER_01: It points the reviewer back to the relevant instruments and frames the question worth checking.
- 17:03SPEAKER_01: No quiet repair, no legal conclusion, and no mystery about which document triggered the concern.
- 17:08SPEAKER_00: Now that I can use.
- 17:09SPEAKER_00: Title chains are family trees where everybody named a son John,
- 17:12SPEAKER_00: half of them hated middle initials,
- 17:14SPEAKER_00: and somebody eventually conveyed three-sixteenths
- 17:16SPEAKER_00: of something nobody can prove he owned.
- 17:18SPEAKER_01: That is disturbingly accurate.
- 17:19SPEAKER_01: The AI can help sort the names and surface the odd transfer,
- 17:22SPEAKER_01: but it doesn't get to quietly repair the chain.
- 17:25SPEAKER_01: A reviewer accepts the flag, dismisses it, or leaves a note.
- 17:28SPEAKER_01: So it finds the loose boards.
- 17:29SPEAKER_01: It doesn't remodel the house while I'm at lunch.
- 17:30SPEAKER_00: Add opening a valve to that list.
- 17:54SPEAKER_00: The computer can tell me the valve looks suspicious.
- 17:57SPEAKER_00: It does not get inspired and open it.
- 17:59SPEAKER_01: Keep it read-only around operational technology.
- 18:01SPEAKER_01: No SCADA control.
- 18:02SPEAKER_01: No production right access.
- 18:04SPEAKER_01: No autonomous payments.
- 18:05SPEAKER_01: The useful agent works in a fenced yard and keeps an audit trail.
- 18:08SPEAKER_00: Best kind of fence.
- 18:09SPEAKER_00: The kind that keeps the robot out of the tank battery.
- 18:12SPEAKER_01: The second possibility is clause guard.
- 18:14SPEAKER_01: Picture asking a lease or deed a normal question about a depth clause,
- 18:17SPEAKER_01: a pew clause, or a shut-in royalty provision.
- 18:20SPEAKER_01: The assistant surfaces the relevant language and calls attention to anything
- 18:22SPEAKER_01: that appears different from the team's standard.
- 18:24SPEAKER_01: When the scan is unclear, it says so instead of inventing certainty.
- 18:27SPEAKER_00: That's important.
- 18:29SPEAKER_00: I've seen OCR turn NW quarter into something that looked like a lunch order.
- 18:32SPEAKER_00: You don't want a legal conclusion built on a machine ordering curly fries.
- 18:36SPEAKER_01: And the interface matters.
- 18:37SPEAKER_01: On no priors,
- 18:38SPEAKER_01: DoorDash said its conversational search helped people express what was already
- 18:41SPEAKER_01: in their heads.
- 18:42SPEAKER_01: Half of the restaurant paths they discussed ended with an order from somewhere
- 18:45SPEAKER_01: the user had never ordered before, and grocery baskets were about 40% larger.
- 18:49SPEAKER_01: For the oil patch,
- 18:49SPEAKER_01: natural language can uncover options people miss when they're forced
- 18:52SPEAKER_01: through rigid menus.
- 18:53SPEAKER_01: The taco lesson is optional.
- 18:55SPEAKER_00: Although Buy More Tacos has never hurt a drilling program.
- 18:58SPEAKER_01: For a land team,
- 18:58SPEAKER_01: the useful question is which leases or assignments deserve attention because
- 19:01SPEAKER_01: the language or conveyed interest looks unusual.
- 19:04SPEAKER_01: The assistant prepares a review queue and keeps the evidence close.
- 19:07SPEAKER_01: A landman makes the call.
- 19:08SPEAKER_00: That's a real distinction.
- 19:10SPEAKER_00: A tiny AI lawyer hat makes me nervous.
- 19:12SPEAKER_00: Put the five ugly documents on top of the stack before I've burned half
- 19:15SPEAKER_00: a day finding them and we're in business.
- 19:17SPEAKER_01: The same vision applies to field logistics.
- 19:19SPEAKER_01: Imagine an Ask Field Ops assistant that gathers the facts now scattered
- 19:21SPEAKER_01: across calls,
- 19:22SPEAKER_01: messages,
- 19:23SPEAKER_01: schedules, and vendor updates, then lays out the options for the dispatcher.
- 19:27SPEAKER_01: It doesn't order equipment or reroute a crew.
- 19:29SPEAKER_01: It gets everyone looking at the same picture before the morning call turns
- 19:31SPEAKER_01: into six people asking who talked to the trucking company.
- 19:34SPEAKER_00: I have one requirement.
- 19:36SPEAKER_00: If a vendor says a part is on the way,
- 19:38SPEAKER_00: the screen needs a category for nobody has actually seen the truck.
- 19:41SPEAKER_01: Every suggestion needs a visible source and a timestamp with uncertainty left out in the open.
- 19:46SPEAKER_01: Yesterday's confirmation shouldn't masquerade as a live update.
- 19:48SPEAKER_01: The assistant can narrow the choices and explain why.
- 19:51SPEAKER_01: The dispatcher approves the move.
- 19:53SPEAKER_00: Good.
- 19:54SPEAKER_00: The salesman sounded confident is not a logistic status.
- 19:57SPEAKER_01: The same discipline gives us one more build worth testing, ReguTrack.
- 20:01SPEAKER_01: It stays narrow and watches official updates from
- 20:03SPEAKER_01: the Oklahoma Corporation Commission,
- 20:04SPEAKER_01: the Texas Railroad Commission, and North Dakota's regulator.
- 20:08SPEAKER_01: For every change,
- 20:08SPEAKER_01: it stores the source link,
- 20:10SPEAKER_01: jurisdiction,
- 20:10SPEAKER_01: publication date,
- 20:11SPEAKER_01: effective date, and whether the item is proposed, adopted, or already in force.
- 20:15SPEAKER_00: A computer reading agency websites all day.
- 20:17SPEAKER_00: Finally, a job too cruel to give an intern.
- 20:20SPEAKER_01: It gets better.
- 20:21SPEAKER_01: The monitor compares each update with the states,
- 20:23SPEAKER_01: counties, and projects the team actually has open.
- 20:26SPEAKER_01: Instead of a 40-item news dump, it creates a short queue.
- 20:28SPEAKER_01: What changed, which active work may be affected, and what a person needs to verify next.
- 20:33SPEAKER_00: That's useful.
- 20:34SPEAKER_00: Half the panic around a new rule starts with somebody saying,
- 20:37SPEAKER_00: I heard they changed it,
- 20:38SPEAKER_00: and nobody knowing whether they means the commission,
- 20:40SPEAKER_00: a trade group, or a man named Randy at lunch.
- 20:43SPEAKER_01: And the podcasts and news feeds are radar, not proof.
- 20:46SPEAKER_01: They can point the monitor toward a possible development,
- 20:48SPEAKER_01: but the official notice is the evidence.
- 20:50SPEAKER_01: If the primary page is unavailable, the item stays marked unverified.
- 20:54SPEAKER_01: It doesn't borrow certainty from a headline.
- 20:56SPEAKER_00: Good.
- 20:56SPEAKER_00: My inbox has enough confident rumors wearing neckties.
- 20:59SPEAKER_01: The first release stays read only and runs on a schedule.
- 21:02SPEAKER_01: We measure relevant alerts,
- 21:03SPEAKER_01: missed changes,
- 21:04SPEAKER_01: false alarms, and how quickly a reviewer reaches the controlling document.
- 21:08SPEAKER_01: No automated filing, no silent deadline change, and no compliance task closes itself.
- 21:12SPEAKER_00: So the machine can tap me on the shoulder,
- 21:14SPEAKER_00: hand me the right page, and say, you may want to look at this.
- 21:17SPEAKER_00: It cannot announce that we're compliant and wander off for the weekend.
- 21:20SPEAKER_01: Every matched update becomes a review task with its citation, date, and a named human owner.
- 21:25SPEAKER_01: Regulatory judgment remains human.
- 21:27SPEAKER_01: ReguTrack cuts the delay between a real change and the right person seeing it.
- 21:30SPEAKER_00: That's not a robot lawyer.
- 21:32SPEAKER_00: That's an organized assistant who knows the difference between somebody mentioned it
- 21:35SPEAKER_00: and the state published it.
- 21:36SPEAKER_00: I'd hire that assistant.
- 21:38SPEAKER_01: That's also why the all-in conversation with Mark Cuban mattered.
- 21:41SPEAKER_01: Enterprise AI is harder than a polished demo.
- 21:43SPEAKER_01: A demo can answer one clean question.
- 21:45SPEAKER_01: Production has crooked scans,
- 21:47SPEAKER_01: duplicate names,
- 21:48SPEAKER_01: missing pages, bad metadata, and users who type Section 12 six different ways.
- 21:52SPEAKER_00: That's the trick, isn't it?
- 21:54SPEAKER_00: The demo gets a clean document, a quiet room, and somebody who already knows the answer.
- 21:58SPEAKER_00: Monday morning gets a water-stained scan,
- 22:00SPEAKER_00: three phone calls, and a deadline that was apparently due yesterday.
- 22:03SPEAKER_01: The real test comes when the inputs are ugly and the people are busy.
- 22:06SPEAKER_01: Saving 10 minutes on the easy file means nothing if the hard one creates 40 minutes of cleanup.
- 22:10SPEAKER_01: That's a new chore with better branding.
- 22:12SPEAKER_00: Put that on a coffee mug.
- 22:13SPEAKER_00: I've met plenty of software that was a new chore with better branding.
- 22:16SPEAKER_01: And every one of them had a beautiful dashboard.
- 22:18SPEAKER_00: Plus one PDF that's upside down, sideways, and somehow 312 megabytes.
- 22:22SPEAKER_01: That ugly Monday morning reality gives me one more operating side build.
- 22:25SPEAKER_01: Shift brief.
- 22:27SPEAKER_01: Every morning, the field team already has the facts somewhere.
- 22:29SPEAKER_01: Production readings,
- 22:30SPEAKER_01: pumper notes, downtime entries, work orders, chemical deliveries, vendor updates.
- 22:34SPEAKER_01: The trouble is that each fact lives in a different place and arrives on a different clock.
- 22:38SPEAKER_00: By 6.30,
- 22:39SPEAKER_00: three people have three versions of why a well is down,
- 22:41SPEAKER_00: and the only person who saw it happen is driving through a dead zone.
- 22:44SPEAKER_01: Shift Brief would gather read-only snapshots and build a short exception list for
- 22:47SPEAKER_01: the morning call.
- 22:49SPEAKER_01: It would show which wells change materially,
- 22:50SPEAKER_01: which notes disagree with the recorded status,
- 22:52SPEAKER_01: and which open work orders may explain the change.
- 22:55SPEAKER_01: Every item would carry its source and timestamp so the team can get back to
- 22:58SPEAKER_01: the original record without hunting.
- 23:00SPEAKER_00: Give me a real one.
- 23:01SPEAKER_00: I don't need a robot saying, production appears anomalous.
- 23:04SPEAKER_00: I can get that level of insight from staring at the coffee pot.
- 23:07SPEAKER_01: Now the morning call starts with a disagreement instead of 20 minutes of discovering
- 23:11SPEAKER_01: that everybody brought a different spreadsheet.
- 23:12SPEAKER_01: Who owns the follow-up?
- 23:13SPEAKER_01: The answer cannot be the group chat.
- 23:14SPEAKER_01: Good.
- 23:15SPEAKER_01: The group chat has never signed a work order.
- 23:34SPEAKER_01: A named person, visible beside the question.
- 23:36SPEAKER_01: The assistant can suggest that operations confirm the restart time or
- 23:40SPEAKER_01: that accounting hold the vendor ticket for review.
- 23:42SPEAKER_01: It cannot change production,
- 23:44SPEAKER_01: close the work order, approve the invoice, or rewrite yesterday's downtime.
- 23:48SPEAKER_01: Those actions remain behind separate approvals.
- 23:50SPEAKER_00: Good.
- 23:51SPEAKER_00: I've seen close enough turn into a monthly allocation problem and
- 23:53SPEAKER_00: then everybody suddenly develops an excellent memory
- 23:55SPEAKER_00: of what somebody else was supposed to enter.
- 23:57SPEAKER_01: The assistant also needs to understand field language
- 24:00SPEAKER_01: without pretending every phrase is a measurement.
- 24:02SPEAKER_01: A note that says, well, acting funny belongs in the queue with the original words attached.
- 24:07SPEAKER_01: It may connect that note to a pressure change or a recent repair,
- 24:10SPEAKER_01: but it cannot upgrade acting funny into a failure diagnosis.
- 24:13SPEAKER_00: That's wise because sounded expensive is a legitimate field observation.
- 24:16SPEAKER_00: It just ain't an engineering unit.
- 24:18SPEAKER_01: Neither is vendor says it's handled.
- 24:21SPEAKER_01: Shift brief should separate a direct observation, a system reading, and a third-party promise.
- 24:25SPEAKER_01: The screen might show all three, but the labels stay different.
- 24:28SPEAKER_01: A current gauge value carries more weight than a two-day-old text,
- 24:31SPEAKER_01: and the age of every item stays visible.
- 24:33SPEAKER_00: Can it catch the small stuff before it turns into the expensive stuff?
- 24:36SPEAKER_00: A chemical delivery missed by a day,
- 24:38SPEAKER_00: a water haul ticket that keeps climbing, a compressor cycling more often than usual?
- 24:42SPEAKER_01: That's the valuable part of the pilot.
- 24:44SPEAKER_01: Start with a handful of patterns the team already knows how to review.
- 24:47SPEAKER_01: Rising water haul.
- 24:48SPEAKER_01: Repeated short downtime.
- 24:49SPEAKER_01: A work order that reopens.
- 24:51SPEAKER_01: Chemical usage moving without a matching field explanation.
- 24:54SPEAKER_01: The system surfaces the pattern and the supporting records.
- 24:57SPEAKER_01: An experienced person decides whether the pattern deserves action.
- 25:00SPEAKER_00: Somebody will ask for a giant red alarm on day one, but they always do.
- 25:03SPEAKER_00: Then after two weeks, the alarm fires so often that everybody uses it to hang a jacket.
- 25:07SPEAKER_01: Which is why the first scorecard should be painfully ordinary.
- 25:10SPEAKER_01: Useful exceptions,
- 25:11SPEAKER_01: missed events,
- 25:12SPEAKER_01: false alarms,
- 25:13SPEAKER_01: minutes saved before the morning call, and time required to reach the source record.
- 25:17SPEAKER_01: If the queue grows faster than the team can review it, tighten the scope.
- 25:20SPEAKER_01: More alerts do not equal more intelligence.
- 25:22SPEAKER_00: Put that last sentence on the wall.
- 25:24SPEAKER_00: Our industry has bought plenty of blinking lights and discovered later
- 25:27SPEAKER_00: that somebody still had to know what they meant.
- 25:29SPEAKER_01: The trial should use historical days the team has already reconstructed.
- 25:32SPEAKER_01: Hide the known answers,
- 25:33SPEAKER_01: let shift brief prepare its cue,
- 25:34SPEAKER_01: and compare the result with what the operators eventually learned.
- 25:37SPEAKER_01: Include boring days too.
- 25:38SPEAKER_01: A system that invents a crisis whenever the field is quiet will be ignored by Wednesday.
- 25:42SPEAKER_00: And include a Friday before a holiday.
- 25:44SPEAKER_00: That's when every piece of equipment develops a sense of humor.
- 25:47SPEAKER_01: Then give it live read-only access to a small group of wells and keep
- 25:50SPEAKER_01: the morning workflow unchanged.
- 25:52SPEAKER_01: The supervisor sees the assistance queue beside the existing reports.
- 25:55SPEAKER_01: We measure whether it shortens the call and raises better questions.
- 25:58SPEAKER_01: Nobody loses an old control until the new process earns trust.
- 26:01SPEAKER_00: What happens when two records disagree and nobody can settle it before the call ends?
- 26:05SPEAKER_01: The conflict stays open with both sources attached.
- 26:08SPEAKER_01: No guest restart time,
- 26:09SPEAKER_01: no silent averaging, and no polished paragraph that hides the uncertainty.
- 26:12SPEAKER_01: The owner can add the missing fact later, and the audit trail shows who resolved it and why.
- 26:16SPEAKER_00: That's a tool I could use.
- 26:18SPEAKER_00: It walks into the meeting with the loose threads already marked,
- 26:20SPEAKER_00: then keeps its hands off the controls.
- 26:22SPEAKER_01: That's the standard we want.
- 26:24SPEAKER_01: Give people a sharper picture,
- 26:25SPEAKER_01: keep the evidence close, and let authority remain where the operation put it.
- 26:28SPEAKER_01: If the pilot cannot do that consistently, it stays on probation.
- 26:31SPEAKER_00: A probationary hire that doesn't get a truck key.
- 26:33SPEAKER_00: I can live with that.
- 26:34SPEAKER_01: Always.
- 26:35SPEAKER_01: So we follow the forward-deployed engineer loop from the Startup Ideas podcast.
- 26:39SPEAKER_01: Audit the workflow, evaluate the idea, then deploy carefully.
- 26:43SPEAKER_01: Start with examples an experienced reviewer has already checked.
- 26:46SPEAKER_01: Measure whether the assistant finds the known concerns,
- 26:48SPEAKER_01: whether it invents any, and whether its questions point back to evidence.
- 26:52SPEAKER_01: If it can't pass that test, it doesn't graduate.
- 26:54SPEAKER_00: Finally, a robot with a probation period.
- 26:56SPEAKER_01: And the measurements should be boring.
- 26:58SPEAKER_01: False positives, missed defects, time saved, cost per document, and how often the human agrees.
- 27:04SPEAKER_01: No, the demo felt magical metric.
- 27:07SPEAKER_00: Shame.
- 27:08SPEAKER_00: I was fixing to add number of times Packer says mind-blowing to the dashboard.
- 27:12SPEAKER_01: That number would hurt my performance review.
- 27:13SPEAKER_00: It'd need its own server.
- 27:15SPEAKER_01: The small win is a review queue that cites its work.
- 27:17SPEAKER_01: The bigger win comes later.
- 27:19SPEAKER_01: Once a human confirms an anomaly, Landman OS could draft the next curative step.
- 27:23SPEAKER_01: A person reviews that draft before anything moves.
- 27:25SPEAKER_00: There it is.
- 27:26SPEAKER_00: Keep the machine busy, keep the evidence attached, and keep a person responsible.
- 27:29SPEAKER_00: That's automation I can live with.
- 27:31SPEAKER_01: If listeners have a field or land workflow that eats hours every week,
- 27:34SPEAKER_01: send it to siliconandshale at gemail.com.
- 27:37SPEAKER_01: Give us the ugly version, not the sales demo version.
- 27:40SPEAKER_01: That's where the useful builds come from.
- 27:42SPEAKER_00: Especially if it involves a sideways PDF.
- 27:44SPEAKER_00: Apparently that's our specialty now.
- 27:46SPEAKER_01: And breakfast burrito accounting.
- 27:47SPEAKER_00: We contain multitudes.
- 27:49SPEAKER_00: On that note, we're out of time for this week.
- 27:50SPEAKER_01: One last thing.
- 27:52SPEAKER_01: Silicon & Shale is looking for a few sponsors who sell useful products or services
- 27:55SPEAKER_01: to operators, land teams, and energy people.
- 27:58SPEAKER_01: If that fits your company, email siliconandshale at gmail.com.
- 28:01SPEAKER_00: Anybody selling to oil and gas should know Packer's going to ask whether
- 28:04SPEAKER_00: the product actually works before she lets me say nice things about it.
- 28:07SPEAKER_01: Bring receipts.
- 28:08SPEAKER_01: That's the deal.
- 28:09SPEAKER_00: There goes the free breakfast burrito sponsorship.
- 28:12SPEAKER_01: Those have already been accounted for.