Ethics Case
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University of Texas *
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Course
333T
Subject
Law
Date
Jan 9, 2024
Type
docx
Pages
3
Uploaded by ChiefIceChinchilla30
February 20, 2023
PGE 333T
Ethics Case
A situation arises me, the owner of reserves consulting firm, where I am forced to make a
decision that must back up my firm’s ethical conduct and strict adherence of our obligation to
maintain confidentiality but also protect a strong family friend from harm.
My client, and friend,
Elana plans to use the value of her company’s assets, Small Oil Company, to go to the bank and
accept a loan for $12.5 million, when her company’s value is only $15 million, to acquire a lease
to make a play in the Cline Shale. Small Oil Company is not the only contender in the area
though, Big Oil Company is the primary player and the ones to begin exploration in this county.
The land Small Oil Company plans to purchase the lease for is adjacent to Big Oil Company’s
lease, and a friend-of-a-friend knows the owner of the ranch who is willing to exclusively offer
them the lease for the next three weeks. Elana has asked for an immediate update on her reserves
in order to borrow from the bank. The issue is that I have information from another client who is
invested in Big Oil Company’s exploratory well, meaning that I have confidential information on
the well that is key to Elana’s huge gamble within the office. The ranch owner says that from
what he has seen, it is looking like a good well, but my in-office information says otherwise. In
order to stay within the Engineering Code of Ethics and also protect Elana and her company
from disaster, I choose to advise her as a close friend that I am concerned with the level of risk
with her gambling her entire company on this one deal.
There exists a system of moral principles that engineers follow and is known as the code
of ethics. Since my reserves consulting firm gets its credibility from adhering to the engineering
code of ethics, every decision must be made while following this code, even with close friends.
Because of this I cannot just tell Elana the bad news about Big Oil Company’s exploratory well
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and disrespect the confidentiality we gave to our client who is already involved in the
exploration of the Cline Shale. The Code of Ethics for Engineers states in section II. 1c. that
“Engineers shall not reveal facts, data, or information without the prior consent of the client or
employer except as authorized or required by law or this Code” (Code of Ethics, 2019, Rules of
Practice Section). This ethical code denies me from releasing any information to Elana on the
state of the well and why she shouldn’t risk it. The problem with saying that I can’t tell her the
details, but the exploratory well doesn’t look good, or to trust me and I advise her to abandon the
deal is that she would ask questions for further info. It wouldn’t be smart on Elana’s part to
abandon a big investment without knowing why, which is why she would probe me for more
information in either of those situations where I could not tell her more due to the previously
stated rule from the code of ethics. But because of section III. 1b. “Engineers shall advise their
clients or employers when they believe a project will not be successful” (Code of Ethics, 2019,
Professional Obligations Section), I cannot allow Small Oil Company or my friend to fall into
this disaster.
To advise Elana in a way that pays heed to section III 1b. and section II. 1c. I decide to
have a chat with her as a friend and describe to her the situation in a negative way, pushing her
toward not accepting the lease due to it being too big of a risk. She of course will have questions
on why I believe it is unsafe to move forward with this investment, and I will not disclose any
information acquired by my other client but paint a picture of how everything could be ruined if
this leases doesn’t turn out to produce as much oil as she predicted based off the word of a
rancher not in the industry.
In conclusion, I believe I chose a way to settle this case that doesn’t violate the
Code of Ethics for Engineers but swayed Elana to ditch her investment that would’ve devastated
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her and her company. It is important to recognize that ethical dilemmas will continue to arise,
and there is no one-size fits all solution. It is therefore essential to approach each case with an
open mind and commitment to finding the best possible outcome for all parties involved.
Bibliography
Code of Ethics. (2019). National Society of Professional Engineers.
https://www.nspe.org/resources/ethics/code-ethics
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