Enron was an American energy, commodities, and services company that was based out of Houston, Texas. Enron was created by the joining of two natural gas companies, InterNorth Inc . of Omaha, Nebraska and Houston Natural Gas. Enron had a rapid rise to become one of the biggest corporations in the United States at the time and also became one of the biggest business collapses in United States history. I will talk about how Enron came into existence and how it ultimately failed.
InterNorth was based in Omaha, Nebraska and specialized in natural gas pipelines and also was involved in plastics and also coal and petroleum exploration and production. It was formed in 1979 as a holding company for Northern Natural Gas Company, which was founded in 1931. They operated the largest natural gas pipeline in North America. InterNorth was looking to expand its holdings and pursued purchasing other companies. One of these companies was a smaller competitor named Houston Natural Gas.
Houston Natural Gas is a gas utility based in Houston, Texas. HNG's core asset was the largest intrastate gas pipeline network in the United States. The company also produced oil, gas, and coal; manufactured petrochemicals; and engaged in marine transportation and construction.
Kenneth Lay was the CEO of Houston Natural Gas and would later become the CEO of Enron after Samuel Segnar, CEO of InterNorth, stepped down. Kenneth Lay was born on April 15, 1942, in Tyrone, Missouri. He came from a poor family and always wanted to live a better life growing up. For having been raised with very little money and not having much he has a very impressive schooling background and work acomplishments. He attended the University of Missouri and received both a bachelor and masters...
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...es makes it hard to do so. We as a society want to see the economy grow and make money, but as we learned from the cases people want you to do it fairly. Its instinct to want more no matter what you’re doing, whether you want more money to buy that new sports car, or you want more money to set up a good foundation for your family, or if you want more money so you can give that money away to people that don’t have enough. People are always wanting more but if something sounds too good to be true there is a good chance that it is. Enron had a good idea and when it failed I think that they were trying to find a way to just buy time till their idea turned into a success but when they found out that they could make just as much money without even needing a successful idea, so greed sets in and they take the greedy way out, but in the long run the greedy way never works.
This segment consists of the three natural gas pipelines: Panhandle Eastern, Trunkline, and Sea Robin, natural gas storage assets, and the Trunkline LNG terminal. The three pipelines have a total length of approximately 10,000 miles and transport 5.5 Bcf/d of natural gas. The Panhandle Eastern pipeline transports natural gas from the Rocky Mountains and Midcontinent supply areas to...
The Fastows headed to Mrs. Fastow's native Houston in 1990, both taking jobs at a young company called Enron. Just five years old, Enron was starting to evolve from a natural-gas and pipeline company into a trading firm. Mr. Fastow was one of the first managers hired by Mr. [Jeffrey Skilling], who himself had only recently arrived, from management consultants McKinsey & Co. Brought into Mr. Skilling's inner circle, Mr. Fastow returned the loyalty, telling colleagues he had named a child after his mentor. When Mr. Skilling became Enron's president and chief operating officer in early 1997, he and Mr. [Kenneth Lay] promoted Mr. Fastow to lead a new finance department. A year later, Mr. Fastow became chief financial officer.
Enron corporation, a company establisted at 1985, in Taxes. Until 2001, it becames one of the biggest company in the world, which service for energy, natural gas and telecommunications. In 2000, the disclosure turnover reached $101 billion. Everything is going well for Enron corporation. However, at beginning of 2001, Jim - a good reputation of the short-term investment agency owner. Publicly on Enron’s profit model expressed doubts. He pointed out that alough Enron’s business looks very brilliant, but in fact they cannot really make the amount of moeny like the data shown before. No one can say they can understand how Enron is making moeny. According to the inverstment owner’s analysis, Enron’s profitability in 2000 to 5%, to the beginning
The Enron Corporation was committed to pushing the legal limit as far as possible. Many individuals only seeking to promote their own well-being over any legal or ethical boundaries did this. This was not only isolated with the Enron Corporation, as Arthur Andersen the outside accounting firm and Vinson & Elkins Enron’s law firm were also participants. The key players that led to the collapse of Enron was the founder Kenneth Lay, his successor
The three main crooks Chairman Ken Lay, CEO Jeff Skilling, and CFO Andrew Fastow, are as off the rack as they come. Fastow was skimming from Enron by ripping off the con artists who showed him how to steal, by hiding Enron debt in dummy corporations, and getting rich off of it. Opportunity theory is ever present because since this scam was done once without penalty, it was done plenty of more times with ease. Skilling however, was the typical amoral nerd, with delusions of grandeur, who wanted to mess around with others because he was ridiculed as a kid, implementing an absurd rank and yank policy that led to employees grading each other, with the lowest graded people being fired. Structural humiliation played a direct role in shaping Skilling's thoughts and future actions. This did not mean the worst employees were fired, only the least popular, or those who were not afraid to tell the truth. Thus, the corrupt culture of Enron was born. At one point, in an inter...
Enron Corporation started back in 1985. It was created as a merger of Houston Natural Gas and Omaha based InterNorth as a interstate pipeline company (CbcNews). Kenneth Lay was the former chief executive officer of Houston natural gas merged his company with another natural gas line company, Omaha Based InterNorth. During the time of the merger there were many arguments amongst the two companies and in the end Ken Lay the former C...
Houston, Texas is a city that has grown and thrived off of the energy industry. The city that has been endearingly termed “the petrochemical capital of the world”, is home to oil refineries that produce a quarter of the oil in the entire United States (Ngai & Sims, 2017). Some of the country’s largest oil companies like Valero, ExxonMobil, and Marathon, have chosen to establish refineries in the booming city. These refineries together produce about 2 million barrels of crude oil per day (Blum & Blunt, 2018). Houston is also home to the WA Parish Generating Station, the largest coal power plant in the state of Texas. The economic opportunities that have followed the migration of these energy companies have drawn massive amounts of people to
Enron started about 18 years ago in July of 1985. Huston Natural Gas merged with InterNorth, a natural gas company. After their merge they decided to come up with a new name, Enron. Enron grew in that 18-year span to be one of America's largest companies. A man named Kenneth Lay who was an energy economist became the CEO of Enron. He was an optimistic man and was very eager to do things a new way. He built Enron into an enormous corporation and in just 9 years Enron became the largest marketer of electricity in the United States. Just 6 years after that, in the summer of 2000 the stock was at a tremendous all time high and sold for more than 80 dollars a share. Enron was doing great and everything you could see was perfect, but that was the problem, it was what you couldn't see that was about to get Enron to the record books.
Kern River Pipeline - 1,679 mile natural gas pipeline traveling from southwestern Wyoming to Bakersfield, California, where it supplies distribution centers in Utah, Nevada, and California
Enron Corporation was based in Houston, Texas and participated in the wholesale exchange of American energy and commodities (ex. electricity and natural gas). Enron found itself in the middle of a very public accounting fraud scandal in the early 2000s. The corruption of Enron’s CFO and top executives bring to question their ethics and ethical culture of the company. Additionally, examining Enron ethics, their organization culture, will help to determine how their criminal acts could have been prevented.
In July 1985, the Texas based energy firm Enron Corporation was founded by Kenneth Lay by the merge of Houston Natural Gas and Inter-North. Enron primarily focused on the energy markets, due to electrical power markets becoming deregulated Enron expanded into trading electricity and other energy goods. With Enron growing, the company began moving into new markets. In 1999, Enron launched Enron Online, its website for trading goods. The rapid awareness and use of the business website made it the prime business site in the world with a substantial amount of transactions arising from Enron Online. The growth of Enron was extensive and in 2000, the firm was ranked the 7th largest energy firm in the world with year ending accounts 31 December 2000 showing a profit of $979 million and share prices soaring from $40 to $90 in one year.
In Enron, it was dictatorial and revenue-based to new ideas. Leaders not only fostered a wrong sense of security for employees, paying high wages to keep workers dependent on the system via golden handcuffs, but also may allows employees did unethical behaviors. This repressive and illegal corporate would eventually make company lost creditability, or else, make company
The Enron Corporation was an American energy company that provided natural gas, electricity, and communications to its customers both wholesale and retail globally and in the northwestern United States (Ferrell, et al, 2013). Top executives, prestigious law firms, trusted accounting firms, the largest banks in the finance industry, the board of directors, and other high powered people, all played a part in the biggest most popular scandal that shook the faith of the American people in big business and the stock market with the demise of one of the top Fortune 500 companies that made billions of dollars through illegal and unethical gains (Ferrell, et al, 2013). Many shareholders, employees, and investors lost their entire life savings, investments,
Enron had rose to the top by engaging in energy projects worldwide and speculating in oil and gas futures on the world’s commodities markets. They also provided financial support to some presidential candidates and members of the U.S. Congress. However, Enron had a secret. The corporation had created partnerships located in off-shore
Recently, the United States has experienced a boom in natural gas exploration and extraction. This has come about mainly because of the discovery of huge natural gas reserves in the Marcellus Shale Formation, an area of bedrock that stretches throughout much of the northeastern Appalachians and covers states like Pennsylvania and New York. Thus, the discovery of these reservoirs of natural gas in the region (and in other parts of the U.S.) have led to increased extraction and production of natural gas as an alternative fuel source. Natural gas as a natural resource has several benefits but it also exhibits some drawbacks. LNG (liquefied natural gas) has been an especially hot topic as corporations are looking to save money while helping to reduce greenhouse gas emissions.