Research and Inspiration on Enron’s Business Model of “Natural Gas Bank” from the Perspective of Financial Innovation
- DOI
- 10.2991/aebmr.k.210319.113How to use a DOI?
- Keywords
- Business Model, Natural Gas Bank, Financial Innovation, Inspiration
- Abstract
The goals of carbon peaking by 2030 and carbon neutrality by 2060 define the future direction of China’s energy development, and set higher requirements for the natural gas industry to accelerate innovation and enhance competitiveness. In the late 1970s, the US government gradually relaxed industry regulation to promote the process of natural gas marketization. Enron keenly noticed the mismatch between supply and demand in the process of market mechanism transformation, introduced financial instruments and created the business model of “Natural gas bank”, which achieved success and promoted the rapid development of natural gas industry in the US. This paper carried on the deep analysis on the background, mode and successful reason of” natural gas bank”, find that “accurate grasp the opportunity of environmental policy change”, “apply the financial innovation to activate the industry chain” and “more open and flexible compared to the traditional business model” are the main successful reasons for Enron’s business model. Follow the innovation experience of “Natural gas bank”, China natural gas industry need speed up infrastructure construction and promote the formation of a natural gas pricing centre, meanwhile enterprises should firmly implement asset-light strategy and accelerate the pace of financial innovation.
- Copyright
- © 2021, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Huiwen Xu AU - Zhen Wang PY - 2021 DA - 2021/03/22 TI - Research and Inspiration on Enron’s Business Model of “Natural Gas Bank” from the Perspective of Financial Innovation BT - Proceedings of the 6th International Conference on Financial Innovation and Economic Development (ICFIED 2021) PB - Atlantis Press SP - 608 EP - 613 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.210319.113 DO - 10.2991/aebmr.k.210319.113 ID - Xu2021 ER -