27 Feb 2023 23:12:12 In 2019, he gave $248,500 to the Democratic Congressional Campaign Committee. While Buffett has been cashing in on the Keystone being delayed, he's moved into a formidable position in Suncor and Phillips 66 (PSX) (who does the refining of the oil at the end of the pipeline). The author wrote this article themselves, and it expresses their own opinions. By purchasing BNSF, Berkshire Hathaway got a longer railway at less than half the price of Union Pacific. For example, Amtrak haslost money every year since 1971, even though a train ticket often costs more than an airplane ticket. The meme is clearly wrong on multiple points. The author has no business relationship with any company whose stock is mentioned in this article. Its expensive to transport crude by rail, especially over long distances, Ben Cahill, a senior fellow in the Energy Security and Climate Change Program at the Center for Strategic and International Studies, told Reuters. It is true that Buffetts company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. Instead, he takes a long-term perspective that involves purchasing a company and improving its performance over the years. Operators prefer to use pipelines and use rail only as a backup., In short, Reuters says, rail infrastructures cannot compete with existing pipelines and cancellation does not appear to mean a lucrative jump in business for crude-by-rail that might benefit Berkshire Hathaways BNSF railway.. A hefty sum, to be surethough one Buffett would hardly feel.). Correction Feb. 3, 2021: Removing reference to Energy Information Administration / Department of Energy in paragraph 15, the data is from BTS. By purchasing BNSF, Buffett made an investment that helps streamline the supply chain processes of his other businesses. Suncor meanwhile has promised the Canadian government that it will increase their supply by 10% to get their product to market on the Keystone Pipeline. Railroads played a crucial role in Americas development. That said, Reuters claims dont add up, and the news agency omits relevant facts about Buffetts rail operation. Unfortunately, from here Reuters fact check goes off the rails. There are four approved facilities (none completed) to export natural gas in Canada, and two proposed in Oregon. As a bit of history, Buffett purchased BNSF in a $44 billion deal in 2009. St. Petersburg, FL Warren Buffet would lose billions in transport fees if the pipeline is completed. But the posts main thesis, that the billionaire investor was a major donor to Bidens campaign, is not true. Mr. Financhill just revealed its top stock for investors right now so there's no better time to claim your slice of the pie. Buffett says that heconsiders buying BNSF anall-in wager on the economic future of the United States.. Natural gas for the most part is either used geographically close to where it is harvested in North Dakota or it is burned off in a process called flaring. So far, Warren Buffett and Berkshire Hathaway have not chosen to purchase Union Pacific. While the nation has been arguing over the Keystone, Berkshire Hathaway has been cashing in. Does Warren Buffett own the railroad? The internet is not known as a purveyor of truth. Without the Keystone Pipeline, were enduring events such as last Julys tank car explosion that killed 47 people and leveled a small town in Quebec. A Facebook post claims the Keystone Pipeline was blocked by Obama to benefit Buffett. Drinking or using tap water treated with chlorine is dangerous because chlorine is a poison., Joe Biden described America as the foothills of the Himalayas with Xi Jinping., Kid Rock tweeted, Some people wouldnt recognize tyranny if it slapped a mask on their face, made them stand 6 feet apart, and forced them to take a vaccine for a virus with a 99.8% survival rate., The train that derailed in Ohio was carrying over 300,000 gallons of a chemical that was banned in 1974.. More importantly, the assertion that Buffett donated $58 million to the Biden campaign is bogus. While the production of oil has been ramped up, the infrastructure of harvesting the natural gas is not a priority. Biden halted the Keystone XL Pipeline on his first day in office through executive order, citing his administrations economic and climate interests. "Unusual cancers are exploding right into stage 4" and those cancer cells have the spike protein. As president, Obama rejected a permit for the pipeline, arguing that the project would not lower gas prices or increase the nations energy security. Buffett does stand to profit from the cancelation of the Keystone pipeline and perhaps a great deal. Pfizer made $37 billion in profit in its last quarter. I think probably the Keystone pipeline is a good idea for the country.. (Read more about our partnership with Facebook.). So score one for Reuters for setting the record straight (and correctly spelling Buffetts name). BNSFs value is about half that. Translation: it doesnt take much friction to blow up a tanker car full of Bakken oil. What if you could ship the LNG from the west coast of the US or Canada? This brings me to natural gas. During this year, 110.2 million barrels of crude oil were transported from Canada to the United States by rail ( here ), meaning only about 8% of the years imports from Canada traveled by rail. As for the claim about Buffett's concern for the pipeline it's true that Berkshire Hathaway owns BNSF Railway, which carries crude oil and has an interest in transporting Canada's supply. The Nebraska. All rights reserved. Through a holding. It is not an environmental issue, it is a money issue the Facebook post reads. Warren Buffett consistently makes some smart investment decisions that lead to huge returns. In 2018, he gave $33,900 to the Democratic Congressional Campaign Committee, $33,900 to the Democratic Senate Campaign Committee, and $2,700 each to the campaigns of Democrats Donna Shalala and Rufus Gifford. 727-821-9494. stated on January 27, 2021 in a Facebook post: Says Joe Biden canceled the Keystone pipeline because Warren Buffett donated $58 million to his campaign. THE FACTS: On Bidens first day in office. Dr. How long would the trip be and how much would it cost? How did it happen? Cashing in on our political climate and being one step ahead of his competitors is old hat to this Nebraskan. Obama Crony Warren Buffet Biggest Winner From Keystone Pipeline Rejection Results 1 to 2 of 2 Thread: Obama Crony Warren Buffet Biggest Winner From Keystone Pipeline Rejection Berkshire noted that . Warren Buffet donated 58 million to Biden campaign. Having a train station in town helped locals access the goods they needed. As Reuters notes, the post is referring to the Keystone XL Pipeline, a project Biden canceled by executive order on his first day in office. Natural gas comes from the oil reserves that are being harvested in the Bakken Shale region; it is called associated gas because it is associated with the oil. But lets remember the reason given by President Barack Obamas administration and its friends for holding up the Keystone project: the environment. Buffett supported the pipeline. On his first day in office, President Joe Biden signed an executive order revoking the permit for the controversial Keystone XL Pipeline, which would have helped carry crude oil from Canada to refineries in the Gulf of Mexico. Why not ally? Because of this, operators prefer to use pipelines and use rail only as a backup.. Just ask someone who was driving a car in the 1970s. When it comes to length, though, BNSF manages to beat Union Pacific. Warren Buffet owns the railroad that is now transporting all that oil. Where are those proposals which certainly make sense in this changing energy climate that we live in? APS ASSESSMENT: False. When Financhill publishes its #1 stock, listen up. Warren Buffett's Burlington Northern Santa Fe LLC is among U.S. and Canadian railroads that stand to benefit from the Obama administration's decision to reject TransCanada Corp.'s Keystone . You dont get bargains on things like that, Buffett said in the interview. Warren Buffet owns the railroad that is now transporting all that oil. The 1,700-mile pipeline was planned to carry roughly 800,000 barrels of oil a day from Alberta to the Texas Gulf Coast. Keystone pipeline Reuters If a Mad magazine existed for economists (that is, we who labor in what's known as the "dismal science"), it would be Warren Buffett's annual March letter to his. In 2011 North Dakota was producing 417,400 barrels of oil per day. THE FACTS: On Bidens first day in office, he halted construction of the Keystone XL pipeline. Warren Buffett, the billionaire owner of Berkshire Hathaway and one of the most successful investors alive, owns BNSF Railway Company. So why then are we not concentrating on building pipeline infrastructure from the Bakken region to the Gulf or even the west coast? Read more about our work to fact-check social media posts here . Warren Buffet would lose billions in transport fees if the pipeline is completed. Texas Roadhouse is sending vouchers for a free steak dinner for four to everyone who shares and comments on a Facebook post. The larger size may help explain why Warren Buffett chose to purchase BNSF over Union Pacific. More stunning: The business is on pace to return all the cash Mr. Buffett spent taking it private by the end of this year., None of these facts made it into Reuters fact check.. So why all the fuss about the pipeline from Canada? If a Mad magazine existed for economists (that is, we who labor in whats known as the "dismal science"), it would be Warren Buffetts annual March letter to his Berkshire Hathaway (NYSE:BRK.A) shareholders. This is false, as most of the oil that would have made use of the Keystone XL will likely travel through existing and new pipelines. In 2018, he gave $33,900 to the Democratic Congressional Campaign Committee, $33,900 to the Democratic Senate Campaign Committee, and $2,700 each to the campaigns of Democrats Donna Shalala and Rufus Gifford. Official govt docs expose Michelle Obamas 14 year history as a man., "Woody Harrelsons 60 seconds in the middle of his monologue was cut out of the edits released after the show., BREAKING Trump preps Marines to stop presidential coup.. . COVID-19 vaccines "provide zero benefit relative to risk for the young and healthy.". Warren Buffet would lose billions in transport fees if the pipeline is completed. With this newest expansion to the Panama Canal, the trip will be immensely shortened and cheaper. Some have gone through the Mediterranean and the Suez Canal. The environmental impact of rail is also worse. See how politics works? LNG exporters on the West Coast of North America. Shipping oil by train doesnt operate under the same price restraints as oil pipelines, which are regulated much like utilities by the federal government. Buffett did contribute to Obamas presidential campaigns. Reuters never asks this question, though it concedes moving oil by rail is less efficient. The Biden administration has so far not announced any action against that pipeline. Joanne Butler is a graduate of the Kennedy School of Government at Harvard University and a former professional Republican staff member at the U.S. House of Representatives Ways and Means Committee. Biden cancellation of Keystone XL pipeline was not a favor to Warren Buffet. But rail-car supplies can expand . Buffett has expressed his support for the Keystone XL Pipeline, even though it would have competed against his Burlington Northern railroad, which transports crude. BHA had 18.4% higher earnings in 2022, driven by higher vehicle gross profit margins. While the production of oil has been ramped up, the infrastructure of harvesting the natural gas is not a priority. The Keystone XL Pipeline has been blocked multiple times for climate, economic, and perceived national-interest reasons. The U.S. is also still poised to import record amounts of Canadian oil in the coming years, and several of the lines carrying that crude are in the midst of expansions (more detail on these in a Reuters report here ). In 2014 it is estimated that North Dakota produced 1.1 million barrels a day, according to ND Energy Stats. Berkshire Hathaway did not respond to Reuters request for comment on possible gains from Keystone XLs cancellation. Anticipating the wrath of Capitol Hill and the White House, he announced on Feb. 20 that BNSF will purchase 5,000 upgraded, safer (and more expensive) tanker cars. Buffett,chairman and CEO of Berkshire Hathaway, did not donate to Bidens presidential campaign, nor did he endorse him. The end result is lower costs at the gas pump. Bidens executive order revoking the permit for the project read, Leaving the Keystone XL pipeline permit in place would not be consistent with my Administrations economic and climate imperatives.. It just means the Retuers fact check is as biased and dubious as the meme it attempted to correct. Warren Buffett bought BNSF because he believes that railways play a crucial role in the success of Americas economy. As environmental groups hail President Obama's rejection of the Keystone XL pipeline, Warren Buffett is set to reap a handsome reward from the decision. Im not an engineer, but plain common sense indicates it would be safer to ship Bakken oil through a smooth pipeline instead of by rail. Its been observed that in modern America there are two primary types of entrepreneurs: market entrepreneurs and political entrepreneurs. stated on February 20, 2023 in an Instagram post. Why the phrase thumbing our noses? In fact, there is no record Buffett gave any money to Bidens 2020 presidential bid, and Buffetts assistant, Debbie Bosanek, confirmed to The Associated Press that he did not. When Warren Buffett was asked what he thought about the Keystone Pipeline he responded with: Canada's been a terrific partner for us over the decades and it is wrong for us to thumb our nose at them. See how politics works? While analysts over the years have suggested that the Keystone XL pipeline would take business from BNSF, Buffett voiced his support for the project in aCNBC television appearance in 2014. Despite his stake in the railroad business, Buffett still expressed support for the controversial Keystone XL Pipeline. With Burlington Northern's testing of LNG powered locomotive and their interest in shipping LNG on trains, what's Warren's next move? Buffett has been reaping the benefits of the Keystone pipeline not being built because of his railroad shipping oil from the Bakken oil fields. See how politics works? Interestingly, Union Pacifics stock price fell to a nearly three-year low in March 2020. Cellphone data used to arrest the Idaho quadruple-murder suspect proves that criticism of the 2000 Mules movies use of cell data is unfounded. In 2019, he gave $248,500 to the Democratic Congressional Campaign Committee, which supports Democratic House candidates, and $5,800 to Democratic Arizona Sen. Mark Kellys campaign. The author has no position in any of the stocks mentioned. Dave Smallen, director of public affairs at the Bureau of Transportation Statistics, sent Reuters estimates for 2020 calculating that of the oil coming from Canada to the United States, 74.4% used pipelines compared to 3% using rail. In 2019, for example, the United States imported 3.7 million barrels per day from Canada ( here ), about 1.35 billion barrels for the year. A Facebook post that has been shared more than 60,000 times suggests Biden halted the pipeline not for environmental reasons, but as a favor to Buffett. The US State Department confirms that rail is a more dangerous way to transport oil compared to pipelines. Warren Buffett currently owns one railroad, BNSF. He files all filing requirements for political contributions and made no contribution to any PAC.. The Keystone XL pipeline was first proposed more than a decade ago during a period of high oil prices. On the other hand, its not unreasonable to suspect that unproductive entrepreneurship may have played a role. It is true that Buffett's company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. Using U.S. federal government data, the McClatchy news service estimates that in 2013 more oil was spilled than in the previous four decades combined. The Keystone veto override vote failed in the Senate. See how politics works? Billionaire investor Warren Buffett affirmed his belief that the Keystone XL pipeline would benefit America if it's approved by the Obama administration. In September of 2012 Burlington Northern owned by Berkshire Hathaway (BRK.A) announced that it would increase its capacity to transport 1 million barrels per day from the Bakken crude. According to Federal Election Commission records, Buffett did not contribute to Joe Bidens 2020 presidential campaign. No pipeline failure has ever come close to this level of human death and suffering, Westenhaus points out. District of Columbia In 2010, Warren Buffett's Berkshire Hathaway acquired BNSF for $26.5 billion. Copyright 2023 IBTimes LLC. 727-821-9494. stated on October 27, 2021 in post on Facebook: Keystone Pipeline was blocked by Obama on Warren Buffetts behalf. Reverse-image searches show it was being shared as early as 2015, midway through Obamas second term. Its trains carry energy (such as oil and coal), agricultural and consumer products. His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star Tribune. 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