Enron official says military action won’t affect gas, electricity markets

By the OGJ Online Staff

WASHINGTON, DC, Sept. 20, 2001 – A top Enron Corp. official said Thursday US natural gas and electric power markets should remain stable, even if the US undertakes continuing military actions against terrorists.

Mark Frevert, Enron vice chairman, said, “We don’t foresee any problems with gas or the power grid even with a sustained campaign.”

He told the Hart World Fuels Conference in Washington that US gas and power markets performed well last week following terrorist attacks in New York City and Arlington, Va., proving their resilience.

“The crisis showed the value of liquidity in our sources of supply. There were no disruptions in supply, a testament to the depth of the market.”

Frevert said gas and power markets would be in oversupply during the next 12 months.

He also predicted more coal plants would be built in North America as older, less efficient facilities are taken off line due to environmental concerns. He remained optimistic about the future for liquefied natural gas markets, despite recent softness.

Frevert said governments should consider four public policy initiates: opening wholesale and retail markets in gas and electricity to competition worldwide; allowing market prices, including peak pricing, to guide supply and demand; overcoming local delays of energy projects that benefit society; and resisting protectionism.

Frevert said despite major challenges industry faces, this is a good time to be in the energy business.

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