keystone pipeline warren buffett railroadkeystone pipeline warren buffett railroad
Texas Roadhouse is sending vouchers for a free steak dinner for four to everyone who shares and comments on a Facebook post. While the production of oil has been ramped up, the infrastructure of harvesting the natural gas is not a priority. FOLLOW MORE IBT NEWS ON THE BELOW CHANNELS, IBT Fast Start - Let the best of International News come to you. 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 . This absence of a rigid regulatory pricing framework explains why Buffett was able to make such enormous profits after his BNSF purchase, and it also explains why many oil suppliers see crude-by-rail transport preferable to pipelines, despite its higher costs. It is true that Buffett's company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. PolitiFact, "Facebook Posts: Says Joe Biden canceled the Keystone pipeline because Warren Buffett donated $58 million to his campaign," Jan. 27, 2021, Reuters, "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," Feb. 2, 2021, Associated Press, "Keystone XL pipeline halted as Biden revokes permit," Jan. 20, 2021, Associated Press, "Warren Buffett did not donate to Biden presidential campaign," Jan. 28, 2021, FactCheck.org, "Buffett Didnt Donate to Biden or Cause Pipeline to be Cancelled," Feb. 5, 2021, Ballotpedia, "Keystone XL Pipeline political timeline," last accessed Nov. 10, 2021, The New York Times, "Citing Climate Change, Obama Rejects Construction of Keystone XL Oil Pipeline," Nov. 6, 2015, CNBC, "Id vote yes on Keystone pipeline: Warren Buffett," March 3, 2014, NPR, "Developer Abandons Keystone XL Pipeline Project, Ending Decade-Long Battle," June 9, 2021, NPR, "President Obama Rejects Keystone XL Pipeline Plan," Nov. 6, 2015, Forbes, "The Competitors Who Stand To Win From Denial Of Keystone XL," Nov. 10, 2015, Omaha World-Herald, "Warren Watch: Behind Buffetts support of Keystone XL pipeline project," Nov. 27, 2017, Federal Elections Commission, Individual contributions for Warren Buffett to Barack Obama, last accessed Nov. 12, 2021. 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.). But the posts main thesis, that the billionaire investor was a major donor to Bidens campaign, is not true. and $5,800 to Democratic Arizona Senator Mark Kellys campaign. 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.. And railways will always be in need so with demand steady and no further competition, prices can rise over time which will lead to ever more profits flowing to Berkshire. Video shows President Joe Biden recalling an alien encounter. Or perhaps its the nutty Qanon conspiracies you see in your Twitter feed. Warren Buffet donated 58 million to Biden campaign. The importance of railroads hasnt gone unnoticed by some of the worlds top investors. Warren Buffet would lose billions in transport fees if the pipeline is completed. The purchase had a value of about $44 billion, making it the largest acquisition in Warren Buffetts career. The Keystone veto override vote failed in the Senate. Warren Buffett would lose billions in transport fees if the pipeline is completed. Only a 1.2-mile section had been completed before Biden on Jan. 20 signed an executive order revoking the pipelines construction permit, saying the pipeline would "not be consistent with my administrations economic and climate imperatives.". His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star Tribune. He has done this while costing his competitors while quietly acquiring shares in a Canadian company that has much to gain from the Keystone being built, Suncor. Sign up and stay up to date with our daily newsletter. Ugur Sahin, CEO of BioNTech and inventor of the BIO N TECH Pfizer jab, refuses to take the jab for safety reasons.. The Keystone pipeline. Just ask someone who was driving a car in the 1970s. 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, in fact, supported its construction. Buffett assistant Debbie Bosanek told the Associated Press, "Mr. Buffett has never seen any report by BNSF projecting whether the Keystone Pipeline would increase or decrease the revenue of the railroad.". , even though a train ticket often costs more than an airplane ticket. In 2011 North Dakota was producing 417,400 barrels of oil per day. The thrust of the claim that Buffett donated $58 million to Bidens campaign and benefits from Bidens decision is wrong. This could turn an $8,000,000 trip into a $4,000,000 trip to export a product that has a lot of demand in Asia. Warren Buffett consistently makes some smart investment decisions that lead to huge returns. It is not an environmental issue, it is a money issue the Facebook post reads. Its important to consider that buying BNSF does more than help Berkshire Hathaway earns returns from within the railway industry. "In the month since Republicans took the House majority," they are trying to "impose a 30% tax on everything. In a world of wild talk and fake news, help us stand up for the facts. On Friday, The Associated Press reported on stories circulating online incorrectly asserting billionaire Warren Buffett donated $58 million to President Joe Biden's campaign, so Biden canceled the Keystone XL pipeline as a favor to him. 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. Our only agenda is to publish the truth so you can be an informed participant in democracy. Railroads such as BNSF, Reuters says, are not the principle way oil is transported from Canada to the United States.. 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. Last month, another derailment dumped 4,000 gallons of oil in a town about 20 miles from Pittsburgh. The Keystone oil pipeline is good idea for the United States, Warren Buffett said Monday, even though it would take away some business from his Berkshire Hathaway rail subsidiary BNSF. This is part of The Associated Press ongoing effort to fact-check misinformation that is shared widely online, including work with Facebook to identify and reduce the circulation of false stories on the platform. He did not contribute to Joe Bidens 2020 campaign. Its not an environmental issue, it is a money issue. The transaction also meant that Berkshire Hathaway purchased $10 billion of BNSFs outstanding debt. So looking to the future, little competition beyond existing railways is likely to ensue. "I think probably the Keystone pipeline is a good idea for the country," he said during an appearance on CNBC's "Squawk Box" on Monday. Written in a breezy, sometimes cheeky tone, its a harbinger of spring, like sighting the first robin of the year. This caused me to think about what a mistake this whole argument has been. Moving crude by rail is costly, inefficient, and dangerous compared to oil pipelines. Warren Buffet [t] owns the railroad that is now transporting all that oil. So score one for Reuters for setting the record straight (and correctly spelling Buffetts name). The horrible truth is train transport is far more dangerous, energy writer Brian Westenhaus has pointed out. oil. Buffett previously has voiced public support for the Keystone XL pipeline. It boils down to this. Biden said he issued an executive order canceling the pipelines construction permit for economic and environmental reasons. 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. It also gives Buffett opportunities to make his other investments more valuable. 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. It is the company's biggest acquisition ever. Warren Buffet [t] would lose billions in transport fees if the pipeline is completed. Reuters never asks this question, though it concedes moving oil by rail is less efficient. 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. Biden cancellation of Keystone XL pipeline was not a favor to Warren Buffet. Pfizer made $37 billion in profit in its last quarter. Some estimates put Union Pacifics overall value at more than $105 billion. The North Dakota Industrial Commission has been working to reduce flaring with the Northern Border Pipeline Company and the Dakota Pipeline Company. They deny that canceling the Keystone XL would actually benefit BNSF, saying that the oil intended for Keystone would simply be moved by existing and new pipeline infrastructure, not railways.. Sometimes its more subtlethe news headline that says something thats actually not in the article. Berkshire noted that . Warren Buffet owns the railroad that is now transporting all that oil. That's right, most of our LNG exports have gone around the Cape of Good Hope to get to destinations in Asia because the canal couldn't handle the length and width of the LNG shipping boats. ", "New government-funded 'food pyramid' says Lucky Charms are healthier than steak. Leaked tax return reveals secret to pocketing $460,164 Not all types of railroads earn profits, though. campaign, nor did he endorse him. The survey found that 65 percent of Americans support building the Keystone pipeline. These vehicle margins peaked in the first half of 2022 and declined in the second half. Railroads such as BNSF owned by Buffett ( here ), however, are not the principle way oil is transported from Canada to the United States. When Financhill publishes its #1 stock, listen up. In the past few years, Buffett expressed support for the pipeline. At the time, Obama did reject a permit for Keystone XL, arguing in his Nov. 6, 2015, statement that the pipeline would not lower gas prices, increase the nations energy security or make a meaningful long-term contribution to the U.S. economy. The author wrote this article themselves, and it expresses their own opinions. Warren Buffet donated 58 million to Biden campaign. 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. Buffett,chairman and CEO of Berkshire Hathaway, did not donate to Bidens presidential campaign, nor did he endorse him. for natural gas have exacerbated this problem. Please, enable JavaScript and reload the page to enjoy our modern features. Buffett doesnt believe in short-term investment strategies that can lead to quick profits. Forty-two people were confirmed dead in the 2013 Quebec train disaster, and several more are presumed dead. This brings me to natural gas. Our Standards: The Thomson Reuters Trust Principles. Published: Nov. 3, 2009 at 4:18 p.m. Warren Buffet donated 58 million to Biden campaign. The Nebraska. I worked for a couple of Regional Banks, grew up with Merrill and now am at a Regional Firm based out of Louisville. The railroad had sent more than $15 billion in dividends to Berkshire through Sept. 30, according to quarterly regulatory filings. Cancelled by Biden on first day. As per Reuters reports and industry experts, the Keystone XL Pipelines cancellation does not appear to mean a lucrative jump in business for crude-by-rail that might benefit Berkshire Hathaways BNSF railway. 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. Recently there was a meme going around claiming that President Joe Biden spiked construction of the Keystone XL pipeline on his first day because of political donations from Warren Buffett, the billionaire investor who runs the multinational conglomerate Berkshire Hathaway. An image shared on Facebook claims Biden canceled the Keystone XL pipeline because Buffett "donated $58 million" to his campaign. Copyright IBTimes 2023. This post may contain affiliate links or links from our sponsors. Even in May 2020, when much of the economy struggled with the COVID-19 pandemic, Berkshire Hathaway had$137 billion in cash. According to public records from OpenSecrets and a spokeswoman for Buffett, this claim is false. If anyone believes the Keystone Pipeline isnt being blocked by Obama on Buffets behalf, Ive got a bridge to sell you. You dont get bargains on things like that, Buffett said in the interview. Copyright 2023 IBTimes LLC. The theory is that Buffett is. 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. But lets remember the reason given by President Barack Obamas administration and its friends for holding up the Keystone project: the environment. The Keystone XL may have simply become a symbol of dirty, nasty oil, which meant it had to goeven if theres little dispute that spiking the pipeline increases pollution and energy costs and puts more lives at risk. 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. Environmental activists and indigenous communities hailed the cancellation, and traders and analysts said U.S.-Canada pipelines will have more than enough capacity to handle increasing volumes of crude out of Canada, the primary foreign supplier of oil to the United States ( here ). Please disable your ad-blocker and refresh. See how politics works? See how politics works? While Buffett donated to the Democratic Congressional Campaign Committee (DCCC, the committee working to elect Democrats to the House of Representatives) and to former astronaut and junior senator Mark Kelly (D-AZ), no other political recipients are listed for this election cycle of 2019-2020 (this was also reported by Yahoo! Suncor has a lot of time, money and energy invested in this pipeline going through. 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. Oil transport had a lot to do with, Investment News reported in 2015. 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 . Bidens executive order offers little explanation beyond platitudes, such as claims that the pipeline would undermine US climate leadership.. Trains still offer a fast, low-cost way to move materials. 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. Nor did the article discuss the adverse impact of shipping oil by rail. Translation: it doesnt take much friction to blow up a tanker car full of Bakken oil. Suncor is Canada's largest energy producer. Most posts feature an image of pipeline construction alongside text reading: The Keystone pipeline. In 2019, he gave $248,500 to the Democratic Congressional Campaign Committee. 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 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. Scientists say this map represents the US in 30 years if we dont reverse climate change.. All contributions to Bidens campaign by employees of Buffetts company, Berkshire Hathaway, and its subsidiaries totaled $313,510, according to the Center for Responsive Politics. Industry experts are quoted, and they note the inefficiencies of transporting oil via rail. Mr. 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. tanker cars. Interestingly, Union Pacifics stock price fell to a nearly three-year low in March 2020. By purchasing BNSF, Berkshire Hathaway got a longer railway at less than half the price of Union Pacific. Here in Delaware, Ive seen the tankers up close and personal. Buffett didnt make any contributions to Bidens 2020 presidential campaign. For example, Amtrak haslost money every year since 1971, even though a train ticket often costs more than an airplane ticket. 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. (If youre wondering, three checks alone in 2019 to Democratic Congressional Campaign Committee totaled more than $460,000. 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. It is not an environmental issue, it is a money issue. A Buffett spokeswoman has said that Buffett voted for Biden and that he does not have a position on how the pipeline might have affected BNSF Railway, a freight railroad network owned by Berkshire Hathaway that transports crude oil. 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. Secret to pocketing $ 460,164 not all types of railroads earn profits, though an informed in... A spokeswoman for Buffett, chairman and CEO of Berkshire Hathaway got a bridge to you. Survey found that 65 percent of Americans support building the Keystone pipeline Nov. 3, 2009 at 4:18 warren! Donor to Bidens campaign and benefits from Bidens decision is wrong in fees! 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