Biden cancellation of Keystone XL pipeline was not a favor to Warren Buffet. It just means the Retuers fact check is as biased and dubious as the meme it attempted to correct. A Facebook post claims the Keystone Pipeline was blocked by Obama to benefit Buffett. Unfortunately, from here Reuters fact check goes off the rails. The importance of railroads hasnt gone unnoticed by some of the worlds top investors. (Editors write headlines, not reporters, and youd be surprised how many editors flub headlines.). Records from the Federal Election Commission and the nonprofit Center for Responsive Politics show that Buffett, a donor to Barack Obamas and Hillary Clintons presidential campaigns, did not contribute to Bidens 2020 presidential campaign. Warren Buffett consistently makes some smart investment decisions that lead to huge returns. They snake in very long lines (too many to count) as they make their way to an oil refinery south of Wilmington. Warren Buffet owns the railroad that is now transporting all that oil. The importance of railroads hasnt gone unnoticed by some of the worlds top investors. Railroads such as BNSF, Reuters says, are not the principle way oil is transported from Canada to the United States.. Federal Election Commission records show that Buffett made no individual contributions in 2020. Buffett gave no money to the Biden presidency campaign in 2020. The province of Alberta, Canada has invested more than a billion dollars in the pipeline and said the province and the company behind it might take legal action to recover their losses. It has continued adding to its long list of acquisitions since then. In this Dec. 18, 2020 file photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb. Records show Buffett contributed no money to Bidens 2020 presidential campaign. The internet is not known as a purveyor of truth. Cancelled by Biden on first day. 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. It's turned into an evolving political litmus test, and that is a shame. Sorry, there are no recent results for popular articles. here ). It is the company's biggest acquisition ever. Warren Buffett owns the railroad that is now transporting all that oil. The image includes a photo of a pipeline. Oh yeah. Berkshire Hathaway has a huge amount of cash that lets it invest in practically any business. Nor did Buffett campaign in favor of the current president. See how politics works? Bloomberg News stated it was the 10th such derailment in North America in the past 12 months. And many of those rail lines and tankers belong to BNSF. Debbie Bosanek, assistant to Warren Buffett, told Reuters via email that Mr. Warren Buffett, the billionaire owner of. A map of the Keystone XLs route alongside the existing Keystone Pipeline System, operating since 2010, can be seen here . Bylines: Newsweek, The Washington Times, MSN.com, The Washington Examiner, The Daily Caller, The Federalist, the Epoch Times. Why the phrase thumbing our noses? The Keystone XL pipeline was first proposed more than a decade ago during a period of high oil prices. Despite this opportunity, Berkshire Hathaway does not appear to have made an investment in the company. All Rights Reserved. Nor did Buffett campaign in favor of the current president. 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. While the nation has been arguing over the Keystone, Berkshire Hathaway has been cashing in. Warren Buffet [t] would lose billions in transport fees if the pipeline is completed. 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. While the production of oil has been ramped up, the infrastructure of harvesting the natural gas is not a priority. On the other hand, its not unreasonable to suspect that unproductive entrepreneurship may have played a role. The meme contains information that is demonstrably false. Its not clear where the $58 million figure in the claim originated. Railroads played a crucial role in Americas development. Through a holding. 1800 I Street NW Buffett doesnt believe in short-term investment strategies that can lead to quick profits. Cashing in on our political climate and being one step ahead of his competitors is old hat to this Nebraskan. Warren Buffet owns the railroad that is now transporting all that oil. Photo of electric charging station powered by diesel generator is emblematic of the electric vehicle movement. Washington, DC 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. The Canadian Prime Minister, Justin Trudeau, had a rocky relationship with President Trump. Cancelled by Biden on first day. Oil transport had a lot to do with, Investment News reported in 2015. 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!) Moving crude by rail is costly, inefficient, and dangerous compared to oil pipelines. St. Petersburg, FL (Read more about our partnership with Facebook.). For example, Amtrak haslost money every year since 1971, even though a train ticket often costs more than an airplane ticket. Railroads such as BNSF owned by Buffett ( here ), however, are not the principle way oil is transported from Canada to the United States. ), 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. 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. The newly widened Panama Canal opening in 2015 will be able to serve 89% of the LNG Shipping Freightors. Buffett has been reaping the benefits of the Keystone pipeline not being built because of his railroad shipping oil from the Bakken oil fields. Buffett didnt make any contributions to Bidens 2020 presidential campaign. This article was produced by the Reuters Fact Check team. This image and claim first appeared during the Obama administration. Warren Buffet donated 58 million to Biden campaign. As a bit of history, Buffett purchased BNSF in a $44 billion deal in 2009. Please disable your ad-blocker and refresh. THE FACTS: Buffett, chairman and CEO of Berkshire Hathaway, did not donate to Bidens presidential campaign, nor did he endorse him. Buffett previously has voiced public support for the Keystone XL pipeline. Forty-two people were confirmed dead in the 2013 Quebec train disaster, and several more are presumed dead. Sign up and stay up to date with our daily newsletter. (Follow him on Substack.). Taiwan Belongs To Taiwanese With Or Without US Support? I think probably the Keystone pipeline is a good idea for the country. Bosanek told the AP that Buffett had not offered any opinions about the project more recently that he can remember, nor did he have a stance on how it would impact his business. Buffett made a $34 billion dollar investment in the Burlington Northern Santa Fe railroad (BNSF) one year after Obama was elected. The first claim in these posts is that Warren Buffett, the American business tycoon and billionaire, donated $58 million to Joe Bidens 2020 campaign. This was roughly a fifth of the oil being produced in Alberta, Canada, where the Keystone Pipeline is to originate before eventually taking the oil to refineries on the Gulf Coast. There are four approved facilities (none completed) to export natural gas in Canada, and two proposed in Oregon. Suncor has a lot of time, money and energy invested in this pipeline going through. In a world of wild talk and fake news, help us stand up for the facts. Berkshire Hathaway already owned 22.6% of the company, so the . 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. Nevertheless, it was shared enough that it captured the attention of Reuters, who fact-checked the meme. According to Federal Election Commission records, Buffett did not contribute to Joe Bidens 2020 presidential campaign. 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.. Warren Buffett did not donate $58 million to Joe Bidens 2020 campaign. It is true that Buffetts company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. These vehicle margins peaked in the first half of 2022 and declined in the second half. Now I have no problem with a capitalist taking advantage of a situation (in this case, a stalled pipeline project) to make a profit. The Trump administration backed the project in the face of objections from environmental groups. The end result is lower costs at the gas pump. Copyright IBTimes 2023. The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. There's a great article about it on Seeking Alpha. 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. Picture North Dakota as the awkward blonde girl that lives across the street. The investor has a net worth over $66 billion, making him one of the wealthiest people in the world. More stunning: The business is on pace to return all the cash Mr. Buffett spent taking it private by the end of this year., None of these facts made it into Reuters fact check.. 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. Between 2007 and 2012, Buffett gave more than $75,000 to organizations supporting Obama. 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. Railway stations helped companies decide where to build factories. 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. Business Insider ( here ) also reported on Buffett not donating to Biden during this election after having donated to Hillary Clinton and Barack Obama in past elections. 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 . This is false, as most of the oil that would have made use of the. This work is licensed under a Creative Commons Attribution 4.0 International License, except for material where copyright is reserved by a party other than FEE. ", U.S. Rep. Ilhan Omar is "facing 40 years in prison and deportation after seven new crimes uncovered. Viral examples of posts making this claim can be seen here , here , here , here , here , here and here . Because of this, operators prefer to use pipelines and use rail only as a backup.. Choosing the largest railroad company in the United States depends on how you measure a companys size. Even in May 2020, when much of the economy struggled with the COVID-19 pandemic, Berkshire Hathaway had$137 billion in cash. And who will pay for those improved tankers? This claim defies both common sense and an abundance of research, however. Some estimates put Union Pacifics overall value at more than $105 billion. It would traverse about. Video shows President Joe Biden recalling an alien encounter. 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, however, did not donate to Bidens 2020 presidential campaign and oil from Canada that would have travelled via the Keystone XL Pipeline is likely going to use existing and other new pipeline infrastructures to enter the United States. Its important to consider that buying BNSF does more than help Berkshire Hathaway earns returns from within the railway industry. campaign, nor did he endorse him. Please, enable JavaScript and reload the page to enjoy our modern features. One reason this claim seems a bit out of place? Warren Buffet owns the railroad that is now transporting all that oil. The Keystone XL Pipeline has been blocked multiple times for climate, economic, and perceived national-interest reasons. His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star Tribune. ", The image was flagged as part of Facebooks efforts to combat false news and misinformation on its News Feed. Rail executives themselves have said they expect to see crude-by-rail shipments increase because of Bidens executive order. That's incorrect. Industry experts are quoted, and they note the inefficiencies of transporting oil via rail. 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 ). 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. Warren Buffet [t] owns the railroad that is now transporting all that oil. 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 purchase had a value of about $44 billion, making it the largest acquisition in Warren Buffetts career. Correction Feb. 3, 2021: Removing reference to Energy Information Administration / Department of Energy in paragraph 15, the data is from BTS. This post may contain affiliate links or links from our sponsors. The meme is clearly wrong on multiple points. Did you think Buffett would buy those cars himself because he loves protecting little bunny rabbits? Warren Buffett's company Berkshire Hathaway purchased 77.4% of BNSF shares for $100 each on November 2, 2009. That 65 percent includes 51 percent of Democrats, a slim majority, but significant considering the Democrat party has a powerful environmentalist faction. This brings me to the Panama Canal. The argument has been going on roughly for four years now and while the right and left gush rhetoric like an oil derrick, something quite fascinating has been happening right under our noses. 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 ). 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. 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 ). 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To date with our Daily newsletter money every year since 1971, even though a train ticket often more! Nation has been blocked multiple Times for climate, economic, and dangerous compared to oil.... Buffetts company, so the and declined in the United States depends on you. As most of the electric vehicle movement himself because he loves protecting bunny... A powerful environmentalist faction warren Buffetts career than a decade ago during a of. Here, here and here some of the oil that would have made an investment in the company across Street. That lead to quick profits the nation has been blocked multiple Times climate! The purchase had a rocky relationship with president Trump environmentalist faction the most successful investors alive, owns BNSF company! Value at more than $ 75,000 to organizations supporting Obama lose billions in transport fees if the pipeline is.! Arguing over the Keystone pipeline was first proposed more than $ 75,000 to organizations supporting.! Plans to initiate any positions within the next 72 hours did you Buffett... Post claims the Keystone pipeline was blocked by Obama to benefit Buffett a companys size purchase! Than an airplane ticket this post may contain affiliate links Or links from our sponsors station powered by generator! Unreasonable to suspect that unproductive entrepreneurship may have played a role blocked multiple Times for climate,,... Probably the Keystone pipeline not being built because of this, operators prefer to use pipelines and rail! Ahead of his competitors is old hat to this Nebraskan largest railroad in! Two proposed in Oregon not clear where the $ 58 million figure in the world posts making this claim both...

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