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Is Enron back? Houstonians aren't laughing at the joke

If its return is comedic, some former employees who lost everything in Enron’s collapse aren’t laughing. Photo by James Nielsen/Getty Images

An elaborate parody appears to be behind an effort to resurrect Enron, the Houston-based energy company that exemplified the worst in American corporate fraud and greed after it went bankrupt in 2001.

If its return is comedic, some former employees who lost everything in Enron’s collapse aren’t laughing.

“It’s a pretty sick joke and it disparages the people that did work there. And why would you want to even bring it back up again?” said former Enron employee Diana Peters, who represented workers in the company’s bankruptcy proceedings.

Here’s what to know about the history of Enron and the purported effort to bring it back.

What happened at Enron?

Once the nation’s seventh-largest company, Enron filed for bankruptcy protection on Dec. 2, 2001, after years of accounting tricks could no longer hide billions of dollars in debt or make failing ventures appear profitable. The energy company's collapse put more than 5,000 people out of work and wiped out more than $2 billion in employee pensions. Its aftershocks were felt throughout the energy sector.

Twenty-four Enron executives, including former CEO Jeffrey Skilling, were convicted for their roles in the fraud. Enron founder Ken Lay’s convictions were vacated after he died of heart disease following his 2006 trial.

Is Enron coming back?

On Monday — the 23rd anniversary of the bankruptcy filing — a company representing itself as Enron announced in a news release it was relaunching as a “company dedicated to solving the global energy crisis.” It also posted a video on social media, advertised on at least one Houston billboard and a took out a full-page ad in the Houston Chronicle

In the minute-long video full of generic corporate jargon, the company talks about “growth” and “rebirth.” It ends with the words, “We’re back. Can we talk?”

In an email, company spokesperson Will Chabot said the new Enron was not doing any interviews yet, but "We’ll have more to share soon.”

Signs point to the comeback being a joke.

In the “terms of use and conditions of sale” on the company's website, it says “the information on the website about Enron is First Amendment protected parody, represents performance art, and is for entertainment purposes only.”

Documents filed with the U.S. Patent and Trademark Office show College Company, an Arkansas-based LLC, owns the Enron trademark. The co-founder of College Company is Connor Gaydos, who helped create a joke conspiracy theory claiming all birds are actually government surveillance drones.

What do former Enron employees think of the company’s return?

Peters said she and some other former employees are upset and think the relaunch was “in poor taste.”

“If it’s a joke, it’s rude, extremely rude. And I hope that they realize it and apologize to all of the Enron employees,” Peters said.

Peters, 74, said she is still working in information technology because “I lost everything in Enron, and so my Social Security doesn’t always take care of things I need done.”

“Enron’s downfall taught us critical lessons about corporate ethics, accountability, and the consequences of unchecked ambition. Enron’s legacy was the employees in the trenches. Leave Enron buried,” she said.

But Sherron Watkins, Enron’s former vice president of corporate development and the main whistleblower who helped uncover the scandal, said she didn’t have a problem with the joke because comedy “usually helps us focus on an uncomfortable historical event that we’d rather ignore.”

“I think we use prior scandals to try to teach new generations what can go wrong with big companies,” said Watkins, who still speaks at colleges and conferences about the Enron scandal.

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A View From HETI

Rice University scientists' “recharge-to-recycle” reactor has major implications for the electric vehicle sector. Photo courtesy Jorge Vidal/Rice University.

Engineers at Rice University have developed a cleaner, innovative process to turn end-of-life lithium-ion battery waste into new lithium feedstock.

The findings, recently published in the journal Joule, demonstrate how the team’s new “recharge-to-recycle” reactor recharges the battery’s waste cathode materials to coax out lithium ions into water. The team was then able to form high-purity lithium hydroxide, which was clean enough to feed directly back into battery manufacturing.

The study has major implications for the electric vehicle sector, which significantly contributes to the waste stream from end-of-life battery packs. Additionally, lithium tends to be expensive to mine and refine, and current recycling methods are energy- and chemical-intensive.

“Directly producing high-purity lithium hydroxide shortens the path back into new batteries,” Haotian Wang, associate professor of chemical and biomolecular engineering, co-corresponding author of the study and co-founder of Solidec, said in a news release. “That means fewer processing steps, lower waste and a more resilient supply chain.”

Sibani Lisa Biswal, chair of Rice’s Department of Chemical and Biomolecular Engineering and the William M. McCardell Professor in Chemical Engineering, also served as co-corresponding author on the study.

“We asked a basic question: If charging a battery pulls lithium out of a cathode, why not use that same reaction to recycle?” Biswal added in the release. “By pairing that chemistry with a compact electrochemical reactor, we can separate lithium cleanly and produce the exact salt manufacturers want.”

The new process also showed scalability, according to Rice. The engineers scaled the device to 20 square centimeters, then ran a 1,000-hour stability test and processed 57 grams of industrial black mass supplied by industry partner Houston-based TotalEnergies. The results produced lithium hydroxide that was more than 99 percent pure. It also maintained an average lithium recovery rate of nearly 90 percent over the 1,000-hour test, showing its durability. The process also worked across multiple battery chemistries, including lithium iron phosphate, lithium manganese oxide and nickel-manganese-cobalt variants.

Looking ahead, the team plans to scale the process and consider ways it can sustain high efficiency for greater lithium hydroxide concentrations.

“We’ve made lithium extraction cleaner and simpler,” Biswal added in the release. “Now we see the next bottleneck clearly. Tackle concentration, and you unlock even better sustainability.

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