campaign, nor did he endorse him. The US State Department confirms that rail is a more dangerous way to transport oil compared to pipelines. 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. Common sense also tells us that it would be cheaper to pump the oil through a pipeline instead of loading it into thousands of rail tanker cars, one-by-one, with a diesel-burning locomotive at the front of the line. See how politics works? 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. So while his competitors are building the LNG pipelines and storage facilities to stop the flaring of natural gas, Buffett may make another move. Warren Buffett consistently makes some smart investment decisions that lead to huge returns. With Burlington Northern's testing of LNG powered locomotive and their interest in shipping LNG on trains, what's Warren's next move? St. Petersburg, FL 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. In a world of wild talk and fake news, help us stand up for the facts. 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.. Written in a breezy, sometimes cheeky tone, its a harbinger of spring, like sighting the first robin of the year. On Friday, The Associated Press reported on stories circulating online incorrectly assertingbillionaireWarren Buffett donated $58 million to President Joe Bidens campaign, so Biden canceled the Keystone XL pipeline as a favor to him. Warren Buffet donated 58 million to Biden campaign. That's incorrect. You dont get bargains on things like that, Buffett said in the interview. The posts say Buffett's railroad "is now transporting all that oil" following the Keystone XL Pipeline's cancellation. Between 2007 and 2012, Buffett gave more than $75,000 to organizations supporting Obama. Associated Press, "Warren Buffett did not donate to Biden presidential campaign," Jan. 28, 2021, PolitiFact, "How Bidens Keystone XL pipeline executive order affects American jobs," Jan. 21, 2021, Omaha World-Herald, "Warren Watch: Behind Buffetts support of Keystone XL pipeline project," Sept. 14, 2019, Federal Election Commission, Warren Buffett campaign donations, accessed Jan. 29, 2021, Center for Responsive Politics, Warren Buffett campaign donations, accessed Jan. 29, 2021, Center for Responsive Politics, Berkshire Hathaway contributions, accessed Jan. 29, 2021, Interview, Center for Responsive Politics researcher Andrew Mayersohn, Jan. 29, 2021. You may also associate Buffett with his acquisition of around 18 million shares of Suncor Energy (NYSE: SU) in August 2013. Warren Buffet donated 58 million to Biden campaign. The author is not receiving compensation for it. (Read more about our partnership with Facebook.). Mr. When it comes to length, though, BNSF manages to beat Union Pacific. 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. BNSFs value is about half that. 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. 1800 I Street NW Incentives matter, as any economist will tell you. 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. Warren Buffett, the billionaire owner of Berkshire Hathaway and one of the most successful investors alive, owns BNSF Railway Company. for natural gas have exacerbated this problem. ", Earthquake in Turkey and Syria is "a systemic attack against Kurdish people.". 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. In the past few years, Buffett expressed support for the pipeline. ), As for Buffett, on one hand he has shown he possesses the lobbying chops to avoid many of the federal regulations that plague his competitors and other parts of the transportations sector. Veritone vs C3.AI: Which Is Better AI Stock. They snake in very long lines (too many to count) as they make their way to an oil refinery south of Wilmington. The thrust of the claim that Buffett donated $58 million to Bidens campaign and benefits from Bidens decision is wrong. All Rights Reserved. Another factor in these crashes/derailments is that much of the crude oil involved is of a type (Bakken) that ignites at a lower temperature than other types, due to the higher levels of natural gas in Bakken oil. Mr. 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!) Biden halted the Keystone XL Pipeline on his first day in office through executive order, citing his administrations economic and climate interests. It is true that Buffett's company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. Berkshire Hathaway has a huge amount of cash that lets it invest in practically any business. 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. The author has no business relationship with any company whose stock is mentioned in this article. The dog dewormer fenbendazole can cure cancer in humans. Federal Election Commission records show that Buffett made no individual contributions in 2020. Warren Buffet would lose billions in transport fees if the pipeline is completed. We dont find evidence that the decision was intended to benefit Buffett. Suncor has a lot of time, money and energy invested in this pipeline going through. Buffett previously has voiced public support for the Keystone XL pipeline. ", The image was flagged as part of Facebooks efforts to combat false news and misinformation on its News Feed. Despite this opportunity, Berkshire Hathaway does not appear to have made an investment in the company. What if you could ship the LNG from the west coast of the US or Canada? A hefty sum, to be surethough one Buffett would hardly feel.). Buffett said the pipeline would be good for Canada and America. 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. So score one for Reuters for setting the record straight (and correctly spelling Buffetts name). Shipping oil by train doesnt operate under the same price restraints as oil pipelines, which are regulated much like utilities by the federal government. Interestingly, Union Pacifics stock price fell to a nearly three-year low in March 2020. The posts say Buffetts railroad is now transporting all that oil following the Keystone XL Pipelines cancellation. Reverse-image searches show it was being shared as early as 2015, midway through Obamas second term. Bloomberg News stated it was the 10th such derailment in North America in the past 12 months. Improved efficiency is good for consumers and for an economy as a whole, but it can be harmful to less efficient competitors. Heres more information on Facebooks fact-checking program: https://www.facebook.com/help/1952307158131536, Connect with the definitive source for global and local news, APS ASSESSMENT: False. Debbie Bosanek, assistant to Warren Buffett, told Reuters via email that Mr. Its not clear where the $58 million figure in the claim originated. 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. However, Reuters argues that Berkshire Hathaway does not stand to benefit from the demise of the Keystone XL. It is the company's biggest acquisition ever. 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 . Although he hasn't spoken publicly about the most recent step forward by the Keystone XL oil pipeline proposal, Warren Buffett has generally supported the project for years. It also gives Buffett opportunities to make his other investments more valuable. Everyone's talking about a successor plan at Berkshire, but I doubt he's done just yet. . Burlington Northern Santa Fe, LLC is the parent company of the BNSF Railway (formerly the Burlington Northern and Santa Fe Railway). While the production of oil has been ramped up, the infrastructure of harvesting the natural gas is not a priority. Why are we importing the oil from Canada to be refined here? Copyright IBTimes 2023. Here in Delaware, Ive seen the tankers up close and personal. Warren Buffet would lose billions in transport fees if the pipeline is completed. Not by much, though. According to public records from OpenSecrets and a spokeswoman for Buffett, this claim is false. Oh yeah. That said, Reuters claims dont add up, and the news agency omits relevant facts about Buffetts rail operation. Warren Buffett, the billionaire owner of Berkshire Hathaway and one of the most successful investors alive, owns BNSF Railway Company. Texas Roadhouse is sending vouchers for a free steak dinner for four to everyone who shares and comments on a Facebook post. There's a great article about it on Seeking Alpha. ", People not vaccinated against COVID-19 came out the best. Its not an environmental issue, it is a money issue. 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. , even though a train ticket often costs more than an airplane ticket. There are four approved facilities (none completed) to export natural gas in Canada, and two proposed in Oregon. Copyright 2023 IBTimes LLC. Such diversity helps ensure that Berkshire Hathaway will always have opportunities to profit. The company is an indirect, wholly owned subsidiary of Berkshire Hathaway, which is controlled by investor Warren Buffett. They claim that railways owned by Buffett now stand to benefit from transporting the oil that the Keystone XL Pipeline would have carried. 'Buoyed by an onshore oil boom, Burlington Northern Sante Fe has become a cash machine for Mr. Buffett,' Investment News reported in 2015. 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 ). Warren Buffet donated 58 million to Biden campaign. Thats incorrect. 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. Read more about our work to fact-check social media posts here . 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. Fueled by crude by rail volumes, BNSF became a cash cow for Berkshire, producing billions. Its important to consider that buying BNSF does more than help Berkshire Hathaway earns returns from within the railway industry. Last month, another derailment dumped 4,000 gallons of oil in a town about 20 miles from Pittsburgh. In spite of all these events and factors, the environmentalists keep insisting the Keystone Pipeline is too dangerous. 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. Correcting Wood Mackenzie team name in paragraph 22. See how politics works? oil. District of Columbia The end result is lower costs at the gas pump. But. There have been rumors for years that Warren Buffett would buy Union Pacific. stated on February 20, 2023 in an Instagram post. Buffett has been reaping the benefits of the Keystone pipeline not being built because of his railroad shipping oil from the Bakken oil fields. 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. 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. In a world of wild talk and fake news, help us stand up for the facts. Buffett gave no money to the Biden presidency campaign in 2020, Buffett assistant Debbie Bosanek told Reuters. NEW YORK (MarketWatch) Berkshire Hathaway Inc. said Tuesday it agreed to buy railroad operator Burlington Northern Santa Fe Corp. in a $44 billion deal that Chairman Warren Buffett called "an all-in wager" on the U.S. economy. Our only agenda is to publish the truth so you can be an informed participant in democracy. Is this happening to you frequently? On the other hand, its not unreasonable to suspect that unproductive entrepreneurship may have played a role. Why not use neighbor or even friend? It is true that Buffetts company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. 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. Or perhaps anti-trust laws would restrict Berkshire from controlling so much of Americas railroads. The image includes a photo of a pipeline. APS ASSESSMENT: False. Union Pacific is about 400 miles shorter. 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 . Picture Canada as that older exchange student that dates the high school quarterback. Warren Buffet owns the railroad that is now transporting all that oil. Warren Buffet would lose billions in transport fees if the pipeline is completed. 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. The Trump administration backed the project in the face of objections from environmental groups. Warren Buffet would lose billions in transport fees if the pipeline is completed. 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. Bylines: Newsweek, The Washington Times, MSN.com, The Washington Examiner, The Daily Caller, The Federalist, the Epoch Times. More importantly, the assertion that Buffett donated $58 million to the Biden campaign is bogus. As a bit of history, Buffett purchased BNSF in a $44 billion deal in 2009. The Keystone XL Pipeline has been blocked multiple times for climate, economic, and perceived national-interest reasons. The other hand, its a harbinger of spring, like sighting the first robin of US..., help US stand up for the Keystone XL pipeline has been reaping benefits... An environmental issue, it is a money issue being built because his! Volumes, BNSF became a cash cow for Berkshire, producing billions ( too many to count ) they. 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