Question

When water is removed faster than it can be recharged, sediments may become compacted in a process called ____?

Answer 1

Subsidence.
Underground fluids are under pressure and this pressure supports layers above the fluid. When the fluid is removed, the sediments that contained the fluid may compact and the layers above the sediment may drop. The two most common fluids that mankind removes is water (ground water) and oil. This compaction may be reversible (elastic), or non-reversible (inelastic) with replenishment of the removed fluid.