Term Paper: Enron Was a Big Energy Company

Pages: 3 (1225 words)  ·  Bibliography Sources: 1+  ·  Level: College Senior  ·  Topic: Energy  ·  Buy This Paper

ENRON was a big energy company in the U.S. that attempted to transform itself into the largest energy trader in the world. It rose as high as the seventh largest company in the U.S. In terms of stock value, which was believed to be due to the dynamism and political connection of its Chairman Kenneth Lay. Its share prices nose-dived when it became apparent that the company had been hiding losses by forming shell companies. Quite a few of its executives reaped large benefits by disposing their stock options for cash when the share prices were high. The employees were the losers as they put all their pension money in Enron shares and lost it all when the firm went bankrupt. (ENRON: Who's who?)

Enron was the largest trader of natural gas in the U.S. In 1999 its revenues were $40 billion make it the eighteenth biggest company in the U.S. The business activities of Enron were not restricted to the U.S. alone, but rather were spread all around the world and included activities in countries like Argentina, Bolivia, Brazil, China India, Indonesia, Mozambique and the Philippines. Enron also diversified its product range and expanded on to the Internet trading in a wide range of products from pulp and paper to petrochemicals and plastics. It also traded in esoteric products such as clean air credits that are made use of in utilities to keep within emission limits. (Meet Enron, Bush's Biggest Contributor)

Enron came into existence by the merger of Houston Natural gas Company of Houston, Texas and the natural gas company based in Omaha Nebraska called InterNorth, in 1985. To start with Enron operated interstate gas pipelines. In 1989 Enron diversified into trading energy related products. In the fleeting time of a few years Enron wore the mantle of the largest trader of energy in the United States and the United Kingdom. By 1994 Enron grew to be the largest seller of electric power in the U.S. In 1997 Enron implemented its plans to reshape its corporate image to appear as a new, more modern, stylish in appearance and environment conscious company. It brought in a new company logo and went on to acquire Zond Corporation a leading developer in the field of wind energy power. This led to the formation of Enron Renewable Energy Corporation. In August 1997 Enron made public that it was entering the market place with new weather derivative products.

This was in addition to its trading in energy and it also started trading in cellulose, pulp, paper, fertilizer, plastic, metals and bandwidth. With the progress of time into 1999, Enron had turned so big that it was involved in nearly a quarter of the energy deals worldwide. Enron was involved in a major power scandal in Dhabol, India and this led to the developing world looking on Enron with distaste. Houston's new ballpark was named Enron Field in 1999, when Enron agreed to pay $100 million during a period of thirty years. Again in 1999 Enron Energy Services completed its first billion-dollar transaction with Suiza Foods. Shortly afterwards Enron launched EnronOnline the first ever-global Web-based online commodity trading site. In 2000 the Fortune magazine named Enron as the most innovative company in the U.S.A. For the fifth year in succession. In the same year Energy Financial Group ranked Enron as the 6th largest energy company worldwide.

Enron launched the New Power Company, the first national energy service in May 2000 along with its new strategic investors IBM and America Online. The New Power Company was created to provide energy services for residential and small businesses in the U.S., where deregulations in the energy market were introduced.… [END OF PREVIEW]

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Enron Was a Big Energy Company.  (2004, November 30).  Retrieved June 18, 2019, from https://www.essaytown.com/subjects/paper/enron-big-energy-company/79911

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"Enron Was a Big Energy Company."  30 November 2004.  Web.  18 June 2019. <https://www.essaytown.com/subjects/paper/enron-big-energy-company/79911>.

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"Enron Was a Big Energy Company."  Essaytown.com.  November 30, 2004.  Accessed June 18, 2019.
https://www.essaytown.com/subjects/paper/enron-big-energy-company/79911.