The Enron Company began in 1985 when, Internorth, a pipeline company based in Omaha Nebraska, bought Houston-based Houston Natural Gas. At the time the distribution chain of natural gas was highly regulated by the government. Enron and other companies rallied against this and soon the distribution was deregulated. As this was taken place slowly, the natural gas market became more efficient, but also much less predictable. Because of the market instability, the producers and the utility companies were uncomfortable entering into long-term, fixed contracts. Therefore, most natural gas transa…
