DEFINITION of 'Hydraulic Fracturing'

Hydraulic fracturing refers to the procedure of creating fractures in rocks and rock formations by injecting a mixture of sand and water into the cracks to force underground to open further. The larger fissures allow more oil and gas to flow out of the formation and into the well bore, from where it can be extracted.

Hydraulic Fracturing has resulted in many oil and gas wells attaining a state of economic viability, due to the level of extraction that can be reached.

BREAKING DOWN 'Hydraulic Fracturing'

Petroleum engineers have used hydraulic fracturing as a means of increasing well production since the late 1940s. Fractures can also exist naturally in formations, and both natural and man-made fractures can be widened by this process. As a result, more oil and gas can be extracted from a given area of land.

  1. LPG Fracturing

    Fracturing rock at depth through the use of liquefied propane. ...
  2. Cost Depletion

    One of two accounting methods used to allocate the costs of extracting ...
  3. Exploration & Production - E&P

    An exploration & production company is known to be in a specific ...
  4. Oil Sands

    Sand and rock material which contains crude bitumen (a heavy, ...
  5. Shale Band

    The shale band is the price level at which most North American ...
  6. Control Of Well Insurance

    Insurance that provides coverage to companies operating a well ...
Related Articles
  1. Investing

    Fracking Can't Happen Without These Companies

    With all the attention paid to fracking, what is are the good investment opportunities? Are the companies that extract oil and natural gas a good bet?
  2. Investing

    The Economics of Oil Extraction

    The overall economics of oil extraction is that there is money in it - both for extraction companies and their investors.
  3. Investing

    How Fracking Affects Natural Gas Prices

    Whatever you think of fracking, it has done one thing: kept the price of natural gas from increasing any more than it has.
  4. Investing

    With Fracking It’s All About Water Management

    It takes an awfully large amount of water to frack an oil and gas well these days. Given the growth projections for production activity in the U.S. and Canada, water management could be one of ...
  5. Investing

    The Smartest Strategies For Trading Natural Gas Options

    There are multiple strategies for trading natural gas options, once you have the right data. Here we discuss the basics.
  6. Financial Advisor

    The Biggest Oil Towns in Colorado

    Read about the most important oil and gas towns in Colorado, a state caught in the controversy of hydraulic fracturing and the environment.
  7. Investing

    How the Oil and Gas Industry Works

    The oil and gas industry has unique terminology that's crucial for investors to understand.
  8. Investing

    Commodities Of The Future

    Our rising global population is putting all sorts of pressures on the planet's natural resources.
  9. Investing

    Oil Boom 2.0: Be Sure You Are Ready to Invest

    Learn about the potential for oil boom 2.0, and discover why some experts say this is a good time to invest in oil companies and ETFs.
  10. Investing

    Countries With The Highest Fracking Potential

    Is fracking a "necessary evil," as some believe? Here are some countries with huge fracking potential--and what they stand to lose or gain from fracking.
  1. How does fracking affect natural gas prices?

    Take a deeper look at the impact of hydraulic fracturing on the price for natural gas, and why fracking may eventually price ... Read Answer >>
  2. How has fracking helped the U.S. to decrease dependence on foreign oil?

    Learn about the drilling technique referred to as fracking, and discover how this technology has significantly reduced U.S. ... Read Answer >>
  3. Where and when is fracking advantageous?

    Take a deeper look at the economic and environmental impacts of fracking, a technique used to increase the production of ... Read Answer >>
  4. What developed countries have the greatest exposure to oil & gas drilling?

    Find out which countries have the largest proven reserves of oil and gas, and learn how the energy landscape has changed ... Read Answer >>
  5. What percentage of the global economy is comprised of the oil & gas drilling sector?

    Read about a rising industry that already composes as much as one-twentieth of total global economic output: the oil & gas ... Read Answer >>
  6. What impact does the growth in horizontal drilling have in the oil and gas sector?

    Read about the development of horizontal drilling for oil and natural gas and how the oil and gas sector has benefited from ... Read Answer >>
Hot Definitions
  1. Entrepreneur

    An Entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture. ...
  2. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  3. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  4. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  5. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  6. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
Trading Center