Student number: 11011266

BUSM2001 Business ethics Assignment 1

Briefing paper

Submission date: 22.03.2013 Module leader: Catharine Ross

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Student number: 11011266

Student number: 11011266

Energy through fracking briefing paper

The target of this briefing paper is for the managing director of an UK energy company and it is about the ethics of obtaining energy through fracking. The aims of this briefing paper are to provide a thorough analysis of the ethics of obtaining energy with the process of fracking. This process it is discussed if it should be use in England as an alternative energy sources that it is believed it is cleaner and more abundant than their current resources. The paper it is structured as follows: Summary define the terms, present evidence that fracking is a good or bad process and if this should be explored more Ethical perspectives consequentialist and non-consequentialist ethical theories are
applied

Pressures political, economic and social pressures faced by de energy company Options possible options for the managing director according to ethics values

1. Summary Hydraulic fracturing or fracking began nearly 200 years ago in the United States. The term of fracking or hydrofraking is a process of mining in which cracks are produced in a specific type of rock that are called shale in order to gain gas, oil or other substances that are inside it. It is an particularly water-intensive method where millions of gallons of fluid(a mix of water, sand, and chemicals, including ones known to cause cancer) are injected underground at high pressure to fracture the rock surrounding an oil or gas well.

Figure Schematic geology of natural gas natural resource, (US Energy Information Administration)
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Student number: 11011266

The energy supply of England is on the fifth year on downturn therefore the country is increasingly dependent on Vladimir Putins gas or on the atomic power of French state. Because pensioners are struggling with poverty and energy firms are rising up their prices more and more UK had to discover a new way other then wind, wave and solar power to produce energy. Recently it has been discovered that in the region of Blackpool are about 1.3 trillion barrels which is a solution to the problem by extraction of shale gas by fracking. If Britain could get it out they could offer cheaper electricity and be once again competitive in sectors of industry like bauxite smelting springs to mind. Analyzing and discussing the positive and negative factors whether it is an acceptable method to produce gas in UK. Positive effects The advantages of this process are on different levels and UK can benefit a lot from them. Here are some of them: will generate thousands of jobs in different parts of the country The burning gas that generates electricity is much cleaner and produce less CO2 than burning coal In 2008 the price of natural gas in US was $8 a unit and currently is $3 as a result it is now competitive industries such as fertilizers and chemicals. Furthermore as a result of the use of gas US reduce their CO2 emissions at an incredible rate in spite of the growing population. After 125,000 fracks in US there has not been a single complaint to the Environmental Protection Agency about water poisoning. Negative effects The Greens and the eco-warriors fight in order for this process to be banned because as in every process there are disadvantages. While natural gas is a low carbon form of energy, fracking uses a variety of chemicals and large amounts of water to release the gas. In some places, this practice has harmed the health and well-being of Gods Creation and communities. Some believe that if this method will continue to proceed the water will be contaminated and earthquakes will be more frequent in UK. But UK is not the first country that tries this method, America being the first. Since the discovery of large quantities of shale gas four years ago, America has the most significant political events since the end of the Cold War. The shale das industry has contributed in US with $50 billion in tax. One year ago in Blackpoole had been 2 major earthquakes right at the time when the first attempt of fracking was made and peope claimed that was because of the process even thou there are small earthquakes there every day. After those complains the fracking was banned but not for a long time.

Student number: 11011266

2. Ethical perspectives Even in ethics perspectives there are two sides in every issue and is needed to be identify both in making a cogent argument for or agains a particular action or decision. Fracking has a very subtle ethic problem. Fracking is controversial because the chemicals, mixed with water, may find their way into aquifers which supply drinking water. Although oil companies say that fracking is completely safe and no threat for the potable water, some groups are calling for ban on fracking. From an ethical perspective it should be look at the harms and benefits of fracking. In other words, do the potential dangers of fracking, including contamination of water supplies, outweigh the potential benefits of producing badly needed oil and gas resources at a time when the national security may be in jeopardy because of our continued reliance on unreliable sources of energy? From a Rights Theory perspective, those potentially affected by fracking operations have an ethical right to know about the potential harm to their drinking water and other environmental effects. Utilitarianism The worth of the state, in the long run, is the worth of the individuals composing it (Stuart J.) Consequentionalist has two theories on the consequences of decision in judging whether they are ethical. One of them is utilitarianism that supports fracking as it produces greatest good for the greatest number. The result of this process will be to create millions of jobs and help boost economy. Hydraulic Fracturing supports at all times the majority of Primary and Secondary stakeholders which have a higher priority in the stakeholder typology. The nonsocial stakeholders are latent and are a minority. (Crane and Matten 2010). Being an consequentionalist principle focuses on the ends, and ignore the means. For fracking, in order to boost economy and create jobs for people, it puts in danger the environment with emissions, pollution, wastes, chemicals, contamination are bi-products of oil extraction by fracking. The theory of Moral Rights supports the fracking method because it is giving the present generation the right to survive, job creation and way to get out of a recession. Taking the rights away from this generation so that the next generation can carry on is not morally right. In relation to the principle of rights fracking is not giving all its stakeholders the Moral Rights that they should earn, by not focusing on the damages to the area. 3. Pressures Political pressures

The considerable opposition against hydraulic fracturing activities in local townships has led companies to adopt a variety of public relations measures to assuage fears about hydraulic fracturing, including the admitted use of "military tactics to counter drilling opponents".
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Student number: 11011266

Economic pressures

Hydraulic fracturing has been seen as one of the key methods of extracting unconventional oil and gas resources. It is the best solution in order to keep leaving the way we are because the supplies of gas and oil are not unlimited and the population is in continuum growth. Furthermore as mentioned earlier the process of fracking is good for the economy of a country. The best example is US which have sustained more than 600000 jobs because of this new method. They have also managed with the relatively low price of ethane to give manufacturers an essential advantage over many global competitors.

Conclusion

The downbeat environmental impacts of the environment in no way outweighs the big economic gain that fracking could have for the U.K. The doubts of water contamination raise in greenhouse gasses and the problems with the wastewater containment are all fears that should be recognized by engineers and fracking companies. The national ethics code for engineers make a point for engineers to recognize how their decisions will impact the social welfare. Fracking further destroying the environment would be going against the code of ethics because the environment and human population are directly linked.

4. Options At the end of last year the ban on drilling had been lifted and Britain is now fracking and trying to increase the gas sector. The ban has been lifted because Energy Secretary Ed Davey said new conditions had now been imposed to minimize the risk of seismic activity. Now the only real problem is for the people that live nearby because they will be forced to move. But because these actions are taking place for the greater good of the whole country the downturns are small. However the government assured people that this method will not affect the water and that fracking must be safe and public should not be concerned at all. In conclusion in order to avoid any damages and losses for people, animals and the environment the government should provide alternatives like houses money supplies for people that are leaving nearby and to offer them some conditions in order to convince them to move in other locations. This solution should be really organized in order to make the whole community happy and satisfied. If the process of fracking is putting in any danger the animals in the long term the organizations should move them in special places or make them conditions in order to survive in peace and harmony.

Student number: 11011266

References
1. Leo Hickman (2012). Fracking: is the UK right to go ahead?. 13 december. Guardian [online]. [Accessed 21.03.2013]. Available from: <http://www.guardian.co.uk/environment/blog/2012/dec/13/fracking-shale-gasuk-davey>. 2. Damian Carrington (2012). This fracking fantasy is the delusion of fossil fuel addiction. 13 december. Guardian [online]. [Accessed 21.03.2013]. Available from: <http://www.guardian.co.uk/environment/damian-carringtonblog/2012/dec/13/shale-gas-fracking-davey>. 3. Boris Johnson (2012). Ignore the doom merchants, Britain should get fracking. (newspaper). Available from: <http://www.telegraph.co.uk/comment/columnists/borisjohnson/9733518/Ignorethe-doom-merchants-Britain-should-get-fracking.html>. [Accessed 21.03.2013 ]. 4. Irishtimes [online]. (2012). Available from: <http://www.irishtimes.com/news/uk-debate-over-pros-and-cons-of-frackingwill-echo-in-ireland-1.539871?page=1>. [Accessed 21.03.2013] 5. Fracking [online]. (2012). Available from: <http://www.foodandwaterwatch.org/water/fracking/>. [Accessed 21.03.2013] 6. Fracking: Laws and Loopholes [online]. (2012). Available from: <http://cleanwater.org/page/fracking-laws-and-loopholes>. [Accessed 21.03.2013]. 7. Steven Mintz (2011). The Ethics of Fracking. 19 december. The Ethics of Fracking [online]. [Accessed 21.03.2013]. Available from: http://www.ethicssage.com/2011/12/the-ethics-of-fracking.html 8. Policy Position Statement (2012). Hydraulic Fracturing ( Fracking ) of Shale in the UK [online]. Available from: <http://www.ciwem.org/media/624838/Fracking_Oct2012.pdf>. [Accessed 21.03.2013] 9. Robin McKie (2012). Fracking: answer to our energy crisis, or could it be a disaster for the environment?. 25.02. the guardian [online]. [Accessed 21.03.2013]. Available from: <http://www.guardian.co.uk/environment/2012/feb/25/fracking-plans-pollutionuk-water>.