While it may be true the collapse of Enron Corp. could be cited as the root of all energy sector financial woes and diluted earnings represented in 4Q2001 annual profit reports, it clearly wasn't the underlying trigger of them. Just as sports historians instinctively know that talented quarterbacks and coaches are catalysts of great teams and stellar sports seasons, energy historians may look back and note that Enron's ongoing financial troubles were perhaps triggered more by strategy calls by the company's own players and coaching staff than by a safety or corner blitz from financial analysts, regulators or the media. Corporate energy maneuvers clearly didn't start with Enron's collapse, nor will they end with Swiss-based UBS AG's zero-upfront cash acquisition of EnronOnline and takeover of Enron's prime downtown Houston facilities. Post-Enron changes―shifts in rating agency requirements, a measured loss of confidence in the merchant model, demands for audits, transparency and added disclosure―will, however, likely affect all North American energy teams for seasons to come. In this pivotal election year, there are distinct new rules being applied by government agencies and elected official referees tasked with insuring both prudent, fair play (and, of course, influencing the November vote). Savvy executives are watching plays closely and taking appropriate defensive actions.
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