As president, Obama rejected a permit for the pipeline, arguing that the project would not lower gas prices or increase the nations energy security. (Near my grandparents hometown, incidentally.) "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. For starters, it doesnt even spell Buffetts name correctly. 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. So looking to the future, little competition beyond existing railways is likely to ensue. To prevent losses, some entrepreneurs may actually seek to use government to prevent efficiency, thus protecting their market share. 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. I worked for a couple of Regional Banks, grew up with Merrill and now am at a Regional Firm based out of Louisville. The 1,700-mile pipeline was planned to carry roughly 800,000 barrels of oil a day from Alberta to the Texas Gulf Coast. The author has no business relationship with any company whose stock is mentioned in this article. Warren Buffett, the billionaire owner of. 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 billionaire investor, Warren Buffett. The transaction also meant that Berkshire Hathaway purchased $10 billion of BNSFs outstanding debt. By Keystone pipeline, the posts are referring to the Keystone XL Pipeline, a project cancelled by Biden on his first day in office on Jan. 21, 2021, dealing a death blow to a long-gestating project that would have carried 830,000 barrels per day of heavy oil-sands crude from Alberta to Nebraska. According to Federal Election Commission records, Buffett did not contribute to Joe Bidens 2020 presidential campaign. Why not ally? Some estimates put Union Pacifics overall value at more than $105 billion. By purchasing BNSF, Berkshire Hathaway got a longer railway at less than half the price of Union Pacific. It is not an environmental issue, it is a money issue 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. See how politics works? Buffett does stand to profit from the cancelation of the Keystone pipeline and perhaps a great deal. 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. 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. This brings me to the Panama Canal. Buffett doesnt believe in short-term investment strategies that can lead to quick profits. 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. The same theory circulated during the Obama administration. It boils down to this. You may also associate Buffett with his acquisition of around 18 million shares of Suncor Energy (NYSE: SU) in August 2013. Instead of shipping Canadian/North Dakotan oil via a pipeline, its coming south via rail tanker cars. 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. 727-821-9494. stated on October 27, 2021 in post on Facebook: Keystone Pipeline was blocked by Obama on Warren Buffetts behalf. 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 See how politics works? Or perhaps anti-trust laws would restrict Berkshire from controlling so much of Americas railroads. Warren Buffet [t] would lose billions in transport fees if the pipeline is completed. The company is an indirect, wholly owned subsidiary of Berkshire Hathaway, which is controlled by investor Warren Buffett. These vehicle margins peaked in the first half of 2022 and declined in the second half. But lets remember the reason given by President Barack Obamas administration and its friends for holding up the Keystone project: the environment. LNG exporters on the West Coast of North America. Photo of electric charging station powered by diesel generator is emblematic of the electric vehicle movement. Mr. 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. tanker cars. In a world of wild talk and fake news, help us stand up for the facts. With more efficient railways, companies that need to distribute products all over the country can improve their profits. 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 ). 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. 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. BHA had 18.4% higher earnings in 2022, driven by higher vehicle gross profit margins. Reuters assured us this is not the case with Buffett. But the truth is, Buffett did get a bargain (at least in hindsight). It is not an environmental issue, it is a money issue the Facebook post reads. Despite this opportunity, Berkshire Hathaway does not appear to have made an investment in the company. Warren Buffett did not donate $58 million to Joe Bidens 2020 campaign. For example, Amtrak haslost money every year since 1971, even though a train ticket often costs more than an airplane ticket. 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. Months later, in an interview with Charlie Rose, the sage of Omaha admitted the price tag was steep. In this Dec. 18, 2020 file photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb. The larger size may help explain why Warren Buffett chose to purchase BNSF over Union Pacific. 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. Cancelled by Biden on first day. Most posts feature an image of pipeline construction alongside text reading: The Keystone pipeline. Correction Feb. 3, 2021: Removing reference to Energy Information Administration / Department of Energy in paragraph 15, the data is from BTS. , even though a train ticket often costs more than an airplane ticket. COVID-19 contributed to a steep decline that forced the stocks value to $117.84 on March 20, 2020. CLAIM: Billionaire Warren Buffett donated $58 million to President Joe Bidens campaign, so Biden canceled the Keystone XL pipeline as a favor to Buffett. Cancelled by Biden on first day. 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. It is true that Buffett's company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. Warren Buffet donated 58 million to Biden campaign. Reuters spends a lot of time attempting to refute a central claim of the meme: that Buffett would lose billions in transport fees if the Keystone pipeline is completed. 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. The newly widened Panama Canal opening in 2015 will be able to serve 89% of the LNG Shipping Freightors. The Trump administration backed the project in the face of objections from environmental groups. Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. On the other hand, one should be careful about levying accusations not grounded in facts, and its worth noting that publicly Buffett has actually voiced support for the Keystone XL pipeline, saying it was good for the country., Ultimately, we dont know why the Keystone Pipeline was shut down. 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. Berkshire Hathaway already owned 22.6% of the company, so the acquisition gave it total ownership of BNSF. Written in a breezy, sometimes cheeky tone, its a harbinger of spring, like sighting the first robin of the year. 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. In spite of all these events and factors, the environmentalists keep insisting the Keystone Pipeline is too dangerous. How did it happen? Buffett said the pipeline would be good for Canada and America. Union Pacific is about 400 miles shorter. Warren Buffett, chairman of conglomerate Berkshire Hathaway (NYS:BRK.A), said on Wednesday that safety is a major priority for the rail industry, after a recent spate of accidents raised concerns about how to transport oil safely. There's a great article about it on Seeking Alpha. "In the last 2 election cycles," the image reads, "Buffet gave extensively to Democrat causes and candidates. 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.. The Keystone XL Pipeline has been blocked multiple times for climate, economic, and perceived national-interest 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. Bloomberg, for example, had published research showing that trains could expect to carry 125,000 more barrels of Canadian crude each day (an increase of more than 40 percent) if the Keystone XL was scrapped. The internet is not known as a purveyor of truth. Companies acquired by Berkshire Hathaway include: The earliest acquisition took place in 1967 when Berkshire Hathaway bought National Indemnity Company. It is not an environmental issue, it is a money issue. A map of the Keystone XLs route alongside the existing Keystone Pipeline System, operating since 2010, can be seen here . It notes that the impacts of a [Keystone XL] cancelation are muted over the medium-term in large extent due to two other pipeline projects just around the corner (Enbridge Line 3 Replacement (L3R) and the TransMountain Expansion project (TMX). These pipelines will likely take rail volumes down to any contractual minimums until 2030.. It is true that Buffetts company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. This article was produced by the Reuters Fact Check team. stated on February 8, 2021 Facebook posts: stated on January 25, 2022 Facebook posts: stated on January 6, 2022 Facebook posts: stated on December 23, 2021 Facebook posts: stated on December 5, 2021 Twitter posts: stated on October 28, 2021 Facebook posts: stated on October 27, 2021 post on Facebook: stated on February 25, 2023 in a Facebook post: stated on February 22, 2023 in a Facebook post: stated on February 26, 2023 in an Instagram post: stated on February 27, 2023 in a Facebook post: stated on February 15, 2023 in a Facebook post: stated on February 26, 2023 in a video on Facebook: stated on February 25, 2023 in an Instagram post: stated on February 18, 2023 in a Facebook post: All Rights Reserved Poynter Institute 2020, a 501(c)(3) nonprofit organization, "The laws governing Agenda 2030 land development allows the government to seize polluted lands and move their residents to smart cities., Facebook Posts: Says Joe Biden canceled the Keystone pipeline because Warren Buffett donated $58 million to his 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, Keystone XL pipeline halted as Biden revokes permit, Warren Buffett did not donate to Biden presidential campaign, Buffett Didnt Donate to Biden or Cause Pipeline to be Cancelled, Citing Climate Change, Obama Rejects Construction of Keystone XL Oil Pipeline, Id vote yes on Keystone pipeline: Warren Buffett, Developer Abandons Keystone XL Pipeline Project, Ending Decade-Long Battle, President Obama Rejects Keystone XL Pipeline Plan, The Competitors Who Stand To Win From Denial Of Keystone XL, Warren Watch: Behind Buffetts support of Keystone XL pipeline project, Individual contributions for Warren Buffett to Barack Obama, Says Thomas Jefferson said, If serving in an elected office ever becomes a career, corruption will surely follow.. Reuters never asks this question, though it concedes moving oil by rail is less efficient. District of Columbia ", "New government-funded 'food pyramid' says Lucky Charms are healthier than steak. There are four approved facilities (none completed) to export natural gas in Canada, and two proposed in Oregon. The company building it announced in March 2020 that it was launching construction, saying it would invest $8 billion in the project, with service expected to begin in 2023. Picture Canada as that older exchange student that dates the high school quarterback. Burlington Northern Santa Fe, LLC is the parent company of the BNSF Railway (formerly the Burlington Northern and Santa Fe Railway). Warren Buffett, the billionaire owner of Berkshire Hathaway and one of the most successful investors alive, owns BNSF Railway Company. 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. We are concentrating on the wrong pipeline. Instead, he takes a long-term perspective that involves purchasing a company and improving its performance over the years. Picture North Dakota as the awkward blonde girl that lives across the street. 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. Industry experts are quoted, and they note the inefficiencies of transporting oil via rail. 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 Keystone pipeline. A Facebook post claims the Keystone Pipeline was blocked by Obama to benefit Buffett. In 2019, he gave $248,500 to the Democratic Congressional Campaign Committee, which supports Democratic House candidates, and $5,800 to Democratic Arizona Senator Mark Kellys campaign. Warren Buffet [t] 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 ). How long would the trip be and how much would it cost? It's turned into an evolving political litmus test, and that is a shame. Pfizer made $37 billion in profit in its last quarter. And who will pay for those improved tankers? By purchasing BNSF, Buffett made an investment that helps streamline the supply chain processes of his other businesses.

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