El Paso Corp. to cut back energy trading operations

The San Francisco Chronicle ^ | Thursday, May 30, 2002 | Bernadette Tansey, Chronicle Staff Writer

[Ernest_at_the_Beach]

El Paso Corp. joined the "back-to-basics" movement among energy firms Wednesday, saying it is slashing its power trading business to limit financial risks and beef up its credit rating.

As the Enron debacle continues to shake confidence in the energy sector among financial ratings agencies, El Paso executives said they are eliminating half the company's trading operation and shifting resources to El Paso's core natural-gas business.

[Ernest_at_the_Beach]

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[blabs]

El Paso is a solid company, heavy in assets. Unfortunately, they are getting caught in the crossfire of dissent. Investors, whether institutional or individual, are frigthened, and dumping on impulse. Some prime buying opportunities are coming. Once the myriad of problems in the industry begin to desolve, El Paso is poised to lead the field..

just my 2 cents..

[Dog Gone]

I think energy trading took off like startup airlines did after airline deregulation. There was irrational exhuberance, and some pretty splashy failures. Anyone remember Freddie Laker and Laker Airways?

The industry has to shake out, and it's probably getting oversold because investors think it's poison.

But it's here to stay, and El Paso is probably going to be one the principal survivors.

[snopercod]

I love it. Calpine re-directing turbines from California to New York. There's a two-year lead time on those babies, I understand.

[Dog Gone]

As I recall, they were aggressively dealing with the problem last year, siting and building new plants, and getting the problem fixed.

They obviously didn't need these cable failures, and I'm disappointed that the story didn't mention why they failed, but the people there are simply doing what is needed to be done without finding villains for political purposes. Good post!

[Grampa Dave]

Yep, adults working to increase the supply of energy instead of enviral whacko Poster Boys working to decrease the supply of energy!

Isn't it interesting how this adult approach is going on right under the biased noses of the NY Slimes editors/publishers. Yet they ignore this practical approach and try to blame Cali's energy problem on poor old Enron to save Davis's sorry bacon.

[Robert357]

Good example of how adults do things.

I am reminded of how Tacoma City Light installed over 20 2MW diesel generators during the drought we had in 2000 & early 2001 so they could make sure they had enought power for themselves. Then Grant County Public Utility District and Chelan County Public Utility District, and Okanogan County Public Utility Districts also installed large diesel generator farms to provide power within Washington State. Of course, the environmentalists complained about the air pollution, but it was a declared energy emergency and we needed the power. Of course Davis whinned and federal officials forced NW utilities to send hydro power to California at below the cost of what were generating it in the diesel generators, but hey.