The environmental impact of rail is also worse. Industry experts are quoted, and they note the inefficiencies of transporting oil via rail. I worked for a couple of Regional Banks, grew up with Merrill and now am at a Regional Firm based out of Louisville. Warren Buffet owns the railroad that is now transporting all that oil. Buffett is the chairman and CEO of Berkshire Hathaway, a multinational conglomerate that acquired Burlington Northern Santa Fe Corp (BNSF) in 2009, which was at the time the billionaire investors biggest-ever acquisition ( here ). Oh yeah. Oil that the Keystone Pipeline can't handle is now transported into the U. S. by rail. It seemed he was up to something. 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. After all, the #1 stock is the cream of the crop, even when markets crash. That 65 percent includes 51 percent of Democrats, a slim majority, but significant considering the Democrat party has a powerful environmentalist faction. 801 3rd St. S ", U.S. Rep. Ilhan Omar is "facing 40 years in prison and deportation after seven new crimes uncovered. 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. The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Buffett previously has voiced public support for the Keystone XL pipeline. In a world of wild talk and fake news, help us stand up for the facts. Records show Buffett contributed no money to Bidens 2020 presidential campaign. The same theory circulated during the Obama administration. 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. He did not contribute to Joe Bidens 2020 campaign. 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. Warren Buffett and the Keystone Decision By Daniel John Sobieski When President Obama announced he was killing the Keystone XL pipeline, he said he was agreeing with the State Department's. Cancelled by Biden on first day. (In case you didnt know. The author has no business relationship with any company whose stock is mentioned in this article. Federal Election Commission records show that Buffett made no individual contributions in 2020. The BNSF is one of the largest freight railroad networks in North America, with a rail network of 32,500 route miles in 28 states and three Canadian provinces" ( here ). Whatever the answer, the real lesson of the Keystone XL pipeline is that when politicians make decisions instead of entrepreneurs acting within the marketplace, everyone loses. Warren Buffett bought BNSF because he believes that railways play a crucial role in the success of Americas economy. Warren Buffet would lose billions in transport fees if the pipeline is completed. In a world of wild talk and fake news, help us stand up for the facts. Public records show Buffett didnt donate to any political campaign in 2020, let alone a $58 million sum, and a spokeswoman for Buffett confirmed this. However, Reuters argues that Berkshire Hathaway does not stand to benefit from the demise of the Keystone XL. Warren Buffet donated 58 million to Biden campaign. The internet is not known as a purveyor of truth. Berkshire Hathaway has a huge amount of cash that lets it invest in practically any business. Berkshire Hathaway has a huge amount of cash that lets it invest in practically any business. Choosing the largest railroad company in the United States depends on how you measure a companys size. In 2011 North Dakota was producing 417,400 barrels of oil per day. OpenSecrets.org by the Center for Responsive Politics, a non-profit and nonpartisan research group based in Washington, D.C. focusing on government transparency and tracking money in politics, lists Warren Buffetts political contributions here . With a nearby railway, every company from a family-run farm to a massive manufacturer had an easier way to ship its products. Reuters reported in 2013 - when the Keystone XL was being debated - that some industry officials, energy analysts and recent data raised questions about whether the industry really is eager to adopt crude-by-rail, primarily pointing to the economic cost of using rail over pipelines ( here ). Was there an ulterior motive sticking up for the country that the United States has the longest border in the world with? There's a great article about it on Seeking Alpha. Dr. The importance of railroads hasnt gone unnoticed by some of the worlds top investors. Why the phrase thumbing our noses? Cancelled by Biden on first day. 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.. Warren Buffet [t] owns the railroad that is now transporting all that oil. If you have an ad-blocker enabled you may be blocked from proceeding. Our Standards: The Thomson Reuters Trust Principles. A Facebook post claims the Keystone Pipeline was blocked by Obama to benefit Buffett. If completed, the $7 billion Keystone XL would deliver 700,000 barrels a day of crude from oil sands in Canada to Texas refineries on the coast of the Gulf of Mexico. The Biden administration has so far not announced any action against that pipeline. Theyll tell you about how the Middle Easts 1973 and 1979 embargoes against exporting oil to the U.S. resulted in long lines at the gas pump, rules about filling up your tank based upon whether your license plate ended in an even or odd number, etc. RT @Frida_Goman: Biden canceled the Keystone Pipeline because it was unsafe. Warren Buffet [t] donated 58 million to Biden campaign. "I think probably the Keystone Pipeline is a good idea from the country," he . 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. Bylines: Newsweek, The Washington Times, MSN.com, The Washington Examiner, The Daily Caller, The Federalist, the Epoch Times. With this newest expansion to the Panama Canal, the trip will be immensely shortened and cheaper. Warren Buffet donated 58 million to Biden campaign. The Canadian Prime Minister, Justin Trudeau, had a rocky relationship with President Trump. The text above the photo, which misspells Buffetts name, says: "The Keystone pipeline. Buffett does stand to profit from the cancelation of the Keystone pipeline and perhaps a great deal. Why not ally? The first claim in these posts is that Warren Buffett, the American business tycoon and billionaire, donated $58 million to Joe Bidens 2020 campaign. ", Earthquake in Turkey and Syria is "a systemic attack against Kurdish people.". 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's Keystone XL oil. Buffett has been reaping the benefits of the Keystone pipeline not being built because of his railroad shipping oil from the Bakken oil fields. Why are we importing the oil from Canada to be refined here? The end result is lower costs at the gas pump. Buffett gave no money to the Biden presidency campaign in 2020, Buffett assistant Debbie Bosanek told Reuters. In his wonderful amiability to the Canadian nation, the use of the word partner should make a lot more sense. Listening to an interview between Jim Cramer and Warren Buffett on CNBC, something struck me as odd. Warren Buffet would lose billions in transport fees if the pipeline is completed. which supports Democratic House candidates. We need your help. Reuters never asks this question, though it concedes moving oil by rail is less efficient. Warren Buffet owns the railroad that is now transporting all that oil. Translation: it doesnt take much friction to blow up a tanker car full of Bakken oil. (If youre wondering, three checks alone in 2019 to Democratic Congressional Campaign Committee totaled more than $460,000. One theory posits that the cost to build a railway today and jump through the municipal and state hurdles would be too high to justify. Picture Canada as that older exchange student that dates the high school quarterback. ), The false information can take many forms. It is the company's biggest acquisition ever. We are concentrating on the wrong pipeline. Days after U.S. President Joe Biden cancelled construction plans for the Keystone XL Pipeline - meant to carry oil from Canadas Alberta province to Nebraska - posts on social media alleged this move was due to Warren Buffetts extensive political donations to Bidens campaign. Fact check: Buffett did not donate to Biden; oil that would have been transported through the Keystone XL Pipeline will use existing infrastructure, not Buffett-owned railroad They claim that railways owned by Buffett now stand to benefit from transporting the oil that the Keystone XL Pipeline would have carried. Nor did Buffett campaign in favor of the current president. The posts say Buffetts railroad is now transporting all that oil following the Keystone XL Pipelines cancellation. On the other hand, its not unreasonable to suspect that unproductive entrepreneurship may have played a role. This post may contain affiliate links or links from our sponsors. Our only agenda is to publish the truth so you can be an informed participant in democracy. The Keystone pipeline. Thats incorrect. And many of those rail lines and tankers belong to BNSF. Trains still offer a fast, low-cost way to move materials. APS ASSESSMENT: False. 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. Warren Buffett's company Berkshire Hathaway purchased 77.4% of BNSF shares for $100 each on November 2, 2009. 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). After President Joe Biden, on his first day in office, effectively halted construction of the Keystone XL oil pipeline, tens of thousands of Facebook users shared an image that claimed he was repaying a favor to billionaire investor Warren Buffett. Warren Buffett owns the railroad that is now transporting all that oil. In 2014 it is estimated that North Dakota produced 1.1 million barrels a day, according to ND Energy Stats. No doubt BNSF will choose its tanker vendor carefully and with all due diligence; however, its worth knowing that Buffetts corporate empire includes the Union Tank Car Company which makes (surprise!) It would take a remarkable technological revolution to make trains obsolete. It is not an environmental issue, it is a money issue. Our only agenda is to publish the truth so you can be an informed participant in democracy. Is this happening to you frequently? I cannot speculate as to what company may be next for a takeover from Berkshire Hathaway, but I would not be surprised if it owns a license to export LNG from the west coast. Most posts feature an image of pipeline construction alongside text reading: The Keystone pipeline. The company is an indirect, wholly owned subsidiary of Berkshire Hathaway, which is controlled by investor Warren Buffett. Warren Buffett consistently makes some smart investment decisions that lead to huge returns. As just one example, forty-two people were confirmed dead in the 2013 Quebec train disaster, and several more are presumed dead. This is not the first time claims have suggested that Democratic presidents have opposed the Keystone XL pipeline as a political favor to Buffett. Research shows the spill rate for hazardous material transported by rail is 33 times higher than pipelines. A hefty sum, to be surethough one Buffett would hardly feel.). Months later, a curious social media post suggested the demise of the planned pipeline was the work of former President Barack Obama and was done as a favor to billionaire investor Warren Buffett. It boils down to this. The author is not receiving compensation for it. Not by much, though. How did it happen? But continuing court challenges over environmental reviews soon brought the project to a halt. Buffett previously has voiced public support for the Keystone XL pipeline. When it comes to length, though, BNSF manages to beat Union Pacific. So score one for Reuters for setting the record straight (and correctly spelling Buffetts name). 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 Railroads continue to help the country thrive. It would have carried up to 830,000 barrels per day of crude oil from Alberta, Canada, to Steele City, Neb., where it would connect with another leg stretching to Gulf Coast refineries. Warren Buffet would lose billions in transport fees if the pipeline is completed. 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. Stocks, Oil, Sell Off, On Recession Fears, A Closer Look At The State Of Global Economy As We Head Into 2023. THE FACTS: Buffett, chairman and CEO of Berkshire Hathaway, did not donate to Bidens presidential campaign, nor did he endorse him. Railway stations helped companies decide where to build factories. Some have really taken to the notion, for example, that Warren Buffett has a hand in delaying the pipeline project in order to boost his railroad business. Roughly a third of the natural gas North Dakota has produced in recent years has been flared rather than sold to customers.The lack of infrastructure for storage and transport pipeline. "Unusual cancers are exploding right into stage 4" and those cancer cells have the spike protein. Please, enable JavaScript and reload the page to enjoy our modern features. BNSF remains a money machine at Berkshire Hathaway, and its preposterous to think that canceling a pipeline that was expected to deliver 300 million barrels of crude each year will not result in increased rail transport of crude (even if other pipelines pick up much of the slack.). Berkshire Hathaway already owned 22.6% of the company, so the acquisition gave it total ownership of BNSF. 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. This claim defies both common sense and an abundance of research, however. Copyright IBTimes 2023. The meme (which I wont link to because I dont want to get slapped down for spreading fake news) went like this: The Keystone pipeline. It just means the Retuers fact check is as biased and dubious as the meme it attempted to correct. oil. See how politics works? He added that the delay in the construction of the Keystone pipeline was unlikely to prompt additional purchases of tank cars at Berkshire railroad unit BNSF. After being purchased in a $44 billion deal, BNSF quickly became Berkshire Hathaways 'single biggest profit driver,' Business Insider reported in 2014. Warren Buffet donated 58 million to Biden campaign. Rail executives themselves have said they expect to see crude-by-rail shipments increase because of Bidens executive order. Cellphone data used to arrest the Idaho quadruple-murder suspect proves that criticism of the 2000 Mules movies use of cell data is unfounded. With Burlington Northern's testing of LNG powered locomotive and their interest in shipping LNG on trains, what's Warren's next move? Federal Election Commission records show that Buffett made no individual contributions in 2020. Warren Buffet donated 58 million to Biden campaign. here ). Cancelled by Biden on first day. 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. It is not an environmental issue, it is a money issue the Facebook post reads. As a bit of history, Buffett purchased BNSF in a $44 billion deal in 2009. Those exploding oil trains are more common than people realize (see them in pictures), and the human and environmental costs are real and exceed the costs of moving oil by pipeline. He files all filing requirements for political contributions and made no contribution to any PAC.. We don't find evidence that the decision was intended to benefit Buffett. The larger size may help explain why Warren Buffett chose to purchase BNSF over Union Pacific. The meme is clearly wrong on multiple points. The oil is still flowing but now it's being brought to America on RAIL CARS.. along with dangerous chemicals Guess who owns the Rail Cars.. Ultra Left Extremist Warren Buffett . In 2010, Warren Buffett's Berkshire Hathaway acquired BNSF for $26.5 billion. But rail-car supplies can expand . Warren Buffett, the billionaire owner of. In this Dec. 18, 2020 file photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb. An image shared on Facebook claims Biden canceled the Keystone XL pipeline because Buffett "donated $58 million" to his campaign. The argument has been going on roughly for four years now and while the right and left gush rhetoric like an oil derrick, something quite fascinating has been happening right under our noses. 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