Enron’s history as an entire corporate entity begins in 1985 when Kenneth Lay arranged a formation of Enron by means of combining Internorth and Houston Natural Gas (NPR, 2002). Internorth and Houston Natural Gas operated as “natural gas pipeline companies”, therefore, Enron obtained ownership of and control over thousands miles of gas delivery pipelines connecting producers to customers via intermediary firms (Healy & Palepu, 2003, pp. 4-5). Hence, Enron was first engaged in buying natural gas from drilling companies and reselling it to intermediary companies which, in turn, sold it to final users (p. 5). In furtherance, Enron’s ...
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Background Information of Enron
