Kelli's Cline Shale: An Ethical Dilemma

When Kelli, my friend and long time client, came to me for an immediate update of her reserves, she inadvertently presented me with an ethical dilemma. Kelli said she intends to stake everything on the Cline Shale that Big Oil Company just began developing. Large Independent, another of my clients, has a non-operating interest in Big Oil Company’s project, and their data suggests that if Kelli were to follow through with her investment, the result would be calamitous. Although Kelli is my friend, I cannot justify sharing confidential information with her, so I will rationalize why she should not invest in the Cline Shale using both logos and pathos. I am not asking her to trust me but rather to reevaluate the situation with a level head. Sharing
Along with her report, I would discourage the investment since I’m obligated to “advise [my] clients or employers when [I] believe a project will not be successful” (para 8). I would point out that given the danger and high level of uncertainty involved, if I was in her position, I would refrain from investing. I would also mention that trusting the ranch owner to provide credible information about Big Oil Company’s well is incredibly risky since his actions likely cater to his own agenda, which involves leasing his property for a profit regardless of Kelli’s prosperity. I’d diminish the rancher’s credibility by musing whether the reason he had a conflict with Big Oil Company was because they did not offer enough, which would suggest that his primary motivation is greed. Additionally, I would emphasize that rumors are notoriously poor sources of information since they are usually perpetuated by those with a vested interest thus rumors reflect a false reality. I would tell Kelli that assumptions are not a good basis for an investment as potentially catastrophic as this one. Finally, I’d highlight that if anything other than oil comes out of that well she would not be able to turn a profit and her company would be