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’’.
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.
The immediate impact of hydraulic fracking is the economic gain from drilling. With so much money involved in gas oil all Americans see a gain. Starting with the land owners to the proprietor of a local restaurant and even households far away from drilling sites everyone ei...
Stakeholder is anyone with an interest in a business; stakeholders are individual, groups or businesses. They are affected by the activity of the business. There are two types on stakeholders who are internal and external. Internal stakeholder involves employees, managers/directors and shareholders/owners. External stakeholder involves suppliers, customers, government, trade unions, pressure groups and local and national communities.
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
Thirty-seven percent of the energy used in the United States comes from oil. Natural gas comes in at second, contributes twenty five percent of the energy. Coal gives us twenty one percent of our energy while the other seventeen percent comes from other energy sources. Those other resources include nuclear, wind, and mostly solar. Besides the environmental harm that some people think fracking has, it has the potential to produce more natural gas and oil. It also is a non-renewable resource and will take a very long time for it to come back because of the earth’s natural creation. Solar and wind power are renewable, but do not produce enough energy to run our country. All of the solar panels and wind mills we have on the earth right now could ...
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...
...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.
Fracking is quickly becoming a debatable topic in our society today. The practice involves injecting fluid into the ground to fracture rock in order to release natural gas. It sounds like it would be a safe way to harness fuels in the earth’s surface, but it actually is a danger to our environment. Because of the dangers of fracking, what little fresh water remains on earth is being contaminated. It is also releasing toxins into the airs creating contaminated air and acid rain. Because of the many health and environmental dangers of fracking, it should be stopped immediately to help prevent more worldwide health issues down the road.
In 2010, roughly 25 percent of the nation’s energy came from natural gas, a “fossil fuel” which American consumers and businesses heavily depend on for transport, light, and heat (Squire 6). As the U.S. population increases, so do the country’s energy needs. Political debate over how the U.S. can meet those needs has slowly simmered for several decades, escalating exponentially when the energy supply grows short. Disputes over just how clean natural gas is, as opposed to coal, dominate headlines and presidential campaigns alike. During the presidency of George W. Bush, a bill exempting oil and gas companies from federal environmental restrictions was passed, thus paving the way for natural gas companies to expand production across the nation utilizing a new drilling technology, enabling easier extraction of shale gas. The drilling process of hydraulic fracturing or “fracking” has become synonymous with controversy. Why? Fracking involves injecting dangerously toxic chemicals, mixed with large quantities of water and sand, into wells at extremely high pressure, to release natural gas. Promoted by the natural gas industry as a cleaner, safer alternative to coal, the process of fracking has made shale gas plentiful, which sounds to some Americans as the best answer to their energy prayers. However, the negative consequences associated with the extraction of natural gas through fracking, including environmental hazards and threats to public health, far outweigh the benefits.
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).
Since the early 2000’s, after new technological advancements in fracking and the discovery of large shale reserves across the country, fracking has increased domestic energy production substantially. Shale gas production has increased 20% from 2005 to 2012, promoting a more prosperous economic demand for domestic energy solutions (Pritchard). The demand for transportation vehicles, fuel, housing and water also increases with the expansion of fracking. Furthermore, the increase in fracking has increased employment significantly. In a country struggling to rebound from a recession, well-paying jobs are easily accessible in the booming oil field. This is evident in the prosperous state of North Dakota, in which the unemployment rate has fallen to 2.8 %( Gottesdiener). However, although this industrial expansion creates temporary employment, the consequences of mismanagement may also cost millions of dollars to repair. Fracking has the potential to create environmental damage such as water contamination, radioactive spills, and increased seismic activity that could cost thousands of dollars in damage. The cleanup of drinking water contamination is difficult and expensive, and ultimately rarely attempted. Moreover, the cost to replace the drinking water of contaminated homes and communities also cost a substantial amount of money (The Costs of
Fracking is a pressurized, chemically treated mixture of water and sand to release and extract natural gas and petroleum from shale rock. There are many articles, studies being done, and organizations fighting for what they think is right. Environmentalist want the technique of fracking banned because it plays a part in global warming, affects our water, and causes human health problems. If fracking cannot be banned because of its necessity then it should be made safe and eco-friendly. The process involves a well being drilled vertically to the desired depth, then turns ninety degrees and continues horizontally for thousands of feet into the shale believed to contain the trapped natural gas. A mix of water, sand, and various chemicals is pumped into the well at high pressure in order to create fissures in the shale through which the gas can escape. Natural gas escapes through the fissures and is drawn back up the well to the surface, where it is processed, refined, and shipped to market. Flowback returns to the surface after the
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.
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.