You can buy small kits that do that.There has to be a better way to make great bourbon. For example, throw charred staves in some sort of inert metal/plastic/smegma barrel. You still get the movement through wood without the gigantic waste of water. And if you use some sort of metal, you'll get faster temperature swings.
Obviously, it couldn't be called bourbon then, but there has to be some technology that we use these days for Christ's sake.
You're welcome to argue (and I'm sure you will) about how terrible my idea is, but you're missing the point. There HAS to be a better way.
Basically moonshine with charred wooden bits and a glass bottle, or a small oak cask that's charred on the inside. A couple friends have done it. I've been interested in playing with doing it but with different woods than oak.
I don't think it scales well, but there are a couple of distilleries that are playing with it.