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Essay about Caprica Energy and Its Choice

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Brief company background:
Caprica is a 40-year -old company rooted in Charleston, West Virginia area. First 30 years, it only operated in Kentucky and Ohio. Starting from 1997, Caprica carried on an expansion strategy to Michigan, and in 2005 it applied the hydraulic fracturing technology on shale gas exploiting. Up till now, Caprica already have five years experience on using hydraulic fracturing technology.

Current Strategy:
Caprica’s strategy is to grow its reserves, production, net income and cash flow. It is focus on acquiring properties that have development potential. Meanwhile, Maintaining operational integrity is also a vision Caprica try to pursue, so Barrow need to consider the environmental controversy when making her
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Please see the following chart for the risk assessment.
1. Chemicals contaminate if fluid leaks from drilling pipes.

Arguments * Malfunctions may cause fluid leaks all the way down to the shale. * EPA promoted fracking technology with political bias. * The chemicals in fluid can cause many diseases and there is potential connection between existing water contamination and hydraulic fracturing. * Exploitation needs to invest heavily on fixed asset and site setting up. If EPA study proved the high probability of water commination by using fracking in next year, Caprica will face significant operation and legal risks.

Debates * Most of unconventional gas, such as shale and tight sand, is too deep in the ground to have the fluid reach aquifer. * Even fluid get into aquifer, it is not as toxic as other wastewater discarded from other daily activities. EPA claimed the fracking process is safe. * There is no study evidence shows the causation and possibility of fracking contamination.

2. Huge water usage
Argument:
* Fracking will use up 4 to 5 million gallons water per well. Monthly usage would be 320 to 400 million gallons (assume 80 new wells per month). * Tainted water cannot be reintroduced without expensive treatments.
Debates:
* The water usage per month for fracking just equals to the
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