In this assignment the topics comprise of Fracking and Stakeholders involvement, Supply and Demand and how that is effected through increase in energy prices. Also a detailed depiction of Carroll’s Model and how energy companies utilize this. As a final point a detailed reflective statement is needed, and the focus is how government involvement impacts on the supply and price of energy to businesses. Fracking is the procedure of piercing down into the ground before a water mix is directed at the rock to discharge the gas inside. Water, sand and chemicals are inserted into the rock at great pressure which permits the gas to flow out to the head of the well. Stakeholders are an individual, group or organization that has interest or apprehension in a business. There are two types of stakeholders, internal and external. Examples of Internal Stakeholders are managers, shareholders, and employees. External Stakeholders can be distributers, customers, unions, government, and societies. Stakeholders have a dynamic involvement in the energy business, and often have different views on the best and most sufficient method to keep the energy sector sustainable. [Investopedia online] Conjunctively the primary internal stakeholders of Shell own its shares, also known as shareholders, in addition their employees and suppliers are involved to. This can be explained in terms of each of these interest groups; the shareholders provide Shell with the necessary funds for action, employees are inherent in Shell's operation while the suppliers are a fundamental portion of the production chain. Shell’s primary shareholders consist of stockholders, employees and the general public. They believe that it’s vital to defend shareholders’ investments, and of... ... middle of paper ... ... major energy contractors have continually told ministers the levies are pushing up household bills, hence the need for greater supply. However the government cannot take any form of appraise for long term growth, but can take credit for short term growth. My view is that the government need to stabilize the economy, although taxing the energy sector to the point where they increase Gas and Electricity prices to an unreasonable level is not a real obligation, in my opinion. It causing more issues and diminishes the chances of economic growth in proportion with what an average citizen has to devote on bills. Conclusively energy companies need to find a sustainable way of finding, resourcefully utilizing, and keep energy. Possibly the answer to this proposal is fracking, but it’s a potentially dangerous investment and may add be ‘’rubbing salt into the wound’’.
...s many untapped resources that the government has kept businesses from taking advantage of. I believe a reduction in restrictions could lead to economic growth as seen in other states that have used fracking to bring in large amounts of growth.
6. Scheueneman, Tom. "A Carbon Tax is More Viable than Cap and Trade." RSS. 26 July 2012. The Energy Collective. 11 Mar. 2014 .
In today's global economy, energy is one of the most crucial and sought after commodities. Who supplies it and how much they supply determines how much influence they have over other countries as well as the global economy. This is why hydraulic fracturing is currently such an important and controversial topic in the United States. Hydraulic fracturing, more commonly known as "fracking" or hydrofracturing, is the process of using pressurized liquids to fracture rocks and release hydrocarbons such as shale gas, which burns more efficiently than coal. This booming process of energy production provides a much needed economic boost, creating jobs and providing gas energy for Americans.
Hydraulic fracturing, also commonly referred to as fracking, is a type of drilling for natural gas and oil that started in the 1940’s. In the beginning, when a well was slowing down, dynamite or TNT were placed inside the well head and detonated to help the flow of gas and oil by expanding natural cracks and veins in the earth. This method of fracking was used extensively for almost fifty years in the United States until the easy to mine and profitable oil had been almost completely tapped. A new form of hydraulic fracking was created in the early 90’s to help capture the less available oil and gas pockets remaining in the United States. The current method of fracking begins by drilling a vertical shaft lined with several piping layers and an outer layer of cement up to 10,000 feet deep. After achieving the appropriate vertical length a horizontal shaft is cut off of the vertical shaft that can stretch to lengths up to one mile long. A mixture of sand, water, and chemicals are injected in the shaft fracturing the shale formations and release pockets of oil and natural gas. The water is brought back to the surface where the gas and oil is separated out. The issue many people have with fracking is the possible side effects of chemicals used and water contamination. With the use of fracking helping American’s reach energy independence, economic benefits, and a bridge to help attain a clean energy source; fracking should be expanded in the United States.
A lot of questions surrounds fracking, questions involving national government and job creation, local municipalities and job opportunities, economists and revenue, relevant infrastructure concerning local economy, local developers, current land owners and property value, food security, social and moral decline in society, local governments feeling towards Ubuntu and the list goes on and on. Although the list of potential problems is long, there is also some benefits in this industry as well. The state of South Africa now has a new form of revenue that will be collected by tax and permits. All cities and small town in the Karoo will benefit from all the new business brought on by the new drilling operators. All the farmers owning mineral rights will be financially rewarded by the gas industry leasing those rights (Potter & Rashid, 2013).
In the past couple of years the word fracking has been prevalent in the media whether its been mentioned in the news or in the movie Matt Damon stared in titled “Promised Land”. Many people know it as a method of extracting gas from the earth and don’t inquire further into what hydraulic fracturing actually is. Before the process is explained we should understand why it has become prevalent in the last decade. The reason Hydraulic fracturing has become so popular in the last couple of years is because of the passage of the energy policy act of 2005, which contained the Halliburton loophole. The Halliburton loophole stripped the Environmental Protection Agency of its authority to regulate hydraulic fracturing (New York Times 2009). Allowing Hydraulic Fracturing allowed companies to finally access the abundant sources of natural gas legally. This act made it possible to access the vast amounts of natural gas contained in the Marcellus Shale, which created a boom in hydraulic fracturing. What exactly is hydraulic fracturing? Hydraulic fracturing is a method of extracting oil and gas, that is not accessible by conventional drilling methods. The process, injects chemically treated water and sand at high pressures into shale rock to release the oil and gas (Pritchard 2013).
Each party plays his parts – Role of key players like owners, Board of directors and staffs
Identifying stakeholders for an intervention is essential. Stakeholders are all of the individuals who are affected by and issue or problem (BOOK). The stakeholders are going to be the individuals who can work towards changing the problem and who deal with the concern at the front lines (BOOK).
In Chapter one, it says some sources of renewable energy are solar, wind, geothermal, and biomass power. These could help steer away from hydraulic fracturing for oil and natural gas. The Europen Union and China have been developing and using other methods of energy, such as solar and wave and tidal energy, and overall cutting out as many fossil fuels as possible. In 2009, the wealthiest countries agreed to help other nations with converting to renewable energy if they were willing to do so. Even though these nations are “going green” it will still take time to leave oil behind for good. With this being said though, we're running out of time. From the biodiversity loss to the air pollution, fracking is only helping to destroy our environment one oil company at a
Throughout the past three decades, energy has been a perennial issue in United States politics, economics, and media. The main concern surrounding this topic is the idea of energy independence and how the United States should proceed into the future. Energy independence relates to the goal of reducing United States dependence on importing foreign oil and other foreign energy sources. This desire aims to maintain energy dependence domestically so the United States can avoid reliance on any unstable countries and be detached from global energy supply distribution. It is currently being speculated that the United States might not be too far off from this goal. America’s dependence on foreign oil has gone down every single year since 2007. In 2010, the U.S. imported less than 50 percent of the oil the country consumed -- the first time that’s happened in 13 years -- and the trend continued in 2011 (Zhang.) Experts credit new technology as the reason the United States is within several years of again becoming the biggest oil producer in the world, and perhaps two decades away from full energy independence. Hydraulic fracturing, fracking, is the “lead” technology in this technological revolution. Fracking is an economically more feasible way of drilling for oil or gas in harder to reach geological formation. Within the past decade or so, combining hydraulic fracturing with horizontal drilling has opened up shale deposits across the country. It has brought large-scale natural gas drilling to new regions that may not have had accessible deposits in the past. These areas have greatly benefited from the addition of this industry to their local economies. Certain are...
This paper will have a detailed discussion on the shareholder theory of Milton Friedman and the stakeholder theory of Edward Freeman. Friedman argued that “neo-classical economic theory suggests that the purpose of the organisations is to make profits in their accountability to themselves and their shareholders and that only by doing so can business contribute to wealth for itself and society at large”. On the other hand, the theory of stakeholder suggests that the managers of an organisation do not only have the duty towards the firm’s shareholders; rather towards the individuals and constituencies who contribute to the company’s wealth, capacity and activities. These individuals or constituencies can be the shareholders, employees, customers, local community and the suppliers (Freeman 1984 pp. 409–421).
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
The oil & gas sector faces specific risks affecting its financial performances. The main variables affecting the industry are political, geological, price, fiscal, supply and demand as well as cost risks. Given the specific risks, the demand for energy is still gr...
There are two types of stakeholders: primary stakeholders and secondary stakeholders. The primary stakeholders who are affected in this scenario are the employees, shareholders, customers, board of directors, and the managers… Meanwhile, the affected secondary stakeholders are the Environmental Protection Agency, competitors, local hospital, local municipal landfill, local newspaper, community, and environmental groups.
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.