Business Case Studies & Business Publications

Caprica Energy and Its Choices

Harris, Jared, Bod...

Case

Caprica Energy and Its Choices

Harris, Jared; Bodily, Samuel E.; Mead, Jenny; Adolphson, Donald; Carmack, Brad; Rogers, James

QA-0765 | Published March 15, 2011 | 24 pages Case

Collection: Darden School of Business

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Jane Barrow, CEO of Caprica Energy, must recommend to the board which of three potential "unconventional" natural-gas development sites in different parts of the United States the company should pursue. The case takes place in January 2011, when the "low-hanging fruit" of natural-gas production in the United States had essentially been picked. All three of the potential sites (shale, coalbed methane, and tight sands) would require hydraulic fracturing, a process of removing gas that was formerly considered inaccessible by injecting water and chemicals into the ground. Because of emerging concerns about the potential harm "fracking" can do to drinking water, Barrow must not only analyze which site might be most profitable but also what the potential risks to the environment and area residents might be.

Developing quantitative decision analysis skills Decision making in the face of great uncertainty and missing information Encouraging students, while creating a risk analysis simulation, to think about the attributes that relate to all the stakeholders and to think about what is acceptable risk