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Government Affairs Update Enron Global Markets Enron Industrial Markets. Government Affairs Department Meeting Broomfield, Colorado June 14, 2001. Houston Masha Arefieva Maggy Huson Lisa Yoho. Washington Larry Decker Chris Long.
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Government Affairs UpdateEnron Global MarketsEnron Industrial Markets Government Affairs Department Meeting Broomfield, Colorado June 14, 2001
Houston Masha Arefieva Maggy Huson Lisa Yoho Washington Larry Decker Chris Long Enron Global and Enron Industrial MarketsGovernment Affairs Team
Today’s Presentation • EGM and EIM OVERVIEW • CURRENT GOVERNMENT AFFAIRS ISSUES/INITIATIVES
New business unit focusing on global markets and commodities outside of Enron’s traditional gas and power markets Global Crude and Products Coal and Emissions LNG Currency, Equities and Interest Rates Freight Weather Agriculture ENRON GLOBAL MARKETSWhat Are Enron’s Global Markets?
ENRON GLOBAL MARKETSCrude and Products • Products include: • Crude Oil • Gasoline • Heating Oil • Petchems • LPGs • Actively transacting online • Developing origination function
ENRON GLOBAL MARKETSCoal and Emissions • Enron is largest domestic coal trader • Enron has an equity and/or debt position in companies that own mines in WV, KY, PA and IL • Enron is largest market-maker in SOx emissions
ENRON GLOBAL MARKETSFreight • Webmodal acquisition, an intermodal freight company • Current initiatives: • Trucking - negotiating capacity contracts for long-haul trucking • Rail – making progress on creation of capacity markets • Barge - a natural transition • Ocean Freight - analyzing regulatory & asset requirements to enter market
ENRON GLOBAL MARKETSWeather • Completed the first weather transaction in 1996 • Capable of structuring customized weather risk solutions • 2,600+ deals completed by Enron to date
ENRON GLOBAL MARKETSLNG • Developing a physical presence • Focusing on selective asset development efforts • Enron has access to capacity at El Paso’s LNG terminal at Elba Island
ENRON GLOBAL MARKETSAgriculture • In the summer of 2000, Enron began to explore opportunities in the agriculture markets • Focus is currently on grains and softs markets • Future is uncertain
ENRON INDUSTRIAL MARKETSWhat are Enron’s Industrial Markets? • Steel • Forest Products
Enron Industrial MarketsSteel • Enron’s goal is to tailor physical and financial risk management products for steel producers, distributors and end-users • Enron expects to trade 3 million tons of steel on an annualized basis in 2001 • Huntco Transaction • Inventory price risk management services and steel procurement by Enron for 15 years • Acquisition of Huntco’s cold-rolling and pickling operations in Blytheville, Arkansas • Provides Enron with a physical presence in the steel market
Enron Industrial MarketsForest Products • Enron’s initial product focus: • Pulp • Paper • Newsprint • Lumber • Enron is 7th largest newsprint producer in North America
ENRON GLOBAL AND INDUSTRIAL MARKETSCurrent Government Affairs Issues and Initiatives • Promotion of Weather Hedging • Developing Tradeable Capacity Rights for Rail and Ocean Freight • Antidumping/Countervailing Duties • Section 201 Safeguard Proceeding on Steel Imports
ENRON GLOBAL AND INDUSTRIAL MARKETSCurrent Government Affairs Issues and Initiatives • Relax CFTC Regulation of Commodities • Energy Plan – Outlook for Crude and Coal • Introduce Enron to Key Policymakers in Washington