In the oil and gas production industry, refers to uncontrolled eruption of
oil, gas, water, or drilling fluid from a well that is in the process of being
drilled (blowout) or to the caving in of a well that has already been drilled.
Blowouts are generally caused by the penetration of a reservoir that contains
gas or oil that is under higher pressure than has been allowed for; often the
oil or gas catches fire. When a well craters, often the drilling rig itself
goes under with the well. Coverage for the insured's liability for damage to
property of others caused by blowout or cratering is optional in the commercial
general liability (CGL) policy. A specialty coverage—control-of-well insurance—provides
coverage for the expenses of bringing a blowout under control, cleaning up any resulting pollution, and damage to the property of the operator.