Final answer:
The biggest expenses in massive frac jobs involve the sourcing and transportation of water, environmental management costs (including land restoration), and the investment in drilling and fracking equipment.
Step-by-step explanation:
Biggest Expenses in Massive Frac Jobs
When considering a massive frac job, the biggest expenses are typically associated with the sourcing, transportation, and handling of resources required for the procedure. Firstly, a frac job requires huge amounts of water, which is not only costly to transport but also to mix with the necessary fracking chemicals. The preparation and procurement of this water-chemical mixture can be a significant outlay.
Secondly, managing the environmental cost and the implications of potentially contaminated water returned to the water cycle must be considered. Moreover, the restoration of land as required by state policies, such as those in Colorado, can present substantial expenses post-extraction. Not to mention, the costs associated with ensuring that fracking does not pollute groundwater, contaminate freshwater resources, or instigate seismic activity can be hefty. Keeping fracking operations compliant with environmental standards requires investment in safety measures and technology.
Lastly, there is the expense related to the capital invested in drilling equipment and the technological infrastructure needed for hydraulic fracturing. This includes the cost of horizontally drilled wells, which can extend up to 10,000 feet below the surface.