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Developing the
Entrepreneurial Spirit
Learning in Action!
A Cross-disciplinary Problem-Based Learning
Environment for Entrepreneurship
High School Cases
The Case of the Slippery Slope:
Black Gold in Paradise
Test Version 1.0
(A Work in Progress)
Jeffrey Burgoyne, EdD
Vanderbilt University
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The Case of the Slippery Slope:
Black Gold in Paradise
Introduction
Gasoline and home heating oil prices skyrocket. The President is forced for the first time
in the history of our country to tap the Nation’s strategic petroleum reserve (stored crude
oil in the event of war). This sudden supply of oil into the market stabilizes prices in the
short-term, but a continuous threat of rampant oil price increases threatens America’s
economic prosperity. The fact is we import 60% of our oil from foreign suppliers (OPEC
mainly), with the remainder coming from established oil production fields in the states,
offshore on the Pacific coast, and offshore in the Gulf of Mexico. These areas are at full
production, and new sources must be found to meet our future consumption demands.
The President and Congress are working together to allow for the exploration and
development of newly discovered oil reserves in two environmentally sensitive places.

The first, a billion barrel oil reserve offshore south Florida (near the Florida
Keys).

The second, a billion barrel reserve recently found in the Artic National Wildlife
Reserve (ANWR) in Alaska – also offshore.
The government will allow drilling in only one of these areas. Your group is charged with
presenting a comprehensive plan to develop and produce one of these oil reserves. The
one "best" proposal will be selected and awarded the proprietary oil lease. You have 11
business days to conduct your research, prepare, and present your proposal to the
President’s representatives.
Links to more information are included below under the heading "Resources."
Learning Vignette -- The Case of the Slippery Slope: Black
Gold in Paradise
"OIL SHORTAGES! America on the Brink of Energy Disaster" are the leading
headlines in newspapers around the nation this morning. "Interesting," you think, "just as
your group begins discussions on the developing oil shortage in the United States – and
the new opportunity for offshore oil drilling in previously banned areas of the country."
As you meet in a ‘round table discussion’ with a room full of entrepreneurs and business
executives, you are given a summary of recent events, which has led the President of the
United States to declare the opening of several unexplored areas to potential oil
exploration and production.
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Mr. Payne Hall, a high-ranking representative from the U.S. Department of Energy, has
been sent over to initiate discussions with groups of entrepreneurs.
"First of all, thanks for assembling your team and attending this briefing today. I am here
to provide you with all the objectives and details of this new oil exploration – the
potential profits to your companies, the drawbacks, the requirements for submitting
proposals, and the timelines…and believe me, we are ‘fast-tracking’ this process."
Mr. Hall sits down and pulls out his briefcase stuffed with papers, and slaps it on the edge
of the table. It falls to the floor, and he scrambles to gather the important looking
documents. "Please excuse me, I’ll have this together in a minute."
As Payne Hall gets situated and prepares to begin his discussion, you look around the
room, and wonder to yourself, "Who will win the big contract? What kinds of talents do
these various teams bring to the table?" As you ponder your own questions, you realize
that Mr. Hall has gotten well underway in describing the bidding process to explore for
and produce a huge amount of oil.
"This decision to dig for oil has come with lots of political fireworks from many groups
around the country," said Mr. Hall as he began pacing the room. "We feel that we have a
very short window of opportunity here to establish this drilling operation, so we have set
the timeframe for proposals to be submitted to 12 working days." He goes on, "Now
listen carefully to the requirements. Your team must submit a proposal outlining your
plan for one of two site in the U.S."
"The first site is a One billion barrel newly discovered reserve about 15 miles off the
South Florida coast in 3000 feet of water – down near Key West..."
He is abruptly interrupted by one of the invited guests sitting at the far end of table.
"What!" rumbled Mr. D. M. Crats from across the room, "The South Florida coast, you
must be nuts! The environment is delicate and tourism dollars are much too important for
oil production in that area…"
Payne Hall reasserted his position in the meeting, "It’s a federal decision, but I admit,
they are not happy with it. Now, if you don’t mind, let me get on with it." He points to a
national map of the United States hanging on the far wall.
"The second site is also a One billion barrel newly discovered reserve about 15 miles of
the coast of Alaska in 3000 feet of water, in the Artic National Wildlife Reserve."
Again, Mr. Hall is interrupted to an experlative echoing from the far side of the room. Dr.
E. X. Valdez clamors to his feet, "Alaska! You can’t expand drilling in Alaska. The
environment and fishing economy is too fragile…"
Mr. P. Hall gives the doctor a nod and moves back to the podium, "These are the only
two sites available, and the President and Congress will authorize only one of the sites to
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be awarded for drilling. All indications are that they both contain the same amount of oil
in each reserve – about a billion barrels."
Another ‘gasp’, this time from Miss Whoopie Bird, who is sitting near Mr. Payne Hall.
She stands up and circles the table, "The President must be out of his mind, both of these
sites are extremely environmentally sensitive, and the least little spill will enrage the
people living near each area. Whether it is a little oil on the beaches of Florida or a few
birds and otters in Alaska, we’ll get ripped to shreds! Just remember that oil spill disaster
a few years ago."
Mr. Righty Wings points at Miss Whoopie Bird, matter of factly states, "The real
question here is not about a little oil spill and the public’s reaction, but rather, it is about
finding the energy our country so desperately needs – and keeping the jobs to produce
this oil in the United States. This is about our economy!"
"Relax, just relax," exclaims Mr. Payne Hall. The federal government will provide some
help with these issues. The most important thing though, is that your teams submit a
business plan for this drilling operation in 12 working days. The plan, like every good
business plan, must include all aspects of potential income, expenses, political outlook,
risks, capital costs, environmental concerns, safety issues, etc…"
"We are in the process of setting up a website for each of you to access that gives a lot
more background information on each of the areas I have mentioned. I suggest you
search each of these areas as you work through building your business plan. We will
make available experts, which you can gain access to though email."
Samantha Clandestine - Sam, as she has been affectionately called since childhood takes
her turn, "So, let me get this straight. Each team can only bid on only one of the sites.
And whatever project and presentation you deem the best, will be awarded the sole
contract?"
"That is exactly correct Sam!" says Mr. P. Hall. "Just follow the guidelines on the website
we have set up for you –which better explain the guidelines, and MAY THE BEST
TEAM WIN! I look forward to your presentations in three weeks. Good Luck!"
"If there are no other questions, the meeting is adjourned. Gather your teams and get
started on your proposals!" concludes Mr. Payne Hall. He packs up his briefcase, and
walks out of the meeting hall. A buzz of chatter erupts in the room, as you quickly head
for the door yourself.
Resources
Online Experts and Their Roles in the Project
Mr. Jim Oldfield, Exploration Supervisor, Chevron Oil Company
Mr. John Karpa, III, Senior Staff Geologist
Mr. Harv Denaclara, Oil Field Manager, Schlumberger
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Mr. Todd Meaux, Engineer, Oil Phase
Mr. Kirk Trujillo, Seismologist Manager, Schlumberger
Dr. Mark Cantrell, Senior Engineer, Material Sciences, Lockheed Martin
Ms. Barb Carleton, Finance/Geologist, Deepwater Exploration, Chevron U. S. A.
Mr. Rick Eisenberg, Geologist, Chevron, U. S. A.
Mr. Steve Smith, Subsurface Team Leader - Deepwater Producing Operations, Chevron,
U. S. A.
High School Discussion Forum
Go to this discussion forum page to interact with others who are working on your case.
Do you have similar ideas? Do they know something that you need to know? This is
where you go to find out!
General Resources
Here are some Power Point Slide Shows that will help "orient" you to the oil business!
Maps Related to Oil in Alaska and Florida
Oil Industry Beginnings
Oil and Gas Production Process
Genesis Project
Links
Here are some good starting points for you, and some clues to keep you going!
Oil Exploration and Production Resources
Chevron USA – all aspects of oil exploration and production clearly explained at this
learning site (excellent information).
http://www.chevron.com/explore/frame.html
Texaco
http://www.texaco.com/shared/utility/docs/smap_nojs.html
Shell Oil Company
http://www.shell.com/royal-en/directory/0,5029,25611,00.html
Conoco – Crude Oil price tables
http://www.conoco.com/buy/postings/index.asp
ShellOil - excellent site (chemicals, fossil fuels, power, renewable
resources,etc.)
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http://www.shell.com/royal-en/directory/0,5029,25422,00.html
Shell oil - another excellent site (climate, crude oil pricing,
development, biodiversity, etc.)
http://www.shell.com/royal-en/directory/0,5029,25414,00.html
ChevronTexaco oil - all about oil production
HTTP://WWW.CHEVRON.COM/about/learning_center/crude/
Articles and General Information:
http://www.washtimes.com/national/20011023-10862618.htm
http://www.cnn.com/2001/ALLPOLITICS/08/11/hoffa.drilling/index.html
http://www.washingtontimes.com/national/20010423-81535061.htm
US Government Energy Sites
*The Mineral Management Service – US
http://www.mms.gov/
Regions of interest: Alaska & the Gulf of Mexico – and the "kid’s page" (Excellent site).
MMS-Gulf of Mexico
http://www.gomr.mms.gov/homepg/offshore/deepwtr.html
http://www.gomr.mms.gov/navigation.html (Gulf of Mexico)
MMS-Alaska
http://www.mms.gov/alaska/
http://www.mms.gov/alaska/kids/index.htm (Alaska)
Environmental Issues
*Exxon Valdez spill info
http://www.exxon.mobil.com/news/valdez/index.html
*Greenpeace – Oil Platform sinks in deepwater, Brazil
http://www.greenpeace.org/
Arctic drilling article-environmental:
http://greenpeace.org/pressreleases/arctic/1999oct21.html
Arctic drilling article- environmental:
http://www.greenpeace.org/~climate/arctic99/html/content/oldnews/news11.04.2000.htm
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http://www.cnn.com/2001/ALLPOLITICS/08/11/hoffa.drilling/index.html
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http://www.msnbc.com/news/525200.asp?0nm=V15S
http://www.msnbc.com/news/530158.asp?0nm=-1AP
Images
Below are some thumbnail images related to oil exploration. Click on an image to see a
larger picture.
Guiding Questions
1. Why is the president and congress willing to open sensitive areas of the United
States to oil exploration and production?
2. What will be the potential impacts of opening up these areas to oil exploration and
production?
3. What are the biggest "pros" and the biggest "cons" to this exploration project (in
all areas of concern)?
4. How can a well-conceived plan of action get the project approved? and the
contract awarded?
5. What are projections concerning the economics of your proposal? Revenues and
profits vs. loss?
What are the major factors (and limitations) to your team winning the contract to explore
and produce the oil?
Products
Phase One-Where Do I Stand?
Complete the initial planning and research the fundamental areas that need addressing in
you business plan.
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- 2 pages, typed outline highlighting your focus. Include arguments for and
against each pressing concern.
Due: After day 4 of the project.
Phase Two-Doing the Research
Clearly and succinctly describe each segment of your business plan.
- 3-4 page essay.
Due: After day 8 of the project.
Phase Three-Taking it Public!
Submit a well-documented and informed business plan (capstone project). The oral
presentation to the committee should be multi-media oriented, creative, informative, and
professionally delivered. (8-12 minutes).
Due: The final day
This case was developed by Jeffrey Burgoyne, EdD and was the case used for his
dissertation. It can be used as the framework for other similar situations.