But it was also facing obstacles. Sales during 1993, its first full year of operation, topped $900 million, about $90 million of which was net income. As a result, El Paso shifted from merchant to distributor during the late 1980s and early 1990s. Following the war, El Paso benefitted from strong demand for natural gas in the growing southwestern United States. Wise was credited with helping the company make a transition to transport services during the late 1980s and with helping to make El Paso a low-cost industry leader. The ambitious project required the construction of a nine-ship fleet of special tankers to be owned and operated by El Paso, as well as the construction of storage terminals on the East Coast and in Algeria. Corporations Paid More to Lobby Congress Than Income Taxes, 2008-2010", "El Paso Corp. will pay in trade scandal", https://en.wikipedia.org/w/index.php?title=El_Paso_Corp.&oldid=916578795, Natural gas companies of the United States, Non-renewable resource companies established in 1928, Non-renewable resource companies disestablished in 2012, Companies formerly listed on the New York Stock Exchange, Articles needing additional references from May 2009, All articles needing additional references, Articles with unsourced statements from May 2009, Articles needing additional references from September 2015, All articles with specifically marked weasel-worded phrases, Articles with specifically marked weasel-worded phrases from December 2016, Creative Commons Attribution-ShareAlike License, This page was last edited on 19 September 2019, at 15:51. 2020 El Paso benefitted from the Natural Gas Policy Act which was passed in 1978. During the late 1930s, El Paso enjoyed steady growth. By 1974, non-gas operations contributed about one-third of El Paso's annual $1.3 billion in revenues. El Paso Natural Gas (EPNG) is a 10,140-mile pipeline system which transports natural gas from the San Juan, Permian and Anadarko basins to California, Arizona, Nevada, New Mexico, Oklahoma, Texas and Northern Mexico. El Paso also became heavily involved in the fiber and textile industries, particularly nylon, rayon, and other synthetics. United States.. Kinder Morgan is one of the largest energy infrastructure companies in North America. Nevertheless, investors were enthusiastic about El Paso's chances, as evidenced by a doubling of the company's stock price between 1992 and early 1994. Although El Paso's liquified gas venture represented an important success during the 1970s, its non-gas-related operations were generally less fruitful. In June 2003 Oscar Wyatt, along with El Paso investor Selim Zilkha, initiated a proxy fight to gain control of the El Paso Corporation and to wrestle control of the remaining assets, which included natural gas pipelines, exploration, and production assets. The company built new lines extending to the copper mining areas of southern Arizona and northern Mexico and in 1934 extended service to Tucson and Phoenix, Arizona. To reach our customer service line call 800-700-2443, Customer Advisory on Unauthorized Third Party Payment Providers, Programa de Eficiencia de Energia de Centro De Texas, Rio Grande Valley Energy Efficiency Program, Programa de Reembolsos de Rio Grande Valley, Becoming a Qualified Third-Party Supplier, Transportation Service Supplier Registration, The Advantages of CNG and Natural Gas Vehicles, Central Texas Rebates for New Construction, Rio Grande Valley Rebates for New Construction. In 1981, El Paso reported record earnings of $147 million. Visit. El Paso experienced explosive growth in the late 1940s. Fortunately, the city of El Paso continued to buy Kayser's gas.
It was also engaged in an ambitious effort to vastly increase its access to the northern California natural gas market. All rights reserved. It was headquartered in Houston, Texas. Although the work was tedious and time-consuming, Kayser's crews pioneered new methods of welding, ditching, and crossing unique terrain.
El Paso was pinning its long-term hopes on the rapidly expanding Mexican market, to which it had unsurpassed access. During the early 1990s, Burlington sold most of its subsidiaries and reinvested the proceeds into natural gas reserves. El Paso Corporation was a provider of natural gas and related energy products and was one of North America's largest natural gas producers until its acquisition by Kinder Morgan in 2012. That act basically allowed El Paso to begin competing with other Texas companies for the purchase of natural gas reserves. Expansion slowed during World War II as the nation's labor and resources were steered toward the war effort. El Paso would then distribute the low-cost gas through its pipeline network. Prior to the takeover by Kinder Morgan, the company owned North America's largest natural gas pipeline system which traveled from border-to-border and coast-to-coast. In 1992, El Paso was spun off from Burlington Resources., which had operated the company as a subsidiary since 1983. [6] El Paso is now out of the energy trading business. El Paso continued to grow at a rapid pace during the late 1960s and early 1970s. By the late 1930s, the company was generating revenue of about $5 million annually and was beginning to post strong profit gains. Unfortunately for Kayser and his fledgling start-up, the Great Depression began shortly after the building of the pipeline. Florida Gas is part of Southern Natural Gas. The legislation had effectively deregulated certain aspects of the natural gas industry.
Although natural gas industry profits were generally cyclical, El Paso's overall sales and earnings grew during the period. As a result of strong natural gas markets and El Paso's increased output capacity, sales topped $2 billion in 1978, rose past $3 billion in 1980, and then increased to nearly $4 billion in 1981. Our pipelines transport natural gas, gasoline, crude oil, carbon dioxide (CO 2) and more. The acquisition gave El Paso a presence in several western and northwestern states, with pipelines reaching as far as Washington and connecting to other companies' networks in Canada. We own an interest in or operate approximately 83,000 miles of pipelines and 147 terminals. One of El Paso's most intriguing and promising ventures during the 1970s was a venture into liquefied natural gas. It created El Paso Products Company as a subsidiary to manufacture chemicals from natural gas derivatives. The company was founded in 1928 by Houston attorney Paul Kayser, who identified the city of El Paso, Texas as a good market for natural gas transported by pipeline from Jal, New Mexico. Throughout his reign, he remained committed to the pragmatic development of natural resources and sound business practices. The company's president, Howard Boyd, replaced Kayser. Sales dipped following the 1974 divestiture but surged back up to $1.15 billion in 1975, rising to more than $2 billion in 1978.
[citation needed] It went on to acquire Coastal Corporation in 2001. He proposed construction of a 200-mile pipeline that linked El Paso with natural gas wells located near the city of Jal, New Mexico. In 2003, Oscar Wyatt and other shareholders sued the El Paso Corporation for allegedly misrepresenting its intentions for Coastal assets prior to the merger in 2000. El Paso Natural Gas Company owns and operates one of the largest natural gas transmission systems in North America. Supply outstripped demand in 1982 and natural gas prices dropped. The company's largest non-gas division was its petrochemical business, which manufactured a variety of chemicals used in the growing synthetics industry. El Paso jettisoned some of those operations and posted losses from major activities like chemical and fiber manufacturing. Most notably, the California gas market was becoming glutted, dampening profits in El Paso's most important region. $ (%) Press Releases. Partly in an effort to minimize its exposure to cyclical gas markets, El Paso diversified during the late 1960s and 1970s. It built new pipeline systems extending throughout the oil- and gas-rich Permian Basin in south Texas and extended lines north and west to accommodate growing regional demand. El Paso generated profits of $283,000 during the pipeline's first year of operation but the Depression-era economy threatened to quash the venture. [5] El Paso gas trader Todd Geiger was prosecuted by the FERC for falsely making up 48 gas trades. United States.[1]. Services Provided . El Paso greatly increased its reserves after the act was passed, building up a sizable reserve base near its Permian Basin pipeline operations as well as in other regions of the country. El Paso fought their efforts, but was defeated. After 35 years, El Paso's founder left his chief executive duties during the early 1960s. Burlington completed the spin-off of El Paso Natural Gas Company on June 30, 1992. Its more than 17,000 miles of pipeline connected major gas supply regions throughout the American West and Mexico in the early 1990s and supplied about seven percent of U.S. natural gas demand. The company's major offices were located in Houston, Texas; Birmingham, Alabama; and Colorado Springs, Colorado. During the late 1970s and early 1980s, industry competitors had hustled to boost natural gas output capacity with expectations of strong demand. [3], In December 2011, the non-partisan organization Public Campaign criticized El Paso for spending $2.94 million on lobbying and not paying income taxes during 2008-2010, instead getting $41 million in income tax rebates, despite making a profit of $4.1 billion and increasing executive pay by 47%.[4].
Although El Paso was experiencing some problems at the time, Burlington viewed the company as an excellent complement to its existing mineral development operations. In the 1980s and early 1990s, El Paso prospered under Burlington's management. Under the arrangement, the Algerian company would deliver a billion cubic feet of natural gas in liquid form daily to El Paso Natural Gas. [2], In October 2011, Kinder Morgan acquired El Paso Corp. in a $21.1 billion deal. Over the next few years, Burlington spun off or sold several of El Paso's nonperforming divisions and streamlined the company's natural gas operations. El Paso was in a relatively strong position in its industry going into the mid-1990s. The line was finished and put into service in 1930.
Difficulties related to building Kayser's pipeline were amplified by the fact that his pipes would cross some of the most difficult terrain in the southwestern United States. Despite some setbacks, El Paso managed to sustain long-term growth during the 1970s. Federal funding available for utility bill assistance. By the early 1970s, El Paso operated one of the nation's largest pipeline systems. In 1929, Kayser obtained a franchise from the El Paso City Council to sell natural gas to the city. Rather than owning the natural gas it transported, it simply provided transportation services for a fee charged to the owners and/or buyers. Although El Paso's sales rose to $4.3 billion in 1982, its net income dropped to $53 million. In 2001, El Paso bought Oscar Wyatt's Coastal Corporation, a diversified energy company. Since the merging and disclosing of corporate malfeasance by El Paso management, Its stock had fallen 87% from its February 2001 high of $75 a share. EPNG also owns approximately 44 billion cubic feet of underground working natural gas storage capacity in Southeast New Mexico. Although federal regulators kept El Paso from operating its own pipes in specified regions, its lines connected with those of other operators to give El Paso access to markets in California, Kansas, Oklahoma, and Nevada. El Paso's huge revenue gains during the late 1970s reflected turbulence in energy markets. In addition to geographic expansion, El Paso began to diversify during the 1950s into related oil and chemical businesses. After the merger of Coastal and El Paso Corporation, the latter began divesting itself of Coastal assets beginning in 2001. The 45-year-old Wise had been with El Paso since 1970, working as an attorney and then serving in various management positions.
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