Hydraulic fracturing

{
  "id": "MLC-T-INS-001761",
  "term": "Hydraulic fracturing",
  "field": "Insurance and risk management",
  "definition": "A well stimulation technique used to extract natural gas or oil from low-permeability rock formations like shale. The process involves injecting a high-pressure fluid, composed mainly of water, sand, and chemical additives, into a wellbore to create and expand fractures in the rock, allowing hydrocarbons to flow more freely. The practice creates complex environmental liability and operational risks, including potential groundwater contamination and induced seismic activity, which require specialized insurance coverage.",
  "url": "https://mlchart.com/terminology/insurance/hydraulic-fracturing/"
}