ExxonMobil's Ghost Building in Houston

On the way to business meetings on Louisiana and Bagby Street in downtown Houston, Texas, earlier this week, the Oilholic cut across Bell Street passing by number 800, which of course was once ExxonMobil’s downtown office, with the top two floors being the dining space for the Petroleum Club of Houston (PCOH).

Alas no more, as all former occupants of the building have moved to the oil giant's sprawling campus in Spring, TX close to The Woodlands north of George Bush Intercontinental Airport. That’s excluding the PCOH which is now at the nearby Total Plaza.

According to the Houston Chronicle’s archives, Shorenstein Properties closed on the property for anundisclosed amount in the first quarter of 2013 with plans for making changes and improvements following ExxonMobil’s departure.

However, the oil giant has since leased back the entire building and not much has happened. Plans to move local government agencies into the building or other private tenants for that matter haven’t quite worked out either.

Shame the city and the building’s owners can’t work out what to do with the historic offices built in 1963 which ExxonMobil occupied until recently (see right). Downtown area of the oil and gas capital of the world could well do without another ghost building, having had one nearby left behind by Enron's collapse until Chevron moved in years later. That’s all for the moment from Houston folks; keep reading, keep it crude!

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© Gaurav Sharma 2016. Photo 1: 800 Bell Street, Houston, Texas, USA in 2016. Photo 2: The building's exterior in 2010. © Gaurav Sharma.

Notes on a scandal from an ex-Enron pragmatist

When the Enron scandal broke and that icon of corporate America filed for bankruptcy on December 1, 2001, the Oilholic was as stumped by the pace of events as those directly impacted by it. In the months and years that were to follow, bankruptcy proceedings for what was once 'America's Most Innovative Company' according to Fortune, turned out to be the most complex in US history.

It soon emerged that one of Enron's own – Dr Vincent Kaminski – a risk management expert especially headhunted in 1990s from Salomon Brothers and appointed Managing Director for Research, had repeatedly red flagged practices within the energy company's corridors of corporate power.

Alas, in a remarkably stupendous act, Kaminski and his team of 50 analysts, while specifically hired to red flag were often ignored when and where it mattered. Cited cautions ranged from advising against the use of creative accounting, "terminally stupid" structuring of Enron's special purpose vehicles (SPVs) to conceal debt by then CFO Andrew Fastow, and the ultimately disastrous policy of securing Enron's debt against stock in the corporation itself.

What transpired has been the subject of several books – some good (especially Elkind & McLean's), some bad and some opportunistic with little insight despite grandiose pretensions to the contrary. Having lapped all of these up, and covered the scandal in a journalistic capacity, the Oilholic had long wanted to meet the former risk manager of Enron.

At last, a chance encounter in 2012, followed by a visit to Houston last November, finally made it possible. These days Kaminski is an academic at Rice University and has written no less than three books; the latest one being on energy markets. Yet, not a single one on the Enron fiasco, one might inquire, for a man so close to it all?

At peace and reasonably mellow in the Houston suburb of The Woodlands, which he calls home, the former Enron executive says, even though it rankles, the whole episode was "in the past", and despite what was said in the popular press – neither was he the only one warning about impending trouble ahead nor could he have altered Enron's course on his own.

"A single person cannot stop a tanker and I wasn't the only insider who warned that there were problems on the horizon. Looking back, I always approached every problem at Enron in good faith, gave the best answers I could come up with on risk scenarios, based on the information I had and my interpretation of it, even if bosses did not like it.

"If honesty was deemed too candid or crude then so be it! Whatever I did at Enron, the red flags I raised, was what I was paid for. Nothing less could have been expected of me; I saw it as my fiduciary duty."

He agrees that Enron's collapse was a huge blow to Houston's economy and overall wellbeing at the time. "There was a chain reaction that affected other parts of the regional economy. In fact, energy trading and marketing itself went through a crisis which lasted a few years."

To this day, Kaminski says he has no way of knowing whether justice was done or not and isn't alone in thinking that. "By the time of the final winding-up process, Enron had about 3,000 entities created all over the world. It was an extremely complex company."

But does the current generation of Rice University students ask him about Enron? "Right now, I am teaching a different generation. Most of my students are typically 25 to 30 years old. When the Enron scandal unfolded [over a decade ago] they were teenagers. A lot has happened in the corporate world since then, which they have had to take in as they've matured. The financial tsunami that was the global financial crisis, and what emerged in its wake, dwarfed what happened at Enron. For them, Enron is but a footnote in corporate history."

"That scandal devastated public trust in one brand, however big it may have been at the time. But the global financial crisis eroded public trust in an entire sector – investment banking. Perhaps as a result, Enron's collapse has ceased to generate as much interest these days. That's a pity! Depending on one's point of view, the extent of the use [or misuse] of SPVs and the number that was discovered at collapsing financial institutions in 2007-09, was several times over what was eventually catalogued at Enron."

Hence, the ex-Enron executive turned academic doubts whether the world really learnt from the scandal. "Enron was a warning from history, from the energy business to other sectors. I describe my former employer as a canary in a coal mine demonstrating the dangers of excessive leverage, of having a non-transparent accounting system and all those sliced and diced SPVs."

"Pre-crisis, the financial sector was guilty of formally removing 'potentially' bad assets from the parent company to SPVs. However, in real financial terms that wasn't the case. When things took a turn for the worse, all the assets and liabilities put on to SPVs came back to be reabsorbed into the balance sheets."

Formally they were separate and 'special', Kaminski notes, but for all practical reasons there was no effective transfer of risk.

"Rewind the clock back and there was no effective transfer of risk in the case of Enron either when its horror story of SPVs and creative accounting came out in all its unsavoury detail. So if lessons were learnt, where is the evidence? Now, let's forget scruples for a moment and simply take it as a basic mistake. Even so, there is no evidence lessons were learned from the Enron fiasco."

He adds that those who don't have an open mind will never learn. "This is not exclusive to the energy business or financial services. It's perhaps true of everything in life. Arrogance and greed also play a part, especially in the minds of those who think they can somehow extricate themselves when the tide turns."

As early as 2004-05, the Rice University academic says he was debating with colleagues that a financial crisis could be on the horizon as the US property market bubbled up.

"Some people branded me as crazy, some called me pessimistic. They said the world is mature enough to manage the situation and progress in economic and financial sciences had created tools for effective management of market and credit risks. Some even agreed that we'll have a train wreck of a global economy, but to my amazement remarked that they knew how to "get out in time."

Kaminski says while it can be true of individuals who can perhaps get out in time, it cannot be true of large corporations and the entire financial system. "They would invariably take a hit, which in some cases – as the financial crisis showed – was a fatal hit. Furthermore, the financial system itself was scarred on a global scale."

Over the years, this blogger has often heard Kaminski compare chief risk officers (CROs) to food tasters in medieval royal courts.

"Indeed, being a risk manager is a job with limited upside. You cannot slow 'acting poison' and the cooks don’t like you as you always complain that the food tastes funny. So if they catch you in a dark place, they will rough you up!" he laughs.

"I have said time and again that risk managers should be truly independent. In a recent column for Energy Risk, I gave the example of the CRO at Lehman Brothers, who was asked to leave the room when senior executives were talking business. It is both weird and outrageous in equal measure that a CRO would be treated in this way. I would resign on the spot if this happened to me as a matter of principle."

He also thinks CROs should be reporting directly to the board rather than the CEO because they need true independence. "Furthermore, the board should not have excessive or blind confidence in any C-suite executive just because the media has given him or her rock-star status."

A switch from the corporate world to academia has certainly not diminished Kaminski’s sense of humour and knack for being candid.

"Maybe having your CEO on the cover of Business Week [Cue: Enron's then CEO Jeff Skilling] could be the first warning sign of trouble! The second signal could be a new shining tower [see above left - what was once Enron’s is now occupied by a firm Skilling called a 'dinosaur' or legacy oil company – Chevron] and the third could be your company's name on a stadium! Our local baseball team – Houston Astros – called a stadium that was 'Enron Field' their home, then 'Enron Failed'. Thankfully, it's now shaken it off and is simply Minute Maid Park [a drinks brand from Coca-Cola's portfolio]."

"But jokes apart, excessive reliance or confidence in any single individual should be a red flag. I feel it's prudent to mention that I am not suggesting companies should not reward success, that's different. What I am saying is that the future of a company should not rely on one single individual."

Switching to 'crude' matters, Kaminski says trading remains an expensive thing for energy companies and is likely to get even costlier in light of higher capital requirements for registering as a swap dealer and added compliance costs. "So the industry will go through a slowdown and witness consolidation as we are already seeing."

On a more macro footing, he agrees that the assetization of black gold will continue as investors seek diversity in uncertain times. As for the US shale bonanza versus the natural gas exports paradigm, should exports materialise in incremental volumes, the [domestic] price of natural gas will eventually have to go up stateside, he adds.

"Right now, the price [of US natural gas] is low because it is abundant. However, to a large extent that abundance is down to it being cross-subsidised by the oil industry [and natural gas liquids]. I believe in one economic law – nothing can go on forever.

"As far as the LNG business is concerned, it will still be a reasonably good business, but not with the level of profitability that most people expect, once you add the cost of liquefaction, transportation, etc."

The Oilholic and the ex-Enron pragmatist also agreed that there will be a lot of additional capacity coming onstream beyond American shores. "We could be looking at the price of natural gas in the US going up and global LNG prices going down. There will still be a decent profit margin but it's not going to be fantastic," he concludes.

And that's your lot for the moment! It was an absolute pleasure speaking to Dr Kaminski! Keep reading, keep it 'crude'!

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© Gaurav Sharma 2014. Photo 1: Dr Vincent Kaminski at El Paso Trading Room, Rice University, Houston. Photo 2: Chevron Houston, formerly the Enron Towers. Photo 3: Dr Kaminski & the Oilholic, in The Woodlands, Texas, USA © Gaurav Sharma, November 22, 2013.

On Oilfield services co’s & a Texan Goodbye

Last two days have been about chatter on oilfield services and drilling companies at a pan global level based on Houstonian feedback, an interesting editorial and an investment note – all of which suggest that things are stable, growth will occur but that 2012-2013 may not be as good as 2011.

The reason is tied-in to the Oilholic’s last few blog posts that natural gas price is low and crude oil price is relatively high. So gains are to be made on one side of the business and the other side – while not necessarily countering all gains – would still stunt growth to a degree according to those in the know. Furthermore, growing competition within the services and drilling industry also means the biggest companies will still grow over the next 12 months, but not by the 10%-or-higher range that would warrant a continued positive outlook according to Moody’s.

“We foresee lower operating margins and slower EBITDA growth in 2012-2013 for the three companies that offer the best barometer of industry conditions – Schlumberger, Halliburton and Baker Hughes,” says Stuart Miller, Vice President & Senior Analyst at the ratings agency.

“We would move our outlook to positive if we projected that sector’s EBITDA would grow by more than 10% (annualised) over the next 12-18 months, while a drop of more than 10% would translate to a negative outlook,” he concludes.

The US rig count is also expected stabilise in 2012-2013. Oil-directed drilling will continue to outperform, but natural gas drilling will remain depressed into the foreseeable future, leading to a slower upward curve according to the agency.

(Click on graph - above right - to enlarge; for the latest Baker Hughes Rig Count click here). Nonetheless, drilling and associated services in unconventional plays continues as an area of strength for the industry.

The technical difficulty of developing unconventional resources will support a robust demand for sophisticated (also read expensive) horizontal well services. Companies such as Superior Energy Services, Key Energy Services and Basic Energy Services all stand to gain from their increasing exposure to unconventional plays, says Moody’s.

This ties-in nicely to an editorial in the latest (Apr 13, 2012) issue of the Houston Business Journal by Deon Daugherty in which she notes that private equity funding is being pumped in to oilfield services firms as 2012 unfolds alongside the usual investment in other traditional E&P components of the business.

Based on feedback from key local players, Daugherty writes that the technology and technical expertise needed to drill complex horizontal wells, hydraulic fracturing and expensive equipment is partly behind Houston private equity funds pouring investments in to oilfield services companies, alongside a high price of black gold driving investment into traditional E&P activity.

Speaking of editorials, there is another interesting and controversial one in The New Yorker (Apr 9, 2012) which makes a comment on ExxonMobil – the world’s largest “non-state-owned” corporation with annual revenues exceeding the GDP of Norway – and its ties with the US Republican Party.

While Democrats love to loathe the Irving, Texas headquartered IOC, columnist Steve Coll, splendidly notes that ExxonMobil CEO Rex Tillerson and President Obama "appear to share at least one understanding about energy policy and the 2012 (presidential) campaign: they are both aware that the partisan and media-amplified war over where to place the blame for rising (US) gasoline prices is largely a phony one."

The Oilholic couldn’t have put it better himself that being an E&P behemoth and that in itself being the area where its core interests are, "ExxonMobil can neither control prices at the pump nor make high profits there."

On a related R&M note, a Bloomberg report suggests that Delta Airlines is possibly in talks with ConocoPhillips about purchasing the Houston-based oil and gas major’s Trainer Refinery in Pennsylvania. Citing anonymous sources, the newswire says Delta would use the fuel from the Trainer refinery and other refineries in exchange for other products made there that it would not use.

While ConocoPhillips has said it would close the Trainer facility if it could not find a buyer by the end of May, its spokesman Rich Johnson told Bloomberg it is "still in the process of seeking a buyer for the refinery” and that the process was confidential. If it goes through, the move would be a remarkable one for a privately listed international airline.

Lastly on a crude pricing note, local media outlets suggest Enterprise Product Partners and Enbridge plan to reverse the flow of the Seaway oil pipeline two weeks ahead of schedule by mid-May pending US regulatory approval, thereby starting a much-needed reduction of excess crude from the US Midwest down and dispatch it to the Gulf Coast.

While the crude fetches a premium in the Gulf Coast, high inventory levels at the Cushing, Oklahoma – the delivery point for WTI oil futures contracts – have impacted WTI pricing relative to Brent. Reports suggest a mid-May (May 17) start date for the pipeline flow reversal will initially carry about 150,000 barrels per day of crude from the Midwest to the Gulf Coast. The news had an immediate impact as the arbitrage between transatlantic Brent and Gulf coast crudes on one hand and WTI on the other contracted sharply.

At 18:15 GMT, Light Louisiana Sweet (LLS) traded at US$19.40 a barrel premium over WTI, down US$1.65 from Friday's, Mars Sour (MRS) traded at US$12.25 a barrel over WTI down US$1.75, Poseidon (PSD) traded at US$11.55 over WTI down US$1.55.

Meanwhile, the ICE Brent futures contract for June traded at US$118.60 down US$2.61. Hitherto Brent crude and Gulf Coast crudes were moving up in tandem for the last 18 months, so this is certainly welcome news for those hoping for a return to more traditional levels stateside between WTI and Gulf Coast crudes.

Sadly, it is now time to bid another goodbye to Houston – a city which the Oilholic loves to visit more than any other. Yours truly leaves you with a view of the Minute Maid Park in downtown Houston. It is home to the local baseball team – the Houston Astros.

The stadium has a capacity of 40,963 spectators according to a spokesperson with an electronically retractable roof which was developed by Vahle, courtesy of which it can be fully air-conditioned when required – a wise decision given the city’s often hot and humid weather!

A local enthusiast tells the Oilholic that the field is unofficially and lightheartedly known as "The Field Formerly Known As Enron" by fans, locals, critics and scribes alike, acquiring the title in wake of the Enron scandal, as the failed energy company had bought naming rights to the stadium in 2000 before its spectacular and fraud-ridden collapse in November 2001.

Thankfully, on June 5, 2002, Houston-based Minute Maid, the fruit-juice subsidiary of Coca Cola Company, acquired the naming rights to the stadium for 28 years. Unlike Enron, it’s a healthier brand says the Oilholic. That’s all from Texas folks! Keep reading, keep it ‘crude’!

© Gaurav Sharma 2012. Photo 1: Pump Jacks Perryton, Texas, USA © Joel Sartore/National Geographic. Photo 2: Minute Maid Park - home of the Houston Astros, Texas, USA © Gaurav Sharma 2012. Graph: Land & Offshore rig count and forecast © Baker Hughes/Moody's.

Notes on a ‘Crude’ fortnight !

It has been a crude ol’ fortnight and there are loads of things to talk about. But first some “fused” thoughts from the Société Générale press boozer in London yesterday. There was consensus among crude commentators at the French investment bank most of whom asked that with commodities prices having been at or near record levels earlier this year, and subsequently subsiding only modestly, can anyone realistically say scribes or paranoid Western commentators are overstating the significance of China's presence in the global commodities markets? Nope! 

Additionally, should the existing commodities market conditions represent a bubble (of sorts); a deceleration in China could ultimately cause it to burst, they added. Most, but not all, also agreed with the Oilholic that IEA’s move to tap members’ strategic petroleum reserves (SPRs) may push Brent below US$100, but not US$90. At the moment it is doing neither. Finally, it is not yet time to hail shale beyond North America. Population concentration, politics and planning laws in Europe would make Poland a hell of a lot more difficult to tap than some American jurisdictions.

From an informal press party to a plethora of formal events at City law firms; of which there have been quite a few over the Q2 2011. Two of the better ones the Oilholic was invited to last quarter happened to be at Fulbright & Jaworski (May 10) and Clyde & Co (May 19).

The Fulbright event made Iraq and its “re-emergence” as an oil market as its central focus. Partners at the law firm, some of whom were in town from Houston, noted that since 2009 three petroleum licensing rounds have been held in Iraq with deals signed to cover of 51 billion barrels of reserves. There was enthusiastic chatter about the country’s ambitious plans to increase production from approximately 2.4 million barrels per day (bpd) to 12 million bpd by 2017. The Oilholic was also duly given a copy of the Legal guide to doing business in Iraq which regrettably he has so far not found the time to read.

Moving on, the Clyde & Co. event focussed on legal implications one year on from the BP Deepwater Horizon rig explosion. While much of the discussion was along predictable tangents, David Leckie and Georgina Crowhurst of Clyde & Co. drew an interesting comparison between the Piper Alpha tragedy of 1988 in the North Sea and the aftermath of the Gulf of Mexico spill. Agreed that regulatory regimes across the globe are fundamentally different, but observe this – Piper Alpha saw no corporate criminal prosecutions, no individual prosecutions and no top level political criticism. Deepwater Horizon will see FBI criminal and civil investigation, possible individual liability and we all remember President Obama’s “I am furious” remark. Shows how far we have come!

Continuing with Deepwater Horizon fiasco, met Tom Bergin last evening, a former broker turned Reuters oil & gas correspondent and a familiar face in crude circles. His book on BP – the aptly titled Spills and Spin: The Inside Story of BP – is due to be released on July 7th. Admittedly, books on the subject and on BP are aplenty since the infamous mishap of April 20th, 2010 and business book critics call them a cottage industry. However, the Oilholic is really keen to read Bergin’s work as he believes that akin to Bethany “Is Enron Overpriced?” McLean and Peter Elkind’s book on the Enron scandal which was outstanding (and surrounded by a cacophony of average “accounts”); this title could be the real deal  on BP and the spill.

Bergin knows his game, waited to present his thoughts and research in the fullness of time instead of a hurriedly scrambled “make a quick buck” work, has followed the oil major in question and the wider market for a while and has unique access to those close to the incident. Watch this space for a review!

Now, on to pricing and industry outlooks – nothing has happened since the Oilholic’s last blog on June 23rd that merits a crude change of conjecture. IEA’s move to tap in to members’ SPRs will not push Brent’s forward month futures contract below US$90 over the medium term. Feel free to send hate mail if it does! Analysts at ratings agency Moody's believe that (i) ongoing unrest in parts of the Middle East and North Africa (MENA); (ii) protracted supply disruptions in Libya; and (iii) lingering questions about OPEC supply are likely to keep crude at premium prices over the next 12-18 months.

In the past week, the press has received some ballpark figures from the agency. The release of 60 million barrels will take place in this month – but this will not be a straight cut case of two million bpd; the actual release will be much slower. The breakdown, as per IEA communiqués, will be -

• USA: 30 million barrels (or 50% of the quota comprising largely of light sweet with delivery of their lot to be complete by the end of August), 
• Europe: 18 million barrels (30%)
• Asia: 12 million barrels (20%)

Finally, the British Bankers Association (BBA) conference last week also touched on crude matters. Gerard Lyons, Chief Economist & Group head of Global Research at Standard Chartered opined that Western economies are two years into a recovery and that growth prospects are far better in the East than in the West. Hence, he also expects energy prices to firm up next year.

Douglas Flint, Group Chairman of HSBC Holdings noted that China is now a major destination for Middle Eastern exports (to be read oil and gas, as there is little else). So we’re back where we started this post – in the East that is!

© Gaurav Sharma 2011. Photo: Pipeline in Alaska © Michael S. Quinton, National Geographic

Talking SPRs & bidding farewell to North America

As the Oilholic prepares to leave North America and head home, oil prices are at a 32-month high with both the WTI & Brent forward futures contracts setting new records each week. Americans are grappling with gasoline prices of over US$4 per gallon. European tales of crude woes have also reached here.

Quite frankly, the global markets must prepare for a lengthy supply shortage of the 1.4 million barrels per day exported by Libya. Rest of OPEC is struggling to relieve the market pressure. Yet it is not the time for governments of the world to dig into their strategic petroleum reserves (SPRs) as has been suggested in certain quarters.

The loudest clamour here is coming from Senator Jeff Bingaman – a Democrat from New Mexico and chairman of the US Senate energy committee – who would like to see his country’s SPR raided to relieve price pressures. That SPR is tucked away somewhere in states of Texas and Louisiana and contains 727 million barrels of the crude stuff. The Japanese have stored up 324 million while European Union member nations should have just under 500 million barrels.

The Oilholic would like to tell Senator Bingaman and others making similar calls that such a move would add to the market fear and confirm that a perceptively short term problem is worsening! Long term hope remains that the Libyan supply gap would be plugged. Releasing portions of the SPRs would not alleviate market concerns and could even be a disincentive for the Saudis to pump more oil.

Meanwhile, the IMF also warned about further scarcity of supply, noting: “The increase in the trend component of oil prices suggests that the global oil market has entered a period of increased scarcity.” This does beg one question though – if supplies from the world’s 17th largest oil exporter can cause such market fear, then aren’t we glad it wasn’t an exporting nation further up the 'crude' chain?

Elsewhere, a share exchange agreement between BP and Russia’s Rosneft was blocked again on April 8 as an arbitration panel in London upheld an injunction on the deal following objections by TNK-BP. However, it gave BP until Apr 14 to find a solution. Shareholders of TNK-BP – an earlier Russian joint venture of BP – have argued successfully up until now that the tie-up breaches business agreements BP entered into with them.

The only good news here for BP is that it can ask for Rosneft's consent to keep the agreement alive. If the company bosses wished for an easier 2011, clearly the year has not started as such and as with much else, the injury is largely self-inflicted! And here is BP’s spiel on the Gulf of Mexico restoration work.

Additionally, on April 6 a three-judge panel of the Fifth Circuit Court of Appeals in Houston denied ex-Enron chief executive Jeffrey Skilling a new trial, upholding his conviction on 19 counts of conspiracy and other crimes. It vacated Skilling's 24-year prison sentence and sent it back to a lower court for re-sentencing.

Enron's collapse into bankruptcy in 2001, following years of dodgy business deals and accounting tricks, made over 5,000 people redundant, wiping out over US$2 billion in employee pensions and meant US$60 billion in the company’s stocks were worthless. The city of Houston bore the brunt of it but the Oilholic is happy to observe that it found the strength to move on from it.

Having left London on March 23, it has been an amazing three-week long journey across the pond starting and ending here in Houston, with Calgary, Vancouver, Seattle and San Francisco in between. Completing a full circle and flying back to London from Houston, it is apt to thank friends and colleagues at Deloitte, Barclays Capital (Canada), S&P, Norton Rose Group, Ogilvy Renault LLP, Heenan Blaikie LLP, Mayer Brown LLP, Pillsbury Winthrop Shaw Pittman LLP, Canadian Association of Petroleum Producers (CAPP), Stanford University, Rice University, University of Calgary and several energy sector executives who spared their time and provided invaluable insight for the Oilholic’s work.

© Gaurav Sharma 2011. Photo: Disused Gas Station in Preston, Connecticut, USA © Todd Gipstein/National Geographic Society

1500 Louisiana Street's journey: Enron to Chevron

If you happen to be in downtown Houston, can you afford to miss 1500 Louisiana Street? It is not as if the building is the tallest in town. In fact, I am reliably informed that it is the 17th tallest.

Quite simply the infamy that Enron came to signify for corporate America in general and the energy business in particular has given the building a place in history that it neither craves at present nor ever sought in the past.

In fact prior to its collapse, Enron wanted 1500 Louisiana Street to be its headquarters but never actually occupied it in wake of its corporate scandal in October 2001. Following Enron’s collapse, the building’s leasing company touted it to quite a few including ExxonMobil next door but to no avail. Finally, in 2005 ChevronTexaco bought the building and moved its Houston offices there.

The Oilholic couldn’t but help note with a wry chuckle this morning when an “out of towner” like him enquired of a rather irritated Chevron security guard whether the building was where Enron used to be.

Enron never formally entered the building, but it seems the ghost of Enron never left. That’s judging by number of people outside clicking photos away in the three mornings that I have walked past it since arriving in Houston! So here's mine in keeping with that spirit.

© Gaurav Sharma 2011. Photo: 1500 Louisiana Street, Houston, Texas, USA © Gaurav Sharma, March 2011