The failure of California markets, Enron, and the low-point of the merchant plant business cycle has left many executives pessimistic over the prospects that true competitive markets in energy will develop. Top economists discuss the industry’s outlook.

Domestic energy companies may have breathed a sigh of relief last March when the United States pulled out of the Kyoto Protocol. Gone was the specter of expensive compliance with emissions reduction targets set by the treaty. So long as they don't care about expanding globally or entering emerging emissions trading markets, they probably have a reason to think they've dodged the emissions bullet.