FACTS
Occidental Petroleum, a U.S. based oil company, has been offered a contract from the Colombian government to build an oil-drill facility at the Samore Site in Colombia.
The Samore Site, located in a Colombian rain forest, is in an area known to be environmentally sensitive, and is supported by U.S. environmentalists, human rights activists, and the United Nations.
Approximately 20% of the proposed site infringes on native tribe, the U’wa’s hunting grounds. The U’wa have threatened mass suicide as a result of the proposed pipeline and potential oil to be harvested.
What should Occidental Petroleum do?
ALTERNATIVES
Occidental Petroleum can accept the contract and build an oil production facility in environmentally sensitive Samore Site, Colombia.
Occidental Petroleum can refuse the contract, thereby refusing to build an oil production facility on environmentally sensitive land that is home to an indigenous tribe.
LEVEL OF ANALYSIS AND STAKEHOLDERS
Macro
Colombia
Government
The Colombian government will be affected positively or negatively depending on Occidental Petroleum’s acceptance or refusal, respectively, of the oil-drilling contract. Should Occidental accept the contract, the government will have future access to oil funds for government activities. Should Occidental refuse the contract, the government will be forced to either reconsider their options or locate an alternative oil-drilling company.
Economy
Likewise, if Occident Petroleum accepts the contract to drill, GDP will undoubtedly be affected, because Colombia will have additional oil – obtained by Occidental Petroleum - to export.
Environment
The environment is at risk of oil spills, squatters who perform “slash and burn” farming, and Colombian rebel forces who continue to blow up pipelines.
United States
Economy
GDP will be affected if Occidental Petroleum accepts the contract from the Colombian government, because taxes on the income received by Occidental – from the Colombian Government - are paid to the United States.
Global Environmental Standards
Policy
The United Nations has deemed the Samore Site a “national treasure”. To disregard certain perspectives and procedure could potentially put existing policy at risk to be discounted in the future.
Firm/Group
Occidental Petroleum
Occidental Petroleum’s reputation is at risk due to the environmental sensitivity of the oil-drilling site.
Occidental’s profit will be affected enormously depending on whether or not they accept the contract.
Employees and shareholders of Occidental Petroleum will be affected as well.
U’wa
The U’wa’s way of life depends largely on Occidental’s acceptance or refusal of Colombia’s oil-drill contract, specifically, their hunting practices and location.
Additionally, the U’wa have threatened mass suicide rather than accept the proposal to build a new drill site.
Colombia
The Colombian people will be affected both positively and negatively by Occidental’s acceptance. Positively, because the and negatively because it will bring increased attention from U.S. environmentalists and human rights activists.
MORAL MODELS
Utilitarian
Occidental Petroleum accepts contract
+ –
Columbia’s GDP will be positively affected
Destruction of the rain forest
Occidental Petroleum’s profit will increase
Global Environmental Standards
Share- and stakeholders in Occidental Petroleum will be positively affected
Potential mass suicides threatened by native U’wa
Occidental Petroleum can monitor environmental impacts and make efforts to reduce them
Columbian rebel forces will be encouraged to blow up pipelines causing oil spills
Employees for Occidental and Columbian oil drill company will have work, and, therefore, compensation
Occidental Petroleum’s image in the United States
Additional inquiries and investigations from activists and environmentalists
