Hydraulic fracturing, or fracking, is a technique that allows trapped oil or gas to move towards the well. The rapid expansion of this technology from the late 2000s forced a confrontation with a series of environmental risks associated with its operation. One of the most discussed issues was the intensive use of water. It also launched one of the most significant processes of technological and regulatory adaptation in recent energy policy history. The technique that unlocked shale resources, or hydraulic fracturing, has faced intense public scrutiny from its inception. In particular, in the United States, state and federal agencies have developed stricter regulatory frameworks for well construction, wastewater management, and methane emission monitoring. This process reflects a broader characteristic of the new energy cycle. Today, the country produces nearly a fifth of the world's natural gas, according to estimates from the International Energy Agency, a transformation that has redefined international gas trade and the energy security of several regions. Ultimately, the shale experience shows that the development of new energy technologies does not eliminate environmental risks, but it does force the creation of institutions capable of managing them. As economies become increasingly dependent on complex production systems—energy infrastructure, supply chains, and advanced technologies—environmental risk management becomes an integral part of institutional design. In the United States, the expansion of natural gas has also had significant implications for the power system. A single shale well can require between 10 and 20 million liters of water during the fracturing process. The shale boom in the US not only transformed global energy markets. The International Energy Agency identifies the substitution of coal for gas as one of the factors contributing to the reduction of emissions from the US power sector over the last two decades. At the same time, shale development has had energy implications that extend far beyond the United States. In places like Oklahoma, the increase in seismic activity was linked to the reinjection of wastewater from oil and gas production into deep wells. Far from halting shale development, these challenges have driven a process of technological and regulatory adaptation. On the technological front, the industry began to develop more efficient water management methods. Environmental organizations, local communities, and regulatory bodies, including the Environmental Protection Agency, began to assess the risks associated with a technology that, in just a few years, came into use in thousands of wells across the US. Understanding this process requires first understanding, at least at a basic level, how hydrocarbon production in shale formations works. Unlike conventional reservoirs, where oil and gas accumulate in porous rocks, shales are extremely dense formations. Although fracturing generally occurs at depths far below freshwater aquifers, some documented incidents in the early years of the shale boom were associated with failures in well casing or design. A third issue that gained importance was methane emissions. Leaks from valves, compressors, or transportation systems can release methane into the atmosphere, leading to growing scrutiny of the industry's emissions. Methane is the main component of natural gas and also a potent greenhouse gas. According to estimates from the International Energy Agency's Global Methane Tracker, the energy sector is responsible for about 40% of global anthropogenic methane emissions, although the same agency notes that about 75% of these emissions could be reduced with available technologies. Finally, in some producing states, another unexpected challenge emerged. The second is hydraulic fracturing, which involves injecting water, sand, and small amounts of chemical additives at high pressure to create micro-fractures in the rock. In this sense, the real challenge of the new economic cycle in the energy sector is not only to increase energy generation but to build regulatory and technological frameworks that allow it to be done responsibly and sustainably. In regions with water stress, this volume raised questions about water resource management and the disposal of water used in the process. Another relevant aspect has been well integrity. Although fracturing generally occurs at depths far below freshwater aquifers, some documented incidents in the early years of the shale boom were associated with failures in well casing or design. A third issue that gained importance was methane emissions. Leaks from valves, compressors, or transportation systems can release methane into the atmosphere, leading to growing scrutiny of the industry's emissions. Methane is the main component of natural gas and also a potent greenhouse gas. In several producing basins, the recycling of water used in fracturing has become widespread, reducing the need for new water withdrawals. Gas emits about half the carbon dioxide of coal when used to generate electricity, which has led some analysts to consider it a transition fuel. *The author is the Secretary of Administration and Finance of Mexico City. The first is horizontal drilling, which allows a well to extend several kilometers into the geological formation. Sensors installed on equipment and remote monitoring systems allow for the detection of operational anomalies and a faster response to potential failures. In parallel, in some countries, regulators have advanced in introducing stricter environmental standards.
