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arnold-j/all_documents/543.
|
subject:
content: Doug:
To confirm the pricing of the LNG dela::
I can show a $3.01 bid for the Nymex portion of 160,000 mmbtu/day for the
time period Jan 2003-Dec 2014. The bid on Henry Hub basis for same time
period is -$.0025 resulting in fix price of $3.0075; the bid on Sonat basis
is -$.0175 translating into a bid of $2.9925.
Notional volume = 70,128 contracts.
PV volume = 37,658 contracts.
Exposure per $.01 move = $3,760,000
John
| ||
arnold-j/all_documents/544.
|
subject: Re:
content: Hey, I just got your email.
Call anytime after 4:00.
Obviously, I don't read my email very often
| ||
arnold-j/all_documents/545.
|
subject:
content: Please stop sending emails to jennifer_arnold to the following email address:
[email protected].
You have the wrong person
| ||
arnold-j/all_documents/546.
|
subject:
content: Jeff:
Sorry for my cryptic answer in regards to the LNG deal on Friday; I was a bit
confused by the question.
In terms of the gas pricing, this is a deal that should be done. Market
conditions are very conducive to hedging a fair amount of the gas.
Obviously, a deal this size would require Enron to wear a considerable amount
of the risk in the short term, but the risk-reward of the position looks very
favorable.
I am certainly willing to sign off on this deal around the $3.00 level.
John
|
Jeff Skilling@Enron
|
|
arnold-j/all_documents/547.
|
subject: Re: dude
content: What's up dude...
Sorry I've been so delinquent in returning email.
Good gas companies...Devon, Newfield,
| ||
arnold-j/all_documents/548.
|
subject: Re: options
content: Andy:
The problem if we limit the size on options to being what size is offered on
the swap hedge, we will not be able to offer adequate size on the options.
Optimally, I think we want to offer a minimum size of 100 across all
strikes. If the swap is 4/4.5, one a day up, and someone buys half a day,
making the market, 4/4.5 one a day by half a day, the size offered on a 10
cent out of the money call might be as low as 30 contracts, a much smaller
size than most people want to trade. If we restrict to strikes with a lower
delta, we face the problem of not offering enough strikes and not making a
market in options that have open EOL interest that have moved closer to the
money.
Maybe the answer is to assume the swap hedge to be a penny wide two way
wrapped around the EOL swap mid market. Thus if the front swap on EOL is
4/4.5 one a day by half a day, the input into the option calculator is
3.75/4.75, 100 up. In this case I think 100 is necessary because once a
strike has open interest, we must continue to support it. Thus I anticipate
having to make markets in deep itm options as the market moves.
In terms of straddle strikes, I think the edge received from buying straddles
struck on the EOL offer and vice-versa is not big enough to compensate for
what I think the industry will view as a scam and another way Enron is trying
to rip people off. Although striking on the mid-market is probably easier
for the trader, I actually think striking in five cent increments makes more
sense. It allows people to trade out of the position on EOL. Whereas if
someone buys the 3085 straddle and the market moves to 3200, they have to
call ENE to close the trade. If the trade is struck at 3100, we will have a
market on both the 3100 call and put at all times. Secondly, I would
anticipate non-volatility driven option traders may elect to sell either just
the put or call in this scenario depending on their view of market direction.
| ||
arnold-j/all_documents/549.
|
subject: Re: options
content: Andy:
Just a couple of quick items that need to be addressed. First, what happens
if the delta of the option is greater than the size of the hedge offered on
EOL? Second, what strike are straddles traded at. Are they set at the
nearest 5 cent interval or are they mid-market of the EOL quote?
| ||
arnold-j/all_documents/55.
|
subject: Re: non-disclosure agreement with HP
content: Matt:
Moe had suggested waiting on rescheduling the conference call until a
non-disclosure agreement is signed with Hewlett Packard. I have just
forwarded the non-disclosure framework from HP to you and Patrick Tucker.
Once I hear back from Ravi on this question, we'll let you know.
Thanks.
Sarah-Joy Hunter
Global Strategic Sourcing
Business Development
#(713)-345-6541
---------------------- Forwarded by Sarah-Joy Hunter/NA/Enron on 12/07/2000
12:46 PM ---------------------------
Matt Harris@ENRON COMMUNICATIONS
12/07/2000 11:16 AM
To: Sarah-Joy Hunter/NA/Enron@ENRON
cc: Moe Barbarawi/Enron Communications@Enron Communications, Patrick
Tucker/Enron Communications@Enron Communications, Peter
Goebel/NA/Enron@Enron, Ravi Thuraisingham/Enron Communications@Enron
Communications, Sally Slaughter/Enron Communications@Enron Communications
Subject: Re: Hewlett Packard/Enron Conference call regarding STORAGE SERVICES
12/7 at 10 AM CST CANCELLED
Lets make this happen ASAP.
If Ravi is not available - how about Raj or Moe.
Thanks
Matt
Sarah-Joy Hunter@ENRON
12/06/00 04:39 PM
To: Ravi Thuraisingham/Enron Communications@Enron Communications, Patrick
Tucker/Enron Communications@Enron Communications, Matt Harris/Enron
Communications@Enron Communications, [email protected],
[email protected], [email protected], Moe Barbarawi/Enron
Communications@Enron Communications, Peter Goebel/NA/Enron@Enron, Jeff
Youngflesh/NA/Enron@ENRON
cc: Jennifer Medcalf/NA/Enron@Enron, Sally Slaughter/Enron
Communications@Enron Communications, [email protected], [email protected]
Subject: Hewlett Packard/Enron Conference call regarding STORAGE SERVICES
12/7 at 10 AM CST CANCELLED
Conference call participants:
At Ravi Thuraisingham's request due to an unanticipated business trip, the
conference call regarding storage initiatives set for 12/7 at 10 AM CST has
been cancelled. As soon as Ravi proposes an alternative time, we will
reschedule the conference call.
Sarah-Joy Hunter
#(713)-345-6541
---------------------- Forwarded by Sarah-Joy Hunter/NA/Enron on 12/06/2000
06:36 PM ---------------------------
Sarah-Joy Hunter
11/30/2000 05:45 PM
To: Ravi Thuraisingham/Enron Communications@Enron Communications, Patrick
Tucker/Enron Communications@Enron Communications, Matt Harris/Enron
Communications@Enron Communications, [email protected],
[email protected], [email protected], Moe Barbarawi/Enron
Communications@Enron Communications, Peter Goebel/NA/Enron@Enron, Jeff
Youngflesh/NA/Enron@ENRON
cc: Jennifer Medcalf/NA/Enron@Enron, Sally Slaughter/Enron
Communications@Enron Communications, [email protected], [email protected]
Subject: Hewlett Packard/Enron Conference call regarding STORAGE SERVICES
12/7 at 10 AM CST
A conference call regarding STORAGE SERVICES will be held Thursday, December
7th from 10-11AM CST. Please note the conference call in and passcode
numbers below.
Ravi Thuraisingham, Director, Enron Broadband Services (EBS) will lead
discussions regarding EBS' storage initiatives and Chris Roberson, Hewlett
Packard Storage Solutions Architect, will lead HP storage solutions
discussions. Matt Harris, Vice President, EBS and Patrick Tucker, Manager,
EBS are leading the origination efforts between HP and Enron.
Conference Call Dial Up Number: 1-800-991-9019
Passcode #: 6835918 # (Note: the # sign must be input after the passcode)
Subsequent to the conference call, future meetings and strategy on Enron/HP
storage initiatives will be decided.
Please call if any questions or agenda changes
Sarah-Joy Hunter
Enron Corporation
Global Strategic Sourcing, Business Development
#(713)-345-6541.
| ||
arnold-j/all_documents/550.
|
subject:
content: Thanks for taking me in last night. Sorry about being drunk and stinky.
My cab, that we called at 6:10, showed up at 7:02. I was so pissed.
| ||
arnold-j/all_documents/551.
|
subject:
content: Dutch:
The increase in position and subsequent position limit violation was due to
two factors. First, a long position was moved into the long-term exotics
book due to the nature of the position. I am currently using the ltx to hold
longer-term strategic positions. The large increase in position is a
reflection of my view of the market.
Second, a large customer transaction originated by Fred Lagrasta's group was
transacted at the end of the day Monday and was not able to be hedged until
this morning. Hence a large position increase occurred for yesterday's
position and a corresponding decrease occurred today.
John
| ||
arnold-j/all_documents/552.
|
subject: Option Analysis on NG Price Book
content: ---------------------- Forwarded by John Arnold/HOU/ECT on 04/11/2000 04:57
PM ---------------------------
From: Rudi Zipter
04/08/2000 09:03 AM
To: John Arnold/HOU/ECT@ECT
cc: Vladimir Gorny/HOU/ECT@ECT, Minal Dalia/HOU/ECT@ECT, Sunil
Dalal/Corp/Enron@ENRON
Subject: Option Analysis on NG Price Book
John,
Several months ago we talked about the development of an option analysis tool
that could be used to stress test positions under various scenarios as a
supplement to our V@R analysis. We have recently completed the project and
would like to solicit your feedback on the report results.
We have selected your NG price position for April 4, 2000 (POST-ID 753650)
for the initial analysis. Attached in the excel file below you will find:
Analysis across the various forward months in your position
Underlying vs. Greeks, theoretical P&L
Volatility vs. Greeks, theoretical P&L
Time change vs. Greeks, theoretical P&L
Summary of your Overall Position analysis
Underlying vs. Greeks, theoretical P&L
Volatility vs. Greeks, theoretical P&L
Time change vs. Greeks, theoretical P&L
Multiple Stress Analysis
The attached Word document demonstrates the multiple stress choices. I have
included a tab in the excel file that demonstrates the theoretical P/L
resulting from shifts in both volatility and underlying price.
Please note that the percentage changes across the column headers are not in
absolute terms (for example, if the ATM volatility in a given month is 40%
and the stress is -10% then the analysis is performed under a volatility
scenario of 36%)
Thanks,
Rudi
| ||
arnold-j/all_documents/553.
|
subject:
content: call me if you're in town this weeekend
| ||
arnold-j/all_documents/554.
|
subject: Re:
content: nope...your loss though
| ||
arnold-j/all_documents/555.
|
subject:
content: Hey:
Any good set of 4 available for Sunday's game
| ||
arnold-j/all_documents/556.
|
subject: Re:
content: are you sure...have you ever been to bon coupe before
don't knock it till tou try it
| ||
arnold-j/all_documents/557.
|
subject: Re:
content: 2 options:
Either we leave from work and you watch me get a haircut for 20 minutes or...
I pick you up around 6:30...
| ||
arnold-j/all_documents/558.
|
subject:
content: Hello...
Despite my thoughts, you like baseball. So the question is do you like art
(as in musuems) ?
I'm leaning towards yes but don't know for sure.
| ||
arnold-j/all_documents/559.
|
subject:
content: Please approve Larry May for a trader id on EOL for "pipe options" book for
US gas.
Thanks,
John
3-3230
| ||
arnold-j/all_documents/56.
|
subject: Just an FYI
content: Ravi:
Thanks for the clarification so we can go forward with the call. Details of
the call-in number will be e-mailed this afternoon.
Sarah-Joy
---------------------- Forwarded by Sarah-Joy Hunter/NA/Enron on 12/07/2000
01:01 PM ---------------------------
From: Therese Candella@ENRON COMMUNICATIONS on 12/07/2000 12:47 PM
To: Sarah-Joy Hunter/NA/Enron@Enron
cc: Sally Slaughter/Enron Communications@Enron Communications
Subject: Just an FYI
================================
Therese A. Candella
Admin. Assistant
Global Bandwidth Risk Management
(713) 853-5245
(713) 646-8795 Fax
[email protected]
==================================
----- Forwarded by Therese Candella/Enron Communications on 12/07/00 12:49 PM
-----
[email protected]
12/07/00 11:52 AM
To: Therese Candella/Enron Communications@Enron Communications
cc:
Subject:
Reply Message:
Reply from THURAISINGHAM, RAVI is We should be okay w/o non-disclosure
agremnt since we won't discuss details.
Ravi.
to [email protected]|FYI|
per Sarah-Joy HP
Original Message:
[email protected]|FYI|
per Sarah-Joy HP has not signed a nondisclosure yet. Does that do anything to
the conference call for tomorrow. Matt Harris's team is working on getting
that
signed.
| ||
arnold-j/all_documents/560.
|
subject: Re: Nymex NG Swaps
content: Andy:
This past weekend we released a new version of the EOL software that,
unfortunately, had a bug. The effect was to lengthen the time delay between
numbers changing and when they would show up on the internet to an
unacceptable level that increased the number of failed trades. We made the
decision to take some of the more volatile products temporarily offline until
the fix could be made. I do not anticipate this to be a concern going
forward. Thanks for the feedback.
John Arnold
| ||
arnold-j/all_documents/561.
|
subject: re: New Computer
content: Please approve.
---------------------- Forwarded by John Arnold/HOU/ECT on 04/05/2000 07:32
AM ---------------------------
Larry May@ENRON
04/04/2000 10:10 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: re: New Computer
John, could you forward this message with your approval to Enron IT
Purchasing.
Would you please order a new computer for :
Larry May
Company # 413
rc# 0235
Location 3221c
As discussed with Hank Zhang, I would like to order a SP700 with 512 mbytes
RAM
Thnks
Larry May
3 6731
|
Enron IT Purchasing@Enron
|
|
arnold-j/all_documents/562.
|
subject: Re: VaR
content: i am free to talk this afternoon if you want
| ||
arnold-j/all_documents/563.
|
subject:
content: call me when you get this
| ||
arnold-j/all_documents/564.
|
subject: New curve generation methodology
content: I am changing the way the curve is generated starting in Jan 2004 to better
replicate seasonal fundamentals. There are convincing arguments as to why
the summer/winter spreads should tighten over time. However, in the previous
methodology they blew out. For instance summer/winter in Cal 3 was .232
while Cal 10 was .256.
I have added a seasonality dampening function that both contracts the
summer/winter spread and applies a premium to the electric load demand months
of July and August over time.
The formula for the curve remains the same except for a premium lookup for
the month as well as for the year. These premiums are as follows:
Jan -.008
Feb -.004
Mar -.001
Apr .002
May .003
Jun .004
Jul .004
Aug .004
Sep .003
Oct .002
Nov -.003
Dec -.006
These premiums start in Jan 2004
On Wednesday Jan 2003 settled 2.959, the 3/4 spread was marked at .0375, the
4/5 spread was marked at .0475.
In the old methodology
Jan 2003 = 2.959
Jan 2004 = 2.959 + .0375 = 2.9965
Jan 2005 = 2.9965 + .0475 = 3.044
In the new methodology
Jan 2003 = 2.959
Jan 2004 = 2.959 + .0375 - .008 =2.9885
Jan 2005 = 2.9885 + .0475 -.008 = 3.028
The only change in the formula is from:
Month x = Month (x- 1 year) + lookup on year on year table
to
Month x = Month (x- 1 year) + lookup on year on year table + lookup on month
premium table
The seasonality premiums will change over time and I will let you know when I
change them
| ||
arnold-j/all_documents/565.
|
subject: Re: VaR
content: I am free at 3:30 on Thursday at my desk.
| ||
arnold-j/all_documents/566.
|
subject: Re: Insurance Call Spread
content: sounds good
| ||
arnold-j/all_documents/567.
|
subject:
content: My brother was coming back from London to go so I went out and paid a fortune
from a scalper for two....
I really do appreciate it though..
| ||
arnold-j/all_documents/568.
|
subject: Re:
content: club seats extra wide extra leg room extra waitresses
| ||
arnold-j/all_documents/569.
|
subject: Re:
content: sec 222 row 2
| ||
arnold-j/all_documents/57.
|
subject: Hewlett Packard/Enron Conference call regarding STORAGE SERVICES
content: Conference Call Participants:
A conference call regarding STORAGE SERVICES originally scheduled for
Thursday, December 7th from 10-11AM CST has been rescheduled to Friday, 12/8
from 11AM-12 noon, CST. Please note the conference call in and passcode
numbers below.
Ravi Thuraisingham, Director, Enron Broadband Services (EBS) will lead
discussions regarding EBS' storage initiatives and Chris Roberson, Hewlett
Packard Storage Solutions Architect, will lead HP storage solutions
discussions. Matt Harris, Vice President, EBS and Patrick Tucker, Manager,
EBS are leading the origination efforts between HP and Enron.
Conference Call Dial Up Number: 1-800-991-9019
Passcode #: 6835918 # (Note: the # sign must be input after the passcode)
Subsequent to the conference call, future meetings and strategy on Enron/HP
storage initiatives will be decided.
Please call if any questions or agenda changes
Sarah-Joy Hunter
Enron Corporation
Global Strategic Sourcing, Business Development
#(713)-345-6541.
| ||
arnold-j/all_documents/570.
|
subject: Re:
content: ---------------------- Forwarded by John Arnold/HOU/ECT on 03/28/2000 10:49
AM ---------------------------
Matthew Arnold 03/28/2000 06:35 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: Re:
I'm in.
John Arnold
03/27/2000 08:54 AM
To: Matthew Arnold/HOU/ECT@ECT
cc:
Subject:
lyle lovett national anthem
nolan ryan first pitch
dwight gooden first real pitch
| ||
arnold-j/all_documents/571.
|
subject: Re:
content: 7:00 game
can you let me know tomorrow??
| ||
arnold-j/all_documents/572.
|
subject:
content: lyle lovett national anthem
nolan ryan first pitch
dwight gooden first real pitch
| ||
arnold-j/all_documents/573.
|
subject:
content: Hello:
I just wanted to arrange to meet for the Astros tickets.
I work and live downtown.
My cell phone number is 713-557-3330.
Thanks,
John
| ||
arnold-j/all_documents/574.
|
subject: Re:
content: i just had the whole it staff up here.
I just got two good tickets to Thursday's Astros/Yankees game
| ||
arnold-j/all_documents/575.
|
subject:
content: hey:
when are you back in town??
| ||
arnold-j/all_documents/576.
|
subject:
content: Hey :
Just wanted to see if you're doing anything tonight...
Any interest in getting dinner?
John
| ||
arnold-j/all_documents/577.
|
subject: Re: Enron Online
content: Please grant Steven Vu execution privileges on EOL
John Arnold
| ||
arnold-j/all_documents/578.
|
subject: Re: EnronOnline Approval Access Request
content: Pleas approve Tricia's request to become an authorized EOL trader
| ||
arnold-j/all_documents/579.
|
subject: Re: AOL Instant Messenger Confirmation (ziEbq0PbJo enronjda)
content: ok
| ||
arnold-j/all_documents/58.
|
subject: Re: Continental/Enron meeting,
content: Mr. Nowlan:
When we spoke several days ago, I had mentioned the meeting between Jeff
Shankman and Larry Kellner, CFO, at Continental Airlines. The meeting had
been scheduled for December 11th, 2-3 PM in EB 3321. I will know tomorrow if
this date is confirmed. Following our phone conversation, I did follow up
with the persons you suggested -- Larry Gagliardi, Douglas Friedman and Mark
Tawney -- as I completed an overview of our initiatives with Continental.
The meeting on December 11th will enable Enron and Continental to continue
discussions on three initiatives listed in order of economic value: (1) fuel
management, (2) weather derivatives, and (3) plastics hedging -- VaR
analysis.
In order to verify attendees at this meeting, Jennifer Burns suggested that I
follow up with you. Please note the Continental attendees listed below. Did
you want to have the same origination team at the meeting or others? I look
forward to your response so I can coordinate with them and confirm their
attendance. Continental had requested that we keep the Enron attendance to 3
or 4 persons; they will do the same.
Meeting Attendees from Continental Airlines:
Ron Howard, Vice President, Food Services
Larry Kellner, Chief Financial Officer
Greg Hartford, Vice President, Fuel Management Company
Jeff Misner, Vice President and Treasurer (tentative)
We appreciate your suggestions.
Thank-you.
Sarah-Joy Hunter
Enron Corporation
Global Strategic Sourcing
Business Development
#(713)-345-6541
| ||
arnold-j/all_documents/580.
|
subject: BNP PARIBAS Commodity Futures NG MarketWatch For 5/15/01
content: (See attached file: g051501.pdf)
______________________________________________________________________________
_______________________________________________________
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Any use not in accord with its purpose, any dissemination or disclosure,
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- g051501.pdf
| ||
arnold-j/all_documents/581.
|
subject: Enron Mentions
content: Dabhol lenders to vote today on PPA PPPPA termination
Business Standard, 05/16/01
Enron to suspend investments of 600 mln usd in Brazil energy sector
AFX News, 05/15/01
USA: Sempra unit to boost natgas delivery to California.
Reuters English News Service, 05/15/01
Enron Urges Reforms In Japan Electricity Market-Nikkei
Dow Jones International News, 05/15/01
Enron Agrees to Provide Market Data to NGX
PR Newswire, 05/15/01
UAE To Seek New Partners If Enron Exits Dolphin Gas Proj
Dow Jones International News, 05/15/01
Enron Should Sell Utility to Oregon, Lawmaker Argues (Update2)
Bloomberg, 05/15/01
Enron to Provide Gas Prices to NGX, Drops Lawsuit (Update1)
Bloomberg, 05/15/01
Dabhol lenders to vote today on PPA PPPPA termination
Our Banking Bureau Mumbai
05/16/2001
Business Standard
1
Copyright (c) Business Standard
The 25-odd lenders to the Dabhol power project will vote today on whether the
Enron-promoted Dabhol Power Company (DPC) should be allowed to to serve a
preliminary PPA termination notice to the Maharashtra State Electricity Board
(MSEB). The voting will take place through conference calls criss-crossing
the globe at 6.30 pm, Indian Standard Time. Even though the three Indian
lenders_ the Industrial Development Bank of India (IDBI), the State Bank of
India (SBI) and ICICI_ have decided to vote against the proposition, they
will not be able to block the move.
Technically, the proposal can be passed if four per cent of lenders are in
favour of the termination notice. In effect, it will be passed if one of the
25 lenders casts its vote in favour of it. So, it's almost a foregone
conclusion that DPC will be asked to issue its termination notice.
Multilateral agency J-Exim, which has provided guarantees, will not
participate in the exercise. Barring J-Exim, other financial intermediaries
including global arrangers ABN Amro, Citi, ANZIB, CSFB and other banks and
OPIC will cast their votes tomorrow. "In the first round, Indian lenders put
their foot down and refused to give clearance to the termination notice.
Thistime around they will not be able to block the move any more. The Indian
lenders alone cannot save the controversial $3 billion as some of the foreign
lenders are in favour of issuing the termination notice," said a source. The
Indian lenders are in favour of completing the project without any time and
cost over-run. They have disbursed about 80 per cent of their Rs 1,500 crore
worth of loan commitments to phase II of the project, 93 per cent of which is
complete. The trial run is expected to commence in June. The board of the
Dabhol Power Company has already authorised Enron India managing director, K
Wade Cline, to serve a termination notice as and when he deems fit. At a
meeting of the lenders last month in London, the foreign lenders were keen
that the termination notice be served in the face of defaults by the
Maharashtra State Electricity Board (MSEB) and the Union government's refusal
to honour the counter-guarantee of Rs 102 crore for the December bill. The
domestic lenders are not covered by the counter-guarantee if the contract is
terminated. The foreign lenders are covered by the counter-guarantee.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron to suspend investments of 600 mln usd in Brazil energy sector
05/15/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
SAO PAULO (AFX) - Enron Corp will suspend investments of 600 mln usd in the
Brazilian energy sector, news agency JB Online quoted Enron vice-president
and Eletricidade e Servicos SA Elektro chairman Orlando Gonzales as saying.
Of the total investment, 500 mln usd was to be assigned to the expansion of
the thermoelectric plant Cuiaba II in the state of Mato Grosso, and in the
construction of Rogen in the state of Rio de Janeiro, with the remainder to
be invested in unit Elektro, it said.
"There are no clear regulations for the sector. Regulatory issues are holding
back investments," JB Online quoted Gonzales as saying.
Gonzales said the decision to suspend the investments may be reconsidered if
the energy sector regulator Aneel establishes clearer regulations.
mg/as
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: Sempra unit to boost natgas delivery to California.
05/15/2001
Reuters English News Service
(C) Reuters Limited 2001.
SAN FRANCISCO, May 15 (Reuters) - Southern California Gas Co. (SCG) said in a
statement on Tuesday it will add around 200 million cubic feet a day, or
about six percent, to its pipeline system by the end of the year in order to
meet the surge in demand for gas-fired power generation.
Today's announcement comes two months after SCG, a unit of Sempra Energy ,
proposed to increase capacity on its system by 175 mmcfd, or five percent.
Both projects will add around 11 percent of new gas capacity to its
transmission system this year, the company said in a statement.
In its latest proposal, called the Kramer Junction Interconnect, SCG said it
would build a 32-mile pipeline link to the Kern-Mojave pipeline system that
will allow it to deliver around 200 mmcfd into its system.
The new capacity would be enough to drive three 500-megawatt power plants or
enough gas to serve 1.4 million residential customers a day, the statement
said.
SCG, the nation's largest gas utility with more 18 million consumers in
central and Southern California, said utilization of its intrastate
transmission system in the past nine months had jumped from 75 percent to
over 95 percent, due largely to the rise in gas-fired power generation.
The company's announcement is the latest in several proposals to expand gas
pipeline capacity to California, where demand for gas is expected to jump
because of the number of gas-fired power plants being built or scheduled for
construction.
Gas is already used to generate about a third of California's electricity.
And since April 1999, the state has approved 13 major gas-fired power plant
projects with a combined generation capacity of more than 8,900 megawatts.
Nine gas-fired power plants, with a total generation capacity of more than
6,000 megawatts, are under construction.
Over the past two months plans to build or expand gas lines serving
California have been announced by Enron unit Transwestern, Williams Cos' Kern
River Transmission, El Paso Corp. units El Paso Natural Gas Co. and Mohave
Pipeline Co., Pacific Gas & Electric Corp. unit National Energy Group,
Questar Corp. , Calpine Corp. , and Kinder Morgan .
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Urges Reforms In Japan Electricity Market-Nikkei
05/15/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
TOKYO (Nikkei)--Asserting that cuts in electricity prices will help Japanese
companies save as much as Y4 trillion, major U.S. energy firm Enron Corp.
(ENE) on Tuesday urged Japanese power firms to revamp the electricity market
by separating operations such as power generation, transmission and
distribution, The Nihon Keizai Shimbun reported.
Enron's 10-point proposal also calls for the construction of more power
plants and full-scale deregulation of retail electricity, including sales to
households. If such measures are carried out and electricity prices fall to
match the levels of other industrialized nations, Japan's industrial sector
could trim its costs by Y4 trillion, Enron said.
At a seminar on power industry deregulation hosted by Enron, the company
asserted that Japan's deregulation in such areas as wholesale electricity
auctions in 1996 and bulk retail sales last year has not brought significant
benefits to end-users.
New suppliers entering the market only account for a combined 0.4% of the
entire electricity sector, Enron said, criticizing the fact that power plant
facilities are mainly concentrated among electric power companies.
Regarding prices, an official representing operators of power generation
facilities asserted that "industrial-use electricity prices in Japan are
stuck at a high level at around Y13 per kilowatt, compared with Y5 in the
U.S., Y3 in Canada, Y9 in Germany and Y4-Y8 in Southeast Asia."
In fact, department store operator Takashimaya Co. (8233 or J.TKA), which
last November switched to new market entrants for part of its electricity
supply, was able to cut costs by Y450 million in the first year, said a
company official.
Enron hopes to generate competition by urging Japanese electric utilities to
spin off different operations, analysts say. If the number of power
generation facility operators increases, this will help bolster Japan's
electricity trading market, an area in which Enron has a strong business
interest.
Splitting electricity operations into generation, transmission and
distribution is expected to open the electric utility network to new
entrants. This will boost transparency in the fees that electric power
companies charge for transmitting power on behalf of the operators of power
generation facilities, Enron says.
Citing the power shortage in California, however, Japan's electricity sector
has strongly opposed such spin-offs, stating that generation and distribution
must be part of a single continuum to ensure a stable supply.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Agrees to Provide Market Data to NGX
05/15/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)
CALGARY, May 15 /PRNewswire/ - NGX Canada Inc. (NGX), a wholly owned
subsidiary of OM AB (OM), today announced that an arrangement has been made
with Enron Canada Corp., a wholly owned subsidiary of Enron Corp. (Enron),
whereby trading data from certain contracts listed on Enron's online trading
system, EnronOnline will be included in the computation of three Alberta Gas
Price Indices.
NGX acquired the AECO "C" & NIT Daily Spot, One-Month Spot, and Bid-Week Spot
gas price indices (Alberta Gas Price Indices) from Canadian Enerdata Ltd.
last September. Subsequent to the acquisition of the Alberta Gas Price
Indices, NGX has provided real-time information to its customers on the
establishment of the weighted average price indices based on transactions
conducted through NGX's trading system. Canadian Enerdata Limited continues
to publish the Alberta Gas Price Indices in the Canadian Gas Price Reporter.
Peter Krenkel, President of NGX, stated, "We believe that inclusion of data
from EnronOnline will serve to make our price indices among the best in North
America. The industry has been very supportive of the visibility and
integrity we are able to bring to the Alberta Gas Price Indices, which
removes the guesswork around gas price index methodology. However, after
reviewing the matter with Enron and other industry participants, we
recognized that Enron had legitimate concerns and the industry felt that
"more is better". The inclusion of data from the highly liquid EnronOnline
system should improve the quality of our price indices even further."
Rob Milnthorp, President and CEO of Enron Canada commented, "We are very
pleased to have EnronOnline transactions included in the Alberta Gas Price
Indices. This will provide industry participants with a more comprehensive
source of data and a better opportunity to manage risk around these price
indices as they are now assured that all their transactions on EnronOnline
will be included in the computation of the Alberta Price Indices."
The inclusion of EnronOnline data satisfies the principal claims made by
Enron in their legal action against NGX, Canadian Enerdata Ltd., OM and
Richard Zarzeczny and Enron has agreed to discontinue the legal action
against those parties with the conclusion of this arrangement.
NGX and Enron are planning to implement the necessary system changes by
August 1, 2001 but in any event will provide at least thirty days notice to
the industry. Once in operation, data from transactions in the relevant
contracts listed on EnronOnline will be fed to NGX in real-time. The
methodology for computing the Alberta Gas Price Indices will continue to be
on a weighted-average basis.
NGX will engage independent auditors to insure full compliance with the Index
Methodology Guide. This guide is available on NGX's website at www.ngx.com.
NGX located in Calgary, Canada provides electronic trading and clearing
services to natural gas buyers and sellers at seven markets in Canada. Over
the past six years, NGX has grown to serve over 120 customers with trading
activity averaging 225,000 TJ's per month. NGX is owned 100% by OM
(www.om.com).
OM is a leader in providing products and services in the field of transaction
technology. The company, with assets exceeding CDN $700 million, operates
exchanges in Calgary, London and Stockholm and develops technology that
increases the efficiency of financial and energy markets throughout the
world. OM is listed on Stockholmsborsen (ticker symbol "OM").
Enron Corp. is one of the world's leading electricity, natural gas and
communications companies. The company, with revenues of U.S. $101 billion in
2000, markets electricity and natural gas, delivers physical commodities and
financial risk management services to customers around the world, and has
developed an intelligent network platform to facilitate online business.
Fortune magazine has named Enron "America's Most Innovative Company" for six
consecutive years. Enron's Internet address is www.enron.com. The stock is
traded under the ticker symbol "ENE".
Canadian Enerdata Ltd. (www.enerdata.com) located in Markham Ontario has been
providing information services to the North American energy industry for over
17 years. Enerdata publishes the Canadian Gas Price Reporter, PriceLine
Daily, Natural Gas Market Report and Canadian Energy Trends. Enerdata also
sponsors GasFair & Power, Canada's largest natural gas and electricity market
conference and trade show, now in its 11th year. SOURCE NGX Canada Inc.
/CONTACT: Enron Corp. - Mr. Eric Thode, Director of Public Relations,
713-853-9053; NGX Canada Inc.- Mr. Peter Krenkel, President, 403-974-1705; OM
- Ms. Anna Eriksson - Vice President Corporate Communications, +46 (8) 405 66
12; Canadian Enerdata Ltd. - Mr. Richard Zarzeczny, President, 905-479-9697/
11:17 EDT
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
UAE To Seek New Partners If Enron Exits Dolphin Gas Proj
05/15/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
DUBAI -(Dow Jones)- If U.S.-based Enron Corp. (ENE) pulls out of the $3.5
billion Dolphin gas project, in which the company holds a 24.5% stake, the
U.A.E. Offsets Group, or UOG, will consider other companies to replace it, a
United Arab Emirates industry source close to the project said Tuesday.
Industry sources Monday said Enron is considering withdrawing from the
project because it doesn't believe it will be profitable.
Dolphin, an agreement signed two years ago by UOG and Qatar Petroleum, plans
to bring 2 billion cubic feet a day of natural gas from Qatar's offshore
North Field to Abu Dhabi and onward to Dubai.
Enron and TotalFinaElf (TOT) each hold a 24.5% stake in the project, while
UOG owns the remaining 51%.
Enron is set to focus on the midstream part of the project - gas
transportation - which requires building a 350-kilometer pipeline from a
processing plant in Ras Laffan, Qatar, to the Taweelah terminal in Abu Dhabi
and the Jebel Ali terminal in Dubai.
The U.A.E. source said originally, it was thought that the U.A.E. government
would fund the pipeline, which is estimated to cost around $1 billion.
However, more recently, the source said the U.A.E. suggested that Enron put
up the money itself.
Other industry sources said Enron and TotalFinaElf also had to pay
significant fees to join the project. TotalFinaElf will
operate the upstream part of the project, which includes developing
natural gas reserves in two blocks of the North Field. First wells are
scheduled to be drilled in the second half of 2001 and come onstream in
2005.
Last week, the Middle East Economic Survey reported that the foreign partners
haven't yet agreed on the precise details of their working relationship or on
the price of the pipeline.
Qatar Petroleum and Dolphin Energy Ltd., a subsidiary of UOG, signed an
initial agreement in March for the upstream section of the project. A full
agreement is expected to be concluded in September, the source said.
-By Dyala Sabbagh, Dow Jones Newswires; 9714 331 4260;
[email protected]
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Should Sell Utility to Oregon, Lawmaker Argues (Update2)
2001-05-15 16:35 (New York)
Enron Should Sell Utility to Oregon, Lawmaker Argues (Update2)
(Updates with closing share prices.)
Washington, May 15 (Bloomberg) -- Enron Corp. should sell
Portland General Electric Co. to Oregon so state consumers can be
insulated from soaring electricity prices, a congressman said.
``Purchasing PGE would give Oregon ratepayers more control by
keeping its assets in Oregon, accountable solely to Oregonians,''
U.S. Representative Peter DeFazio, a Democrat from Springfield,
Oregon, said in a letter to Governor John Kitzhaber.
The governor is considering DeFazio's proposal, said
Kitzhaber spokesman Kevin Smith.
Last month, Houston-based Enron, the biggest energy trader,
agreed to cancel the $3.1 billion sale of Portland General, a
utility with more than 700,000 Oregon customers, to Sierra Pacific
Resources of Reno, Nevada.
Enron and Sierra Pacific blamed laws spawned by high power
prices and electricity shortages in the West for the sale's
collapse.
``We are pleased to keep Portland General in our asset
portfolio because it's a solid earnings performer,'' Enron
spokeswoman Karen Denne said. ``If approached by a buyer who
recognizes its value, we'd consider selling it.'' She declined to
comment on a potential bid by Oregon.
The state should act swiftly, DeFazio said, citing press
reports that the U.K.'s Scottish Power Plc, owner of PacifiCorp,
the largest utility in the U.S Northwest, may bid for Portland
General.
Scottish Power, based in Glasgow, Scotland, would have more
than 70 percent of Oregon electricity customers if it added
Portland General, raising ``serious regulatory concerns about
market power,'' he said.
Bond Issue
Oregon could issue bonds to purchase Portland General, using
the utility's profits to pay the debt, DeFazio said. The state
might run it as a public utility or a cooperative, he said.
Enron and Sierra Pacific called off the Portland General sale
because of laws passed by Nevada and California legislators that
slow the deregulation of their wholesale power markets.
California and Nevada have blocked sales of power plants by
utilities. Sierra Pacific had to sell a stake in a Nevada power
plant that sells power to California to win regulatory approval of
the Portland General purchase.
Average power prices on the California-Oregon border this
year have soared ninefold to $296.34 a megawatt hour over the year-
earlier period. A megawatt hour can light 750 average California
homes for an hour.
Shares of Enron fell $1.76 to $$56.99. They've fallen 31
percent this year.
Sierra Pacific rose 9 cents to $16.09. Scottish Power rose 9
pence to 492 ($7) in London.
Enron to Provide Gas Prices to NGX, Drops Lawsuit (Update1)
2001-05-15 16:26 (New York)
Enron to Provide Gas Prices to NGX, Drops Lawsuit (Update1)
(Adds closing share price.)
Houston, May 15 (Bloomberg) -- Enron Corp., the world's
biggest energy trader, agreed to provide natural-gas pricing
information to NGX Canada Inc. and drop a C$100 million
($64.7 million) suit against the Canadian gas exchange.
Enron sued NGX in November after the Internet exchange, a
unit of the company that owns the Stockholm Stock Exchange,
changed providers of its gas-pricing data and didn't include
trades on EnronOnline, Enron's Internet exchange, when calculating
gas-price indexes.
Calgary-based NGX agreed to include EnronOnline trades in
calculating its Alberta Gas Price Indices by August, Enron
spokesman Eric Thode said.
NGX, owned by Stockholm's OM Gruppen AB, is used by about 90
percent of Canadian gas traders, and many traders use EnronOnline
to sell gas from western Canada, the biggest supplier of the
cleaner-burning fuel to the U.S.
Houston-based Enron fell $1.76 to $56.99.
| ||
arnold-j/all_documents/582.
|
subject: FW: COB 05.15.01 PNL Estimate
content: -----Original Message-----
From: Hayden, Frank
Sent: Tuesday, May 15, 2001 4:35 PM
To: Lavorato, John; Kitchen, Louise
Cc: Port, David; Gorny, Vladimir
Subject: COB 05.15.01 PNL Estimate
The gas desk lost $13MM. West desk made $56MM, financial desk lost $45MM.
East Power lost 10MM
West power lost approx 5MM
Frank
| ||
arnold-j/all_documents/583.
|
subject: RE: Meeting - UPDATE
content: Tomorrow's meeting will be held in EB2711 (Andy's office).
Lydia Cannon
Assistant to Andy Zipper
713-853-9975
713-408-6267 cell
[email protected]
-----Original Message-----
From: Cannon, Lydia
Sent: Friday, May 11, 2001 1:20 PM
To: Arnold, John; Webb, Jay; Puthigai, Savita
Cc: Zipper, Andy; Weatherstone, Mary; Rangel, Ina
Subject: Meeting
Andy Zipper would like for you to attend a meeting regarding: " Linking
Auto-Hedge" on Wednesday, May 16, 2001 at 4:00 pm., location to be
determine. Contact me if you are unable to attend or have any questions.
Thanks
Lydia Cannon
Assistant to Andy Zipper
713-853-9975
713-408-6267 cell
[email protected]
| ||
arnold-j/all_documents/584.
|
subject: Re: Guggenheim/Enron Attendee list for May 17
content: Margy...I'm also planning to attend, along with 6 people from NYU Stern
School of business, 4 people from Columbia, and I may bring a guest.
Thanks!
--Christie.
| ||
arnold-j/all_documents/585.
|
subject: St. Croix refinery
content: Jennifer asked me to explain about the effect of the refinery fire.
The St. Croix refinery has their reformer offline. The reformer is used to
convert straight-run naphtha into a high octane blending component called
reformate as well as some butane and lighter gases. The effect would not
really be a reduction in gasoline, but a reduction in a high quality blending
component which would make it harder to make RFG.
As of this writing, the fire is out. If you have any further questions, feel
free to contact me.
Jim
36970
| ||
arnold-j/all_documents/586.
|
subject: The WTI Bullet swap contracts
content: Hi,
Following the e-mail you have received yesterday concerning
the new WTI bullet swap contracts, we would like to summarize what we have
done on the ICE system yesterday evening:
-Deleted WTI monthly time spreads
-Deleted WTI/Brent monthly diff spreads (spread with
legging)
-Deleted 1% NYH Harbor Fuel Oil Crack monthly (spread with
legging)
-Added WTI/Brent monthly diff spreads (spread with NO
legging)
-Added 1% NYH Harbor Fuel Oil Crack monthly (spread with NO
legging)
Unfortunately the WTI/Brent and the 1% NYH Fuel Oil Crack contracts
(with the legging functionality) have been removed from your portfolios. You
will need to add the first four nearby months' contracts to your
portfolios by going to Admin / Manage Portfolios / Edit your portfolio....
Please do not hesitate to contact us is you have any question:
Helpdesk on +1 770 738 2101 (US)
Stephanie Trabia: +44 207 484 5546 (UK)
Regards,
Stephanie Trabia
Marketing Manager
IntercontinentalExchange
Tel +44 207 484 5546
Fax +44 207 484 5100
Mob +44 77 33 261 268
[email protected]
| ||
arnold-j/all_documents/587.
|
subject:
content: Thanks for making me work out yesterday AND making me do sit ups! And for
helping me clean up the other day - very nice!! Anyway, I was going to go
tonight to prepare for my trip to Mexico BUT, when I called, they said I
should wait until I get back. So, I am thinking that Tuesday, may 29th is
the day!
| ||
arnold-j/all_documents/588.
|
subject: Guggenheim/Enron Attendee list for May 17
content: Hello all,
Several of you have inquired who would be attending the May 17 Guggenheim
event on our behalf, whether Enron employees or guests. While this list is
always in motion, this should give you a good idea.
I'm glad that each of you will be attending and hope that both you and your
guests enjoy. Please call me on my cell phone at 713-515-9208 if you need
anything. Otherwise, I will see you on the 17th at the Guggenheim.
Take care, Margaret Allen
| ||
arnold-j/all_documents/589.
|
subject: Guggenheim Event
content: John/Mike- Hi.. this is the list of people attending on thursday night.. the
event starts at 9 pm so we are likely to take our guests to dinner before
(around 6:30-7)- will send details today.
Friday- so far, we have you seeing:
SAC Cap- coming to office after close Friday
Catequil- we will pop over Friday
Global Advisors- Danny Masters stopping by
1) Per and Jean Sekse (Enron)
2) Russ Dyk and Caroline Abramo (Enron)
3) Jason Mraz and guest (Tudor Investments)
4) Andrew Suckling and guest (Tudor Investments)
5) Danny Masters and guest (Global Advisors UK)
6) Steve Schmitz and guest (SAC Capital)
7) Brian Copp and guest (SAC Capital)
8) Andreas Hommert and guest (Catequil Asset Management)
9) Rob Ellis and guest (Catequil Asset Management)
10) Jason Hotra and guest (Harvard Management Company, Inc.)
In addition, I'd like to get tickets for the additional parties below:
1) Jennifer Fraser and guest (Enron)
2) Robyn and George Zivic (Enron)
3) Paul Touradji and guest (Catequil Asset Management)
4) William Callanan and guest (Duquesne Capital Management) - please advise
on whether I can have this many tickets
| ||
arnold-j/all_documents/59.
|
subject: Re: Confidentiality Agreement
content: Ken -
If we can change the term of confidentiality to 3 years (we proposed 1, you
proposed 5) then we are ready to accept all the changes, execute and move on
to the next steps.
Trey
"Cooper, Kenneth" <[email protected]> on 12/06/2000 03:37:42 PM
To: "'Trey Comiskey'" <[email protected]>
cc: "O'Brien, Sean" <Sean.O'[email protected]>
Subject: Confidentiality Agreement
Attached please find two files: one a redlined copy of the agreement and
the other a clean copy. Please let me know your comments. MaryAlice
Budakian, Esq. handled this for me. Her telephone number is (201)930-7520.
<<Enron Confidentiality (redline).doc>> <<Enron Confidentiality (clean
copy).doc>>
- Enron Confidentiality (redline).doc
- Enron Confidentiality (clean copy).doc
| ||
arnold-j/all_documents/590.
|
subject: Vandy Team - Get Together
content: Reminder - Reminder - Reminder
Remember that the Vanderbilt team get together is taking place this Thursday
from 5:30pm to 7:00pm at the Front Porch Pub on Gray.
I hope to see you there.
-----------------------------------------------
For reference, your link to this Invite is:
http://evite.citysearch.com/r?iid=EWFPZQLYXVCWYUZGPPNX
To see this invite -- and all of your invites -- click to your personal 'My
Evite' page.
http://evite.citysearch.com/tour?file=homepage/startPage/unreg.html&li=egi5
48484848
| ||
arnold-j/all_documents/591.
|
subject: option candlesticks 5/15
content: The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete. Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein. Any
opinions expressed herein are solely those of the author. As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates. , 2001 Carr Futures
The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.
Option Candlesticks
http://www.carrfut.com/research/Energy1/candlesticks42.pdf
Carr Futures
150 S. Wacker Dr., Suite 1500
Chicago, IL 60606 USA
Tel: 312-368-6149
Fax: 312-368-2281
[email protected]
http://www.carrfut.com
| ||
arnold-j/all_documents/592.
|
subject: Enron Mentions
content: Hawk vote for California firm unanimous
Houston Chronicle, 05/15/01
INTERNATIONAL ECONOMY: Enron may cut stake in Gulf gas project
Financial Times; May 15, 2001
JAPAN: Enron says high power rates costing Japan.
Reuters English News Service, 05/15/01
Japan Must Speed Up Pwr Sector Dereg To Lower Rates-Indus
Dow Jones Energy Service, 05/15/01
SINGAPORE: ANALYSIS-No Asia fallout seen from Enron's India woes.
Reuters English News Service, 05/15/01
Saudi Won't Announce Winners Of Gas Projs Tue - Report
Dow Jones Energy Service, 05/15/01
MSEB refutes allegations by Enron, DPC
The Economic Times, 05/15/01
Saudi Supreme Petrol Council meeting to decide on huge gas project bids
Business Recorder, 05/15/01
May 15, 2001
Houston Chronicle
Hawk vote for California firm unanimous
Montgomery Watson pegged for water plant
By MARY FLOOD
Copyright 2001 Houston Chronicle
The Houston Area Water Corp. voted unanimously Monday to grant a $92 million
contract to a California-based firm to design, build and operate a Lake
Houston water plant.
City Council soon will receive the contract for its approval. The
administration of Mayor Lee Brown was believed to have favored Montgomery
Watson's chief competitor, Azurix Corp., an arm of local energy giant Enron
Corp.
The water corporation, known as "the Hawk," voted 5-0 to grant the contract.
If approved by City Council, the contract would give the company 2 1/2 years
to get the plant up and treating raw lake water.
It was initially expected that the plant, which will be designed to handle 40
million gallons of water daily, could cost as much as $150 million to build.
The Hawk board asked the vying companies to modify their bids several times,
and that caused the competitors to lower their prices.
The contract calls for the Hawk to pay a monthly operating fee of $157,000
when the plant is working. And Montgomery Watson could be required to
construct, at the Hawk's option, an additional 40 million-gallon-a-day plant
expansion for $32 million.
But the details of how the plant will be financed have not been determined.
The Hawk board discussed borrowing money using the city's credit rating on a
short-term basis until it could develop long-term financing by selling bonds
itself.
The initial customer for the water is the city of Houston, which would repay
the Hawk the cost of producing the treated water. The hope is that the plant
eventually will provide water to other entities in the area as well. This
plant is part of an area plan for the treatment of surface water that could
cost about $2 billion to implement.
City Councilman Carroll Robinson, who heads the council infrastructure
committee, said he expects to hold two hearings about the contract. One would
focus on how the Hawk board picked Montgomery Watson. A series of three
recommendations from City Hall staff recommended Azurix.
Hawk board members said Montgomery Watson's prices were lower by millions and
that Azurix plans to sell Azurix North America, the body that would oversee
this contract.
The second City Council hearing will focus on financing, Robinson said. "In
my mind, how the city will pay for this construction is as important as who
will do it," Robinson said.
The Hawk board, appointed by Brown and approved by City Council, has been
heavily lobbied by the contenders for the job.
Because City Council does not have to follow the Hawk recommendation, new
pressure has begun at City Hall. The third bidder, U.S. Filter Operating
Services, part of a French company, has been heavily lobbying some council
members to switch the contract to it.
Some members of the Azurix team -- people at companies that would have gotten
work had Azurix gotten the job -- have written letters complaining about the
Hawk procedures as well.
John M. Stokes, president and chief executive officer of Azurix, penned the
first such distressed missive. In April, he wrote to Hawk board Chairman
David Berg complaining of the "deleterious economic effect" on Azurix of the
board's decision to negotiate with Montgomery Watson. He requested that Berg
answer a series of questions in writing explaining why Azurix didn't get the
job. Berg didn't do so.
Although that letter had a threatening tone, Amanda Martin, president of
Azurix North America, said no threat was intended and the letter simply
indicated how upset the team was when it first learned Azurix wasn't chosen.
Azurix was the rumored front-runner for months.
INTERNATIONAL ECONOMY: Enron may cut stake in Gulf gas project
Financial Times; May 15, 2001
By ROBIN ALLEN
There are growing fears that Enron, the US power company, may withdraw or
sharply reduce its stake in the Gulf's Dollars 10bn Dolphin gas export
scheme, one of the most ambitious of its kind in the region.
Enron officials have refused to comment on reports that the company is
reconsidering its position as a minority shareholder in Dolphin Energy, in
which France's TotalFinaElf (TFE) also has 24.5 per cent.
However, one industry specialist said yesterday Enron was talking of
"selling" at least part of its shareholding.
The threat raises critical issues for western companies seeking to profit
from accessing state-owned oil and gas in the Gulf.
The project was launched two years ago by Abu Dhabi, the wealthiest of the
United Arab Emirates, to promote energy security for the Gulf. But Abu
Dhabiis seen as a prime example of a state where prestige and opaque domestic
political considerations can be as important as profitability in such a
large-scale project, especially in the early stages.
Dolphin's majority owner is UAE's Offsets Group (UOG), an offshoot of Abu
Dhabi's defence procurement industry. In March, Dolphin, a relative newcomer
on Abu Dhabi's energy scene, signed a Dollars 3.5bn agreement with Qatar to
exploit and pipe up to 2bn cubic feet a day of gas from Qatar's prolific
North Field to Abu Dhabi.
Qatari gas is the source of Abu Dhabi's long-term energy strategy, and Enron
's role was to develop, at a profit, the downstream section, primarily to
construct and lay the 350km pipeline from Qatar to Abu Dhabi.
Enron is not a specialist in energy production or pipeline fabrication, but
one of its main aims, according to one analyst, was to gain access to the gas
accruing to it from the Qatar deal and then trade it on. Sheikh Zayed Bin
Sultan al-Nahyan, Abu Dhabi's ruler, disapproves of commodity trading.
"If the Qatar-UAE gas deal was going to be profitable" for western energy
majors, asked one senior western diplomat, "then why are the serious US
energy majors not involved?" For more reports see www.ft.com/globaleconomy
Copyright: The Financial Times Limited
JAPAN: Enron says high power rates costing Japan.
05/15/2001
Reuters English News Service
(C) Reuters Limited 2001.
TOKYO, May 15 (Reuters) - A senior executive of U.S. energy giant Enron Corp
said on Tuesday that Japan could save an estimated four trillion yen ($32.45
billion) in annual costs if electricity rates were cut to the average of
members of the Organisation for Economic Cooperation and Development (OECD).
"If you were to pare Japanese industrial electric rates to the OECD
average...savings to all...customers would be about four trillion yen per
year," Enron Corp Vice President Steven Kean told a seminar in Tokyo.
Speaking at a seminar on electric power deregulation, Kean said that
indigenous factors such as steep land prices and a lack of natural energy
resources were often blamed for Japan's high electricity rates.
But he said these factors were not sufficient to explain Japan's high
electricity rates.
A report commissioned by Enron Japan Corp showed that in 1998 Japan's
electricity rates for industrial users were 16.81 yen per kilowatt hour (kWh)
compared to a second highest rate of 12.44 yen in Italy.
Japan's business sector has expressed concern at the nation's high
electricity rates, saying that it blunts their competitive edge on the
international market.
Kean also drew parallels between Japan, in the midst of deregulation, and
California which has been suffering from a power shortage since deregulating
its market in 1998.
These included the length of time that authorities in Japan took to issue
permits to allow the construction of new power plants, he said.
"The regulatory structure in Japan is very strict...just like in California,"
Kean said.
North America's biggest buyer and seller of electricity, Enron gained its
first foothold in Japan in 1999 when it established affiliate E Power Corp.
In April of last year, it set up subsidiary Enron Japan Corp.
Kean urged Japan to step up measures to open up its power market, a process
he said held many benefits.
Japan is in the process of deregulating its power market. Since March last
year, large-lot consumers have been free to chose their suppliers. The
measure liberalised an estimated 30 percent of the power market and ended
Japan's 10 power utilities regional monopoly.
However, industry watchers note that there have been very few new entrants
and that further deregulation measures must be taken for rates to fall. The
Japanese government is due to review the process in 2003.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Japan Must Speed Up Pwr Sector Dereg To Lower Rates-Indus
05/15/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
TOKYO -(Dow Jones)- Japan should accelerate the ongoing electric power sector
deregulation to fully liberalize the retail market, in order to bring down
the country's high power rates while ensuring stable power supply, experts
said at an industry seminar Tuesday.
The pressure is mounting for Japan's 10 power utilities, which have long
enjoyed regional monopolies until a year ago, to become cost- effective and
performance-conscious after the government partially liberalized the retail
power market in March 2000.
However, the current scheme has so far failed to lure a large number of
potential entrants because of the high transmission fees they must pay to
conventional power companies.
"What happened in overseas (power industries) suggest that the liberalization
in Japan wouldn't only lower power rates but would also contribute to stable
power supply significantly," said Tatsuo Hatta, professor of economics at the
University of Tokyo.
Compared with the U.S., Japanese electricity charges are typically twice as
much for households and three times higher for industrial users.
"There is a large discrepancy (in rates), and that is why we should hurriedly
implement the liberalization," Hatta said.
He said Japan's steep seasonal peak-load curve - one of the reasons the power
companies cite as the cause of high power rates in Japan - can be altered
once the prices are liberalized. "If power rates are set higher during those
peak hours following the liberalization, users would refrain from using
electricity."
Steven Kean, executive vice president of the U.S. energy major, Enron Corp.
(ENE), told the same seminar that Japan's power costs remain on the upward
trend despite cost reductions in Europe and the U.S.
He said Japan could achieve a cost-saving of Y4 trillion a year if its power
prices fall to levels in Organization for Economic Cooperation and
Development countries following the liberalization.
Hatta and Kean were speaking at the seminar called "Reassessing Power
Deregulation," which was co-sponsored by the Houston-based Enron.
Hatta of the University of Tokyo said "it's very wise" that Japan has begun
the deregulation with the "bilateral supply, or trade" system under which
suppliers and users clinch deals directly.
Under the current reforms, the sector for high-volume, large-lot industrial
and commercial users - which represents only 30% of the Y15 trillion market -
is opened to free competition. The government is to review the partial
deregulation by 2003 for further deregulation.
Japan should then introduce spot electricity trading such as futures and
derivatives to alleviate risks of complicated price volatility for power
providers, Hatta said.
Hatta and other experts attending the seminar said further deregulation
should destroy the systems that have supported the country's high power rates
- regional monopolies and the fair rate return method, under which all costs
are levied on prices.
"There is absolutely no need to set the same (power) prices" nationwide,
Hatta said. Power companies should make the opaque transmission fees
transparent and set them accordingly with regional demand, he said.
Yoshinori Omuro, vice president of Takashimaya Co.'s (J.TKA or 8233)
management department, acknowledged the slow progress of the deregulation.
Takashimaya, a major department store operator, has shifted to Diamond Power
Corp., a wholly-owned subsidiary of Mitsubishi Corp. (J.MIB or 8058) as its
power supplier at two of its 18 stores, with "strong back-up" from the
Ministry of Economy, Trade and Industry.
"Despite the deregulation, the situation isn't where we can negotiate with
power utilities to reduce (electricity costs). We have no choice but select
independent power providers," Omuro said.
-By Maki Aoto, Dow Jones Newswires; 813-5255-2929; [email protected]
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
SINGAPORE: ANALYSIS-No Asia fallout seen from Enron's India woes.
By Cameron Dueck
05/15/2001
Reuters English News Service
(C) Reuters Limited 2001.
SINGAPORE, May 15 (Reuters) - A bitter payment battle between U.S. energy
giant Enron Corp and authorities in India will serve as a reminder to foreign
investors of the risks of putting money into emerging markets, analysts and
bankers say.
But it is unlikely to deter the flow of money into Asian electricity projects.
The pace of power privatisation and deregulation varies too greatly from
country to country for the controversy in India to chill investment activity
across Asia, they say.
It does, however, underline the risks companies take despite some security
offered by government payment guarantees.
"Independant power producers (IPPs) will see Enron and Dabhol as an
illustration of the dangers and possible risks of investing in an emerging
market, but it would be going too far to say that other markets will be
adversely affected because of it," said Philip Jackson, a banker with JP
Morgan Chase in Hong Kong.
Enron is on the verge of bailing out of an almost completed $2.9 billion
power project because of a decade-long dispute with the troubled Maharashtra
State Electricity Board (MSEB) over pricing and unpaid bills.
MSEB has fallen about six months behind in paying for electricity supplied by
Dabhol Power Co, the Indian unit of Houston-based Enron.
The utility said last month that it had repaid about $28.6 million of the
$48.2 million outstanding.
The board of Dabhol has authorised the management to stop selling power to
MSEB if the dispute is not resolved. Local media reports earlier in May said
Enron was pulling executives out of India and relocating them elsewhere.
Dabhol has invoked payment guarantees issued by the state and federal
governments, but neither has stepped forward to foot the bill.
GOVERNMENT GUARANTEES
Banks often demand sponsor or host government guarantees to lessen risk
before financing energy projects, which have long lead times and high capital
expenditure.
Governments are keen to provide guarantees to attract foreign investment.
Guarantees may cover shortfalls in production, default of customer payment or
even changes in market conditions.
But such guarantees do not always provide the desired safety net and analysts
said the legal systems in many emerging nations are simply not efficient
enough to back these agreements.
Enron's experience in India highlighted the risks of power investment in
emerging countries and the unpredictability of government guarantees, they
said.
"Guarantees like that are painful for companies and for polititicians they're
even more so," said John Vautrain, vice president at Purvin & Gertz in
Singapore.
"If the call is substantial, it's going to be bad."
Robert Booth, director of the Bardak Group in West Perth, Australia, was more
pessimistic and reckoned some companies might take a lead from Enron and shy
away from emerging Asian nations.
"Investors will pull back from these countries until they see that there is a
properly functioning legal system that gives them assurance if they have to
call in a government guarantee," Booth said.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Saudi Won't Announce Winners Of Gas Projs Tue - Report
05/15/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
MANAMA, Bahrain -(Dow Jones)- Saudi Arabia's supreme petroleum council is
expected to hold a meeting Tuesday evening, but it's unlikely to declare its
choice of international oil companies to participate in downstream gas
projects, Arabic al-Hayat newspaper reported.
The newspaper quoted sources at the government's technical committee
overseeing the proposed projects as saying that the committee hasn't
completed its final report concerning the oil companies' offers.
"Studies and recommendations haven't been completed yet and they need some
time in order to present the project at its final structure, attached with
recommendations from the technical committee," the sources said, according to
the newspaper.
However, the oil council "might endorse some balances concerning the offers,"
the newspaper said but didn't elaborate further.
Sources in Saudi Arabia have said the oil companies were expected to be
notified soon on whether they have been selected to participate in the gas
projects.
Saudi Arabia invited international oil companies in October 1998 to
participate in proposals for downstream gas projects and upstream gas
enhancement.
After a series of meetings between the negotiating committee and the oil
companies in the past year, several companies were shortlisted for each
project.
The companies shortlisted for Core Venture 1, the $15 billion South Ghawar
Area Development were Royal Dutch/Shell Group (RD), BP PLC (BP), Exxon Mobil
Corp. (XOM), Chevron Corp. (CHV), Total Fina Elf S.A. (TOT) and ENI SpA (E).
For Core Venture 2, the Red Sea Development, Enron Corp. (ENE) and Occidental
Petroleum Corp. (OXY) are bidding jointly and Exxon Mobil, Total Fina Elf,
Marathon Oil Canada Inc. (T.M), Shell and Conoco Inc. (COCA) were
shortlisted.
And for Core Venture 3, the Shaybah area, Total Fina Elf, Conoco, Phillips
Petroleum (P), Enron and Occidental, Exxon Mobil, Shell and Marathon Oil were
shortlisted.
-By Abdulla Fardan, Dow Jones Newswires; 973-530758;
[email protected]
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
MSEB refutes allegations by Enron, DPC
Girish Kuber
05/15/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)
MUMBAI
THE MAHARASHTRA State Electricity Board on Monday in a letter to Enron
refuted all allegations made against it by the company while invoking the
political force majeure.
Enron-promoted Dabhol Power Company on April 9 had invoked the political
force majeure clause. DPC had indicated it was not in a position to fulfil
its contractual obligations to MSEB because of political circumstances beyond
its control.
MSEB in a reply on Monday denied Enron's allegation of 'political
circumstances' and said there was no reason why it should have felt insecure.
"Such a step was necessary under the Power Purchase Agreement and related
security documents to notify the board of 'certain events and to enforce our
rights'," DPC had said. However, according to MSEB, such a step by DPC was
uncalled for.
For DPC, invoking the force majeure clause was necessary as 'certain events
occurred that are beyond the reasonable control of the affected party (DPC)'.
MSEB has expressed surprise in a letter on Monday.
The energy major had dispatched the notice to MSEB, as an affected party,
which had been subjected to "concerted, deliberate and politically motivated
actions of state government, the Government of India and the Board, which
will have a material and adverse effect on DPC's ability to perform
obligations under PPA".
"Given the cumulative effect of these political actions, DPC determined that
the political force majeure declaration is an appropriate mechanism for
providing that notice, and that is an appropriate and necessary step in
protecting DPC and its stakeholders' rights," the statement added.
However, for MSEB this was 'yet another move' from Enron to avoid paying Rs
402 crore penalty the MSEB has slapped on it for failing to supply
electricity as per the agreement.
MSEB, in today's letter, reiterated its suggestion to adjust December 2000
and Januray 2001 bills, against the Rs 800 crore penalty it has slapped on
Enron for not supplying electricity as per demand.
MSEB has refused to pay DPC's December 2000 and January 2001 bills worth Rs
213 crore.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Saudi Supreme Petrol Council meeting to decide on huge gas project bids
05/15/2001
Business Recorder
Copyright (C) 2001 Business Recorder; Source: World Reporter (TM)
RIYADH : Saudi Arabia's Supreme Petroleum Council (SPC) is holding meetings
on bids by 12 foreign oil majors for three giant gas projects and should take
a decision shortly, a top oil official said on Monday. "The SPC has been
discussing recommendations by the negotiating committee about the bids, and
the meetings will continues executive president of the committee Abdulrahman
al-Suhaibani told AFP.
"It is not clear yet when the discussions will be completed and wham a final
decision will be issued," added Suhaibani, who expected it to be soon. The
meetings began two weeks ago.
A senior foreign oil executive in the kingdom expected an answer to his
firm's bid by the end of this week or the start of next week.
"The SPC is holding a crucial meeting today (Monday) and tomorrow. bin were
told we would get an answer to our proposals either this weekend or early
next week," the executive told AFP.
The negotiating committee made detailed recommendations after meeting with
the representative of 12 international oil companies (IOCs) which are bidding
for the three multi-billion projects, the executive said.
The committee, comprising ministers who are also SPC members, is headed by
Foreign Minister Prince Saud al-Faisal.
The gas projects, which would be the first foreign investment
in the kingdom's energy sector since nationalisation in 1961, are located in
the South Ghawar field near Al-Hufuf in the Eastern Province, Shaybah in the
Empty Quarter desert, and the northern Red Sea area.
They cover 440,000 square kilometres (176,000 square miles), making it the
world's largest area for hydrocarbon investment.
US majors Enron and Occidental in a joint bid, as well as Chevron,
Conocokilometres, ExxonMobil, Marathon, Phillips and Texaco have been
shortlisted for the Saudi projects. Rounding out the list are European firms
BP Amoco, Eni, Royal Dutch Shell and TotalFinaElf.
ExxonMobil, Shell and TotalFinaElf are in the bidding for all three ventures.
The investment involves gas exploration and production, setting up
petrochemical industries and power and water desalination plants.
The projects, called the natural gas initiative, are to be carried out
simultaneously by consortia of two to three firms in cooperation with Aramco,
the national oil company, on long-term basis for up to 30 years, the
executive said.
Aramco has been working to double the Saudi gas network's capacity from the
current 3.5 billion cubic feet (105 million cubic metres) per day to seven
billion cubic feet (210 million metres) daily in 2004.
Saudi Arabia, which sits on top of the world's biggest oil reserves, has
proven natural gas reserves of 220 trillion cubic feet (6.6 trillion cubic
metres).-AFP
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
| ||
arnold-j/all_documents/593.
|
subject: ALL daily charts and matrices as hot links 5/15
content: The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete. Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein. Any
opinions expressed herein are solely those of the author. As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates. , 2001 Carr Futures
The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.
Crude http://www.carrfut.com/research/Energy1/crude42.pdf
Natural Gas http://www.carrfut.com/research/Energy1/ngas42.pdf
Distillate http://www.carrfut.com/research/Energy1/hoil42.pdf
Unleaded http://www.carrfut.com/research/Energy1/unlded42.pdf
Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG42.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG42.pdf
Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL42.pdf
Carr Futures
150 S. Wacker Dr., Suite 1500
Chicago, IL 60606 USA
Tel: 312-368-6149
Fax: 312-368-2281
[email protected]
http://www.carrfut.com
| ||
arnold-j/all_documents/594.
|
subject: Nat Gas market analysis for 5-15-01
content: Attached please find the Natural Gas market analysis for today.
?
Thanks,
?
Bob McKinney
- 5-15-01 Nat Gas.doc
| ||
arnold-j/all_documents/595.
|
subject: daily charts and matrices as hot links 5/15
content: The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete. Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein. Any
opinions expressed herein are solely those of the author. As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates. , 2001 Carr Futures
The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.
Distillate and unleaded charts to follow.
Crude http://www.carrfut.com/research/Energy1/crude42.pdf
Natural Gas http://www.carrfut.com/research/Energy1/ngas42.pdf
Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG42.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG42.pdf
Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL42.pdf
Carr Futures
150 S. Wacker Dr., Suite 1500
Chicago, IL 60606 USA
Tel: 312-368-6149
Fax: 312-368-2281
[email protected]
http://www.carrfut.com
| ||
arnold-j/all_documents/596.
|
subject: Long term Gas Curve
content: John
Hope you're well.
We are doing some work here on the long term curve for UK natural gas and
would value your views on the long term NYMEX Nat gas curve.
By long term I am talking 7-20 years.
Our thinking is that beyond the traded period of 5-10 years forward, UK
prices would at least partially reflect the long run marginal cost of LNG in
a "globalised" market provided US prices were not significantly above.
As we are currently working on some long term structured deals it would be
great to get your input on this.
Many thanks
Andy
| ||
arnold-j/all_documents/597.
|
subject: RE: Defense
content: i am open to any of your wonderful ideas. new orleans..1..2...out
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Monday, May 14, 2001 10:01 PM
To: [email protected]
Subject: Re: Defense
maine impossible to get to .. next idea?
| ||
arnold-j/all_documents/598.
|
subject: Mothers Day
content: thank you for the beautiful flowers!? They arrived late Friday and Vic
emptied the refrigerator and stored them in there.? There were very fresh
this morning.? The aroma is so strong that you smell them upon just entering
my office.? It's those lilies that they used.? It really is a very pretty
arrangement.? Thank you so much.
Uncle Elmer & Rosa are not coming this week as they have an illness in the
family.?
I am busy emptying the kitchen...they start Wed. morning.
See you Saturday!? Love, Your Mom
| ||
arnold-j/all_documents/599.
|
subject: Re: Defense
content: maine impossible to get to .. next idea?
| ||
arnold-j/all_documents/6.
|
subject: RE: Enron / Avaya mtgs, from Serge's AA
content: Jennifer,
I hope James is getting the treatment he needs to get on the way back to
normal!
As you can see below from the reply from Serge Minassian's AA, it would
appear that the note I
sent to Thad on the 21st hadn't been used to successfully transfer the info
to Barbara...I will
now call Kim Godfrey back (I was waiting on this response from Ms. Korp, so I
could better know
the Avaya Execs' calendars' status).
I'll talk w/you later...
Jeff
----- Forwarded by Jeff Youngflesh/NA/Enron on 11/28/2000 12:44 PM -----
"Korp, Barbara I (Barbara)" <[email protected]>
11/28/2000 07:59 AM
To: "'[email protected]'" <[email protected]>
cc:
Subject: RE: Enron / Avaya meetings in Basking Ridge
Jeff,
Thanks for the message and especially for letting me know that the meeting
will not be held on December 13th and 14th. I already reserved the Avaya
Briefing Center, but will be sure to cancel it this morning.
If I can be of further assistance, do not hesitate to contact me.
Barbara Korp
Avaya Inc.
Assistant to Serge Minassian
908-953-3771
908-953-3772 (fax)
[email protected]
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Tuesday, November 28, 2000 8:49 AM
To: [email protected]
Cc: [email protected]; [email protected]
Subject: RE: Enron / Avaya meetings in Basking Ridge
Importance: High
Barbara,
I do not know if you received a "heads-up" on this,
but since you are working with Executive calendars and the
Briefing Center resource, I wanted to make sure you had it.
Better safe than sorry, especially with the recent holidays.
Thad White and I agreed that in order to properly simplify
the communications channels between our organizations,
that he and I should be the primary points of interconnection
for this particular project and these meetings. I apologize that
I do not have the calendar availability of the various Enron
Broadband Services executives, but given the opportunities
of having meetings in Basking Ridge either: (for 1.5 days of a
3 day period) December 19 - 21, 2000 or January 9 - 11, 2001;
the (tentative) preference leanings are toward rescheduling
the currently proposed dates of December 13/14 to the
January 2001 dates.
I will keep Thad posted, and he will keep you posted. I
apologize for any delays or confusion, if any, but I will
periodically check in with you as well, to make sure we're
all on the same path. My primary communication focus will
be Thad, however, in order to minimize any confusion.
Thank you,
Jeff Youngflesh
Director, Business Development
Global Strategic Sourcing
Enron Corp.
333 Clay Street, 11th Floor
Houston, TX 77002
t: 713-345-5968
f: 713-646-2450
c: 713-410-6716
----- Forwarded by Jeff Youngflesh/NA/Enron on 11/28/2000 07:39 AM -----
Jeff
Youngflesh To: [email protected]
cc:
11/21/2000 Subject: RE: Enron / Avaya
meetings in Basking Ridge
10:44 AM
Thad, can you give Barbara a "hold" on this until you and I get the
people scheduled? I have just returned from a day off, and don't
have the information I needed yet. It still looks like Jan 8-9 may be
leading date candidates, with the 19/20 or 20/21 of December being
possible alternates...
Thank you,
Jeff
----- Forwarded by Jeff Youngflesh/NA/Enron on 11/21/2000 10:30 AM -----
"Korp,
Barbara I To:
"'[email protected]'" <[email protected]>
(Barbara)" cc:
<bkorp@avaya. Subject: RE: Enron / Avaya
meetings in Basking Ridge
com>
11/20/2000
01:22 PM
Jeff,
I'm in the process of booking the Avaya Briefing Center and need to know
how
many people from Enron will be visiting our headquarters. I've asked for
the afternoon of December 13th and all day on the 14th.
Barb
Barbara Korp
Avaya Inc.
Assistant to Serge Minassian
908-953-3771
908-953-3772 (fax)
[email protected]
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Thursday, November 16, 2000 6:50 PM
To: [email protected]; [email protected]; [email protected];
[email protected]; [email protected];
[email protected]; [email protected]; [email protected];
[email protected]
Subject: RE: Enron / Avaya meetings in Basking Ridge
Importance: High
Barbara, et. al.:
After a flurry of phone calls, in which both Jennifer Stewart
and I have spoken with Serge Minassian, the following dates
look like the most likely targets: for the 1st day (half-day session),
Wednesday, December 13. For the 2nd day (full-day session),
Thursday, December 14th.
Serge has indicated his availability for a 2-hour block of time,
on the 13th in the afternoon. That meeting would be essentially
an executive overview and strategy session for the appropriate
Avaya executives and the Enron Broadband Services exec-
utives. The bulk of that meeting would be EBS' presentation
of their Value Proposition for the potential EBS/Avaya efforts.
The second day would be for members of Avaya's engineering
and development organizations, and possibly marketing; to
have a full day to meet with the equivalent EBS team. Both
software/firmware and product platform-type of concepts would
be examined, and any other area in which EBS and Avaya
development folks felt that there were possible synergies for
a solution or solutions for the following 2 primary areas:
1) "sell to": EBS solutions to Avaya for internal use, and
2) "sell through & sell with": EBS and Avaya possibly
developing a solution for bringing to market in a similar
fashion to the Avaya/Siebel Systems' efforts.
By way of copying this to the EBS team, I am asking that
they will coordinate with me whom they would be sending,
and to make sure that the 13th/14th of December fit into
the appropriate calendars. If there are any Avaya questions
related to development/engineering efforts, I would coordinate
as well, and most likely route to Larry Ciscon, or other EBS
engineering/development executive(s), as appropriate.
Thank you again for your help, and we look forward to the
opportunity!
Jeff Youngflesh
Director, Business Development
Global Strategic Sourcing
Enron Corp.
333 Clay Street, 11th Floor
Houston, TX 77002
t: 713-345-5968
f: 713-646-2450
c: 713-410-6716
"Korp,
Barbara I To: "White, Thad (Thad)"
<[email protected]>,
(Barbara)" "'[email protected]'"
<[email protected]>
<bkorp@avaya. cc:
com> Subject: RE: Enron
Organization
11/15/2000
02:55 PM
Jeff & Thad,
I spoke with Serge this afternoon. He definitely wants to meet with Enron
as soon as possible, but only for a maximum of two hours. Two members of
his team will participate, Wayne Sam and Edward Chang. I will coordinate a
date with them and send a message of available days and times.
If you have any questions, do not hesitate to call or write.
Barbara Korp
Avaya Inc.
Assistant to Serge Minassian
908-953-3771
908-953-3772 (fax)
[email protected]
| ||
arnold-j/all_documents/60.
|
subject: American Express
content: ---------------------- Forwarded by Jennifer N Stewart/NA/Enron on 12/08/2000
10:16 AM ---------------------------
Lesley M Lambert
12/08/2000 09:51 AM
To: Tracy Ramsey/EPSC/HOU/ECT@ECT
cc: Barry Proud/ETOL/EU/Enron@ENRON, Jennifer N Stewart/NA/Enron@Enron, Peter
Goebel/NA/Enron@Enron
Subject: American Express
Hi Tracy,
On Wednesday of this week we had a visit from Jennifer and Peter, and we
highlighted a number of problem areas that we are experiencing with Amex
Travel Management. They suggested we inform you of the problems, in the hope
that you would be able to take it to a higher level on our behalf.
Up until a year ago American Express were based on the Wilton Site. They
migrated to Newcastle (about 50 miles away) and migrated again some six
months later to Edinburgh ( about 120 miles away). Each time they have moved
the level of service we have received has deteriorated.
Some six weeks ago we had a meeting with Lisa McKenzie (Area Manager) from
the Edinburgh office, at which we detailed our concerns to her. She said
that she valued our business and promised to take these concerns away and to
rectify all problems. In reality nothing improved, to the extent that we had
another meeting with George Blues (Account manager) last week, and informed
him that we had not seen any changes for the better. We also told him that
if things did not improve within the next six weeks, we would consider taking
our business elsewhere. We have actually made contact with a local company
and are using them in conjunction with Amex for the next six weeks.
Typical problems are:-
Communications - trying to contact people in Edinburgh is difficult.
Response when we do contact them is not forthcoming. Not being able to speak
to the same person twice. Promises of return calls do not materialise.
Invoices - difficulty in resolving disputes.
Car Hire - not negotiating the best deal with regards to rates. We
negotiated better rates with Avis ourselves.
Hotel Bookings - not using Enrons preferential rates on hotels with reserved
rooms.
Rail Travel - lack of detail on tickets.
We feel that they are paying lip service to what we are saying and making
general excuses in the non performance of their obligations.
We hope you can assist us in getting a better level of service than that
which we are currently receiving.
Regards
Lesley
Respect====>Integrity====>Communication====>Excellence
The information contained in this e-mail and any files transmitted with it is
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e-mail in error, please notify the originator or telephone 01642 459955.
This e-mail and any attachments have been scanned for viruses prior to
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Reg. No. 3647087. Registered Office: ETOL HQ, PO Box 1985, Wilton
International, Middlesbrough, TS90 8WS
| ||
arnold-j/all_documents/600.
|
subject: RE: waiting
content: maine impossible to get to...next option?
| ||
arnold-j/all_documents/601.
|
subject: BNP PARIBAS Commodity Futures NG MarketWatch For 5/14/01
content: (See attached file: g051401.pdf)
______________________________________________________________________________
_______________________________________________________
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autorisation expresse.
L'internet ne permettant pas d'assurer l'integrite de ce message, BNP PARIBAS
(et ses filiales) decline(nt) toute responsabilite au titre de ce message,
dans l'hypothese ou il aurait ete modifie.
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______________________________________________________________________________
_______________________________________________________
- g051401.pdf
| ||
arnold-j/all_documents/602.
|
subject: Additional offerings to round out your portfolio
content: John -
I left a message about this last week, but wanted to follow-up with
additional information for your review. We have three offerings currently
available (or coming soon) that I feel would compliment the small/mid cap
and fixed income exposure you already have through Redwood, Sequoia, and
Willow.
Quantitative Allocation, LLC: Integrates four quantitative investment models
to drive aggressive (and potentially leveraged) asset allocation decisions.
Generates exposure to stock and bond markets through indexing techniques and
futures transactions. Portfolio market exposures can range from +325% to
-175% of net assets. This is clearly different from the largely
non-leveraged stock-picker funds you already own. I would consider this to
be a predominately large-cap investment (I think of it as an index fund with
a brain and on steroids - call me and I'll explain that comment in more
detail).
Juniper Crossover Fund, LLC: Managed by OrbiMed Advisors, and focused on
global biotech and pharma. Up to 30% participation in private equity. This
could be a way to get you some private equity exposure with a world-class
manager.
Tamarack International Fund, LLC: Long/short stock-picker fund focused on
the international mid-cap market. I feel this fund is very similar in style
to the managers you already own, but would give you exposure to the
international markets that you currently lack. This is a new fund and the
first closing will probably be in June.
Of course, the summaries above are for information purposes only and do not
constitute an offer to sell or solicitation of an offer to buy interests in
these funds. Please call me if you're interested in any of the strategies
outlined above, and I'll have the appropriate offering memorandum sent to
you.
Thanks,
> Michael Gapinski
> Account Vice President
> Emery Financial Group
> PaineWebber, Inc.
> 713-654-0365
> 800-553-3119 x365
> Fax: 713-654-1281
> Cell: 281-435-0295
>
Notice Regarding Entry of Orders and Instructions: Please
do not transmit orders and/or instructions regarding your
PaineWebber account(s) by e-mail. Orders and/or instructions
transmitted by e-mail will not be accepted by PaineWebber and
PaineWebber will not be responsible for carrying out such orders
and/or instructions. Notice Regarding Privacy and Confidentiality:
PaineWebber reserves the right to monitor and review the content of
all e-mail communications sent and/or received by its employees.
| ||
arnold-j/all_documents/603.
|
subject: Guggenheim Survey
content: Hello all,
Please complete our preliminary feedback form so that we can track the value
of our investment in the Enron/Guggenheim event(s). We will use your input to
shape our future business development opportunities.
Thank you in advance for providing this valuable information. Please fax
your response to me at 713-853-6790.
| ||
arnold-j/all_documents/604.
|
subject: Friday Staff Meeting - Conference Bridge Number
content: John,
You can call in for the staff meeting on Friday, 5/18. Here is the
information on it.
-Ina
I have arranged a conference bridge number for the Friday staff meeting for
the individuals that might have difficulty with video conference equipment or
will be on travel status and not available at the office.
As a reminder the staff meeting is scheduled at 2:30 pm Central time.
The conference bridge number is:
Domestic 1-800-713-8600
International 1-801-983-4017
Pass Number 03151
If you have any questions, please let me know!
k
| ||
arnold-j/all_documents/605.
|
subject: Enron Mentions - 05/12/01 - 05/13/01
content: As Final Exams Begin, Power Is a Big Question
The New York Times, 05/13/01
British Telecom
The Times of London, 05/12/01
Houston needs to think small about future technology
Houston Chronicle, 05/13/01
Panel plots new course for area's future / Education, economics, quality of
life top group's list of needed improvements
Houston Chronicle, 05/13/01
MSEB not to pick up 15 pc in DPC after phase II completion
Press Trust of India Limited, 05/13/01
Enron plans to pull out of Gulf gas project: MEED
Agence France-Presse, 05/13/01
SMALL BUSINESS / Pleasure cruisin' / Yacht fleet owner offers customers what
amounts to limo service on the lake
Houston Chronicle, 05/13/01
More power to reform agenda
The Economic Times, 05/13/01
India Power Min: New Power Deal With Enron Unit Possible
Dow Jones International News, 05/12/01
India: Talks begin on Dabhol issue
Business Line (The Hindu), 05/12/01
India to allow 3rd party sale if DPC, MSEB jointly approach
Press Trust of India Limited, 05/12/01
DEFAZIO CALLS FOR STATE TO BUY PGE TO PROTECT RATES
Portland Oregonian, 05/12/01
Congressman suggests state buy PGE
Associated Press Newswires, 05/11/01
National Desk; Section 1
As Final Exams Begin, Power Is a Big Question
By JODI WILGOREN
05/13/2001
The New York Times
Page 16, Column 4
c. 2001 New York Times Company
For final exams, prepared students pack extra pens, calculators, bottled
water, granola bars. And, at the University of California's Berkeley campus
this year, a flashlight.
As state officials and utilities struggle to maintain the power supply during
California's continuing energy shortage, administrators and professors at the
31,000-student campus are planning for the possibility that rolling blackouts
may disrupt exams, which began on Friday and run through next Saturday.
''People here are used to interruptions,'' Sara Abbas, 21, a senior
communications major, said with a shrug as she studied in a cafe near campus.
''People walking in, people running around buck naked and whatnot. People
have cut the power lines. They just reschedule.''
In an e-mail message sent Wednesday, the executive vice chancellor, Paul R.
Gray, advised instructors to use ''individual discretion to decide the
disposition of their examinations once the exam has started.'' Among the
options: delay the test until the lights return; postpone it until a
Saturday; grade the incomplete test; or cancel the exam altogether.
Professors are also encouraged to check a Web site to see if their exam rooms
have windows. ''In some classrooms,'' Mr. Gray noted, ''students may have
sufficient natural light.''
The rolling blackouts could hit most of the campuses of the University of
California and California State University. The two systems are embroiled in
a legal dispute with Enron Energy Services, a Houston-based company that, in
February, cut short a four-year contract to provide electricity directly to
the universities. For now, the two systems -- among the largest energy
consumers in the state -- are being supplied by Pacific Gas and Electric and
Southern California Edison.
Though several medical centers and the Davis, Los Angeles and Riverside
campuses of the University of California system are exempt from the
blackouts, the rest of the campuses have been put on alert.
At Berkeley, the warning from Mr. Gray only heightened pre-exam stress
levels.
''Stopping in the middle of a final would be detrimental to my grade because
I save the hardest questions until the end,'' said Heidi West, 20, a
sophomore majoring in political science.
Aaron Chung, a senior studying cognitive science, said it would be unfair to
grade half-finished exams because he often circled answers instinctively,
planning to return later with more care. ''The only thing I don't have a
problem with is if the professors give everyone A's,'' Mr. Chung, 23, said.
''You have to be under a lot of duress for that to happen.''
Gary L. Firestone, a biology professor, said he would move his 500-member
class out into the sunshine and tell students to spread their blue books on
the grass. But Jeff Good, a graduate student who teaches Introduction to
Syntax and Semantics, said he would probably cancel the exam because the
final counts for only 20 percent of the grade.
That is what Michelle Chen, a junior linguistics major in Mr. Good's class,
is hoping for.
''I would love a blackout,'' Ms. Chen said. ''I'm going to turn on my
air-conditioner. My toaster, too.''
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Business
British Telecom
Patience Wheatcroft
05/12/2001
The Times of London
News International
Final 4
55
(Copyright Times Newspapers Ltd, 2001)
BRITISH TELECOM has inflicted enough damage on itself in the past year. But
others are still lining up to put the boot in. Hours after the company
announced a Pounds 5.9 billion rights issue and the separation of cash-hungry
BT Wireless, Moody's Investors Service lowered BT's credit rating. This
thumbs-down will cost BT an extra Pounds 35 million a year on existing loans
as well as making future working capital more expensive.
The timing is odd. One of the two other main agencies presented with the same
BT proposals maintained its rating and the other edged it down so little that
change-of-rating clauses were not triggered. In the meantime, the market
prices of BT debt have been rising. The Enron Cost of Credit, which measures
the overall risk premium on BT borrowing, has halved since mid February. Such
costly inconsistencies must focus more critical attention on the agencies,
whose power has grown out of proportion to their accountability.
Moody's verdict is, however, peanuts compared with the cost to BT of the
whims of Stephen Byers and the UK competition authorities. Moody's will no
doubt be aghast to learn that Yell could be worth Pounds 1 billion less as a
result.
In 1996 the Monopolies and Mergers Commission found that BT's Yellow Pages
had an 85 per cent monopoly of its market and made it sign undertakings to
cut prices by 2 per cent a year in real terms. The Office of Fair Trading has
reviewed this report; predictably, it has found that the enforced price cuts
have kept competition down and kept Yell's market share up.
The reasoning behind OFT advice that annual real price cuts should be doubled
is closed to scrutiny until Mr Byers has a new BT undertaking. But it appears
to argue that the market is still a monopoly, so Yell must be charging too
much, so prices should fall further.
The result, according to those formerly eager to buy Yell, is that a growth
business has been turned into a stagnant one, losing all momentum. This
sounds typical of the dead hand of UK regulation. It must strengthen the
resolve of BT's new leaders to remodel what the authorities so hate to the
greater advantage of shareholders.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
OUTLOOK
Outlook
Houston needs to think small about future technology
WILLIAM DYLAN POWELL
05/13/2001
Houston Chronicle
2 STAR
4
(Copyright 2001)
OK, it's test time - sort of like a breakfast-time Rorschach test for Outlook
readers. Here we go: What's the first thing that comes to mind when someone
mentions Houston?
Time's up. Your answers may have been energy, medicine or seemingly random
acts of highway closure. But how about something very, very small? While
Houston may not exactly be synonymous with all things tiny, we may want to
start giving more mind share to the world of the miniature. As technology
advances, Houston may owe a great deal to the study of small substances.
Nanotechnology is the study of creating functional structures on a molecular
scale (the prefix "nano" means one billionth, or 10 to the ninth power
numerically). Its theories and practices give scientists the means to
construct useful entities using the smallest known particle of unaltered
matter.
Before your eyes glaze over in a terminology-induced science class flashback,
you should hear some of the possibilities that this technology could afford
residents of the Bayou City and their respective commercial enterprises. The
possibilities give the works of science fiction author Ray Bradbury a run for
their money, and include producing computers the size of viruses or factories
that could fit neatly on your desk. Cancer-destroying robots could roam a
patient's innards like mounted police at a spring break celebration.
Eventually, all diseases and mutations could be eliminated. And all
manufacturing processes would become waste-free, both in terms of the
environment and from a business process standpoint.
Sound like science fiction? Maybe, but truth is rapidly catching up with
fiction. A team of university researchers recently figured out how to make a
functional switch out of a single organic molecule. Discoveries such as these
have spawned several branch fields of study including nanobiotics, NEMS
(nanoelectromechanical systems) and nanomedicine.
This technology would surely change the world. But it would especially affect
Houston. Applications for nanotechnology are a great fit for Houston's
economic landscape. The chemical industry already has begun conducting
research in small-sizing certain chemical compounds. And the energy industry,
still our darling, has great interest in the power management possibilities
of nanotech. This could be Houston's next great vehicle for economic
development.
Nay-sayers have expressed caution regarding progress in this field on two
separate fronts. First on how distant potential commercial offerings remain;
and secondly on the potential dangers of combining genetic engineering,
nanotechnology and robotics (for fear of creating self-assembling intelligent
machines as often portrayed in science-fiction movies). But too much
technological progress is happening at once for the possibilities not to whet
the appetites of the entire scientific and business communities.
Already, developmental overtures have been heard from Houston's little sister
to the north. The Dallas-Fort Worth region and its growing base of
semiconductor, light assembly and defense industries are keeping a close eye
on developments in small science. In March, a private-sector company donated
$2.5 million to the University of Texas at Dallas for nanotech research. And
a handful of Dallas-area groups have been quietly conducting research of
their own. This money augments the federal government's nearly half-billion
dollar allotment of 2001 research funding for nanotechnology. Houston has its
own projects, but they receive far less publicity.
Houston's public nanoscience efforts have been centered mostly on Rice
University's grand Turks of academia. Pushing the envelope of academic
excellence as usual, Rice's heavyweight research barons continue to generate
and distribute knowledge on the many potential applications of this exciting
technology. But as successful as they are, they receive far less publicity
and support than other less commercially significant disciplines.
On May 29, leaders from the energy, medical and technology sectors will
converge at the Houston Technology Forum to discuss various technology trends
that will affect Houston's future. Will the keynote speakers (chief
executives from Compaq, the Texas Medical Center and Enron) address the issue
of what Houston is doing to prepare for advances in nanotechnology and its
potential economic impact on the region?
I certainly hope so. Energy, medicine and technology are the terra firma of
Houston's economy. Each of these industry sectors could reap profound
benefits by bringing nanotechnology's concepts to light.
Sure, the fruits of this nascent science are still a long way off. But it's
going to become remarkably important sooner than we think. So while
Houstonians are well known for our love of largeness, it's time to think
small. Let's take a careful evaluation of what this technology could mean to
our city and its economic development.
Drawing
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
A
Panel plots new course for area's future / Education, economics, quality of
life top group's list of needed improvements
MIKE SNYDER
Staff
05/13/2001
Houston Chronicle
4 STAR
33
(Copyright 2001)
A group of prominent business executives, worried that Houston's reputation
as an unpleasant place to live imperils its future, is developing a plan to
transform the city's educational system, urban design and economic base.
The work of the Center for Houston's Future, a nonprofit group affiliated
with the Greater Houston Partnership, reflects growing concern that Houston
must reposition itself as a vibrant, desirable destination if it is to
compete in an economic climate that empowers skilled workers to live wherever
they choose.
Creating such a "livable city," leaders of the effort say, would in turn
enrich the lives of every Houstonian.
"The interests of the business community are fully aligned with the interests
of the community at large," said Eugene H. Vaughan, a money management
executive and board chairman of the Center for Houston's Future.
A report prepared for the organization by a business-based task force
recommends that local leaders challenge long-held assumptions that have
discouraged meaningful land-use planning. It sketches a vision of Houston 20
years from now in which technology and other tools have revolutionized public
education, "livable city centers" have changed the physical landscape and
current civic leaders have groomed a new, more diverse generation of
successors.
The report argues that the business community's traditional leadership role
in Houston's civic affairs should continue. But it suggests the models of
business influence that prevailed in "the old days" should be re-examined.
"Those were the days when oil was king, and Houston was the energy capital of
the world - the days when a handful of `big' leaders, including CEOs of major
corporations, could meet in a room together and decide on the future of
Houston," the report states.
"But times have changed, and there is far less tolerance in Houston's highly
diverse, egalitarian society for a hidden oligarchy to run things, no matter
how benevolent those leaders might be."
The center's board includes top executives of some of Houston's most
successful and influential companies, including Enron Chairman Ken Lay; Ned
Holmes, chairman and CEO of Parkway Investments/Texas Inc.; James Royer,
president and CEO of Turner, Collie & Braden Inc.; William White, president
and CEO of WEDGE Group Inc.; and Jim Kollaer, president and CEO of the
Greater Houston Partnership.
Vaughan said the stature of the board members is an indication that the group
is not likely to generate plans that will simply sit on a shelf.
"They've got so many demands on their time that they're not going to fool
around with something that is ill-conceived," he said.
Rice University sociology professor Stephen Klineberg, one of the experts who
advised the task force that generated the report, agreed that the center's
work could be very influential.
"This is the first time there's been a systematic, coordinated effort on the
part of the business community" to improve Houston's quality of life,
Klineberg said.
The Center for Houston's Future was created in the early 1990s primarily as a
source of research information for the partnership, Houston's premier
business organization. But its role changed about two years ago, Vaughan
said, when Holmes became chairman of the partnership and encouraged the
center to take an aggressive approach to planning for the region's future.
Last summer, the center organized three workshops attended by 36 people
representing a cross section of the business community. These 10-day,
seven-night events, led by professional facilitators and featuring various
guest speakers, produced a report outlining four possible future Houston
scenarios.
James D. Calaway, a member of the center's board, said the details outlined
in the four scenarios are intended to be "illustrative" and are not
necessarily the actions the organization ultimately will recommend. However,
they provide insight into the direction of the group's thinking, he said.
In the first scenario, based on the assumption that local planning and
decision-making proceed much as they have in the past, the workshop
participants speculate that tension between the city and suburbs increases to
the point that the Legislature strips Houston of its annexation power.
Development is greatly restricted because of failure to meet clean-air
standards, property values plummet and the City Council must pass a large tax
rate increase.
Houston becomes a stronghold of low-wage, service-sector employment, and the
gap between rich and poor widens: "For many who live there, it's simply a
large urban sprawl, adrift in the global economy, or it's a three-year
hardship post on the way to something more desirable."
Scenario two suggests that Houston's leaders transform the educational system
by developing a "Teacher Network" that delivers Internet-based educational
resources into every classroom and teacher's home in the region. This in turn
leads to a communitywide electronic educational network, with every home in
the Houston area connected to the Internet by 2007.
These efforts, combined with universal, full-day preschool care, lead to
state-of-the-art local schools by 2010, with almost universal high school
graduation rates and 75 percent of these graduates going on to college or
technical training programs.
The report does not estimate the cost of these measures or identify how they
would be funded. Potential sources, Calaway said, include local, state and
federal tax money, private grants and reallocation of funds now being spent
on more traditional educational programs.
In scenario three, local leaders take bold steps to overcome Houston's
reputation for sprawl, dirty air and lack of green space - perceptions that
hamper efforts to attract the talent needed to keep the region economically
competitive.
These leaders develop a vision of Houston based on the creation of "livable
city centers" - major activity centers targeted for redesign and
redevelopment - and the connection of these centers through "personal and
public transport in corridors that delight the eye."
Within the centers, streets are reconstructed to better accommodate
pedestrians. Financial incentives prompt developers to provide a wide range
of housing styles, including substantial affordable housing. The Main Street
light rail line is built, succeeds spectacularly and is followed by more rail
lines extending in various directions.
To accomplish these goals, the report states, local leaders must overcome
their "ingrained suspicion of planning," and the City Council must adopt
"new, more prescriptive development standards" within the livable city
centers. Early successes lead to a public referendum authorizing the
expenditure of $8 billion over 20 years to create the "livable city."
Scenario four focuses on making Houston a "crossroads of the world economy."
The city's business leadership becomes broader and more diverse, and it turns
its energy toward diversifying the economy.
The energy industry, adapting to the new economic climate, transforms its
business model and creates new, high-tech enterprises. Space, nanotechnology
and biotechnology research help launch hundreds of companies that quickly
become significant global players.
The workshop participants concluded that Houston must accomplish key elements
of scenarios two, three and four if it is to become a "true world-class city
in which to live and conduct business."
Calaway and Vaughan said the next steps will include designating committees
to develop specific recommendations in each of the broad areas studied, such
as education and quality of life. Working groups then will be established to
begin translating these ideas into policy, they said.
Although the center is focused on the long term, they said, it must produce
results as soon as possible.
"If we do not get serious about this, 20 years from now we're going to be a
low-wage environment, putting people in very, very dead- end jobs," Calaway
said during a recent presentation on the group's work to members of the
nonprofit Gulf Coast Institute.
"We've got to get the quality of life right, but we've also got to make sure
that we educate these kids for our future."
Mugs: 1. Ken Lay (p. 45); 2. Ned Holmes (p. 45); 3. James Royer (p. 45); 4.
Jim Kollaer (p. 45)
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
MSEB not to pick up 15 pc in DPC after phase II completion
05/13/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.
Mumbai, May 13 (PTI) Maharashtra State Electricity Board (MSEB) has decided
not to pick up the remaining 15 per cent equity in Enron-promoted Dabhol
Power Company (DPC), which it was earlier supposed to, after the complete
construction of the entire USD three billion power project in Dabhol.
"It is true that we had promised to take the 15 per cent, translating into
infusion of around USD 65 million and given the serious financial stress the
board is facing, it is not going to be possible for us to participate in the
phase II of the project", a senior MSEB official told PTI here Sunday.
Currently, Enron International owns 65 per cent, MSEB -15 per cent, General
Electric and Bechtel 10 per cent each.
However, MSEB is yet to send an official intimation to DPC in this regard,
the official said adding the board would inform the company soon after the
completion of the project.
DPC's USD 1.87 billion phase II would be fired on June seven, 2001, thus
marking completion of the 2,184 MW project.
DPC, which received a Foreign Investment and Promotion Board clearance in
last December for its 10.83 billion foreign Direct Investment, has not been
able to scout an alternative fifth partner for MSEB's equity.
The company had decided to off load the 15 per cent of its current holding of
65 per cent to a new entity, as according to the company's global
debt-consolidation it needed to maintain its stake at 50 per cent in DPC
after its completion.
In order to avoid any delay, Enron had agreed to meet up with the equity
shortfall as per the former's agreement with its lenders.
(THROUGH ASIA PULSE) 13-05 2001
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron plans to pull out of Gulf gas project: MEED
05/13/2001
Agence France-Presse
(Copyright 2001)
DUBAI, May 13 (AFP) - Enron Corp. of the United States plans to pull out of a
project to deliver Qatari gas to the United Arab Emirates (UAE), Middle East
Economic Digest (MEED) reported on Sunday.
Enron is a partner in the Dolphin Energy project along with the
Franco-Belgian company TotalFinaElf and the Abu Dhabi government- owned UAE
Offsets Group (UOG). Its role is to build a pipeline under the Gulf between
Qatar and Abu Dhabi.
"The profit margin for Enron would be low. At present, the Dolphin project is
being developed primarily as an upstream venture," an industry source told
MEED.
Another industry publication, Middle East Economic Survey (MEES), reported
last week that the two other partners regarded Enron's estimated cost for
constructing and laying the 350-kilometre (220- mile) undersea pipeline as
too high.
"There is talk of new partners," a source with TotalFinaElf, whose role is to
develop a block in Qatar's giant North Field, told MEED. "But whatever
happens, we are staying."
On March 14, Qatar and the UAE inked a 25-year term sheet agreement on the
project, setting the volume at two billion cubic feet (20 million cubic
metres) of natural gas per day.
Differences over pricing and volumes had put back the signing of the
agreement for two years after a first statement of principle for Dolphin was
inked by Qatar and UOG in March 1999.
According to MEES, Qatar Petroleum and UOG have finally agreed on a gas price
formula of 1.3 dollars per million BTU (British thermal units) following
"high-level political intervention from Qatar and Abu Dhabi".
TotalFinaElf and Enron are strategic partners in the multi- billion-dollar
project, each holding a 24.5 percent share in Dolphin Energy Limited (DEL),
with UOG retaining a controlling 51 percent stake.
From Abu Dhabi, the gas is to be distributed inside the emirate and on to
Dubai and Oman. An extension to Pakistan through an undersea pipeline is also
planned, as part of a regional gas network.
hc/rp
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
BUSINESS
SMALL BUSINESS / Pleasure cruisin' / Yacht fleet owner offers customers what
amounts to limo service on the lake
CAROL RUST
Special to the Chronicle
05/13/2001
Houston Chronicle
2 STAR
1
(Copyright 2001)
KEMAH - Tom Lober trundled home from second grade with a three- tiered wooden
box he'd made at school.
"This is my houseboat," he told his mother 35 years ago. "When I grow up, I'm
going to live on a boat."
His practical-minded mother put the "boat" to work as a patio plant stand
until it finally rotted from a decade of exposure.
On a recent evening, Lober stood on the bow of one of his four charter
yachts, enjoying the sunset-tinted water and a mild breeze as the 100-foot
luxury boat moved quietly from Clear Lake into Galveston Bay.
"This is what I love," Lober said, scanning a horizon dotted with distant
boats. "The others are here to party, but this is it for me."
The founder and owner of Star Fleet Entertainment Yachts spoke calmly against
the din of a mini-Mardi Gras heating up on middeck, where bead-clad
executives were letting their hair down at their annual appreciation party
for a major customer. A Mae West look- alike hired for the event meandered
among them, handing out cigars and sultry comments in her mermaid-cut white
dress studded with faux pearls and a white feather boa twirled about her
neck.
In the eight and one-half years since the 42-year-old Lober started Star
Fleet, he's seen everything from fire-eaters to hula dancers as entertainment
on the hundreds of custom cruises his staff of 70 puts together each year.
Last year, the company booked 400 cruises, which translated into $2.3 million
in gross sales, in events ranging from Gulf Coast versions of company picnics
to a bat mitzvah with a Gilligan's Island theme. One guy recently plunked
down $2,000 to charter an entire boat for a date.
One of Lober's seven captains is, handily, a licensed minister for weddings.
Star Fleet staff recently added squirt guns, Hula Hoops and limbo sticks as
regular on-board equipment.
"It's a bizarre business," Lober said. "Nothing seems unusual anymore."
Nearly all Star Fleet's cruises include dinner. His kitchen staff does the
prep work for hors d'oeuvres and main courses on land near the marina,
transferring them to a generous galley on board before customers arrive. The
galley crew does the final cooking.
Star Fleet Entertainment Yachts is one of about a dozen businesses of its
size in the country that provides strictly private charter yacht cruises, but
Lober has hundreds of competitors locally.
"I'm competing with caterers, hotels, restaurants - anyone in the eating,
drinking and party business," he said. "People say there are two things
you're never supposed to own: a boat and a restaurant. I put a restaurant on
a boat."
Last month, he launched what he believes is the first-ever water limousine, a
30-foot yacht complete with wet bar, sound system, leather couches, TV and
VCR that takes small groups to waterfront restaurants and bars, just like a
limo does on land.
Sometimes, his clients hop off and dine at one of the restaurants on the
Kemah Boardwalk while the limo is anchored beside it. In other cases, waiters
deliver the food to the boat, equipped with removable dining tables that can
seat 14, and the customers dine while cruising Clear Lake.
Lober was a natural shoo-in for a career on the water. His father owned a
supply boat business in Houston and a fleet of shrimp boats based in
Trinidad. He eventually became president of his dad's supply boat business
after getting a master's degree in maritime management from Texas A&M
Maritime Academy in Galveston in 1981.
But he still had that idea from second grade that grew from living on a boat
to providing exclusive entertainment on the water.
In 1986, he joined the Passenger Vessel Association, a national group of
vessel owners that provides public or private cruises for gaming, ecotourism
or other entertainment. He attended seminars, talked to boat owners,
researched trends in the industry and tried to figure out what it would take
to float his idea.
Lober drew up plans for a boat big enough to accommodate up to 150
passengers, but with a three-foot draft to keep from running aground in the
notoriously shallow Clear Lake and Galveston Bay.
"I wanted to be able to take that boat anywhere on the lake," which is five
feet deep in places, he said.
Bankers were skeptical when he approached them for a loan.
"This was a new business in Houston that had never been done before," Lober
said. "They had no confidence.
"I finally got to the point where I'd just take my business plan into a bank
and say, `I know I'm not going to get a loan - just look at what I've got and
tell me what it needs,' " he said.
Even without a loan in place, Lober began hands-on research. During the week,
he still worked at his father's supply boat business, but flew to Fort
Lauderdale, Fla., on weekends to work as a deck hand and food server for a
charter yacht company to learn the business from the bottom up.
After a year of loan seeking, he found a lender at the Passenger Vessel
Association's annual meeting. Caterpillar Finance agreed to lend him 60
percent of the $950,000 in construction costs if he installed Caterpillar
engines on the boat.
Construction took a year, during which Lober continued his research, serving
drinks on weekends aboard a charter boat on the Detroit River and Lake St.
Clair.
Finally, Lober launched Star Gazer in October 1993.
The maritime academy might have taught him how to navigate by the stars, but
it didn't prepare him for marketing.
"I didn't know what I was doing," Lober said. "The first year, I spent
$125,000 in marketing blunders," including a $50,000 mass mail campaign that
he called "a total flop."
Marketing was twice as expensive as he thought it would be and took twice as
long for potential customers to understand the concept he was trying to sell,
he said. Meanwhile, his boat sat in the stall for up to three weeks at a
time.
Lober had a $30,000 monthly overhead in debt service, office rental,
insurance and slip fees, and "I still had to pay it if the boat didn't leave
once," he said.
Panicked, he joined the Greater Houston Partnership to seek out ideas, and he
got one: target marketing.
He and his small staff scrutinized every detail about the people who used the
boat and set out to find more like them. He set his sights on the corporate
client, which makes up about 70 percent of his business today. Corporate
customers include Enron, Exxon Mobil, Shell, Continental Airlines and Katy
Mills mall.
"We have had our party with Star Fleet every year for five years," said Ravi
Lal, director of ethylene division of Technip, based in San Dimas, Calif.
"The first year, I wanted to do something special that I hadn't seen before.
Everybody likes it, and everybody wants to come back."
Business slowly began to build, and word spread. Lober added the 90-foot Star
Cruiser in 1997, the 74-foot Star Spirit in 1999, and brought in a fourth,
the Lake Limo, last month. Also in 1999, he bought 6 acres with 600 feet of
waterfront and built Star Fleet Marina. While part of that land is still
undeveloped, it eventually will become a parking lot for 500 cars when Lober
adds a fifth large yacht, Star Ship, sometime in the future.
"We plan to add Star Ship when we're turning down enough business from the
other boats," he said.
After more than eight years, Lober has yet to take home a salary, putting
everything back into the business.
The more he puts back, the more business he can accommodate.
But Lober and his staff still keep close tabs on their customers.
"We track everything - which individuals, what type of event, whether they
prefer sit-down dinners, how they heard about us - you name it," he said.
It's a lot of details. He knows that blackout shades, pull-down projector
screens and multiple microphone jacks are needed for presentations, and that
some clients like to be picked up at one of the Galveston hotels or other
locations on the Houston Ship Channel.
If a customer hires a deejay, a crewmember provides padding to put underneath
the CD player on the bandstand because dancing on the steel dance floor
causes the player to bounce.
Lober's three full-time cruise consultants handle charter buses to and from
the marina, limos, menus, photographers and decorations. They work with Star
Fleet's in-house florist and theme designer to provide floral arrangements
for sit-down dinners and Hawaiian leis of fresh orchids and hibiscus for a
major retailer's party, for which the florist helped transform the boat's
stanchions into palm trees.
And consultants have their own suggestions, such as bestowing captains' hats
instead of the usual corsages to employees with top sales who were being
honored at a recent floating awards banquet.
Lober believes his company's custom service brings customers back.
"They handle all the details once, and after customers go on that first
cruise, they're sold on the concept," he said. "People love something
different. We provide a different kind of party. If they do it once, they
usually want to do it again."
But cruises aren't limited to parties, Lober said. Customers have chartered
boats for banquets, retreats, new product introductions, incentive awards
dinners and for scattering loved ones' ashes.
About 60 percent of Star Fleet's business is repeat and referral. The recent
corporate party featuring the Mae West look-alike was the fifth the company
has chosen to have with Star Fleet.
Part of Lober's initial marketing problem - which continues today - is that
Houstonians just don't realize how close to the water they are.
"It's not like Fort Lauderdale, where water is part of the landscape," he
said. "In Houston, there's no high-visibility location to see the water, just
one spot on Loop 610 that overlooks the Port of Houston. Even in Clear Lake,
there are only one or two places when you drive around the lake that you can
actually see the water. We don't have a San Francisco Bay or New York Harbor.
So people have to be reminded."
He also has to deal with the misconception that only the very rich can afford
cruises, Lober said.
"Some people think they can't afford a luxury yacht, but when they compare
our complete package with upscale restaurants, hotel banquet facilities,
country clubs and wedding manors, we are quite competitive," he said. "And
our food is gourmet quality. Just like a five-star hotel, we never cut
corners."
Event cruises start at $40 per guest including food, bar, entertainment, tax
and gratuities.
Lober depends heavily on customer surveys to develop the service he and his
crew provide. And customers informally give Star Fleet staff new ideas with
some of the extras they bring aboard, such as the squirt guns, Mardi Gras
beads, Hula Hoops and limbo sticks.
"We learn a lot from our customers," he said. "We see what they do, take the
best and give it back to them."
Because customer surveys indicate that about 20 percent of Star Fleet's
business comes from being seen on the water, Lober and his captains make
their crafts as visible as possible whenever they take them out. The real
opportunity for hot-dogging comes when a customer charters two or three
boats, and they raft up to become the Star Fleet flotilla, with customers
moving from one boat to another. A three-boat charter can handle up to 375
guests.
But one boat can still do a lot of advertising.
At the recent corporate party, Mae West joined the other revelers who were
slinging Mardi Gras beads at al fresco diners as Capt. Tony DeFore edged Star
Gazer close to the Kemah waterfront. They may not have known it, but they
were doing a little of Lober's public relations work for him.
As the boat pulled back into the Star Fleet Marina, Lober pointed out a barge
under construction. When it is finished - by the end of the year, he hopes -
the bottom floor will be a galley for food preparation, the second the Star
Fleet office and the third floor an 1,800-square-foot apartment.
It will kind of resemble that three-tiered wooden box he brought home from
school years ago, Lober says.
And he's going to live at the top.
Photos: 1-2. Left: Star Gazer, first of the Star Fleet Entertainment Yachts,
launched in 1993, sets sail for Southshore Harbor earlier this month. From
left to right are bartender Bridget Byous, server Leona Clark, Cruise
Director Edith Mitchell and President Tom Lober. Below: Cruise Director Edith
Mitchell unties the Star Gazer's bow line (color); 3. Star Fleet
Entertainment yachts President Tom Lober watches server Leona Clark polish
silverware for a buffet dinner aboard the Star Gazer. Last year, the company
booked more than 400 cruises, generating $2.3 million (color, p. 4)
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
More power to reform agenda
Soma Banerjee
05/13/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)
THE electricity industry is often identified as the black sheep in the
infrastructure sector which has continued to lag behind despite an overdose
of government support.
Despite being one of the earlier industries to be opened up, private
investments in this sector have failed to take off.
Worse, the only sizeable project which was something to write home about
Enrons Dabhol Power plant in Maharashtra is currently a under cloud with its
promoters involved in a legal battle with the state entity and its sole
consumer for non-payment of bills. Policy makers and investors in the energy
sector are still groping to find ways and means to improve the performance of
this key industry.
Although private investments were expected to come in a big way in creating
new capacities, policy uncertainties and above all the poor financial health
of the consumer, in most cases the SEBs, have posed major problems for power
plant developers.
After about ten years of liberalisation, the private sector has to its credit
only about 5000 MW and according to projections by experts investments in
greenfield projects are unlikely before four to five years.
The factors that have been taken into consideration in the current projection
are almost inbuilt into the system. For one, there is a general agreement
that stressing on generation alone without doing much on the distribution
front has eroded the financial health of most SEBs.
``Private power developers cannot be expected to invest in projects till they
are assured that they will be paid for the energy produced, experts say.
But like the recent Montek Singh Ahluwalia report maintains, such reforms
cannot be done overnight and will require minimum five to seven years before
they break even.
The sector has already seen major exits like Cogentrix and Powergen and if
the current trends are anything to go by it would not be long before Enron
too says Sayonara India, claim sources in the power industry.
IPPAI, an association for private power investments, feels that the flip-flop
by the government as far as power policies are concerned have made it
difficult for investors to take decisions.
``Take this as an example at one time there were more than 200 MoUs signed up
for private power projects, the government provided counter guarantees for
eight projects, of which only three have taken off. Of this the Enron project
is already facing problems of nonpayment, says a senior source.
According to estimates drawn up by financial institutions like Power Finance
Corporation an organisation responsible for monitoring the financial health
of the SEBs and helping them with their reform programmes almost all the SEBs
have registered a negative turnover. Which is why the financing or
escrowability of SEBs across the country has been reduced to zero.
According to Union power minister Suresh Prabhu, the states are now
responsive to changes and reforms and the recent drive initiated by the
Centre to work with the state governments was expected to yield results.
But this sector has seen far too many committees which have failed to yield
much hope and it is only sheer determination of SEBs and political will that
can help this backbencher.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
India Power Min: New Power Deal With Enron Unit Possible
By Himendra Kumar
Of DOW JONES NEWSWIRES
05/12/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW DELHI -(Dow Jones)- India is hopeful the Maharashtra State Electricity
Board's power purchase agreement with the U.S. energy company Enron Corp.'s
(ENE) Indian unit Dabhol Power Co. can be renegotiated and the DPC's dispute
over payments be settled, the country's federal Power Minister Suresh Prabhu
said.
In a weekend interview with Dow Jones Newswires, Prabhu said the very fact
that the DPC had come to the negotiating table for discussions on its power
price was an indication that Enron was keen to save its India project.
A special panel, set up by the Maharashtra state government, met with
representatives of the DPC, for the first time Friday and agreed to another
meeting May 23.
Friday's meeting lasted for more than two hours.
"I am of the view that a negotiated settlement is possible since the first
meeting of DPC with the Maharahtra state expert panel went off well. There
has been a positive response both from the DPC and the MSEB after the
meeting. The central government will also reciprocate by participating in a
meaningful dialogue. The next meeting will really decide on how it all goes,"
Prabhu said.
Earlier this week, in an e-mail to Dow Jones Newswires from Houston, Enron
Vice President John Ambler however, said, "While we have constantly
maintained that we are open to continuing a dialogue towards resolving
issues, this (Friday) meeting should in no manner be construed as an open
offer from DPC to renegotiate the terms of the contract."
The Maharashtra state government contends that the price paid for electricity
from the Dabhol power plant, India's biggest-ever foreign investment at $2.9
billion, is "unaffordable" and seeks to renegotiate tariffs.
A recent committee appointed by the government, the Godbole panel,
recommended that the power purchase agreement be renegotiated.
Dabhol has come under fire because of the relatively high cost of its power.
Critics object to Dabhol charging 7.1 rupees ($1=INR46.8825) a kilowatt-hour
for its power, compared with INR1.5/kwh charged by other suppliers.
The 2,184-megawatt DPC project in Maharashtra has been mired in financial
disputes after the Maharashtra State Electricity Board, its main customer,
failed to pay the December 2000 and January bills. The Godbole panel is
working toward lowering the DPC's power tariff and allowing the sale of
excess power to the federal government or its utilities. A restructuring of
the DPC's stakeholding may also be on the agenda.
The Maharashtra government has asked the committee to try to negotiate a
revised agreement within a month. The DPC currently operates a 740-megawatt
naphtha plant contributing about 0.7% to India's installed capacity. Enron
has maintained that work will be completed by the year-end in the second
phase of the Dabhol project that will add 1,444 MW to its capacity. The plant
will switch from naphtha to liquefied natural gas as a fuel source in 2002.
Texas-based Enron has a 65% stake in the DPC and is the project's largest
shareholder. Other shareholders include the MSEB with 15%, and General
Electric Co. (GE) and Bechtel Enterprises (X.BTL) with 10% each.
-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9427;
[email protected]
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
India: Talks begin on Dabhol issue
05/12/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire
MUMBAI, May 11. OFFICIALS of Enron India today met the expert committee
headed by Dr Madhav Godbole to discuss the fate of Enron's Dabhol Power
Company.
Mr A.V. Gokak, Union Government representative, who was appointed only last
night, could not attend the meeting due to the short notice.
Lenders to the project who were to attend the meeting stayed away.
Instead, Mr A.G. Karkhanis, former Executive Director, Industrial Development
Bank of India, attended as observer on behalf of foreign and Indian lenders,
Mr Vinay Mohan Lal, Energy Secretary, told reporters here after the meeting.
When asked about Enron's reluctance to renegotiate, Mr Lal said: "They are
coming again on May 23. What does that mean?"
Though none of those present at the meeting was willing to give more details,
senior State Government officials had earlier told Business Line that the
State would be willing to discuss phase II only after a decision on the
rebate slapped on DPC.
"Basically our strategy will be to bring the Rs 401- crore rebate payable by
DPC to the centre-stage," the official said. "The company has not mentioned a
single word about the rebate in any of their letters to either the MSEB or
the State. And we, on the other hand, have discussed anything but the rebate
in our letters to DPC," he said.
Mr Wade Cline, Managing Director, Enron India, did not comment on whether the
company would issue the preliminary termination notice.
The Maharashtra State Electricity Board (MSEB) Chairman, Mr Vinay Bansal, and
Mr Lal had last evening briefed the Democratic Front constituents about their
stand vis-a-vis Enron.
They are understood to have told the political brass of the State that MSEB
does not need the second phase of the Dabhol power project.
They categorically said MSEB would not buy power from DPC-phase II, it is
learnt.
MSEB also reiterated its stand that DPC should adjust the dues owed by it
against the non-performance penalty.
Senior MSEB officials said the board had replied to the arbitration notice
issued by DPC and made its position clear. The board is of the opinion that
DPC should adjust Rs 213 crore - the December and January bills - against the
Rs 401 crore penalty for performance default.
The State Government also has backed the MSEB in its replies to the three
arbitration notices served on it. It has said that since MSEB does not accept
the charges - non-compliance with the power purchase agreement (PPA) -
leveled against it, the State is not bound to pay.
The Centre too is understood to have backed MSEB in its preliminary reply to
the conciliation notice from DPC.
Today's meeting was attended by Mr Cline, Mr Neil McGregor, President, DPC,
Mr Mukesh Tyagi, Vice-President, DPC, and Mr Sanjeev Khandekar, VP, DPC, and
Mr Mohan Gurunath, Chief Financial Officer, DPC.
Among the renegotiation panel members, Mr Deepak Parekh, Mr E A S Sarma and
Mr Kirit Parikh were also unable to attend. The next meeting is scheduled on
May 23, Mr Lal said.
Gokak nominated to panel: The Government has nominated former fertiliser and
telecom secretary, Mr A.V. Gokak, to the arbitration committee involving
Dabhol Power Company (DPC).
The Power Ministry had earlier mooted the additional solicitor general, Mr
Harish Salve's candidature for the job.
The conciliation process, however, has been hanging fire as the third
conciliator is yet to be appointed. Dabhol Power Company had written to the
Centre last month seeking six names for selection of a mutually acceptable
conciliator to kick- start the conciliation process.
DPC's letter to the Finance Ministry was seen in the context of the
substantial delay between the initiation of the conciliation process three
weeks ago and the finalisation of the conciliators. Soon after the
conciliation process was initiated, DPC decided to invoke political force
majeure and moved in for arbitration - a prelude to termination of the
project.
Our Bureau
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
India to allow 3rd party sale if DPC, MSEB jointly approach
05/12/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.
Mumbai, May 12 (PTI) The Federal Government will allow sale of power to a
"willing buyer" if the Enron-promoted Dabhol Power Company (DPC) and
Maharashtra State Electricity Board (MSEB) will together approach the power
ministry with a concrete proposal for their 2,184 mw project in Dabhol.
"I will give whatever status they want, including a mega project one, if DPC
and MSEB jointly approach the Centre (Federal Government) for the same",
Indian Power Minister Suresh Prabhu told reporters here Saturday.
He said the Indian Government would extend its cooperation to the Maharashtra
government (western state) "in every way" to resolve the imbroglio between
MSEB and DPC.
When pointed out that both the state government and DPC were of the opinion
that federal power utility National Thermal Power Corporation (NTPC) should
buy the power, Prabhu said NTPC cannot do so as it was power selling entity
and not buying one.
"There is no question of NTPC buying power from the project since long term
power purchase agreements (PPAs) have been signed by NTPC with the buying
states", he reiterated.
Prabhu said the Indian Government would also try and find out potential
buyers of DPC power "if other states were willing to buy the same".
Earlier in his meeting with state chief minister Vilasrao Deshmukh, the
latter had suggested that NTPC sell the excess power over and above the
300-400 MW needed for the state from the 740 MW phase-I and soon to be
commissioned phase-II of 1,444 MW, to other needy states.
(THROUGH ASIA PULSE) 12-05 2001
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
LOCAL STORIES
DEFAZIO CALLS FOR STATE TO BUY PGE TO PROTECT RATES
DAVE HOGAN AND JEFF MAPES of the Oregonian Staff
05/12/2001
Portland Oregonian
SUNRISE
C01
(Copyright (c) The Oregonian 2001)
Summary: The suggestion generates little enthusiasm and critics suspect it's
motivated by the lawmaker's possible race for governor
"I believe this is an extraordinary opportunity and a way that we can
insulate almost a quarter of our population and a core of Oregon's business
community from the craziness that is going on in the energy wholesale
markets." -- U.S. REP. PETER DeFAZIO D-ORE.
The state of Oregon should consider buying investor-owned Portland General
Electric to help protect Oregonians from gyrations in the electricity market,
U.S. Rep. Peter DeFazio declared Friday.
Gov. John Kitzhaber reacted politely and said he'll explore the idea, but
others said it's a long shot because of political, financial and timing
factors.
Critics said the proposal appeared aimed more at attracting attention to
DeFazio's potential candidacy for governor than anything else.
Several companies already are considering buying the utility, but DeFazio
said state ownership could help keep PGE customers' electricity rates low and
generate profits that could help the rest of Oregon.
"I believe this is an extraordinary opportunity and a way that we can
insulate almost a quarter of our population and a core of Oregon's business
community from the craziness that is going on in the energy wholesale
markets," said DeFazio, D-Ore.
PGE serves about 725,000 retail customers, mostly in the Portland area, and
is owned by Houston-based Enron Corp. PGE's sale to Nevada's Sierra Pacific
Resources for $3.1 billion officially fell apart last month. Other possible
buyers include Northwest Natural and ScottishPower, which owns PacifiCorp.
While Enron and PGE officials declined to comment Friday, legislative leaders
showed no particular enthusiasm for DeFazio's idea.
"I appreciate his efforts, but I don't think it's the right idea at this
time," said House Speaker Mark Simmons, R-Elgin. He said the state already
has a package of bills aimed at spurring more energy production and
conservation.
Senate President Gene Derfler, R-Salem, said he'd be willing to sit down and
talk with DeFazio. "I would not just shut the door," he said, but he doesn't
plan to devote much work to the proposal. Derfler questioned whether state
government could run a utility as efficiently as a business.
DeFazio said a PGE purchase would offer several benefits. State ownership
would put control of PGE in local hands instead of those of a faraway
corporation such as ScottishPower. For PGE customers, state ownership would
provide some protection and stability in electricity rates. It also would be
a good investment that would pay for itself and perhaps pump revenue back
into the state's coffers.
The purchase could be financed with tax-exempt bonds sold by the state.
DeFazio said state Treasurer Randall Edwards had told him the idea was "in
the realm of possibility."
DeFazio's idea is an intriguing one and could provide some benefits, said Bob
Jenks, executive director of the Citizens' Utility Board, which represents
customers of investor-owned utilities such as PGE.
Jenks said the primary benefit would be that, if the state bought PGE, the
utility would be able to buy lower-priced electricity from the Bonneville
Power Administration, which is required to sell power at lower rates to
publicly owned utilities. However, a publicly owned PGE wouldn't be able to
buy the lower-priced BPA power for about five years because of electricity
sales contracts that already are in place.
And even if PGE were able to buy lower-priced BPA power, that wouldn't
necessarily translate to lower electricity bills for PGE customers, Jenks
said. In addition, he said it could increase rates for other publicly owned
utilities because the BPA has a shortage of cheap hydropower.
The state Public Utility Commission would have to approve any sale of PGE,
but outgoing PUC Chairman Ron Eachus criticized DeFazio's proposal, saying it
had the potential to increase rates both for PGE customers and for publicly
owned utilities. He also said it seemed designed to get political attention
for DeFazio's potential candidacy.
"I think we're in the political season where people are proposing grandiose
schemes that aren't very well thought out, and this seems to be one of
those," Eachus said.
DeFazio conceded that a high-profile proposal focused on a Portland-area
issue such as the ownership of PGE would be a good way for a candidate to
build support for a run for governor, but he said that had nothing to do with
his plan.
You can reach Dave Hogan at 503-221-8531 or by e-mail at
[email protected].
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Congressman suggests state buy PGE
By CHARLES E. BEGGS
Associated Press Writer
05/11/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
SALEM, Ore. (AP) - Congressman Peter DeFazio on Friday proposed that the
state buy Portland General Electric as a way to hold down power costs.
The Democrat outlined his plan after presenting it to Gov. John Kitzhaber,
who said he would ask his energy advisers to analyze it.
PGE is Oregon's biggest electric utility, serving more than 700,000
customers. DeFazio said a state purchase of the company could insulate many
Oregonians from "the craziness in power markets."
DeFazio said the state could buy the company by issuing revenue bonds and
have the utility operate as a public power entity.
He said the purchase would give the state a diverse mix of transmission
rights along with hydropower, gas, coal and renewable energy sources.
"While I have not exhaustively researched the proposal, it does appear to be
feasible," said DeFazio, an opponent of electric deregulation.
Enron Corp., the Texas-based owner of PGE, is trying to sell the utility.
Sierra Pacific last month abandoned its plan to buy PGE for $3.1 billion,
citing increasing difficulties in the current market and the political
environment in the West.
Kitzhaber said he's not opposed to the idea of the state buying a private
utility, as long as it would benefit consumers.
DeFazio said PGE has been a profitable company, and putting it in public
ownership could give it preference over private utilities for the Bonneville
Power Administration's hydropower.
The congressman's suggestion wasn't welcomed by the Legislature.
"Thanks, but no thanks," said House Speaker Mark Simmons.
"Philosophically, I think it's the wrong approach," he said. "We have a
bipartisan package of bills dealing with the issue."
Among those are his measure to delay partial electric deregulation for large
businesses and a bill to speed up the process for siting temporary generating
plants.
Senate President Gene Derfler didn't reject the idea, but said the
Legislature doesn't have enough time in the current session to take on a job
like a utility purchase.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
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arnold-j/all_documents/606.
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subject: Enron Mentions - 05/14/01
content: Saudis Set to Select Firms for Gas Projects
The Wall Street Journal, 05/14/01
Cheney task force seeks input from interest groups
Associated Press Newswires, 05/14/01
COMPANIES & FINANCE UK: Independents drill deep to strike rich seams: A new
generation of smaller oil companies is emerging; a group that has discovered
how to be competitive, writes David Buchan: Financial Times; May 14, 2001
Bush energy team covers all the bases
Chicago Tribune, 05/14/01
QATAR: UAE's Dolphin may seek new partners if Enron exits.
Reuters English News Service, 05/14/01
UAE: UPDATE 1-Saudi expected to name gas race winners on Tuesday.
Reuters English News Service, 05/14/01
Saudi Oil Council To Meet Tue On Gas Projects -Sources
Dow Jones Energy Service, 05/14/01
RFID chip will help speed up business
The New Straits Times, 05/14/01
India: Godbole panel report may suggest MSEB bifurcation
Business Line, 05/14/01
Tertiary will be primary
Business Standard, 05/14/01
Acegas shares, potential for growth (Acegas, le potenzialita di crescita del
titolo)
La Repubblica, 05/14/01
Roundabout to the Oval Office
The Washington Post, 05/14/01
Largest LNG 13 Conference Opens Today
Korea Times, 05/14/01
International
Saudis Set to Select Firms for Gas Projects
By Bhushan Bahree
Staff Reporter of The Wall Street Journal
05/14/2001
The Wall Street Journal
A16
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -- After more than two years of talks, Saudi Arabia is about to
announce its choice of international oil companies for three huge natural-gas
projects that will mark a reopening of the kingdom's energy sector to Western
investment, a quarter century after it was nationalized.
But the announcement, and the signing of memorandums of understanding early
next month, will mark only the beginning of serious negotiations on terms for
the three ventures, which together will need investment of some $25 billion.
It will be months before final agreements are signed.
"We expect to have an agreement -- a final agreement -- signed somewhere at
the end of the year, or, hopefully, the first quarter of next year," said
Saudi Oil Minister Ali Naimi in an interview last week.
Saudi Arabia's 11-member Supreme Petroleum Council is expected to meet today
to endorse the companies recommended by a ministerial committee led by
Foreign Minister Prince Saud al-Faisal. In the following week, Saudi Arabia
is expected to communicate its decision to the oil companies from both sides
of the Atlantic that have been vying for a role in the three projects. By the
end of the month, the chosen consortium members and Saudi officials are
expected to agree on which three companies will lead the projects. This will
be a prestigious role in a country that is the world's largest oil exporter,
has more than a quarter of the world's oil reserves and has the fifth-largest
reserves of natural gas.
As with any negotiations for such huge projects, industry rumors abound. All
three so-called oil supermajors -- Exxon Mobil Corp., Royal Dutch/Shell Group
and BP PLC -- have been mentioned as project leaders, particularly for the
plum Ghawar project, named after the world's largest onshore oil field, whose
environs are expected to yield large volumes of gas. The Ghawar project,
known as Core Venture 1, is projected to require about $15 billion in
investment. Core Venture 2 is on the Red Sea coast. The third project is in
Shaybah, a recently developed oil field in the kingdom's Empty Quarter, a
southeastern region bordering the United Arab Emirates.
The companies say they have no idea who will be named to the consortia, or
who the Saudis will choose from a short list of 11 companies -- Exxon Mobil,
Shell, BP, Chevron Corp., TotalFinaElf SA, ENI SpA, Enron Corp., Occidental
Petroleum Corp., Marathon Oil Canada Inc., Conoco Inc. and Phillips Petroleum
Corp. -- to lead each project. But they all have their hopes.
"We would be very disappointed if we are not the lead operator" for the
Shaybah project, said Archie Dunham, Conoco's chairman and chief executive.
Since Saudi Crown Prince Abdullah invited major oil companies to return to
the kingdom in October 1998, negotiations have focused on such broad issues
as the scope of the projects and their integrated nature -- from exploration
and production of gas to the making of petrochemicals and electricity -- as
well as the notion that the companies will need adequate returns on their
investment.
Soon, the project leaders will have to start the bargaining on such issues as
the roles to be played by national champions Aramco and petrochemicals
company Saudi Basic Industries Corp.
---
Alexei Barrionuevo in Houston contributed to this article.
--- Population Pressure
Saudi Arabia is opening up its energy sector, in a bid to bolster the
economy as population grows
-- Population
21.3 million (growing over 3.5% per year)
-- Unemployment rate*
27%-35% of males
-- Real GDP Growth Rate
7.6%
-- Oil Production
9.3 million barrels per day
-- Natural-Gas Reserves
204.5 trillion cubic feet
-- Natural-Gas Production/Consumption
1.68 trillion cubic feet
*Unofficial estimate for 1999
Note: Figures are estimates for 2000 except natural-gas production,
which is for 1999
Source: U.S. Energy Information Administration
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Cheney task force seeks input from interest groups
By SHARON THEIMER
Associated Press Writer
05/14/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
WASHINGTON (AP) - The White House team developing a national energy plan has
met with more than 130 interest groups, from environmentalists and unions
often at odds with Republicans to major Bush supporters given private
sessions with Vice President Dick Cheney.
The vice president, Cabinet secretaries and others on a special task force
have solicited ideas behind closed doors, hoping the privacy would encourage
a free exchange of ideas.
The White House has declined to provide names of participants - even to
Congress.
But interviews with participants detail a massive outreach where diverse
interests have met with task force executive director Andrew Lundquist.
Cheney's time has been reserved for meetings with more select participants
such as power wholesaler Enron Corp. and the Edison Electric Institute, both
GOP donors.
Houston-based Enron is the world's top buyer and seller of natural gas and
electricity.
"The way the task force is set up, they don't have the staff or time to have
a huge host of companies come through the door. They have told us to work
through our associations to the extent we can," said Don Duncan, vice
president of government relations for Phillips Petroleum Co.
Participants said the meetings, typically 20 minutes to 45 minutes, included
about a dozen to 100 interest group members and a few task force members and
staff.
No details were disclosed. Instead, administration representatives summarized
the nation's energy problems or listened as groups briefly offered background
and proposals. Many sent detailed materials to the task force outlining their
priorities.
At a half-hour meeting in late March with White House strategist Karl Rove
and Bush economic adviser Larry Lindsey, nuclear energy executives tried to
make sure the two knew about the production records the industry has set over
the past few years. At one point, Rove asked if anyone was looking to build a
nuclear power plant. An executive with Exelon replied that his company was
thinking about it, meeting participants said.
Energy Secretary Spencer Abraham has attended several meetings, including one
with Teamsters President James Hoffa and an hourlong session in California
with Democratic Gov. Gray Davis, who contends the administration has done
little to help the power-strapped state.
Like other governors, Davis was asked to provide one page on the state's
power crisis, including a description of the problem, an anecdote about it
and possible solutions.
"They're asking for a one-page memo on possibly the biggest crisis ever
affecting the state, with a massive ripple effect for the nation," Davis
spokesman Steve Maviglio said. "I think it demands more attention than a
one-page memo."
Cheney spokeswoman Juleanna Glover Weiss said the task force has been
studying the California problem almost daily.
At a meeting between Abraham and about 100 coal industry representatives in
late April, task force staffers handed out a briefing packet that outlined
national energy needs, and then they listened to industry proposals.
"I thought the purpose was one, to reassure people in the coal industry that
coal was going to play a large role in the energy mix, and essentially when
the plan is unveiled that they're going to be looking to people to help
martial this through Congress," said Bill Banig, a lobbyist for the United
Mineworkers Union.
White House officials said the meetings are not designed to encourage
lobbying and that task force members were carefully instructed on what was
permissible under federal law.
Cheney's meetings included Enron, Edison Electric Institute, California
Republicans, and the senators from Nevada, home to the proposed Yucca
Mountain federal nuclear waste site. The vice president plans to meet with
the renewable-energy industry this week.
Enron ranked among Bush's top 10 presidential campaign contributors, giving
more than $110,000, and helped sponsor a $7 million party fund-raiser last
month.
The Edison Electric Institute gave Republican candidates more than two-thirds
of its $193,000 in contributions last year. Edison International, whose
holdings include the Southern California Edison electric utility, is also a
major donor, giving $535,000 to Republicans last year and $330,000 to
Democrats.
Enron spokesman Mark Palmer said Cheney met with Enron executives because the
power wholesaler is a respected member of the industry, not because it was a
contributor. Enron wants the administration's energy plan to ease electricity
transmission bottlenecks, give companies incentives to invest in new
transmission and make the wholesale power market as open as possible, he
said.
Tom Kuhn, the institute's president, said it is "totally ludicrous" to think
political donations played a role.
Cheney's meeting with Edison board members, held at the institute's
invitation, lasted 15 minutes to 20 minutes. Cheney spoke about the task
force process, Kuhn said. He said Cheney's remarks were consistent with the
vice president's public statements.
Edison wants to see new generation and transmission systems built, including
coal, natural gas and nuclear and hydroelectric power, Kuhn said.
Democrats in Congress sought a list of participants in the meetings, but
Cheney's office responded by only listing broad categories and no names. That
has left fodder for political attack.
"You can't just take advice from one interest group or set of interest groups
when you do these things," said Dave Albersworth of the Wilderness Society,
whose group has met with Lundquist but was denied its request to talk with
Cheney.
Weiss countered that the energy task force has collected information from
more than 130 groups since January in an "almost Herculean effort" to draw
input from all sides.
"People deserve the right to petition their government and not expect a full
laundry list of who's called to be announced," she said.
Enron spokesman Palmer said he is not seeking such privacy. "I'm happy to
tell people what we're advocating for. I'd rather be talking about policy
than about politics," he said.
---
On the Net:
White House Energy Task Force:
http://www.whitehouse.gov/news/usbudget/blueprint/bud10.html
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
COMPANIES & FINANCE UK: Independents drill deep to strike rich seams: A new
generation of smaller oil companies is emerging; a group that has discovered
how to be competitive, writes David Buchan: Financial Times; May 14, 2001
By DAVID BUCHAN
The UK's listed small oil companies may have dwindled in number. But they can
rightly say, echoing Mark Twain's words, that reports of their collective
demise are exaggerated.
Indeed, many in the UK-based exploration and production companies, dubbed
"independents" in the sense of being untied to any refining and marketing,
believe they have more of a role than when their kind first started operating
in the North Sea 30 years ago.
After the takeovers in recent years of Lasmo, Monument and British Borneo,
there may only be about a dozen significant UK-based "independents" left. Yet
they amount to virtually the entire European E&P sector: the only significant
exception being Lundin Oil of Sweden.
Many of the UK independents began life as local partners of US companies in
the 1970s when the Labour government of the period gave preference to
consortia with a local flavour.
But this rationale disappeared when the Thatcher government took a more
free-for-all approach to letting anyone develop the North Sea - though at the
same time it did create the biggest UK independent by floating off British
Gas' oil interests as Enterprise Oil. Enterprise is the only UK independent
that is more than a niche or regional player. As such its E&P assets would be
a significant addition to an oil major, hence the persistently rumoured
interest in taking it over.
As the North Sea became more competitive and difficult, some of the UK-based
independents began to look elsewhere. "Unlike US independents which have
always tended to be less interested in drilling outside North America, those
in the UK have always tended to be more sympathetic to exotic parts of the
world", says Mark Redway of Teather and Greenwood.
Unfortunately, the obvious exotic new province that happened to open up in
the early 1990s was the former Soviet Union. One company, Ramco Energy,
dipped in and out very successfully, recently selling its 2 per cent stake in
the Azerbaijan International Oil Consortium for Dollars 150m (Pounds 104.8m).
Other UK independents - Aminex, Soco and Dana Petroleum - ventured into
Russia and got stuck. While Aminex finds it hard to downplay Russia (because
it has little elsewhere), Soco these days stresses its Mongolia and Vietnam
operations. Another UK independent, JKX Oil & Gas, went into Ukraine, a
country notorious for non-payment of energy bills. With diplomatic help from
Tony Blair, the prime minister, JKX has just survived a legal attempt to rob
it of its Ukraine assets.
Two other independents have sunk more fruitful roots in Asia. "Cairn Energy
now has as big a stake in Bangladesh's gas production as Shell, and it would
be left, if Enron (the US energy company) were to quit India, as the biggest
foreign player in India," says Iain Reid of UBS Warburg. Premier Oil is now a
substantial Asian gas company, with production in Burma, Indonesia and
Pakistan and long term contracts in Thailand and Singapore.
But there are risks in these Asian ties. The obvious political one concerns
Burma. Last year the UK government asked Premier to quit Burma because its
presence was helping the military regime. Premier refused, and said it would
carry on.
The other risk, according to Mr Redway, is economic and it applies also to
Cairn. Because there is no real world market for gas, Cairn and Premier are
"very dependent on the strength of the local economies". But then, Mr Redway
is an analyst who believes that independents' competitive edge lies in
exploration rather than production. He therefore rates Fusion Oil & Gas
highly as "the purest exploration investment opportunity in the E&P sector".
Dana similarly vaunts its exploration expertise, but to a different end. Its
goal, according to Tom Cross, chief executive, is to find oil and then swap
exploration for production assets. "This avoids the expensive development
stage of building platforms and pipelines and so on". Then at the other end
of the spectrum are production-focused companies, such as Paladin, Tullow Oil
or Venture Production. Roy Franklin, Paladin's chief executive, makes no
bones about his company's scavenger strategy, spotting rich pickings
overlooked by the majors.
The majors are not always ready to sell, particularly recently when the oil
price rise has widened the gap in price expectations between buyers and
sellers.
But Paladin was last year able to buy PetroCanada's assets in Norway, and is
this year interested in bidding for some of what the Norwegian state is
selling off.
As its name suggests, Venture Production, a private Aberdeen-based company
with North Sea and Trinidad operations, is focused on extraction, not
exploration. And so are other private companies such as Intrepid, Consort
Energy and Highland Energy, formed in the past three or four years. This new
generation of company tends to be more cautious than the older one.
"Exploration has probably been the best way to destroy shareholder value,"
says one executive.
The other risk the new oilmen want to avoid is the vagaries of the stock
market. "By focusing on production, the new companies are more predictable in
terms of cash flow and earnings," says Mike Wagstaff, Venture's finance
director.
Copyright: The Financial Times Limited
News
Bush energy team covers all the bases
Sharon Theimer, Associated Press
05/14/2001
Chicago Tribune
North Sports Final ; N
13
(Copyright 2001 by the Chicago Tribune)
The White House team developing a national energy plan has met with more than
130 interest groups, from environmentalists and unions often at odds with
Republicans to major Bush supporters.
Vice President Dick Cheney, Cabinet secretaries and others have solicited
ideas behind closed doors, hoping the privacy would encourage a free exchange
of ideas.
The White House has declined to provide names of participants even to
Congress.
But interviews with participants detail an outreach program where diverse
interests have met with task force executive director Andrew Lundquist.
Cheney's time has been reserved for meetings with more select participants
such as power wholesaler Enron Corp. and the Edison Electric Institute, both
GOP donors.
"The way the task force is set up, they don't have the staff or time to have
a huge host of companies come through the door. They have told us to work
through our associations to the extent we can," said Don Duncan, vice
president of government relations for Phillips Petroleum Co.
Participants said the meetings, typically 20 minutes to 45 minutes, included
a dozen to 100 interest group members and a few task force members and staff.
No details were disclosed. Instead, administration representatives summarized
the nation's energy problems or listened as groups briefly offered background
and proposals. Many sent detailed materials to the task force outlining
priorities.
Energy Secretary Spencer Abraham has attended several meetings, including one
with Teamsters President James Hoffa and an hourlong session in California
with Democratic Gov. Gray Davis, who contends the administration has done
little to help the power-strapped state.
Like other governors, Davis was asked to provide one page on the state's
power crisis, including a description of the problem, an anecdote about it
and possible solutions.
"They're asking for a one-page memo on possibly the biggest crisis ever
affecting the state, with a massive ripple effect for the nation," Davis
spokesman Steve Maviglio said. "I think it demands more attention than a
one-page memo."
Cheney spokeswoman Juleanna Glover Weiss said the task force has been
studying the California problem almost daily.
At a meeting between Abraham and 100 coal industry representatives in late
April, task force staffers handed out a briefing packet that outlined
national energy needs, and then they listened to industry proposals.
"I thought the purpose was one, to reassure people in the coal industry that
coal was going to play a large role in the energy mix, and essentially when
the plan is unveiled that they're going to be looking to people to help
marshal this through Congress," said Bill Banig, a lobbyist for the United
Mineworkers Union.
White House officials said the meetings are not designed to encourage
lobbying.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
QATAR: UAE's Dolphin may seek new partners if Enron exits.
By Kedar Sharma
05/14/2001
Reuters English News Service
(C) Reuters Limited 2001.
DOHA, May 14 (Reuters) - Dolphin Energy Ltd (DEL) may invite new foreign
investors to join its project to route Qatari gas to the United Arab Emirates
as U.S. Enron Corp looks set to bow out, industry sources said on Monday.
"New partners are a possibility," Khaldoun al-Mubarak, project manager for
DEL, majority owned by the UAE's Offsets Group (UOG), told Reuters.
"But at the moment we are in the midst of finalising the formal (development
and production sharing) agreement with Qatar which should be done by
September at the latest."
Qatar and DEL in March signed a "commercial term sheet agreement" which
outlined the conditions of the upstream agreement for the long-awaited $3.5
billion project.
UOG currently owns 51 percent of DEL, with the remainder held equally by
France's TotalFinaElf and Enron.
"Enron is going through major global restructuring," Mubarak said. "(But)
they haven't officially notified us about their intention to pull out."
Enron officials declined comment.
Mubarak said interest in DEL was running high.
"Everyone is asking for a stake," he said.
The gas deal would entitle DEL to develop a tract of Qatar's giant North
Field and produce up to two billion cubic feet per day (cfd) of gas.
UOG is to invest $2 billion in developing the North Field tract, drilling and
setting up production facilities.
The remaining $1.5 billion would be invested to lay a pipeline and set up
receiving terminals at Dubai's Jebel Ali and Taweelah in Abu Dhabi.
First gas is targeted to reach the UAE capital Abu Dhabi by late 2004 or
early 2005. About one billion to 1.5 billion cfd of Qatari gas would be
consumed by utilities in Abu Dhabi with the remainder supplied to Dubai.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
UAE: UPDATE 1-Saudi expected to name gas race winners on Tuesday.
By Peg Mackey
05/14/2001
Reuters English News Service
(C) Reuters Limited 2001.
DUBAI, May 14 (Reuters) - Saudi Arabia's Supreme Petroleum Council (SPC) is
expected to meet on Tuesday and announce the oil majors chosen for its
multi-billion dollar gas investment opening, industry sources familiar with
the negotiations said on Monday.
The sources said the SPC is expected to name ExxonMobil and Royal Dutch/Shell
as lead players in three so-called core projects involving the kingdom's
upstream gas sector - off-limits to foreign oil firms since nationalisation
in 1975.
Signing of memoranda of understanding (MOUs) would most probably take place
in early June, the sources said.
The anticipated announcement would mark the biggest advance in the kingdom's
gas initiative, valued at an initial $25 billion, since Riyadh unveiled its
energy investment opening over two years ago.
But the hard work has yet to start on the opening of Saudi Arabia's gas
sector, the world's fourth biggest. "The fiscal regime and regulatory details
have not been developed," said one source.
FINAL CUT
Riyadh is expected to trim back its original shortlist of 11 potential
foreign investors revealed last summer. Those companies had been grouped
under three core venture consortia - South Ghawar, Red Sea and Shaybah.
For ExxonMobil and Royal Dutch/Shell, securing the lead role in Saudi
Arabia's core ventures would entitle them to operate the package and get the
biggest slice of the projects, analysts said.
Other industry sources said ExxonMobil, the world's biggest energy company,
was tipped for the top slot in core venture 1 (South Ghawar) as well as in
core venture 2 (Red Sea).
Royal Dutch/Shell was in pole position for core venture 3 (Shaybah), the
sources added.
Both oil supermajors already have significant foreign investment in the
kingdom and feature as top customers of Saudi oil, the analysts said.
ENERGY DRIVERS
An urgent need to create jobs and grow the economy are driving Saudi Arabia's
landmark energy opening.
And analysts said big oil companies were prepared to help the kingdom achieve
those aims even if the return on their investment was relatively low.
"Major oil companies just cannot miss this opportunity," a source said. "The
gas projects will show profits."
But just how much revenue oil companies will generate by selling water and
electricity in the Saudi domestic market remains to be seen.
On paper, at least, the kingdom's domestic gas sector looks set for
impressive growth.
Domestic gas demand, now running at about 3.4 billion cubic feet per day, is
forecast to grow at more than seven percent a year over the coming decade.
Saudi Arabia has meanwhile made clear that its prized oil sector, the world's
biggest, remains off limits.
Even so, oil companies still hold out hope for eventual involvement in oil,
the kingdom's lifeblood.
"The companies are just as happy with gas, but oil remains the ultimate
objective," a regional analyst said.
"Saudi Aramco is still putting up strong defence barriers, but eventually
they could open up the oil sector once they feel comfortable working with the
majors."
The Saudi gas initiative seeks foreign oil companies' help in developing the
kingdom's known gas reserves as well as investment in downstream projects fed
by gas supplies, such as power and desalination.
The following companies have been shortlisted for the gas projects:
Core venture 1 (South Ghawar Area) - ExxonMobil, Royal Dutch/Shell, BP ,
TotalFinaElf , Chevron and ENI .
Core venture 2 (Red Sea Area) - TotalFinaElf, ExxonMobil, Marathon , Enron
/Oxy , Conoco , Royal Dutch/Shell.
Core venture 3 (Shaybah Area) - Royal Dutch/Shell, ExxonMobil, Marathon,
Conoco, TotalFinaElf, Phillips and Enron/Oxy.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Saudi Oil Council To Meet Tue On Gas Projects -Sources
05/14/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
DUBAI -(Dow Jones)- International oil companies vying for a stake in Saudi
Arabia's downstream gas projects, expect to be notified soon on whether they
have been selected to participate, industry sources in the kingdom said
Monday.
Saudi Arabia's Supreme Petroleum Council is set to meet Tuesday and shortly
after, announce its final selection for each of the three core ventures on
offer, the sources said.
The Saudi Arabian committee negotiating with international oil companies on
the Gas Initiative, submitted its proposals for consortium members and
leaders to the country's Ministerial Council in April. These were then passed
on to the SPC for final approval.
Saudi Arabia's Crown Prince Abdullah, who heads the SPC, is in Bahrain Monday
attending a Gulf Cooperation Council leaders' summit along with Saudi
Arabia's foreign minister, Saud Al Faisal, who heads the gas negotiating
committee.
Saudi Arabia invited international oil companies in October 1998 to
participate in proposals for downstream gas projects and upstream gas
enhancement.
After a series of meetings between the negotiating committee and IOC's in the
past year, the following companies were shortlisted for each project.
Royal Dutch/Shell Group (RD), BP PLC (BP), Exxon Mobil Corp. (XOM), Chevron
Corp. (CHV), Total Fina Elf S.A. (TOT) and ENI SpA (E) for Core Venture 1,
the $15 billion South Ghawar Area Development.
For Core Venture 2, the Red Sea Development, Enron Corp. (ENE) and Occidental
Petroleum Corp. (OXY) are bidding jointly and Exxon Mobil, Total Fina Elf,
Marathon Oil Canada Inc. (T.M), Shell and Conoco Inc. (COCA) were listed.
And for Core Venture 3, the Shaybah area, Total Fina Elf, Conoco, Phillips
Petroleum (P), Enron and Occidental, Exxon Mobil, Shell and Marathon Oil were
listed.
With all those shortlisted expected to play some role, the immediate and
essential question for each of the IOC's is whether they will be selected to
lead and operate a project, with Core Venture 1 the most sought after,
industry sources said.
Exxon Mobil and Shell have been tipped as frontrunners for this venture.
The operator's role will be more crucial than ever here as it will be
responsible for directing further negotiations on the projects at hand which
will lead to final deals probably by year end.
Also, operators are expected to decide and direct how the project's
individual and large components will be developed, details the Saudis haven't
finalized, sources said.
The three ventures have been estimated at a combined value of about $25
billion.
-By Dyala Sabbagh, Dow Jones Newswires; 9714-331-4260;
[email protected]
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Business
RFID chip will help speed up business
05/14/2001
The New Straits Times
Main/Lifestyle; 2*
26
(Copyright 2001)
THE combination of recently developed "stick-on" Radio Frequency
Identification (RFID) chip technology with a global positioning system (GSP)
will transform and quicken the pace of doing business in the oil and gas
industry.
And Malaysia must adapt to this shift to maintain her global positioning.
Global management and technology consultant Global Energy Strategy Practice
which is working in partnership with Accenture Sdn Bhd wants to promote this
idea locally.
Global Energy Strategy Practice partner Paul Spence said that applying this
latest combined technology, car owners can fill up a petrol tank without
resorting to human contact or to the use of a credit card.
Relevant personal data embedded in the RFID chip would be machine read and
the required quantity of petrol delivered, as if right out of a science
fiction movie.
This surreal development is made possible through the application of
ubiquitous-commerce (u-commerce) whereby computers and machines communicate
with each other to affect an impression of an omnipresent intelligence.
Such technology is economically available today. "There are technology
suppliers who are offering these capabilities."
The technology also has applications outside the oil and gas industry.
Communications between machines can now allow or deny access of individuals
to restricted zones.
In an interview in Petaling Jaya recently, Spence said: "A lot of my clients
now are asking, whether that same technology can be used to restrict access
into hazardous areas, plants or production sites.
"Can a warning alarm be fitted to the individual or to an assistant? There
are lots of safety, health and environment applications around that."
"Guru in the field" is another potential application where a combination of
RFID chips, video cameras, personal digital assistants (PDA) and personal
computers can deliver distant technical advice on- site.
"An industry client operating in the North Sea oil fields has a prototype
mounted on a workman's helmet which sends snap-shots to experts on the other
side of the world.
"The effect of this new combined technology on global financial and commodity
markets is to lock them in tighter correlation.
"The days of being able to arbitrage for profits between geographical markets
are shortening within the energy industry. Enron which is the biggest oil
trader in the US is now hedging on weather derivatives."
Accenture partner Lim Beng Choon said that to compete globally, the oil and
gas industry in Malaysia would have to implement this new technology to
remain connected to global markets.
Caption: Lim ... connected.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
India: Godbole panel report may suggest MSEB bifurcation
05/14/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire
MUMBAI, May 13. THE second part of the Dr Madhav Godbole committee report is
expected to be submitted to the State Government on May 15.
While the first part of the report recommended renegotiation of the power
purchase agreement with Enron's Dabhol Power Company, the second part is
expected to suggest bifurcation of the Maharashtra State Electricity Board,
sources said. The committee, which has been given the mandate to negotiate
with Enron officials to make DPC power more acceptable, had a marathon
meeting on May 11 to finalise the second half of the report.
"The committee has been considering the bifurcation of MSEB," a source said.
"The idea is to try and separate the distribution from generation and
transmission." While generation and transmission can be controlled by the
State, there may be a suggestion to privatise the distribution arm. Over 1.5
lakh MSEB employees had gone on a strike to oppose a Bill to unbundle the
board into three divisions - generation, transmission and distribution - due
to fear of privatisation.
MSEB, the State's leading power company, has been facing huge losses due to
delay in payments and theft of power. The second part of the report is
expected to address the problem in detail.
Part one of the report submitted on April 10 had said: "...none of the
solutions espoused for independent power producers, in general, and DPC, in
particular, is tenable without the reforms of MSEB, especially its
distribution business, which it shall address in part II of the report."
The report is expected to "suggest appropriate measures to ensure that the
interests of the State, MSEB and electricity consumers of the State of
Maharashtra are properly and adequately considered, evaluated and
safeguarded," according to the terms of reference laid down when forming the
committee.
The committee originally consisted of Dr Madhav Godbole, Mr Deepak Parekh, Dr
E.A.S. Sarma, Dr Rajendra Pachauri and the State Energy Secretary, Mr Vinay
Mohan Lal. The MSEB Chairman, Mr Vinay Bansal, has been inducted as part of
the panel after the submission of the first part and before the beginning of
negotiations with Enron.
Archana Chaudhary
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
The Smart Investor
Tertiary will be primary
Indira Vergis
05/14/2001
Business Standard
2
Copyright (c) Business Standard
These are volatile times for world business. There are increasing jitters
that a slowing US economy could dampen prospects for the global economies.
Many developing regions, especially in Asia, are bracing themselves for a
bout of slightly lower growth.
But two countries, India and China which together account for about half the
region's gross domestic product (GDP_ will still continue to see their GDP
grow at six per cent, forecasts the Asian Development Bank.
Many Indian economists agree with ADB's projections. In fact, they view the
prediction of a six per cent growth in India's GDP as benign. Nearly 54 per
cent of India's GDP is delivered by its services sector and a modest
performance by this sector, some economists say, will be enough to hold up
the GDP at six per cent. There are others who hope that better agricultural
performance could prompt the economy to hand in a better scorecard.
However, the Indian industry remains trapped in the doldrums, suffering from
a lack of consumer confidence and investments. Very few economists expect to
see signs of recovery sprouting any time soon.
An interest rate cut is considered vital by many to energise the sector. And,
they argue, there are certain economic indicators that encourage such a move.
Inflation is running at very low levels and the nation's foreign exchange
reserves are currently high enough to provide a strong defence to the Indian
currency. Surprisingly, our trade balance, which threatened to spiral out of
control by surging oil prices last year, has been contained. Since then, oil
prices have retreated and are expected to remain subdued. While a rate cut
may go some way in reviving sentiment and activity in the industrial sector,
stirring up consumer demand will still hinge on a normal monsoon.
Rain, rain, come again
For many economists, the prediction of India clinging to its current GDP
level is heavily contingent on a normal spell of monsoon this year.
"According to our assessment, we believe the Indian economy will grow by
around 6.5 per cent this fiscal year," says Chetan Ahya, vice president at J
M Morgan Stanley Securities.
In 2000-01, agricultural growth withered under a poor monsoon and a
subsequent drought in many parts of the country. For the second year in a
row, growth in the sector sank below one per cent. It stood at 0.9 per cent
compared with 0.7 per cent the previous year. While agriculture accounts for
only 24 per cent of GDP, it remains the most keenly-watched sector by
economists. "The performance of the agricultural sector is important because
of its linkages to the economy both on the supply side and on the consumption
side," says Mohan Nagarajan, chief economist at Credit Analysis and Research
Ltd (CARE). "It would lead to a better performance of agro-based industries,"
he adds.
More significantly, roughly 60 per cent of Indians still depend on
agriculture for their livelihood. "A good crop means that demand for
everything, from everyday use goods like toothpaste to larger items like
tractors will pick up," says Nagarajan. Economists are hoping that a good
monsoon will budge growth in the sector to around 1.5 to 2.5 per cent.
In service of the economy
Another key sector economists will be watching out for will be services.
India's services sector ranging from finance, insurance, hospitality to
transportation and communication slowed its pace in 2000-01. With growth
weakening by a whole per cent to 8.4 in 2000-01, sluggishness in this
important sector has been blamed for dragging down the overall GDP. Most
economists expect the sector to post either relatively flat growth or edge
slightly higher this year. But, it's performance will be vital to ensure that
overall GDP holds at six per cent. "Even if the agriculture and industry
numbers fall again but services sees even seven to eight per cent growth, it
will be enough to keep the GDP around six per cent," says Nagarajan.
Construction activity a services component that includes housing, roads and
other infrastructure projects demonstrated surprisingly good growth of 8.7
per cent and is expected to maintain the pace. Road construction is tipped to
show increasing levels of activity as work on the ambitious highway linking
Mumbai, Delhi, Chennai and Calcutta intensifies.
Chiming in will be the housing industry, benefiting in recent years from tax
reliefs and attractive financing schemes, and which have encouraged more
people to buy houses.
Another segment slated to witness good growth will be IT-enabled services,
says Morgan Stanley's Ahya. "We are emerging as the services workshop of the
world," he says. IT-enabled services like call centres and data processing,
though currently generating tiny revenues, are slated to turn into big money
spinners in the years ahead.
The telecommunications industry will also see improving levels of investment.
"The penetration of services is so low, that it has an intrinsic high growth
rate," says Ahya. For a taste of the market, consider this: out of the 100
Indians, only one uses the Internet and less than three own a telephone.
A good home show
And there could be a pleasant surprise in store for industry amid all the
gloom over its performance.
Adequate liquidity conditions are spurring expectations of a cut in interest
rates. Broad money(M3) a gauge of total money available in the economy
increased 16.2 per cent in 2000-01 against 14.6 per cent last year.
While the Reserve Bank of India had cut the bank rate in March, the belief is
that a further cut of 50 basis points is imminent. The bank rate the rate at
which the central bank lends to commercial banks currently stands at seven
per cent. Aiding the cause is the inflation data which shows the wholesale
price index at a tame 5.84 per cent. With economists betting that oil prices
will remain in the $24-28 a barrel range, inflation is not expected to
exhibit the oil price-inspired gyrations of last year. A cut could coax the
industry to step up activity, though admittedly, much would still depend on
rural demand.
Neighbours' envy
And while many Asian countries watch with increasing nervousness the impact
of an American downturn on their economies, India and China can afford to
remain relatively placid about global developments. That's because they are
less dependent on the US for their own economic health. That is expected to
shield them somewhat from being blown off-course like some other Asian
nations by the ill-wind of an American slump in demand.
With exports making up less than 10 per cent of India's GDP, its economy is
clearly not export-driven. In contrast, nearly 35 per cent of Indonesia's GDP
comes from exports, 57 per cent for Thailand, and 50 per cent for the
Philippines.
Yet, despite claiming only a small percentage of GDP, India's exports
remained a bright spot amid some gloomy economic data. Exports raced ahead 20
per cent to $44.1 billion in 2000-01. It was the second consecutive year of
good exports growth. On the flip side, imports rose, too, during the same
period to Rs $49.1 billion. But non-oil imports, however, declined 15 per
cent to $34.2 billion. That helped narrow the trade gap to $5.74 billion from
$12.79 billion the previous year.
Still, India can ill-afford to ignore completely the risks of an American
slump in demand. The US is India's largest trading partner and, in 2000-01, a
quarter of its exports headed to that nation. Besides, by taking in nearly 70
per cent of India's software exports, it is also India's most important
software exports destination.
Booming software exports accompanied by remittances by Indians living
overseas have been the primary factors exerting a calming influence on
India's balance of payments of position, especially in times of economic
turbulence. For example, last year, while a surging oil import bill
threatened to rattle the nation's trade gap, inflows from
invisibles(including income from software and Indians living abroad) came to
the rescue helping India limit its overall current account deficit.
It's a sobering realisation that has compelled the National Association of
Software and Service Companies(NASSCOM) to lower its exports forecast to
between $8.5 billion to $9 billion from its previous figure of $9.5 billion.
Earlier, it had also revised estimates for 2000-01 lower to $6.2 billion from
$6.3 billion. Still, observers say it isn't a cause for depression.
"They are still talking about growth. It is a decline in the growth rate and
not an actual downturn itself," points out John Band, chief executive
officer, ASK-Raymond James and Associates. And remittances look set to
maintain their pace as well. "Most remittances are still from Indians who
live in the Middle East, and I don't see any slowdown from this segment,"
says CARE's Nagarajan. Remittances totalled $9.8 billion in the nine months
to December 2000. Software exports brought in $4.6 billion during the same
period.
Foreign institutions support
Another recent 'feel-good' sign has been evident in the stock markets too.
Between January and April 2001, eigners poured in Rs 7,368 crore into India's
equity markets - a phenomenal 15 per cent more than what they invested in the
whole of calendar 2000.
Yet, experts aren't reading too much into it. In the past few months,
investors have been fleeing from a shower of profit warnings in the US and
seeking cover in alternative investments. As they rejuggle their portfolios,
some money will inevitably flow into India and other countries, experts say.
Because it isn't affected so much by what's happening externally, they see
India as some kind of a safe haven," says ASK's Band.
Yet some hesitation
Recently, gunning for more foreign direct investments (FDI), the government
opened more sectors for foreign and private participation, including
pharmaceuticals, hotels, banking and astonishingly, even defence. However,
tempting FDI has always been a vexing issue for India.
In 2000-01, FDI did improve slightly, moving 26 per cent higher than the
previous year to $2.4 billion. Yet, China a market India is frequently
compared with in terms of size and potential attracted 20 times more FDI in
the same period. Economists now shrug off FDI as a tool to kick-start
investment in the country. "It's a pittance and it probably will remain
stagnant," says an economist at a foreign research house.
The reasons are not hard to find. Foreigners seeking to invest in India have
many fences to cross. Frequent changes in sector policies, chaotic
infrastructure facilities and nightmarish bureaucratic redtape have often
left foreigners tired and wary of doing business in India.
The stress of investing in India is most clearly visible in the recurring
concerns that have stubbornly dogged US energy giant Enron's 2,148 MW power
project in Dabhol in Maharashtra. After being forced to renegotiate a power
supply deal in 1995 after concluding it in 1992, Enron has hit the headlines
once again.
This time, an almost bankrupt state electricity board (SEB) refuses to pay
its dues for power received and the state government refuses to honour its
commitment to pay in case the SEB defaults.It's led to intense speculation
that, after suffering repeated snags for nearly a decade, Enron might simply
pull out of the project altogether. A disturbing turn of events, since, till
recently, Enron Corp was the biggest foreign investor in India.
It will not be the first time that exasperation will have egged on a foreign
investor to pull out of a project. Earlier, US-based Cogentrix Energy had
also walked out of its $1.5 billion 1,000 MW Mangalore power project citing
endless bureaucratic hurdles.
And there has also been some disappointment over India's much-hyped 300
million middle class which was supposed to be growing rapidly. Many
international firms, inspired by this figure, had scrambled to set up
operations to conquer a huge chunk of this market. Now many are struggling to
break even and still learning to adapt to local tastes a key ingredient for
success. That's why despite all its attempts to open up various sectors,
India still remains a tough sell.
Outlook
With a little help from the rains, India could notch up a growth rate of six
per cent. Many economists have also pointed out that a reforms-studded budget
could also inject some enthusiasm in the patient that is the economy. Strong
measures include plans to reform labour laws and government employment. These
are expected to boost the economy's development, though in the long run.
The recent opening up of various sectors could also revive sentiment,
although whether this will translate into FDI flows is arguable. Still, every
bit helps. The fact remains that it will have to persist in trying to
accelerate the pace of growth if its ambitions of turning into an economic
powerhouse are to be realised. After all, for the second most populous nation
in the world with one of the biggest markets, its economic power is still
nowhere near the figure its size suggests.
Acegas shares, potential for growth (Acegas, le potenzialita di crescita del
titolo)
05/14/2001
La Repubblica
41
Copyright (C) 2001 Abstracted from La Repubblica in Italian; Source: World
Reporter (TM)
Italian brokers Rasfin SIM have indicated the potential for growth in the
shares of Acegas, the former municipal utility of the Italian city of
Trieste. Acegas closed the first quarter of this year with turnover of L137bn
(+45 per cent). Results attributed in part to the start of production of
Estenergy, a consortium of the utilities of Udine, Trieste, Gorizia and Enron
of the US, which supplies energy and services to parts of Friuli.
Also significant, according to Rasfin, were investments over the period,
which totalled L43bn.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
A Section
IN THE LOOP Al Kamen
Roundabout to the Oval Office
Al Kamen
05/14/2001
The Washington Post
FINAL
A19
Copyright 2001, The Washington Post Co. All Rights Reserved
Sometimes even Cabinet officers can lose their way in the White House. So
there was Health and Human Services Secretary Tommy G. Thompson, clearly lost
Friday at a fork in a corridor near White House spokesman Ari Fleischer's
office.
"How do you get to the Oval Office?" he asked a group of reporters and was
directed to the right door, according to a wire report.
Fleischer, though, told reporters that was the wrong answer.
"How do you get to the Oval Office? First you win the Iowa caucus, then you
lose the New Hampshire primary, then you make a comeback in South Carolina,"
he quipped as he recalled President Bush's early primary campaign last year.
Passport, Please
Meanwhile, folks at Thompson's HHS may be taking to calling him "Tightwad
Tommy." Seems a memo went out March 15 undermining Alaska and Hawaii's claims
to be part of the United States.
Employees "must clear . . . international travel" with the office of the
deputy chief of staff for operations, said the memo from the deputy chief, Ed
Sontag. To clarify, "HHS employees seeking to travel outside the continental
U.S." for meetings and conferences, must get permission and then file trip
reports within two weeks.
This sent officials calling around, asking whether trips to those states were
to go through the international travel approval system just as if they were
going to Russia or the Congo.
Apparently so. The edict would appear to include even the nearby Virgin
Islands and practically next-door Puerto Rico as well. Loop Fans can only
hope this outrage doesn't spread to other agencies. It would make for some
cold winters.
Chewing Out on the Bush Beat
Speaking of Fleischer, the usually affable spokesman is not reluctant to get
tough with reporters when he believes they've stepped out of line.
Sheriff Fleischer was on duty Thursday and upset with Houston Chronicle
reporter Bennett Roth. Bush that morning urged parents to talk more to their
kids about the dangers of drugs.
Roth, at Fleischer's daily briefing, asked: "Ari, the president talked about
parental involvement today. How much has he talked to his own daughters about
both drugs and drinking? And given the fact that his own daughter was cited
for underage drinking, isn't that a sign that there's only so much effect
that a parent can have on their children's behavior?"
Fleischer responded brusquely: "No, I think, frankly, there are some issues
where I think it's very important for you all in the press corps to recognize
that he is the president of the United States; he's also a father. And the
press corps has been very respectful in the past of treating family matters
with privacy, and I'm certain that you're going to do so again. I hope so."
Fleischer later called Roth to chastise him, telling him his question had
been "noted in the building."
Competing to Oversee the Corps
Former Mississippi representative Mike Parker, a Democrat-turned-Republican
who lost a gubernatorial bid a couple of years back, had been seen as the
pick to be assistant secretary of the Army for civil works, overseeing the
Army Corps of Engineers.
Parker, a former undertaker, had support from the barge industry, the various
corps constituencies and fellow Mississippian Trent Lott, the majority leader
of the Senate.
But the Pentagon's choice was Lawrence Izzo, recently retired president of
Enron Engineering and Construction Co. who has been in the mix for several
jobs. Izzo, a West Point grad, had 23 years at the Corps before going to
Enron, former home of Army secretary-designate Thomas White.
The majority leader was said to be most unhappy. The latest word is Parker's
getting the job.
Ex-Reporters Move On
Kenneth J. Klein, a former reporter who has worked for 17 years for Florida
Sen. Bob Graham (D), most recently as chief of staff, is joining the Outdoor
Advertising Association of America as executive vice president for government
relations.
Former Washington Post colleague Thomas W. Lippman, a 33-year national,
foreign and financial reporter and author who became vice president of
communications at the World Wildlife Fund in 1999, is moving next month to be
managing director at communications consulting firm Chlopak, Leonard,
Schechter & Associates.
Confirmation Countdown
Staff writer Michael Grunwald contributed to this report.
http://www.washingtonpost.com
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
Largest LNG 13 Conference Opens Today
05/14/2001
Korea Times
Copyright (C) 2001 Korea Times; Source: World Reporter (TM)
The largest-ever International Conference and Exhibition on liquefied natural
gas (LNG 13) opens today for a four-day run at the Convention and Exhibition
Center (COEX) in southern Seoul.
A total of 125 companies and organizations represented by 2,500 delegates and
exhibitors from 50-odd countries, including Japan, the United States, Britain
and Australia, are participating in the international event, co- organized by
the Korea Gas Union and the Korea Gas Corp. (KOGAS).
Commerce, Industry and Energy Minister Chang Che-shik will be delivering
congratulatory remarks on behalf of Prime Minister Lee Han-dong who is
currently on an official trip to the Middle East. There will be a visual
presentation from Lee during the opening ceremony.
``We have spent more than a year preparing for this international event which
is the largest in terms of the number of participants and exhibitors,'' said
Lee Seung-hwan, chairman of the Korean National Organizing Committee.
LNG 13 is 15 percent larger than the conference and exhibition held in
Australia back in 1998 which reflects the growth of the industry, Lee
explained, adding that the demand for LNG has been increasing rapidly here in
Korea.
A wide range of topics will be presented during the four days of conferences
and exhibitions, helping to showcase the importance of the LNG industry.
Among the numerous papers to be presented at the triennial event are ``Old
World, New World, Tomorrow's World: How LNG Has Changed Since LNG 12'' and
``The Next Generation of LNG Plants.''
``Hosting this meaningful event in Korea will help elevate Korea's image in
the international market, particularly with the sheer scale and size of LNG
13,'' said Kim Myung-kyu, president and CEO of KOGAS and chairman of the
Korea gas Union.
The conference will include paper sessions, workshops, poster sessions and
film presentations while exhibitors will demonstrate their exclusive
technologies for the exploration and production of LNG as well as plant
construction.
The official sponsors of LNG 13 are the International Gas Union, the Gas
Technology Institute and the International institute of Refrigeration while
the major sponsors are Shell Gas and Power, KOGAS, LG-Caltex, SK-Enron, the
Qatari Group, TotalFinaElf, British Petroleum and Exxon Mobile.
In addition to the conference and exhibition, there will be a technical visit
to the Inchon LNG Receiving Terminal in Inchon, about 50 kilometers west of
Seoul, on Friday.
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
| ||
arnold-j/all_documents/607.
|
subject: RE:
content: i think thats rite -think curve flattens somewhat.back end the overvalued
part for now. i think we more consolidate sideways choppy for a few sessions
but if the present rate of injections continue the end users/utilties will
have to stop buying cuz of real phys limitations to take the gas into
storage. funds short but only 6% of open int and have covered later part of
last week.
think vol comes in again too.i think it sale 4.50 scale up-talked to some
others to o thinking it cant go below 4.00 so i actually think more the
suprise in the short term for a break of 4.00!! so who knows/cud work the
other way.
agree-disappointed at lack of producer selling-we had one deal come thur
but its been worked for months so not price relevant.
when are you in town next?
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 6:34 PM
To: LaFontaine, Steve
Subject: Re:
most bullish thing at this point is moving closer to everyone's
psychological $4 price target and that everybody and their dog is still
short. next sellers need to be from producer community. saw a little this
week with williams hedging the barrett transaction but wouldnt say thats
indicative of the rest of the e&p community. short covering rallies will
get more common here. velocity of move down has slowed significantly for
good (except maybe in bid week). my concern is if we go to $4 and people
want to cover some shorts, who's selling it to them? might feel a lot like
it did when we were trying to break $5.
| ||
arnold-j/all_documents/608.
|
subject: Re: Natural gas update
content: mark:
what are your thoughts on crude and gasoline?
"Mark Sagel" <[email protected]> on 05/13/2001 09:23:02 PM
To: "John Arnold" <[email protected]>
cc:
Subject: Natural gas update
Latest natural report
- ng051301.doc
| ||
arnold-j/all_documents/609.
|
subject: NYTimes.com Article: Energy Industry Raises Production at a Record
content: This article from NYTimes.com
has been sent to you by [email protected].
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\----------------------------------------------------------/
Energy Industry Raises Production at a Record Pace
By JOSEPH KAHN and JEFF GERTH
The energy industry is drilling for natural gas, building gas
pipelines and constructing power plants at an unprecedented pace as
companies respond to high energy prices by significantly boosting
investment.
http://www.nytimes.com/2001/05/13/politics/13ENER.html?ex=990843468&ei=1&en=ea
3f7def0d7bb148
/-----------------------------------------------------------------\
Visit NYTimes.com for complete access to the
most authoritative news coverage on the Web,
updated throughout the day.
Become a member today! It's free!
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HOW TO ADVERTISE
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Racer at [email protected] or visit our online media
kit at http://www.nytimes.com/adinfo
For general information about NYTimes.com, write to
[email protected].
Copyright 2001 The New York Times Company
| ||
arnold-j/all_documents/61.
|
subject: Re: Enron SAP Meeting
content: Jennifer - just wanted to give you a quick SAP update - we have some traction
still with them. We are going to provide them with a proposal for the
4-eurpoean cities mentioned during the last conference call. On the low-end
it is a $2.09M deal with the high-end (lower probability) could be $8M-plus.
We hope to have firms numbers to them late next week. We also had a conf-call
with Commerce One that did not go well with respect to bandwidth, however we
are still going to pursue the reseller potential with them for next quarter.
-------------------------------------------------------------
Gary Waxman
Director, Enterprise Group
Enron Broadband Services
2100 SW River Parkway
Portland, OR 97201
Mobile: 503-807-8923
Desk: 503-886-0196
Fax: 503-886-0441
-------------------------------------------------------------
| ||
arnold-j/all_documents/610.
|
subject: Nat Gas market analysis for 5-14-01
content: Attached please find the Natural Gas market analysis for today.
?
Thanks,
?
Bob McKinney
- 5-14-01 Nat Gas.doc
| ||
arnold-j/all_documents/611.
|
subject: daily charts and matrices as hot links 5/14
content: The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete. Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein. Any
opinions expressed herein are solely those of the author. As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates. , 2001 Carr Futures
The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.
Crude http://www.carrfut.com/research/Energy1/crude41.pdf
Natural Gas http://www.carrfut.com/research/Energy1/ngas41.pdf
Distillate http://www.carrfut.com/research/Energy1/hoil41.pdf
Unleaded http://www.carrfut.com/research/Energy1/unlded41.pdf
Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG41.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG41.pdf
Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL41.pdf
Carr Futures
150 S. Wacker Dr., Suite 1500
Chicago, IL 60606 USA
Tel: 312-368-6149
Fax: 312-368-2281
[email protected]
http://www.carrfut.com
| ||
arnold-j/all_documents/612.
|
subject: Natural gas update
content: Latest natural report
- ng051301.doc
| ||
arnold-j/all_documents/613.
|
subject: Re:
content: most bullish thing at this point is moving closer to everyone's
psychological $4 price target and that everybody and their dog is still
short. next sellers need to be from producer community. saw a little this
week with williams hedging the barrett transaction but wouldnt say thats
indicative of the rest of the e&p community. short covering rallies will
get more common here. velocity of move down has slowed significantly for
good (except maybe in bid week). my concern is if we go to $4 and people
want to cover some shorts, who's selling it to them? might feel a lot like
it did when we were trying to break $5.
| ||
arnold-j/all_documents/614.
|
subject:
content: most bullish thing at this point is moving closer to everyone's
psychological $4 price target and that everybody and their dog is still
short. next sellers need to be from producer community. saw a little this
week with williams hedging the barrett transaction but wouldnt say thats
indicative of the rest of the e&p community. short covering rallies will
get more common here. velocity of move down has slowed significantly for
good (except maybe in bid week). my concern is if we go to $4 and people
want to cover some shorts, who's selling it to them? might feel a lot like
it did when we were trying to break $5.
| ||
arnold-j/all_documents/615.
|
subject: RE: waiting
content: yea
"Eva Pao" <[email protected]> on 05/13/2001 03:50:42 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: waiting
nevermind. are you at work?
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 5:42 PM
To: [email protected]
Subject: RE: waiting
huh?
"Eva Pao" <[email protected]> on 05/13/2001 03:32:22 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: waiting
No english? i got the math.
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 5:24 PM
To: [email protected]
Subject: RE: waiting
probability *
payout =
1 heads .5 0 = 0
tails 2 heads .25 1
= .25
tails 3 heads .125 2
= .25
tails 4 heads .0625 4
= .25
tails 5 heads .03125 8
= .25
"Eva Pao" <[email protected]> on 05/13/2001 03:23:47 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: waiting
which game is that?
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 5:16 PM
To: [email protected]
Subject: Re: waiting
Expected value of game = 1/2 * 0 + 1/4 * 1 + 1/8 *2 + 1/16 *4 +1/32 *
8+....
= 0 +.25 +.25 +.25 +.25 +...
= infinity
"Eva Pao" <[email protected]> on 05/13/2001 03:11:46 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: waiting
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:37 PM
To: [email protected]
Subject: Re: Extra credit
rules to a game:
You flip a coin. If you get tails you win 0. if you get heads, i give you
$1. Keep flipping until you get a tails, at which point you walk away with
the money. however, each heads you get after the first you double your
money. So if you flip heads 3 times and then tails, you get $4. What's
you bid/offer on playing this game? (would you pay $.5 to play? $1? $2?
what you charge me play against you?)
| ||
arnold-j/all_documents/616.
|
subject:
content: most bullish thing at this point is moving closer to everyone's
psychological $4 price target and that everybody and their dog is still
short. next sellers need to be from producer community. saw a little this
week with williams hedging the barrett transaction but wouldnt say thats
indicative of the rest of the e&p community. short covering rallies will
get more common here. velocity of move down has slowed significantly for
good (except maybe in bid week). my concern is if we go to $4 and people
want to cover some shorts, who's selling it to them? might feel a lot like
it did when we were trying to break $5.
| ||
arnold-j/all_documents/617.
|
subject: RE: waiting
content: huh?
"Eva Pao" <[email protected]> on 05/13/2001 03:32:22 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: waiting
No english? i got the math.
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 5:24 PM
To: [email protected]
Subject: RE: waiting
probability *
payout =
1 heads .5 0 = 0
tails 2 heads .25 1
= .25
tails 3 heads .125 2
= .25
tails 4 heads .0625 4
= .25
tails 5 heads .03125 8
= .25
"Eva Pao" <[email protected]> on 05/13/2001 03:23:47 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: waiting
which game is that?
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 5:16 PM
To: [email protected]
Subject: Re: waiting
Expected value of game = 1/2 * 0 + 1/4 * 1 + 1/8 *2 + 1/16 *4 +1/32 *
8+....
= 0 +.25 +.25 +.25 +.25 +...
= infinity
"Eva Pao" <[email protected]> on 05/13/2001 03:11:46 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: waiting
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:37 PM
To: [email protected]
Subject: Re: Extra credit
rules to a game:
You flip a coin. If you get tails you win 0. if you get heads, i give you
$1. Keep flipping until you get a tails, at which point you walk away with
the money. however, each heads you get after the first you double your
money. So if you flip heads 3 times and then tails, you get $4. What's
you bid/offer on playing this game? (would you pay $.5 to play? $1? $2?
what you charge me play against you?)
| ||
arnold-j/all_documents/618.
|
subject:
content: most bullish thing at this point is moving closer to everyone's psychological
$4 price target and that everybody and their dog is still short. next
sellers need to be from producer community. saw a little this week with
williams hedging the barrett transaction but wouldnt say thats indicative of
the rest of the e&p community. short covering rallies will get more common
here. velocity of move down has slowed significantly for good (except maybe
in bid week). my concern is if we go to $4 and people want to cover some
shorts, who's selling it to them? might feel a lot like it did when we were
trying to break $5.
| ||
arnold-j/all_documents/619.
|
subject: Re: Defense
content: don't make me type the math on the computer pooks
"Eva Pao" <[email protected]> on 05/13/2001 03:05:12 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: Defense
What's your defense for you bid 0 for the company? Why was the info
assymetry at 100%???
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:54 PM
To: [email protected]
Subject: RE: Extra credit
have you taken any finance courses yet? what's good?
| ||
arnold-j/all_documents/62.
|
subject: Continental/Enron meeting rescheduled from December 11th to
content: Ron Howard:
I just confirmed back with Shirley Vauter that 1:30 PM -3:00 PM on Tuesday,
December 12th is fine for the meeting between Larry Kellner, Jeff Shankman,
and their teams. Thank-you for your flexibility in rescheduling this meeting
from December 11th to December 12th per Jeff Shankman's request.
I will follow up shortly with logistical details.
Sarah-Joy Hunter
Enron Corporation
Global Strategic Sourcing
(713)-345-6541
| ||
arnold-j/all_documents/620.
|
subject: RE: waiting
content: probability * payout =
1 heads .5 0 = 0
tails 2 heads .25 1 = .25
tails 3 heads .125 2 = .25
tails 4 heads .0625 4 = .25
tails 5 heads .03125 8 = .25
"Eva Pao" <[email protected]> on 05/13/2001 03:23:47 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: waiting
which game is that?
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 5:16 PM
To: [email protected]
Subject: Re: waiting
Expected value of game = 1/2 * 0 + 1/4 * 1 + 1/8 *2 + 1/16 *4 +1/32 *
8+....
= 0 +.25 +.25 +.25 +.25 +...
= infinity
"Eva Pao" <[email protected]> on 05/13/2001 03:11:46 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: waiting
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:37 PM
To: [email protected]
Subject: Re: Extra credit
rules to a game:
You flip a coin. If you get tails you win 0. if you get heads, i give you
$1. Keep flipping until you get a tails, at which point you walk away with
the money. however, each heads you get after the first you double your
money. So if you flip heads 3 times and then tails, you get $4. What's
you bid/offer on playing this game? (would you pay $.5 to play? $1? $2?
what you charge me play against you?)
| ||
arnold-j/all_documents/621.
|
subject: RE: Extra credit
content: i think it's 100
"Eva Pao" <[email protected]> on 05/13/2001 03:01:23 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: Extra credit
fill in
$ ____2_ per/share
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:54 PM
To: [email protected]
Subject: RE: Extra credit
fill in
$ _____ per/share
"Eva Pao" <[email protected]> on 05/13/2001 02:39:23 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: Extra credit
what's my bid for what??
ps
don't no crap me.
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:30 PM
To: [email protected]
Subject: Re: Extra credit
no crap, what's your bid?
"Eva Pao" <[email protected]> on 05/13/2001 12:48:23 AM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: Extra credit
break even on info ass-symetry is 100%, any project above that level is
profitable to Pooks&Co.
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 1:04 AM
To: [email protected]
Subject: RE: try this one...
For extra credit....
If the company is worth 150% more under management A rather than 50% more,
does your answer change?
"Eva Pao" <[email protected]> on 05/11/2001 05:13:59 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: try this one...
will you do all of my homework?
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Friday, May 11, 2001 8:41 AM
To: [email protected]
Subject: Re: try this one...
i'll pay a grand total of 0
"Eva Pao" <[email protected]> on 05/10/2001 05:15:59 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: try this one...
Please read the following problem very carefully, and write in a number at
the end. You should be ready to defend your answer. Only a number is
allowed, not an algebraic equation.
Acquiring a Company
In the following exercise you will represent Company A (the acquirer),
which is currently considering acquiring Company T (the target) by means of
a tender offer. You plan to tender in cash for 100% of Company T's shares
but are unsure how high a price to offer. The main complication is this:
the value of Company T depends directly on the outcome of a major oil
exploration project it is currently undertaking. Indeed, the very
viability
of Company T depends on the exploration outcome. If the project fails, the
company under current management will be worth nothing--$0/share. But if
the project succeeds, the value of the company under current management
could be as high as $100/share. All share values between $0 and $100 are
considered equally likely. By all estimates, the company will be worth
considerably more in the hands of Company A than under current management.
In fact, whatever the ultimate value under current management, the company
will be worth fifty percent more under the management of A than under
Company T. If the project fails, the company is worth $0/share under
either
management. If the exploration project generates a $50/share value under
current management, the value under Company A is $75/share. Similarly, a
$100/share value under Company T implies a $150/share value under Company
A,
and so on.
The board of directors of Company A has asked you to determine the
price
they should offer for Company T's shares. This offer must be made now,
before the outcome of the drilling project is known. From all indications,
Company T would be happy to be acquired by Company A, provided it is at a
profitable price. Moreover, Company T wishes to avoid, at all cost, the
potential of a takeover bid by any other firm. You expect Company T to
delay a decision on your bid until the results of the project are in, then
accept or reject your offer before the news of the drilling results reaches
the press.
Thus, you (Company A) will not know the results of the exploration
project
when submitting your price offer, but Company T will know the results when
deciding whether or not to accept your offer. In addition, Company T will
accept any offer by Company A that is greater than the (per share) value of
the company under current management. Thus, if you offer $50/share, for
instance, Company T will accept if the value of the company to Company T is
anything less than $50.
As the representative of Company A, you are deliberating over price
offers
in the range of $0/share (this is tantamount to making no offer at all) to
$150/share. What price offer per share would you tender for Company T's
stock?
$______ per/share
| ||
arnold-j/all_documents/622.
|
subject: Re: waiting
content: Expected value of game = 1/2 * 0 + 1/4 * 1 + 1/8 *2 + 1/16 *4 +1/32 * 8+....
= 0 +.25 +.25 +.25 +.25 +...
= infinity
"Eva Pao" <[email protected]> on 05/13/2001 03:11:46 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: waiting
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:37 PM
To: [email protected]
Subject: Re: Extra credit
rules to a game:
You flip a coin. If you get tails you win 0. if you get heads, i give you
$1. Keep flipping until you get a tails, at which point you walk away with
the money. however, each heads you get after the first you double your
money. So if you flip heads 3 times and then tails, you get $4. What's
you bid/offer on playing this game? (would you pay $.5 to play? $1? $2?
what you charge me play against you?)
| ||
arnold-j/all_documents/623.
|
subject: Re: Constellation
content: i think its a jv with the trading side mostly staffed by goldman folks
"Eva Pao" <[email protected]> on 05/13/2001 03:06:01 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: Constellation
so, its a goldman co, but it also controls Duquesne and BGE?
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:58 PM
To: [email protected]
Subject: RE: Extra credit
yes
"Eva Pao" <[email protected]> on 05/13/2001 03:03:17 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: Extra credit
is constellation energy a goldman company?
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:55 PM
To: [email protected]
Subject: RE: Extra credit
me thinks you missed a 9
"Eva Pao" <[email protected]> on 05/13/2001 02:58:28 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: Extra credit
1.99999999999999999999999999999999999
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:37 PM
To: [email protected]
Subject: Re: Extra credit
rules to a game:
You flip a coin. If you get tails you win 0. if you get heads, i give you
$1. Keep flipping until you get a tails, at which point you walk away with
the money. however, each heads you get after the first you double your
money. So if you flip heads 3 times and then tails, you get $4. What's
you bid/offer on playing this game? (would you pay $.5 to play? $1? $2?
what you charge me play against you?)
| ||
arnold-j/all_documents/624.
|
subject: Re: am i right???
content: no
"Eva Pao" <[email protected]> on 05/13/2001 03:02:45 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: am i right???
wait, of course i am. i always am.
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:55 PM
To: [email protected]
Subject: RE: Extra credit
me thinks you missed a 9
"Eva Pao" <[email protected]> on 05/13/2001 02:58:28 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: Extra credit
1.99999999999999999999999999999999999
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:37 PM
To: [email protected]
Subject: Re: Extra credit
rules to a game:
You flip a coin. If you get tails you win 0. if you get heads, i give you
$1. Keep flipping until you get a tails, at which point you walk away with
the money. however, each heads you get after the first you double your
money. So if you flip heads 3 times and then tails, you get $4. What's
you bid/offer on playing this game? (would you pay $.5 to play? $1? $2?
what you charge me play against you?)
| ||
arnold-j/all_documents/625.
|
subject: RE: Extra credit
content: yes
"Eva Pao" <[email protected]> on 05/13/2001 03:03:17 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: Extra credit
is constellation energy a goldman company?
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:55 PM
To: [email protected]
Subject: RE: Extra credit
me thinks you missed a 9
"Eva Pao" <[email protected]> on 05/13/2001 02:58:28 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: Extra credit
1.99999999999999999999999999999999999
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:37 PM
To: [email protected]
Subject: Re: Extra credit
rules to a game:
You flip a coin. If you get tails you win 0. if you get heads, i give you
$1. Keep flipping until you get a tails, at which point you walk away with
the money. however, each heads you get after the first you double your
money. So if you flip heads 3 times and then tails, you get $4. What's
you bid/offer on playing this game? (would you pay $.5 to play? $1? $2?
what you charge me play against you?)
| ||
arnold-j/all_documents/626.
|
subject: Re: 2
content: are you prepared to defend your answer?
"Eva Pao" <[email protected]> on 05/13/2001 03:01:04 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: 2
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:54 PM
To: [email protected]
Subject: RE: Extra credit
and your offer?
"Eva Pao" <[email protected]> on 05/13/2001 02:58:28 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: Extra credit
1.99999999999999999999999999999999999
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:37 PM
To: [email protected]
Subject: Re: Extra credit
rules to a game:
You flip a coin. If you get tails you win 0. if you get heads, i give you
$1. Keep flipping until you get a tails, at which point you walk away with
the money. however, each heads you get after the first you double your
money. So if you flip heads 3 times and then tails, you get $4. What's
you bid/offer on playing this game? (would you pay $.5 to play? $1? $2?
what you charge me play against you?)
| ||
arnold-j/all_documents/627.
|
subject: RE: Extra credit
content: me thinks you missed a 9
"Eva Pao" <[email protected]> on 05/13/2001 02:58:28 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: Extra credit
1.99999999999999999999999999999999999
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:37 PM
To: [email protected]
Subject: Re: Extra credit
rules to a game:
You flip a coin. If you get tails you win 0. if you get heads, i give you
$1. Keep flipping until you get a tails, at which point you walk away with
the money. however, each heads you get after the first you double your
money. So if you flip heads 3 times and then tails, you get $4. What's
you bid/offer on playing this game? (would you pay $.5 to play? $1? $2?
what you charge me play against you?)
| ||
arnold-j/all_documents/628.
|
subject: RE: Extra credit
content: have you taken any finance courses yet? what's good?
| ||
arnold-j/all_documents/629.
|
subject: RE: Extra credit
content: fill in
$ _____ per/share
"Eva Pao" <[email protected]> on 05/13/2001 02:39:23 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: Extra credit
what's my bid for what??
ps
don't no crap me.
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:30 PM
To: [email protected]
Subject: Re: Extra credit
no crap, what's your bid?
"Eva Pao" <[email protected]> on 05/13/2001 12:48:23 AM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: Extra credit
break even on info ass-symetry is 100%, any project above that level is
profitable to Pooks&Co.
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 1:04 AM
To: [email protected]
Subject: RE: try this one...
For extra credit....
If the company is worth 150% more under management A rather than 50% more,
does your answer change?
"Eva Pao" <[email protected]> on 05/11/2001 05:13:59 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: try this one...
will you do all of my homework?
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Friday, May 11, 2001 8:41 AM
To: [email protected]
Subject: Re: try this one...
i'll pay a grand total of 0
"Eva Pao" <[email protected]> on 05/10/2001 05:15:59 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: try this one...
Please read the following problem very carefully, and write in a number at
the end. You should be ready to defend your answer. Only a number is
allowed, not an algebraic equation.
Acquiring a Company
In the following exercise you will represent Company A (the acquirer),
which is currently considering acquiring Company T (the target) by means of
a tender offer. You plan to tender in cash for 100% of Company T's shares
but are unsure how high a price to offer. The main complication is this:
the value of Company T depends directly on the outcome of a major oil
exploration project it is currently undertaking. Indeed, the very
viability
of Company T depends on the exploration outcome. If the project fails, the
company under current management will be worth nothing--$0/share. But if
the project succeeds, the value of the company under current management
could be as high as $100/share. All share values between $0 and $100 are
considered equally likely. By all estimates, the company will be worth
considerably more in the hands of Company A than under current management.
In fact, whatever the ultimate value under current management, the company
will be worth fifty percent more under the management of A than under
Company T. If the project fails, the company is worth $0/share under
either
management. If the exploration project generates a $50/share value under
current management, the value under Company A is $75/share. Similarly, a
$100/share value under Company T implies a $150/share value under Company
A,
and so on.
The board of directors of Company A has asked you to determine the
price
they should offer for Company T's shares. This offer must be made now,
before the outcome of the drilling project is known. From all indications,
Company T would be happy to be acquired by Company A, provided it is at a
profitable price. Moreover, Company T wishes to avoid, at all cost, the
potential of a takeover bid by any other firm. You expect Company T to
delay a decision on your bid until the results of the project are in, then
accept or reject your offer before the news of the drilling results reaches
the press.
Thus, you (Company A) will not know the results of the exploration
project
when submitting your price offer, but Company T will know the results when
deciding whether or not to accept your offer. In addition, Company T will
accept any offer by Company A that is greater than the (per share) value of
the company under current management. Thus, if you offer $50/share, for
instance, Company T will accept if the value of the company to Company T is
anything less than $50.
As the representative of Company A, you are deliberating over price
offers
in the range of $0/share (this is tantamount to making no offer at all) to
$150/share. What price offer per share would you tender for Company T's
stock?
$______ per/share
| ||
arnold-j/all_documents/63.
|
subject: Experience Enron -- brief tour 2:30-3:00 PM December 12th following
content: Carrie:
Thanks for facilitating a brief Experience Enron tour for 15 minutes each in
two areas (30 minutes total):
a) the gas trading floor on EB 32 with Craig Taylor
b) Enron Online tour on EB 27
If it becomes necessary to replace b) with a tour of the gas control room,
we'll follow up with you.
Additionally, thanks for getting us the 4 Enron overview marketing brochures
for the Continental attendees.
Meeting Attendees from Continental Airlines:
Ron Howard, Vice President, Food Services
Larry Kellner, Chief Financial Officer
Greg Hartford, Vice President, Fuel Management Company
Jeff Misner, Vice President and Treasurer (tentative)
Carrie, we appreciate your working with us on such short notice!
Sarah-Joy
ext. 5-6541
| ||
arnold-j/all_documents/630.
|
subject: RE: Extra credit
content: and your offer?
"Eva Pao" <[email protected]> on 05/13/2001 02:58:28 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: Extra credit
1.99999999999999999999999999999999999
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:37 PM
To: [email protected]
Subject: Re: Extra credit
rules to a game:
You flip a coin. If you get tails you win 0. if you get heads, i give you
$1. Keep flipping until you get a tails, at which point you walk away with
the money. however, each heads you get after the first you double your
money. So if you flip heads 3 times and then tails, you get $4. What's
you bid/offer on playing this game? (would you pay $.5 to play? $1? $2?
what you charge me play against you?)
| ||
arnold-j/all_documents/631.
|
subject: Re: Extra credit
content: rules to a game:
You flip a coin. If you get tails you win 0. if you get heads, i give you
$1. Keep flipping until you get a tails, at which point you walk away with
the money. however, each heads you get after the first you double your
money. So if you flip heads 3 times and then tails, you get $4. What's you
bid/offer on playing this game? (would you pay $.5 to play? $1? $2? what
you charge me play against you?)
| ||
arnold-j/all_documents/632.
|
subject: Re: Extra credit
content: no crap, what's your bid?
"Eva Pao" <[email protected]> on 05/13/2001 12:48:23 AM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: Extra credit
break even on info ass-symetry is 100%, any project above that level is
profitable to Pooks&Co.
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 1:04 AM
To: [email protected]
Subject: RE: try this one...
For extra credit....
If the company is worth 150% more under management A rather than 50% more,
does your answer change?
"Eva Pao" <[email protected]> on 05/11/2001 05:13:59 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: try this one...
will you do all of my homework?
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Friday, May 11, 2001 8:41 AM
To: [email protected]
Subject: Re: try this one...
i'll pay a grand total of 0
"Eva Pao" <[email protected]> on 05/10/2001 05:15:59 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: try this one...
Please read the following problem very carefully, and write in a number at
the end. You should be ready to defend your answer. Only a number is
allowed, not an algebraic equation.
Acquiring a Company
In the following exercise you will represent Company A (the acquirer),
which is currently considering acquiring Company T (the target) by means of
a tender offer. You plan to tender in cash for 100% of Company T's shares
but are unsure how high a price to offer. The main complication is this:
the value of Company T depends directly on the outcome of a major oil
exploration project it is currently undertaking. Indeed, the very
viability
of Company T depends on the exploration outcome. If the project fails, the
company under current management will be worth nothing--$0/share. But if
the project succeeds, the value of the company under current management
could be as high as $100/share. All share values between $0 and $100 are
considered equally likely. By all estimates, the company will be worth
considerably more in the hands of Company A than under current management.
In fact, whatever the ultimate value under current management, the company
will be worth fifty percent more under the management of A than under
Company T. If the project fails, the company is worth $0/share under
either
management. If the exploration project generates a $50/share value under
current management, the value under Company A is $75/share. Similarly, a
$100/share value under Company T implies a $150/share value under Company
A,
and so on.
The board of directors of Company A has asked you to determine the
price
they should offer for Company T's shares. This offer must be made now,
before the outcome of the drilling project is known. From all indications,
Company T would be happy to be acquired by Company A, provided it is at a
profitable price. Moreover, Company T wishes to avoid, at all cost, the
potential of a takeover bid by any other firm. You expect Company T to
delay a decision on your bid until the results of the project are in, then
accept or reject your offer before the news of the drilling results reaches
the press.
Thus, you (Company A) will not know the results of the exploration
project
when submitting your price offer, but Company T will know the results when
deciding whether or not to accept your offer. In addition, Company T will
accept any offer by Company A that is greater than the (per share) value of
the company under current management. Thus, if you offer $50/share, for
instance, Company T will accept if the value of the company to Company T is
anything less than $50.
As the representative of Company A, you are deliberating over price
offers
in the range of $0/share (this is tantamount to making no offer at all) to
$150/share. What price offer per share would you tender for Company T's
stock?
$______ per/share
|
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