Caprica Energy and Its Choices

Situation Analysis
Caprica is a 40-year-old company headquartered in Charleston, West Virgina. It was only in
Kentucky and Ohio for the first 30 years. Beginning in 1997, Caprica pursued an expansion
strategy to Michigan, and in 2005 applied hydraulic fracturing technology for the exploitation
of Shale Gas. By now, Caprica has 5 years of expertise in the usage of hydraulic drilling
techniques.
Jane Barrow, CEO of Caprica Power will suggest to the board that perhaps the organizations
explore three prospective “unconventional” natural gas production sites in various areas of
the United States. This is the case in January 2011 when three possible sources (shale, coal
bed methane and tight sands) will involve hydraulic fracturing, a method that was historically
deemed impossible by pumping water and chemicals into the ground.
In view of growing fears regarding the possible damage that ‘fracking’ might bring to
drinking water, Barrow will not only examine which location might be more attractive, but
also what potential threats to the ecosystem and the inhabitants of the region could be.