Buffett did not endorse Mr. Biden, but both he and his wife voted for Mr. Biden, Bosanek told the AP in an email. Correction Feb. 3, 2021: Removing reference to Energy Information Administration / Department of Energy in paragraph 15, the data is from BTS. 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. Sorry, there are no recent results for popular articles. After being purchased in a $44 billion deal, BNSF quickly became Berkshire Hathaways 'single biggest profit driver,' Business Insider reported in 2014. 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. 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. 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.. stated on February 20, 2023 in an Instagram post. With this newest expansion to the Panama Canal, the trip will be immensely shortened and cheaper. What if you could ship the LNG from the west coast of the US or Canada? Buffett has been reaping the benefits of the Keystone pipeline not being built because of his railroad shipping oil from the Bakken oil fields. It would take a remarkable technological revolution to make trains obsolete. Buoyed by an onshore oil boom, Burlington Northern Sante Fe has become a cash machine for Mr. Buffett, the news outlet reported. As president, Obama rejected a permit for the pipeline, arguing that the project would not lower gas prices or increase the nations energy security. 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 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. It is not an environmental issue, it is a money issue. Buffett, in fact, supported its construction. Mr. 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 Copyright 2023 IBTimes LLC. Warren Buffett currently owns one railroad, BNSF. Financhill just revealed its top stock for investors right now so there's no better time to claim your slice of the pie. If you go to page 11, youll see Buffetts discussion of the success of Berkshires railway, BNSF. 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 post from Oct. 27 misspells Buffetts last name and shows an image of a train with the text underneath referencing Burlington Northern Santa Fe Railroad, which is owned by Berkshire Hathaway, the conglomerate headed by Buffett. According to Federal Election Commission records, Buffett did not contribute to Joe Bidens 2020 presidential campaign. Such diversity helps ensure that Berkshire Hathaway will always have opportunities to profit. See how politics works? St. Petersburg, FL Its important to consider that buying BNSF does more than help Berkshire Hathaway earns returns from within the railway industry. Or is it that folks in flyover country matter less to the president than his natural base of East and West Coast environmentalists? We need your help. The author has no business relationship with any company whose stock is mentioned in this article. 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. It is not an environmental issue, it is a money issue the Facebook post reads. 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. 27 Feb 2023 23:12:12 False. On the other hand, its not unreasonable to suspect that unproductive entrepreneurship may have played a role. I have been in the financial industry since 1999. How many more accidents and derailments will we have to put up with until President Obama finally listens to America and approves the Keystone Pipeline? Texas Roadhouse is sending vouchers for a free steak dinner for four to everyone who shares and comments on a Facebook post. That's incorrect. And who will pay for those improved tankers? which supports Democratic House candidates. Warren Buffett BNSF Acquisition. 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. Washington, DC And perhaps thats the answer. Buffett said the pipeline would be good for Canada and America. Nor did the article discuss the adverse impact of shipping oil by rail. The thrust of the claim that Buffett donated $58 million to Bidens campaign and benefits from Bidens decision is wrong. 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.. See how politics works? Leaked tax return reveals secret to pocketing $460,164 Not all types of railroads earn profits, though. Listening to an interview between Jim Cramer and Warren Buffett on CNBC, something struck me as odd. Maybe that day will eventually come. The environmental impact of rail is also worse. Forty-two people were confirmed dead in the 2013 Quebec train disaster, and several more are presumed dead. His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star Tribune. 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 . Bloomberg News stated it was the 10th such derailment in North America in the past 12 months. 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. Meanwhile, as the chatter over Keystone continues, Warren Buffett (true to form) isn't sitting on his hands. The 1,700-mile pipeline was planned to carry roughly 800,000 barrels of oil a day from Alberta to the Texas Gulf Coast. Now I have no problem with a capitalist taking advantage of a situation (in this case, a stalled pipeline project) to make a profit. You have permission to edit this article. Warren Buffet [t] donated 58 million to Biden campaign. It would traverse about. It also gives Buffett opportunities to make his other investments more valuable. Why would anyone spike an oil pipeline capable of transporting more than 300 million barrels of crude a year when moving oil by pipeline is cheaper, safer, and more environmentally friendly than moving it by rail? But continuing court challenges over environmental reviews soon brought the project to a halt. Buffett gave no money to the Biden presidency campaign in 2020, Buffett assistant Debbie Bosanek told Reuters. (As the video below shows, suppliers are willing to pay higher short term costs for greater shipping flexibility. 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 investor has a net worth over $66 billion, making him one of the wealthiest people in the world. APS ASSESSMENT: False. Oh yeah. While the production of oil has been ramped up, the infrastructure of harvesting the natural gas is not a priority. A historic look (1982-2018) at the transportation prevalence of pipelines, marine vessels, rail and truck for oil transport is visible here . Buffett previously has voiced public support for the Keystone XL pipeline. The US State Department confirms that rail is a more dangerous way to transport oil compared to pipelines. 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. 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. Bidens executive order offers little explanation beyond platitudes, such as claims that the pipeline would undermine US climate leadership.. President Barack Obama's decision to withhold approval of the Keystone XL pipeline will hugely benefit one of his largest supporters - Warren Buffett. All Rights Reserved. The image includes a photo of a pipeline. Scholars at Carnegie Mellon University and the University of Pittsburgh also found that locomotive transport causes twice as much pollution as pipelines. , even though a train ticket often costs more than an airplane ticket. It has continued adding to its long list of acquisitions since then. The round trip voyage to Fukouka, Japan from Sabine Pass, Louisiana (another hub for LNG) will cost $8 million and take 43.5 days through the canal - instead of the 11.4 million and 63.6 days around Africa. By purchasing BNSF, Buffett made an investment that helps streamline the supply chain processes of his other businesses. 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. The Keystone XL Pipeline has been blocked multiple times for climate, economic, and perceived national-interest reasons. Why are we importing the oil from Canada to be refined here? Nor did Buffett campaign in favor of the current president. It is true that Buffetts company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. Cancelled by Biden on first day. In this Dec. 18, 2020 file photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb. 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. This is not the first time claims have suggested that Democratic presidents have opposed the Keystone XL pipeline as a political favor to Buffett. Union Pacific is about 400 miles shorter. The first claim in these posts is that Warren Buffett, the American business tycoon and billionaire, donated $58 million to Joe Bidens 2020 campaign. So why then are we not concentrating on building pipeline infrastructure from the Bakken region to the Gulf or even the west coast? Warren Buffet donated 58 million to Biden campaign. Records show Buffett contributed no money to Bidens 2020 presidential campaign. Biden cancellation of Keystone XL pipeline was not a favor to Warren Buffet. 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. 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