Enron Corporation

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Enron Corporation

Before filing for bankruptcy in 2001, Enron Corporation was one of the largest integrated natural gas and electricity companies in the world. It marketed natural gas liquids worldwide and operated one of the largest natural gas transmission systems in the world, totaling more than 36,000 miles. It was also one of the largest independent developers and producers of electricity in the world, serving both industrial and emerging markets.

Timeline

Enron began as Northern Natural Gas Company, organized in Omaha, Nebraska, in 1930. The company's founding came just a few months after the stock market crash of 1929, an unusual time to launch a new venture. Several aspects of the Great Depression actually worked in Northern's favor, however. Consumers initially were not enthusiastic about natural gas as a heating fuel, but its low cost led to its acceptance during tough economic times. High unemployment brought the new company a ready supply of cheap labor to build its pipeline system. The 1940s brought changes in Northern's regulation and ownership. The Federal Power Commission, created as a result of the Natural Gas Act of 1938, regulated the natural gas industry's rates and expansion.

1944: Acquires the gas-gathering and transmission lines of Argus Natural Gas Co.

1945: Argus properties are consolidated into a subsidiary called Peoples Natural Gas Co

As time went on Northern kept expanding through acquisitions. First in 1967 it made an acquisition with Protane Corporation, a distributor of propane gas in the eastern US and the Carribbean. In 1976, Northern formed Northern Arctic Gas Company, a partner in the proposed Alaskan arctic gas pipeline, and Northern Liquid Fuels International Ltd., a supply and marketing company.

1980: Northern changes its name to InterNorth, Inc. Its attempted hostile takeover of Crouse-Hinds Co., an electrical products manufacturer, is thwarted by Cooper Industries. Northern Overthrust Pipeline Co. and Northern Trailblazer Pipeline Co. are set up to participate in the Trailblazer pipeline. Creates two exploration and production companies, Nortex Gas & Oil and Consolidex Gas and Oil Ltd.

1982: Forms Northern Intrastate Pipeline Co. and Northern Coal Pipeline Co. Establishes InterNorth International, Inc. to oversee non-U.S. operations

InterNorth made an acquisition of enormous proportions in 1...

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...d then they reported a $ 1 million charge in total. Then there was the project to build a natural gas 900 kilometer pipeline in Mozambique to Gauteng, South Africa which cost $700 million. Enron's contract is now considered overpriced. Nevertheless, Enron must pay for the gas even if it does not take possession of it and Enron has no customers for the gas. I feel that Enron had luck on it’s side for a while and were able to conquer all these different markets for a while. But they wanted too much power and money, much too fast for some of the markets they entered they had to dish out billions of dollars in up front capital investments on hard assets. . These capital investments were not expected to generate significant earnings or cash flow in the short term. This put pressure on Enron’s balance sheet.

I would of not tried to expand so rapidly and gave time for my projects, mergers and aquasitions to progress and then expand instead of rushing. I would of not spent so much time and money on contributions to political parties trying to gain deregulation and to stop gov’t oversight. I would of done things properly and legally that way gov’t oversight would of not been a problem.

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