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Ken Lay and Jeff Skilling, CEO and president of Enron, respectively, pause for a moment on the trading floor.
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We believe our unparalleled ability to deliver on these three words will propel Enron to become THE "blue-chip" electricity and natural gas company of the 21st century.
In 1998, the business platform we have built to achieve that status delivered record earnings and excellent shareholder returns, outpacing our industry group and the broader stock market. Earnings of $698 million from operations represent a 36 percent increase compared to 1997, and our return to shareholders of almost 40 percent beat the 2.9 percent return of our peer group and the S&P; 500 return of 28 percent.
We are very pleased with these results. But it is the future that excites us the most.
The deregulation and privatization of global electricity and natural gas markets create an enormous opportunity for Enron. Just as coal was the primary energy source of the 19th century, and oil was the primary fuel of the 20th century, natural gas and electricity will be the primary sources of energy in the 21st century.
Already, the deregulation of many regional energy markets and the strong growth in natural gas demand - which is driven by technological advances in combined cycle power plants that produce substantially cleaner and cheaper electricity - is fueling economies and giving customers more and better energy choices. While we have seen impressive growth in global energy opportunities, the most rapid growth will occur over the next five years. In that time frame, in North America alone, the non-regulated electricity market is projected to grow at a rate of 35 to 40 percent per year and Enron is by far the largest participant in that market.