This case is how to manage the political risks of a controversial technology to extract energy in the European Union. San - Leon Energy, an Irish energy company, has been committed to the development of large reserves of unconventional shale gas in Poland. To achieve these reserves, San Leon must use a method called hydraulic fracturing ("Fracking"). For the first time in the United States in the early 2000s, Fracking involved pumping a mixture of water, sand and chemicals into the tank at high pressure to crack the shale formations, releasing the gas to flow up the well. Natural gas produced by this process has significantly cleaner energy alternative to coal. In addition, since a large, previously inaccessible shale gas reserves are located in the U.S., Canada, China and parts of Europe, Fracking had the potential to revolutionize the geopolitics of the energy sector. However, U.S. and European environmental groups grew concerned that Fracking can get in the local drinking water and create air pollution, cause minor earthquakes, and crowd out investment in renewable alternative energy sources. The Polish government has supported Fracking as a way to strengthen significantly the domestic production of gas in the country and reduce its energy dependence on Russia. However, in 2011 and 2012, environmental protests around the world has increased, resulting in a number of countries, including Bulgaria, France, Ireland, Romania and parts of Germany, Switzerland and the United Kingdom Fracking issue temporary bans. Since the management of San Leon Energy Poland called "the heartbeat of our company", the company faced challenges, mitigating environmental problems and to prevent Polish or EU-wide ban on Fracking. "Hide
by Condoleezza Rice, Amy Zegart, astasia S Myers Source: Stanford Graduate School of Business 27 pages. Publication Date: September 11, 2012. Prod. #: IB101-PDF-ENG
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