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
4.1. 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)
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…show more content…
This is particularly relevant in South Africa which has massive unemployment and poverty. Shell’s Blueprints Scenario (Shell International BV, 2008) makes the gas energy model central to this utility. However, the modern economic, social and environmental context has led to energy companies being increasingly subject to mandatory government regulations and optional guidelines in order to mitigate the effect of their operations on the environment and society. This in turn has led to a progressive focus on the ‘triple bottom line’ which takes into account the multifaceted impacts of the energy business.
In addition to economic benefits through increased tax payments to the government, Shell cite the following benefits to local citizens, should their application to undertake Fracking in the Karoo be successful (Shell presentation to Syndicate1, May 2012): * Fair compensation to landowners for loss of rent and/or crops * Job opportunities for local communities * Access roads and infrastructure, and possible early connection to the gas energy grid * Training and development of people, suppliers and the enterprise * Corporate Social Investment
In essence Shell is saying that these measures fulfil their obligation to the community. Staying with this Deontological perspective, one can say that Shell have the right to make profits from land which has been lawfully procured, which in turn is aligned with their duty to shareholders. When