Welcome to the Investors Trading Academy talking glossary of financial terms and events.
Our word of the day is “Fracking” The word Fracking has become an everyday term,
with the growth of the new technology for extracting oil and gas.
It is shorthand for hydraulic fracturing and refers to how the rock is fractured apart
by the high pressure mixture.
Experts also refer to a "frac job" and a "frac unit”.
The process has also become very controversial, and the process has made the US a global exporter
of energy products shifting reliance from OPEC nations.
Fracking refers to the procedure of creating fractures in rocks and rock formations by
injecting fluid into cracks to force them further open.
The larger fissures allow more oil and gas to flow out of the formation and into the
wellbore, from where it can be extracted.
Fracking has resulted in many oil and gas wells attaining a state of economic viability,
due to the level of extraction that can be reached.
Fracking is the process of drilling down into the earth then a high-pressure water mixture
is directed at the rock to release the gas inside.
Water, sand and chemicals are injected into the rock at high pressure which allows the
gas to flow out to the head of the well.
The process is carried out vertically or, more commonly, by drilling horizontally to
the rock layer.
The process can create new pathways to release gas or can be used to extend existing channels.