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The roughneck is slowly disappearing from the oilfield as AI and automation take over

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Picture an oilfield. Chances are you see a greasy drilling rig surrounded by a group of equally greased-up and grizzled oilmen, moving heavy equipment in a dangerous and labor-intensive environment.

Not these days. The coverall-adorned roughnecks of yesteryear today are now much fewer and more likely to sit in data vans monitoring the computer screens instead of constantly configuring all the pipes and tools manually. “The days of the mud-soaked rig hand with a cigarette in his mouth are behind us,” said Dan Pickering, founder and chief investment officer for Pickering Energy Partners consulting and research firm. “The hardest and riskiest jobs are getting gradually replaced with technology. They can’t all be completely replaced, but it’s happening.”

The transformation is just over a decade in the making, but now it’s supercharged by AI. In industry parlance, the AI-controlled rigs can now use ‘autonomous geosteering’—drilling many thousands of feet underground without human involvement. Oilfields are overseen remotely, requiring fewer people and resources onsite—cutting costs and saving valuable time. “You basically sit back in the chair, take it easy, have a cup of coffee, and you watch what is happening on the screen,” said Rakesh Jaggi, president of digital and integration for SLB, the world’s largest oilfield services firm.

“Some of the things that we can do today with these autonomous operations are mindboggling. I get goosebumps even now,” Jaggi told Fortune. “The first time, it’s like, ‘Oh, wow, this is magic.’”

From late 2014 until now, the U.S. shed almost 35% of its oil, gas, and mining jobs, according to the Bureau of Labor Statistics, down about 270,000 jobs, including 12,000 positions just since April. Those losses range from geoscientists and petroleum engineers to blue-collar roustabouts and wellhead pumpers. ConocoPhillips, Chevron, and BP, for instance, are laying off thousands of workers each this year and next despite remaining highly profitable.

Apart from tech gains and industry consolidation, a big factor is the cyclical downturns in oil prices, forcing the industry to lean into efficiencies and innovations, especially when OPEC ramps up volumes to fight for market share, including in late 2014 and now in 2025. Gone is the heyday of $100 per barrel crude oil from 2011 to 2014. Today it’s about $63. Since 2014, the number of active drilling rigs plunged 70% down to 539 rigs as of mid-September, including the loss of about 50 rigs in 12 months.

Many industries falsely brag of doing more with less, but the energy sector has truly meant it, said Ken Medlock, Rice University fellow in energy and resource economics. “With AI integration, you’re going to see that continue. Now there’s potential to see this on steroids,” Medlock said. “There’s a much stronger push to reduce the labor intensity of drilling and production activities.”

Victims of their own success

The slow but steady disappearance of the roughnecks may be the most visible sign things are changing fast, but throughout the production process companies are making tweaks in their systems to be more efficient. Wells are drilled 4 miles horizontally as opposed to 1 mile a decade ago, requiring fewer crews with fewer people.

Denver’s Liberty Energy is a case study in how quickly AI is changing things. The nearly 15-year-old company quickly grew into a U.S. hydraulic fracturing, or fracking, leader. Founder and former CEO Chris Wright is even President Trump’s new energy secretary.

“We’re already in this world today where we’re going to run and execute the frac quite literally with a computer. AI can do all of it,” said Ron Gusek, who replaced Wright as CEO of Liberty. “I can’t think of a time in Liberty’s history where we’ve been able to move the needle that dramatically in less than 12 months. It’s just phenomenal.”

The number of frac fleets required in the U.S. dipped more than 50% in six years as crews are increasingly able to frac larger wells more quickly, including two wells at a time, called simul-frac.

More automation has been incorporated for the past several years with smarter rigs and more, but autonomous operations are new. That’s the difference between using GPS to help you navigate versus sitting idly in a self-driving car, said Jaggi of oil giant SLB, arguing the Neuro and DrillOps Automate solutions by SLB (No. 437 on the Fortune Global 500) drive the drill bit for you.

These improving tech results also are the product of necessity. The U.S. shale industry is maturing, and the best wells already are drilled. To get the same results, increasingly longer wells are needed, so financial savings must be found wherever possible through time savings, production efficiencies, and smaller payrolls.

“The age of easy oil is gone,” said Jaggi of energy giant SLB. “To find the same amount of oil is a lot more challenging than it used to be.” Big Data and AI help balance the scale, he said.

Chevron partners with Halliburton (No. 194 on the Fortune 500), for instance, on its AI fracking system, called Zeus IQ, that allows for quick, autonomous decision-making. But there’s still the corporate and human hurdle of fully trusting the tech when each well costs millions.

It’s the difference between determining whether people will serve as referees regularly intervening as needed, or if they will only operate as glorified emergency shutdown buttons, said Steve Bowman, general manager of AI for Chevron (No. 16 on the Fortune 500).

“The bar to get individuals to really lean in and trust those models is incredibly high because people understand the stakes of the game,” Bowman said.

So, the human element won’t be eliminated, just substantially reduced. As Gusek added, “We’re still looking for mechanically inclined people that don’t mind being out in the elements for 12 hours a day on a shift, whether it’s 40 [degrees] below or 100 and above. I don’t see that going away for a long time.”

Chevron’s Integrated Operations Center in the Permian Basin monitors operations data and equipment across the vast region. At the heart is the Real-time Autonomous Optimizer (RAO)—AI-powered tech that autonomously regulates pressure fluctuations and adjusts valves for optimal performance and safety without human intervention.

Nibbling around the edges

Almost every industry is figuring out how to cut costs in back-office operations, supply chains, and logistics with AI.

The AI programs even make work easier for the so-called landman jobs–nothing like Billy Bob Thornton’s over-the-top “Landman” drama–which handle property research and land deal negotiations—all of which are incredibly important to legally allow for the drilling in the first place.

Energy research firm Enverus’ Courthouse application allows the landman to sort through hundreds of millions of public acreage and mineral lease documents in every county. “A lot of these documents are of poor image quality. They’re structured differently. They were written by different law firms in different decades. The key information is not in the same place, and every document is kind of all over the place,” said Jimmy Fortuna, Enverus chief product officer.

The AI organizes and summarizes the data in seconds, he said, saving maybe 30 minutes of time per document.

While the people savings from technology are huge, said Ed Hirs, University of Houston energy economist, the time savings from automation and fewer human moving parts is just as valuable—the elimination of non-productive time.

“There are actually fewer things to go wrong,” Hirs said. “You wind up saving downtimes and extra trips. It’s all about this nibbling around the edges, making those incremental improvements, and, when we add them all together, that’s a significant cost reduction.”

The time to drill a longer well shrinks from 30 days to almost 20. That means the company can deploy each rig much more frequently and pay for fewer expensive rigs, while still getting the same or better results, he said.

New college graduates are struggling to find oil and gas right now, Hirs said, but more companies are beginning to realize the value of scooping up AI-savvy young people now.

The education has quickly shifted from trying to prevent students from using ChatGPT to cheat to now teaching them how to best utilize AI in the classroom, the office, and the oil patch.

The new generation will oversee and improve the AI allowing a person to supervise a drilling project from hundreds of miles—or half a world—away.

“The oil patch of today is just much more automated,” said Dan Pickering. “It’s a bunch of cool gadgets with one or two people instead of 15. Those days are happening now, and they’re ahead of us.”



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Coupang CEO resigns over historic South Korean data breach

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Coupang chief executive officer Park Dae-jun resigned over his failure to prevent South Korea’s largest-ever data breach, which set off a regulatory and political backlash against the country’s dominant online retailer.

The company said in a statement on Wednesday that Park had stepped down over his role in the breach. It appointed Harold Rogers, chief administrative officer for the retailer’s U.S.-based parent company Coupang Inc., as interim head.

Park becomes the highest-profile casualty of a crisis that’s prompted a government investigation and disrupted the lives of millions across Korea. Nearly two-thirds of people in the country were affected by the breach, which granted unauthorized access to their shipping addresses and phone numbers.

Police raided Coupang’s headquarters this week in search of evidence that could help them determine how the breach took place as well as the identity of the hacker, Yonhap News reported, citing officials.

Officials have said the breach was carried out over five months in which the company’s cybersecurity systems were bypassed. Last week President Lee Jae Myung said it was “truly astonishing” that Coupang had failed to detect unauthorized access of its systems for such a long time.

Park squared off with lawmakers this month during an hours-long grilling. Responding to questions about media reports that claimed the attack had been carried out by a former employee who had since returned to China, he said a Chinese national who left the company and had been a “developer working on the authentication system” was involved.

The company faces a potential fine of up to 1 trillion won ($681 million) over the incident, lawmakers said.

Coupang founder Bom Kim has been summoned to appear before a parliamentary hearing on Dec. 17, with lawmakers warning of consequences if the billionaire fails to show.

Park’s departure adds fresh uncertainty to Coupang’s leadership less than seven months after the company revamped its internal structure to make him sole CEO of its Korean operations. In his new role, Rogers will focus on addressing customer concerns and stabilizing the company, Coupang said.

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Databricks CEO Ali Ghodsi says company will be worth $1 trillion by doing these three things

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Ali Ghodsi, the CEO and cofounder of data intelligence company Databricks, is betting his privately held startup can be the latest addition to the trillion-dollar valuation club.

In August, Ghodsi told the Wall Street Journalthat he believed Databricks, which is reportedly in talks toraise funding at a $134 billion valuation, had “a shot to be a trillion-dollar company.” At Fortune’s Brainstorm AI conference in San Francisco on Tuesday, he explained how it would happen, laying out a “trifecta” of growth areas to ignite the company’s next leg of growth.

The first is entering the transactional database market, the traditional territory of large enterprise players like Oracle, which Ghodsi said has remained largely “the same for 40 years.” Earlier this year, Databricks launched a link-based offering called Lakehouse, which aims to combine the capabilities of traditional databases with modern data lake storage, in an attempt to capture some of this market.

The company is also seeing growth driven by the rise of AI-powered coding. “Over 80% of the databases that are being launched on Databricks are not being launched by humans, but by AI agents,” Ghodsi said. As developers use AI tools for “vibe coding”—rapidly building software with natural language commands—those applications automatically need databases, and Ghodsi they’re defaulting to Databricks’ platform.

“That’s just a huge growth factor for us. I think if we just did that, we could maybe get all the way to a trillion,” he said.

The second growth area is Agentbricks, Databricks’ platform for building AI agents that work with proprietary enterprise data.

“It’s a commodity now to have AI that has general knowledge,” Ghodsi said, but “it’s very elusive to get AI that really works and understands that proprietary data that’s inside enterprise.” He pointed to the Royal Bank of Canada, which built AI agents for equity research analysts, as an example. Ghodsi said these agents were able to automatically gather earnings calls and company information to assemble research reports, reducing “many days’ worth of work down to minutes.”

And finally, the third piece to Ghodsi’s puzzle involves building applications on top of this infrastructure, with developers using AI tools to quickly build applications that run on Lakehouse and which are then powered by AI agents. “To get the trifecta is also to have apps on top of this. Now you have apps that are vibe coded with the database, Lakehouse, and with agents,” Ghodsi said. “Those are three new vectors for us.”

Ghodsi did not provide a timeframe for attaining the trillion-dollar goal. Currently, only a handful of companies have achieved the milestone, all of them as publicly traded companies. In the tech industry, only big tech giants like Apple, Microsoft, Nvidia, Alphabet, Amazon, and Meta have managed to cross the trillion-dollar threshold.

To reach this level would require Databricks, which is widely expected to go public sometime in early 2026, to grow its valuation roughly sevenfold from its current reported level. Part of this journey will likely also include the expected IPO, Ghodsi said.

“There are huge advantages and pros and cons. That’s why we’re not super religious about it,” Ghodsi said when asked about a potential IPO. “We will go public at some point. But to us, it’s not a really big deal.”

Could the company IPO next year? Maybe, replied Ghodsi.



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New contract shows Palantir working on tech platform for another federal agency that works with ICE

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Palantir, the artificial intelligence and data analytics company, has quietly started working on a tech platform for a federal immigration agency that has referred dozens of individuals to U.S. Immigration and Customs Enforcement for potential enforcement since September.

The U.S. Citizenship and Immigration Services agency—which handles services including citizenship applications, family immigration, adoptions, and work permits for non-citizens—started the contract with Palantir at the end of October, and is paying the data analytics company to implement “Phase 0” of a “vetting of wedding-based schemes,” or “VOWS” platform, according to the federal contract, which was posted to the U.S. government website and reviewed by Fortune.

The contract is small—less than $100,000—and details of what exactly the new platform entails are thin. The contract itself offers few details, apart from the general description of the platform (“vetting of wedding-based schemes”) and an estimate that the completion of the contract would be Dec. 9.Palantir declined to comment on the contract or nature of the work, and USCIS did not respond to requests for comment for this story.

But the contract is notable, nonetheless, as it marks the beginning of a new relationship between USCIS and Palantir, which has had longstanding contracts with ICE, another agency of the Department of Homeland Security, since at least 2011. The description of the contract suggests that the “VOWS” platform may very well be focused on marriage fraud and related to USCIS’ recent stated effort to drill down on duplicity in applications for marriage and family-based petitions, employment authorizations, and parole-related requests.

USCIS has been outspoken about its recent collaboration with ICE. Over nine days in September, USCIS announced that it worked with ICE and the Federal Bureau of Investigation to conduct what it called “Operation Twin Shield” in the Minneapolis-St. Paul area, where immigration officials investigated potential cases of fraud in immigration benefit applications the agency had received. The agency reported that its officers referred 42 cases to ICE over the period. In a statement published to the USCIS website shortly after the operation, USCIS director Joseph Edlow said his agency was “declaring an all-out war on immigration fraud” and that it would “relentlessly pursue everyone involved in undermining the integrity of our immigration system and laws.” 

“Under President Trump, we will leave no stone unturned,” he said.

Earlier this year, USCIS rolled out updates to its policy requirements for marriage-based green cards, which have included more details of relationship evidence and stricter interview requirements.

While Palantir has always been a controversial company—and one that tends to lean into that reputation no less—the new contract with USCIS is likely to lead to more public scrutiny. Backlash over Palantir’s contracts with ICE have intensified this year amid the Trump Administration’s crackdown on immigration and aggressive tactics used by ICE to detain immigrants that have gone viral on social media. Not to mention, Palantir inked a $30 million contract with ICE earlier this year to pilot a system that will track individuals who have elected to self-deport and help ICE with targeting and enforcement prioritization. There has been pushback from current and former employees of the company alike over contracts the company has with ICE and Israel.

In a recent interview at the New York Times DealBook Summit, Karp was asked on stage about Palantir’s work with ICE and later what Karp thought, from a moral standpoint, about families getting separated by ICE. “Of course I don’t like that, right? No one likes that. No American. This is the fairest, least bigoted, most open-minded culture in the world,” Karp said. But he said he cared about two issues politically: immigration and “re-establishing the deterrent capacity of America without being a colonialist neocon view. On those two issues, this president has performed.”



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