Shell's Alternative Business Models: Fracking
Carlos Moura EGS Individual Assignment
Shell’s Alternative Business Models: Hydraulic Fracturing
Table of Contents 1. Forward 2
2. Context 3
3. Hydraulic Fracturing 4
4. Actors
4.1. Shell 5 .
4.2. Community 6
4.3. Government 7
5. The opponents perspective 7
6. Conclusion 9 7. References 10
Word count: 1980 (excluding Table of Contents and References)
1. Forward
In June, 2010, an annual favorability poll by Gallup covering the 24 largest industries in the US, rated the oil industry 24th out of 24 for the seventh year in a row (Jones 2010). Despite multinational Oil and Gas companies having the most advanced social responsibility and governance programs across industries and being the largest investors in alternative energy sources globally, this sentiment is shared by many citizens and organizations worldwide.
This case study forms part of a larger work on the ethical behavior of Shell Oil Company (hereafter referred to as Shell) which will be submitted by Syndicate 1, and focusses on the organization’s commitment to alternative business models. In addition to the core business of oil and its various sub-models, Shell has committed to two main business models to help them achieve “more energy, less carbon dioxide”, namely bio-fuels and gas. The focus of this paper is specifically on the gas model, and the sphere of discussion is further narrowed down to concentrate on the issue of Hydraulic Fracturing in the Karoo region of South Africa, as this reserve will represent a significant percentage of Shell’s gas potential in the region.
The logic behind this is threefold. Firstly it helps to ‘thin-slice’ the very wide subject of alternative business models because the arguments and issues raised here can be applied to a variety of models. Secondly, it offers an opportunity to explore an ethically contentious issue, as will become
Shell’s Alternative Business Models: Hydraulic Fracturing
Table of Contents 1. Forward 2
2. Context 3
3. Hydraulic Fracturing 4
4. Actors
4.1. Shell 5 .
4.2. Community 6
4.3. Government 7
5. The opponents perspective 7
6. Conclusion 9 7. References 10
Word count: 1980 (excluding Table of Contents and References)
1. Forward
In June, 2010, an annual favorability poll by Gallup covering the 24 largest industries in the US, rated the oil industry 24th out of 24 for the seventh year in a row (Jones 2010). Despite multinational Oil and Gas companies having the most advanced social responsibility and governance programs across industries and being the largest investors in alternative energy sources globally, this sentiment is shared by many citizens and organizations worldwide.
This case study forms part of a larger work on the ethical behavior of Shell Oil Company (hereafter referred to as Shell) which will be submitted by Syndicate 1, and focusses on the organization’s commitment to alternative business models. In addition to the core business of oil and its various sub-models, Shell has committed to two main business models to help them achieve “more energy, less carbon dioxide”, namely bio-fuels and gas. The focus of this paper is specifically on the gas model, and the sphere of discussion is further narrowed down to concentrate on the issue of Hydraulic Fracturing in the Karoo region of South Africa, as this reserve will represent a significant percentage of Shell’s gas potential in the region.
The logic behind this is threefold. Firstly it helps to ‘thin-slice’ the very wide subject of alternative business models because the arguments and issues raised here can be applied to a variety of models. Secondly, it offers an opportunity to explore an ethically contentious issue, as will become
References: J. Jones (2010, last update 23 August) Record Surge in Positive Ratings of Auto Industry, last accessed 10 May, 2012, from http://www.gallup.com/poll/142409/record-surge-positive-ratings-auto-industry.aspx Shell (2011) Sustainability Report 2011, released April 2012. J. du Toit (2011, last update 31 Jan) Fracking the Karoo – People say No, last accessed 4 May, 2012, from http://www.karoospace.co.za/karoo-space-magazine/talking-point/100-fracking-the-karoo-the-people-say-no A. Martinez (2012, last update 3 March) Moneyweb: Report on South Africa Gas flawed, last accessed 6 May, 2012, from http://www.moneyweb.co.za/mw/view/mw/en/page292520?oid=563462&sn=2009+Detail&pid=563788 USA (2005) Regulation of Hydraulic Fracturing Under the Safe Drinking Water Act, 1421(d), Environmental Protection Agency, website http://water.epa.gov/type/groundwater/uic/class2/hydraulicfracturing/wells_hydroreg.cfm Stanford Encyclopedia of Philosophy (2002, last updated 3 Jan, 2008) Environmental Ethics, last accessed 10 May, 2012, from http://plato.stanford.edu/entries/ethics-environmental/ Umvoto Africa (2012, last updated 28 March) Scientist warns of environmental, geophysical risks of shale gas development, last accessed 8 May, 2012, from http://www.moneyweb.co.za/mw/view/mw/en/page563788?oid=565565&sn=2009+Detail Gasland (2010) 24 January 2010, New Video Group, United States http://www.gaslandthemovie.com/ T. Macalister (2008) 'Dishonest, irresponsible ': Shell lambasted for pulling out of world 's biggest wind farm, The Gaurdian, 2 May, 2008, from http://www.guardian.co.uk/environment/2008/may/02/renewableenergy.royaldutchshell