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Stress concentration around the wellbore can create breakouts, fractures, or failures. Understanding the stresses on rocks around wellbores is important to well design. For a vertical well drilled in a homogeneous and isotropic elastic rock in which one principal stress (the overburden stress,Sv) is parallel to the wellbore axis, the effective hoop stress,σθθ, at the wall of a cylindrical wellbore is given byEq. Here, θ is measured from the azimuth of the maximum horizontal stress, SHmax SH min is the minimum horizontal stress; Pp is the pore pressure; ΔP is the difference between the wellbore pressure (mud weight) and the pore pressure, and σΔT is the thermal stress induced by cooling of the wellbore by ΔT. At the point of minimum compression around the wellbore (i.e., atθ 0, parallel to SHmax), Eq. 1 reduces to The equations for σθθ; and σzz are illustrated in Figure 1 for a strike-slip/normal faulting stress regime (SHmax Sv SHmin) at a depth of 5 km, where the pore pressure is hydrostatic and both ΔP and σΔT are assumed to be zero for simplicity.