Mr. 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.. It is true that Buffett's company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. It is not an environmental issue, it is a money issue the Facebook post reads. Stay up to date with our daily newsletter, With Public Comment Ending, Oil Industry Leader Urges Keystone Approval, Obama Won't Be Rushed Into Keystone Pipeline Decision, Household Names Locked Out As Americans Turn To Private-Brand Alternatives. Warren Buffett did not donate to Bidens presidential campaign, nor did he endorse him. The Keystone pipeline. The posts say Buffetts railroad is now transporting all that oil following the Keystone XL Pipelines cancellation. Thats incorrect. Just ask someone who was driving a car in the 1970s. With Burlington Northern's testing of LNG powered locomotive and their interest in shipping LNG on trains, what's Warren's next move? A political entrepreneur, on the other hand, succeeds primarily by influencing government to subsidize his business or industry, or to enact legislation or regulation that harms his competitors.. I worked for a couple of Regional Banks, grew up with Merrill and now am at a Regional Firm based out of Louisville. See how politics works? And many of those rail lines and tankers belong to BNSF. It is true that Buffett's company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. Its important to consider that buying BNSF does more than help Berkshire Hathaway earns returns from within the railway industry. The Keystone XL pipeline, first proposed more than a decade ago during a period of high oil prices, was to 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. The author is not receiving compensation for it. Forty-two people were confirmed dead in the 2013 Quebec train disaster, and several more are presumed dead. Nor did Buffett campaign in favor of the current president. for natural gas have exacerbated this problem. Buffett did not endorse Mr. Biden, but both he and his wife voted for Mr. Biden, Bosanek told the AP in an email. The Biden administration is not likely to take any action against that, especially since some of the trains are owned by billionaire and Biden-supporter Warren Buffett. 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!) Does Warren Buffett own the railroad? By purchasing BNSF, Berkshire Hathaway got a longer railway at less than half the price of Union Pacific. 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. 727-821-9494. stated on October 27, 2021 in post on Facebook: Keystone Pipeline was blocked by Obama on Warren Buffetts behalf. Written in a breezy, sometimes cheeky tone, its a harbinger of spring, like sighting the first robin of the year. Oil that the Keystone Pipeline can't handle is now transported into the U. S. by rail. Buffett, in fact, supported its construction. 1800 I Street NW It is not an environmental issue, it is a money issue Debbie Bosanek, assistant to Warren Buffett, told Reuters via email that Mr. 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 See how politics works? It is true that Buffetts company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. However, Reuters argues that Berkshire Hathaway does not stand to benefit from the demise of the Keystone XL. ", People not vaccinated against COVID-19 came out the best. The US State Department confirms that rail is a more dangerous way to transport oil compared to pipelines. The Keystone XL Pipeline has been blocked multiple times for climate, economic, and perceived national-interest reasons. ", The post was flagged as part of Facebooks efforts to combat false news and misinformation on its News Feed. The Keystone XL pipeline, first proposed more than a decade ago during a period of high oil prices, was to have carried up to 830,000 barrels per day of crude oil from Alberta, Canada, to. But the posts main thesis, that the Berkshire Hathaway CEO was a major donor to Bidens campaign, is not true. When President Donald Trump took office, his administration backed the project in the face of objections from environmental groups and attempted to revive the pipeline, but ultimately made little progress. BHA had 18.4% higher earnings in 2022, driven by higher vehicle gross profit margins. ", U.S. Rep. Ilhan Omar is "facing 40 years in prison and deportation after seven new crimes uncovered. Reuters never asks this question, though it concedes moving oil by rail is less efficient. Warren Buffet donated 58 million to Biden campaign. Some of the $8 million through the canal is around $600,000 in fees to use the canal (based on fully loaded LNG and then ballast round trip). Omaha World-Herald, "Warren Watch: Behind Buffett's support of Keystone XL pipeline project," Sept. 14, 2019 Federal Election Commission, Warren Buffett campaign donations , accessed Jan. 29, 2021 Please disable your ad-blocker and refresh. As just one example, forty-two people were confirmed dead in the 2013 Quebec train disaster, and several more are presumed dead. The environmental impact of rail is also worse. Although the U.S., North American, and global economies grow and shrink, railroads will play crucial roles in supply chains for decades. 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. Mr. Rail executives themselves have said they expect to see crude-by-rail shipments increase because of Bidens executive order. 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. The Keystone veto override vote failed in the Senate. Warren Buffett BNSF Acquisition. The 1,700-mile pipeline was planned to carry roughly 800,000 barrels of oil a day from Alberta to the Texas Gulf Coast. COVID-19 vaccines "provide zero benefit relative to risk for the young and healthy.". Cellphone data used to arrest the Idaho quadruple-murder suspect proves that criticism of the 2000 Mules movies use of cell data is unfounded. Morningstar analyst Gregg Warren projects that the Dominion pipeline assets will generate $1 billion in earnings before interest, taxes and depreciation and amortization, for Berkshire Hathaway. The Biden administration has so far not announced any action against that pipeline. Canada is the primary supplier of foreign oil to the United States. Oh yeah. Federal Election Commission records show that Buffett made no individual contributions in 2020. On Bidens first day in office, he canceled the permit for construction of the Keystone XL pipeline saying it was not consistent with the administration's economic and climate imperatives. The 1,700-mile pipeline was planned to carry roughly 800,000 barrels of oil a day from Alberta to the Texas Gulf Coast. 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. As weve seen, rail shipments involve possible derailments, accidents and opportunities for ignition-causing friction. Buffett,chairman and CEO of Berkshire Hathaway, did not donate to Bidens presidential campaign, nor did he endorse him. ET. 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. 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. 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.. Shipping oil by train doesnt operate under the same price restraints as oil pipelines, which are regulated much like utilities by the federal government. Not all types of railroads earn profits, though. 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. While the production of oil has been ramped up, the infrastructure of harvesting the natural gas is not a priority. Most of the oil that would have been transported by the now-cancelled Keystone XL Pipeline will likely use existing and new pipeline infrastructure, not railways. The action was essentially a nail in the coffin to a project that would have carried 830k barrels of heavy oil-sands crude from Alberta to Nebraska per day. Reverse-image searches show it was being shared as early as 2015, midway through Obamas second term. As Reuters admits, Berkshire Hathaway does in fact own one of the largest railroad networks in North America: the Burlington Northern Santa Fe Corp, which runs 32,500 route miles crossing 28 states and several Canadian provinces. Not by much, though. There's a great article about it on Seeking Alpha. Before explaining what Reuters left out, let me say Im not suggesting Buffett, a brilliant investor and businessman, had anything to do with the spiking of the Keystone XL pipeline. It has continued adding to its long list of acquisitions since then. Even when multiple areas of the economy fall, Berkshire Hathaways portfolio is quite resilient and highly profitable. Warren Buffett's company Berkshire Hathaway purchased 77.4% of BNSF shares for $100 each on November 2, 2009. Mr. Why not ally? Berkshire noted that . 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 . It would have carried up to 830,000 barrels per day of crude oil from Alberta, Canada, to. Here in Delaware, Ive seen the tankers up close and personal. This brings me to the Panama Canal. It is not an environmental issue, it is a money issue. We dont find evidence that the decision was intended to benefit Buffett. The meme is clearly wrong on multiple points. Buffett has never seen any report by BNSF projecting whether the Keystone Pipeline would increase or decrease the revenue of the railroad, Bosanek wrote. 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. Taiwan Belongs To Taiwanese With Or Without US Support? Bylines: Newsweek, The Washington Times, MSN.com, The Washington Examiner, The Daily Caller, The Federalist, the Epoch Times. A hefty sum, to be surethough one Buffett would hardly feel.). 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. Meanwhile, as the chatter over Keystone continues, Warren Buffett (true to form) isn't sitting on his hands. The survey found that 65 percent of Americans support building the Keystone pipeline. The Keystone XL pipeline was first proposed more than a decade ago during a period of high oil prices. Union Pacific is about 400 miles shorter. This image and claim first appeared during the Obama administration. Dyson is canceling their contract with Walmart and selling off Dyson Supersonic hair dryers only for $1!. These vehicle margins peaked in the first half of 2022 and declined in the second half. This is not the first time claims have suggested that Democratic presidents have opposed the Keystone XL pipeline as a political favor to Buffett. Its trains carry energy (such as oil and coal), agricultural and consumer products. This article was produced by the Reuters Fact Check team. 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. Buffett said the pipeline would be good for Canada and America. But rail-car supplies can expand . Maps of the Keystone Pipeline System and Keystone XL Pipeline show its route: they Keystone XL would have created a shortcut in transporting oil from Alberta to Nebraska, while the existing Keystone Pipeline System connects the Canadian source to multiple U.S. states ( here ). Please. Sign up and stay up to date with our daily newsletter. 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. Warren Buffet [t] owns the railroad that is now transporting all that oil. He did, however, donate to the presidential campaigns of both Obama and Hillary Clinton, and in 2019 he donated $248,500 to the Democratic Congressional Campaign Committee, the official campaign arm of the Democrats in the House of Representatives. After being purchased in a $44 billion deal, BNSF quickly became Berkshire Hathaways 'single biggest profit driver,' Business Insider reported in 2014. Jonathan Miltimore is the Managing Editor of FEE.org. Or perhaps its the nutty Qanon conspiracies you see in your Twitter feed. Instead of shipping Canadian/North Dakotan oil via a pipeline, its coming south via rail tanker cars. There have been rumors for years that Warren Buffett would buy Union Pacific. 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 a CNBC television appearance in 2014. Biden halted the Keystone XL Pipeline on his first day in office through executive order, citing his administrations economic and climate interests. Sorry, there are no recent results for popular articles. With this newest expansion to the Panama Canal, the trip will be immensely shortened and cheaper. Buffett didnt make any contributions to Bidens 2020 presidential campaign. None of this means Warren Buffett had anything to do with Bidens decision to spike the Keystone Pipeline. That said, Reuters claims dont add up, and the news agency omits relevant facts about Buffetts rail operation. 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. 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. Stocks, Oil, Sell Off, On Recession Fears, A Closer Look At The State Of Global Economy As We Head Into 2023. Warren Buffet [t] donated 58 million to Biden campaign. That hasnt happened. Cancelled by Biden on first day. Bosanek told the AP that the 90-year-old billionaire did not make other donations through a political action committee in the 2020 campaign cycle. 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. Warren Buffet donated 58 million to Biden campaign. Its not clear where the $58 million figure in the claim originated. Buffett gave no money to the Biden presidency campaign in 2020, Buffett assistant Debbie Bosanek told Reuters. Buffett says that heconsiders buying BNSF anall-in wager on the economic future of the United States.. The importance of railroads hasnt gone unnoticed by some of the worlds top investors. Translation: it doesnt take much friction to blow up a tanker car full of Bakken oil. So looking to the future, little competition beyond existing railways is likely to ensue. 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. Berkshire Hathaway has an impressively diverse investment portfolio that includes companies in: The company is also a majority and minority shareholder in hundreds of companies. Buoyed by an onshore oil boom, Burlington Northern Sante Fe has become a cash machine for Mr. Buffett, the news outlet reported. 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. The increased capacity of Burlington Northern to move oil caused Oneok (NYSE: OKE), one of the owners of the Northern Border Pipeline Company (with TransCanada Corporation (TRP)), to make an announcement that it would not be continuing to build oil pipeline from the Bakken area through North Dakota and Montana to Cushing, OK. Cushing is a hub to transport oil and natural gas down to the Gulf. 33701 Veritone vs C3.AI: Which Is Better AI Stock. Did you think Buffett would buy those cars himself because he loves protecting little bunny rabbits? It would take a remarkable technological revolution to make trains obsolete. Cancelled by Biden on first day. Warren Buffet owns the railroad that is now transporting all that oil. Industry experts are quoted, and they note the inefficiencies of transporting oil via rail. Warren Buffet donated 58 million to Biden campaign. A chart shows China and India are leading in per capita carbon dioxide emissions. So far, Warren Buffett and Berkshire Hathaway have not chosen to purchase Union Pacific. Why the phrase thumbing our noses? This claim defies both common sense and an abundance of research, however. Last month, another derailment dumped 4,000 gallons of oil in a town about 20 miles from Pittsburgh. District of Columbia 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. It boils down to this. 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. 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