Caprica Energy and Its Choice Essay Example
Caprica Energy and Its Choice Essay Example

Caprica Energy and Its Choice Essay Example

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  • Pages: 2 (316 words)
  • Published: November 17, 2016
  • Type: Essay
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Caprica, a company based in Charleston, West Virginia, has been operating for 40 years. Initially confined to Kentucky and Ohio for 30 years, Caprica expanded its operations to Michigan in 1997. In 2005, it introduced hydraulic fracturing technology for shale gas exploitation. Currently, Caprica boasts five years of experience in utilizing this technology.

Caprica aims to enhance its reserves, production, net income, and cash flow by acquiring properties with development potential while also prioritizing operational integrity. Barrow must consider the environmental controversy in her decision-making process as neglecting to address environmental risks could harm Caprica's reputation and long-term profitability.

According to the U.S. EIA’s 2011 report, there is a significant opportunity for the industry as there are approximately 2,552 Tcf of potential gas resources available for utilization. The c

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onsumption of natural gas has been increasing since 2000 due to its economic sustainability compared to other energy sources. Moreover, there has consistently been a higher demand for natural gas than what is produced. This shortage in the natural gas market can be attributed to the limitations of conventional technology, as a large portion of the potential resources is located in remote areas that cannot be accessed using conventional methods.

With the introduction of hydraulic fracturing, the natural gas industry has seen a significant growth opportunity. Caprica's competitors have also been exploring this technology to access unconventional gas resources. Having gained five years of experience in hydraulic fracturing, Caprica now has the opportunity to expand its business and achieve its growth strategy.

Caprica's main focus is deciding whether to pursue hydraulic fracturing for unconventional gas extraction. If they proceed, they mus

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choose one of three projects. The chief concern with this method is the possibility of environmental issues caused by chemical contamination and water consumption. For more details, please consult the risk assessment chart provided below. One particular risk involves chemicals becoming contaminated if the fluid leaks from drilling pipes.

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