It is not an environmental issue, it is a money issue the Facebook post reads. 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. Why not use neighbor or even friend? It would have carried up to 830,000 barrels per day of crude oil from Alberta, Canada, to. Dr. 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. It is true that Buffetts company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. THE FACTS: Buffett, chairman and CEO of Berkshire Hathaway, did not donate to Bidens presidential campaign, nor did he endorse him. So why all the fuss about the pipeline from Canada? Written in a breezy, sometimes cheeky tone, its a harbinger of spring, like sighting the first robin of the year. The image includes a photo of a pipeline. Between 2007 and 2012, Buffett gave more than $75,000 to organizations supporting Obama. 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 larger size may help explain why Warren Buffett chose to purchase BNSF over Union Pacific. The newly widened Panama Canal opening in 2015 will be able to serve 89% of the LNG Shipping Freightors. In short, rail infrastructures cannot compete with existing pipelines to transport oil at the rate the United States does. 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. FEE Composite: Flickr-Fortune Live Media | Roy Luck, CC BY 2.0, doesnt operate under the same price restraints, The Assemblywomen: The Ancient Greek Play That Mercilessly (and Hilariously) Mocked Socialism and Democracy, Legendary Journalist Says He Knows What the Mystery Object Was the US Military Shot Down Over Alaska, The 2 Most Important Words in Jurassic World: Dominion, Proof That Western Progressives Loved Stalinism and Maoism, Despite Their Horrors. 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. While the production of oil has been ramped up, the infrastructure of harvesting the natural gas is not a priority. We are concentrating on the wrong pipeline. BNSF remains a money machine at Berkshire Hathaway, and its preposterous to think that canceling a pipeline that was expected to deliver 300 million barrels of crude each year will not result in increased rail transport of crude (even if other pipelines pick up much of the slack.). Having a train station in town helped locals access the goods they needed. Billionaire investor Warren Buffett affirmed his belief that the Keystone XL pipeline would benefit America if it's approved by the Obama administration. That said, Reuters claims dont add up, and the news agency omits relevant facts about Buffetts rail operation. 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 Trump administration backed the project in the face of objections from environmental groups. 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. But the posts main thesis, that the billionaire investor was a major donor to Bidens campaign, is not true. Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author is not receiving compensation for it. Unfortunately, from here Reuters fact check goes off the rails. 1800 I Street NW Picture North Dakota as the awkward blonde girl that lives across the street. Cancelled by Biden on first day. It is true that Buffetts company, Berkshire Hathaway, owns BNSF Railway, a freight railroad network that transports crude oil. Video shows President Joe Biden recalling an alien encounter. Oil transport had a lot to do with, Investment News reported in 2015. Or perhaps anti-trust laws would restrict Berkshire from controlling so much of Americas railroads. In 2011 North Dakota was producing 417,400 barrels of oil per day. 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. We dont find evidence that the decision was intended to benefit 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!) 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. Wind farm construction is a possible cause of dead whales washing ashore in New Jersey. Pfizer made $37 billion in profit in its last quarter. Buffett previously has voiced public support for the Keystone XL pipeline. The North Dakota Industrial Commission has been working to reduce flaring with the Northern Border Pipeline Company and the Dakota Pipeline Company. ", The post was flagged as part of Facebooks efforts to combat false news and misinformation on its News Feed. Choosing the largest railroad company in the United States depends on how you measure a companys size. Warren Buffet owns the railroad that is now transporting all that oil. Our only agenda is to publish the truth so you can be an informed participant in democracy. Buffett did contribute to Obamas presidential campaigns. False. Industry experts are quoted, and they note the inefficiencies of transporting oil via rail. 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. 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. And many of those rail lines and tankers belong to BNSF. Federal Election Commission records show that Buffett made no individual contributions in 2020. An image shared on Facebook claims Biden canceled the Keystone XL pipeline because Buffett "donated $58 million" to his campaign. As a bit of history, Buffett purchased BNSF in a $44 billion deal in 2009. The Keystone veto override vote failed in the Senate. Buffett has been reaping the benefits of the Keystone pipeline not being built because of his railroad shipping oil from the Bakken oil fields. 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. 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. Buffett did not endorse Mr. Biden, but both he and his wife voted for Mr. Biden, Bosanek told the AP in an email. Sometimes its more subtlethe news headline that says something thats actually not in the article. Its important to consider that buying BNSF does more than help Berkshire Hathaway earns returns from within the railway industry. The importance of railroads hasnt gone unnoticed by some of the worlds top investors. 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. Buffett has never seen any report by BNSF projecting whether the Keystone Pipeline would increase or decrease the revenue of the railroad, Bosanek wrote. Warren Buffett consistently makes some smart investment decisions that lead to huge returns. All quotes delayed a minimum of 15 minutes. The dog dewormer fenbendazole can cure cancer in humans. (In case you didnt know. Nevertheless, it was shared enough that it captured the attention of Reuters, who fact-checked the meme. Warren Buffet donated 58 million to Biden campaign. It would 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. It is not an environmental issue, it is a money issue. Natural gas comes from the oil reserves that are being harvested in the Bakken Shale region; it is called associated gas because it is associated with the oil. Warren Buffetts company Berkshire Hathaway purchased 77.4% of BNSF shares for $100 each on November 2, 2009. 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. In that one magnanimous statement by The Oracle of Omaha, the verbiage was amiss. And perhaps thats the answer. Was there an ulterior motive sticking up for the country that the United States has the longest border in the world with? Analysts have several theories about why Warren Buffett bought BNSF. (Follow him on Substack.). If you go to page 11, youll see Buffetts discussion of the success of Berkshires railway, BNSF. BNSFs value is about half that. Reverse-image searches show it was being shared as early as 2015, midway through Obamas second term. What Buffett doesnt mention is that this success is directly related to the lack of the Keystone Pipeline. Last month, another derailment dumped 4,000 gallons of oil in a town about 20 miles from Pittsburgh. A chart shows China and India are leading in per capita carbon dioxide emissions. It has continued adding to its long list of acquisitions since then. It boils down to this. Furthermore, a 2013 Pew survey report indicates that a large majority of Americans agree with these common sense ideas. Railway stations helped companies decide where to build factories. 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. Warren Buffet donated 58 million to Biden campaign. Please disable your ad-blocker and refresh. CLAIM: Billionaire Warren Buffett donated $58 million to President Joe Bidens campaign, so Biden canceled the Keystone XL pipeline as a favor to Buffett. And the derailment on Dec. 30 in North Dakota that spilled 475,000 gallons of oil. Moving crude by rail is costly, inefficient, and dangerous compared to oil pipelines. Mr. ", People not vaccinated against COVID-19 came out the best. Warren Buffett BNSF Acquisition. The posts say Buffett's railroad "is now transporting all that oil" following the Keystone XL Pipeline's cancellation. Rifles were involved in 297 deaths in the U.S. in 2022 and constipation killed 2,167., 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. Warren Buffet [t] would lose billions in transport fees if the pipeline is completed. 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. The author wrote this article themselves, and it expresses their own opinions. 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. Suncor is Canada's largest energy producer.. One would say their main rival, Enbridge Energy (NYSE: ENB) owns the Dakota Pipeline. 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. Berkshire Hathaway has a huge amount of cash that lets it invest in practically any business. Plus, the price of anything made of plastic (a petroleum-based product) shot up -- a significant contributing factor to the inflationary problems of that decade. Please do not edit the piece, ensure that you attribute the author and mention that this article was originally published on FEE.org. Read more about our work to fact-check social media posts here . 20006, Florida Buffett,chairman and CEO of Berkshire Hathaway, did not donate to Bidens presidential campaign, nor did he endorse him. You have permission to edit this article. 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. After all, the #1 stock is the cream of the crop, even when markets crash. On the other hand, its not unreasonable to suspect that unproductive entrepreneurship may have played a role. The meme is clearly wrong on multiple points. Its not that big of a competitor, Buffett said at the time. 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.. Warren Buffet would lose billions in transport fees if the pipeline is completed. The Nebraska. The horrible truth is train transport is far more dangerous, energy writer Brian Westenhaus has pointed out. COVID-19 vaccines "provide zero benefit relative to risk for the young and healthy.". 33701 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 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 ). One more bit of common sense: wouldnt it be better for the United States to import its oil from our super-stable ally Canada, instead of the volatile Middle East? St. Petersburg, FL It is not an environmental issue, it is a money issue the Facebook post reads. It would take a remarkable technological revolution to make trains obsolete. See how politics works? Buffett did not endorse Mr. Biden, but both he and his wife voted for Mr. Biden, Bosanek told the AP in an email. 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