In an attempt to achieve further growth, Enron pursued a diversification
strategy. It began by reaching beyond its pipeline business to become involved in
natural gas trading. It extended the natural gas model to become a financial trader
and market maker in electric power, coal, steel, paper and pulp, water and
broadband fiber optic cable capacity. It undertook international projects involving
construction and management of energy facilities. By 2001, Enron had become a
conglomerate that owned and operated gas pipelines, electricity plants, pulp and
paper plants, broadband assets and water plants internationally and traded extensively
in financial markets for the same products and services. A summary of
segment results for the company, in Exhibit 2, shows how dramatically the domestic
trading and international businesses grew during the late 1990s.