Covid variant BA.5 is spreading. When Warren Buffett was asked what he thought about the Keystone Pipeline he responded with: Canada's been a terrific partner for us over the decades and it is wrong for us to thumb our nose at them. Oil that the Keystone Pipeline can't handle is now transported into the U. S. by rail. Billionaire benefactors: Mayors of cities with McClatchy papers, like Miami and Sacramento, are pushing for local owners motivated primarily by a desire to serve the broader public interest, not the narrow bottom line, as Miamis mayor, Francis Suarez, put it. You have permission to edit this article. 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Warren Buffett was a Washington Post shareholder and had met the newspapers publisher, Katharine Graham, by the time Richard Nixon resigned a, Warren Buffett again warned against investing in cryptocurrencies, this time in the Washington Post. It really does come down to the money and the Democratic donors. Would President Obama rather live in a world dependent on oil from North America or on oil from the Middle East and OPEC? (renews at {{format_dollars}}{{start_price}}{{format_cents}}/month + tax). North Dakota's booming oil fields will now grow more dependent on a railroad the president's economic guru just bought. Moreover, the change in transportation style does more to harm the environment than the pipeline itself. You might think a man who is making so much money shipping oil by rail would oppose Keystone XL, but Buffett isn't worried about the pipeline cutting into his business. The truth of the matter is that moving oil from North Dakota to the Gulf Coast is one thing, but adding 900 miles of rail time to that distance the distance to Alberta's oil sands and all of a sudden rail is not particularly economical. "I'm not aware of a pipeline that's been forced to shut down mid-production, that obviously concerns people in the industry,"said Pearce Hammond, managing director and equity research analyst for midstream and infrastructure at Simmons Energy. For us to continue to deliver the truth that Americans need to read and hear, we ask you, our amazing audience, for financial assistance. As environmental groups hail President Obama's rejection of the Keystone XL pipeline, billionaire and prominent Democratic donor Warren Buffett (left) is set to reap a handsome reward from the . The top two winners when the pipeline was stopped: Warren Buffett, who owns the trains that will carry the fuel, and China, who will now buy . QUIETLY ADMITS MISTAKE CANCELING KEYSTONE XL PIPELINE: 01/23/23: 4: Biden Admin. By Daniel John Sobieski. Were confident we will have a robust process, McClatchys lead bankruptcy lawyer said. In short, we are now in desperate need of financial assistance. Get this delivered to your inbox, and more info about our products and services. The Biden administration has so far not announced any action against that pipeline. {{start_at_rate}} {{format_dollars}} {{start_price}} {{format_cents}} {{term}}, {{promotional_format_dollars}}{{promotional_price}}{{promotional_format_cents}} {{term}}, Submit a Public Notice for Omaha World-Herald, By Steve Jordon / World-Herald staff writer, Nebraska cheerleader competes by herself at state competition, but crowd doesn't let her feel alone, Dirk Chatelain: Driven by the story, mine at The World-Herald has come to an end (for now at least), Time to move? var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(sc, s); "They can see clearly that something needs to be done about climate change," said Andrew Grant, head of oil and gas for Carbon Tracker, a think tank that focuses on the financial and market implications of climate change. . The deal won't burn a hole in his pocket, either, with Berkshire sitting on well over $100 billion in cash and short-term assets, and Buffett always anxious to deploy the capital into projects that generate a return on investment. "They made a decision to exit this midstream pipeline business because they basically felt that it [renewable energy] would be a better business, it would basically accelerate the transition of the company to clean energy, For them, it's a pretty big strategic bet they made," Fleishman said. One would think this is counterintuitive, but sometimes people are skeptical because they think that perhaps theres a reason others havent been donating. Im not an expert, but it certainly seems like it makes sense to me, Buffett said Monday when asked on Fox Business Network whether he would support the pipeline if it doesnt threaten an environmentally sensitive region in Nebraska. Oil Giant Dominion Energy . 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. Doubling a $34 billion investment in just four years is huge. Even as he increases his pipelines footprint, Buffett's utility has been making a considerable shift. Currently, Energy Transfer has 90,000 miles of oil and gas pipeline infrastructure in place. In recent claims, Warren Buffet was said to have donated $58 million to Joe Biden's campaign in order to sway the President in canceling the Keystone XL Pipeline. The theory The crux of this argument is based on the assumption that if the Keystone XL is not passed, Canadian oil sands producers will have to ship their oil on Warren Buffett's trains. Biden had promised during the campaign to nix the project. In an interview with Tom Brokaw on NBC's Meet the Press over the weekend, Obama said that today he would be "pulling together" some of his "core economic advisers" to "examine the policies that we've already put forward--a middle class tax cut, a second round of stimulus, a effort to shore up the housing market in addition to the bill that was already passed through Congress, what we need to do in terms of energy and infrastructure. "It will be even a few more years until we get back to where we started from, and then to satisfy pipeline capacity, we will need even more production growth.". Assets like the ones Dominion sold to Berkshire are harder for utilities to justify given the push among constituents to decarbonize. Low oil prices and a volatile market are prompting a South African energy and chemical company to drop plans for an $11 billion to $14 billion, Instead of celebrating the completion of a nine-year-long odyssey to get regulatory approval from the State of Nebraska, TransCanada officials. "It's not 'tomorrow we stop using gas,' but it is a plausible scenario where it gets harder and harder for a utility to put dollars into that infrastructure and derive earnings growth," Karp said. But Berkshire owns pipelines that carry 8 percent of the nations natural gas flow, and in 2008 Buffett and associate Bill Gates, the Microsoft co-founder, took a trip to Alberta, Canada, to see an oil sand extraction project and learn about the expensive process. So really, its diluents shipments would likely increase if Keystone were to get approved. Pipe Dreams. We need approximately $17,300 to stay afloat through March when we hope the economy will be more open, but more would be wonderful and any amount that brings us closer to our goal is greatly appreciated. (WSJ), Netflix has beaten Hollywood on several fronts a list that now includes signing up Black content creators. Have a question for Steve Jordon about the Oracle of Omaha? Many DealBook readers wrote in, and here is a selection of their responses, lightly edited for clarity and length: If workers across the spectrum joined forces to demand salary transparency in their companies, it would be a huge leap for racial justice. Cate in Silver Spring, Md. The jobs aspect of it is not the big aspect of it. Last week, 48 climate activists were . Now, as rig counts have declined at the steepest rate since 2009 75% of natural gas production comes from the "associated gas" at oil rig sites, as well crude production is expected to register an annual decline within the next few months, and that decline will persist until at least mid-2021, according to PlattsAnalytics' forecast. Biden says hes not confident Supreme Court will clear student loan McCarthy, GOP pump brakes on release of Jan. 6 footage to Tucker Carlson. With everything he does, he is trying to make a difference, Wolfe said. President Barack Obama's decision to withhold approval of the Keystone XL pipeline will hugely benefit one of his largest supporters - Warren Buffett. Warren Buffett is a respected investor but it doesnt hurt to have the ear of the President as he kills off your competition in oil transport. Utility stocks did well in recent years, but "the stocks have not done well on mistream deals," Karp said. "The market was saying that it doesn't want utilities to own gas assets.". The Motley Fool has a disclosure policy. The action . The $9.7 billion deal was estimated at a price of 9.7 times EBITDA, a price that Dominion management defended as being above recent, similar transactions. Best to boost your immune system with new Z-Dtox and Z-Stack nutraceuticals from our dear friend, the late Dr. Vladimir Zelenko. ", President Obama would soon launch an endless review process that would kick the Keystone oil can down the road until he was ready to kill it, a non-suspicious interval of time having elapsed after economic mentor Warren Buffet. I think it would cause employers to close the gaps and not just give raises to those who speak up or threaten to leave. Kenny in Omaha, Neb. 12/08/22: 10: Warren Buffett, the Keystone Pipeline, and Crony Capitalism: 01/19/12 President Biden is already making costly mistakes. "That may be more attractive than gas, and when can redirect the capex and get a return on that, and not deal with gas ownership, it looks like a solid move," Karp said. All Rights Reserved. Sure, gasoline prices have fallen, but largely due to another technology President Obama and his environmentalist base opposed, also for alleged environmental reasons hydraulic fracturing or fracking. As it happens, BNSF doesn't transport any significant quantity of oil sands. Last week, we highlighted a project by Times Opinion that got more than 1,000 people to share details about their salaries and whether they thought they were under- or overpaid. When they go up again, and they will, wouldnt it be nice to keep our petrodollars here at home? Alternatively, you can donate through PayPal as well. Billionaire Warren Buffett said this week he supports the Keystone XL oil sands pipeline, inserting himself in a politically divisive debate on the project. But so are the infrastructure jobs he favors. The major player when I was up there was Burlington Northern Santa Fe (BNSF), now indirect, wholly owned subsidiary of Berkshire Hathaway, controlled by Warren Buffett.. Buffett / Biden international politics phone call. The billionaire investor recently plunked down near-$10 billion to buy gas pipeline assets and related debt. Berkshire Hathaway already owns about 22% of Burlington Northern, and will pay $100 a share in cash and stock for the rest of the company. The EIA announced in early December it expects retail diesel prices to fall further from the . It is the company's biggest acquisition ever. The 1,700-mile pipeline was planned to carry roughly . Buffett's Berkshire Hathaway (BRKB) announced Monday it was scrapping plans to buy a big natural gas pipeline for more than $1.7 billion because of antitrust concerns. Warren Buffet owns the railroad that is now . The workers will simply move on to the next project. Zero-calorie sweetener popular in keto diets linked to strokes, heart attacks, Greta Thunberg removed from site of Norwegian wind farm protest, Senate group wades into tough talks on Social Security, Fight in high school classroom leaves one dead, one injured. When Sheriff Thomas Schneider retired for health reasons in September, he appointed Buffett to serve as sheriff until an election next November. There are many scenarios for the fate of the local news group, the countrys second-largest. Fueled by crude by rail volumes, BNSF became a cash cow for Berkshire, producing billions. When President Obama was first running for office, he publicly declared that Warren Buffet was his prime source for economic advice. The incremental investor in utilities is more environmentally conscious than the incremental investor in Berkshire. Howard Buffetts foundation, meanwhile, has issued a fraud alert to warn people about emails circulating on the Internet using his name and the name of the foundation. Some of us may think this is a ridiculous theory, but given the power of money in Washington, let's take a closer look anyway. Did Warren Buffett make a $58 million political contribution to Joe Biden's presidential campaign because a railroad the billionaire owns would have financially suffered if Biden allowed the Keystone XL pipeline to be completed? "We're not expecting U.S. crude to return to levels we were at in Q1 2020 until 2023," said Jenna Delaney, leadanalyst, North American oil, S&P Global Platts. Interest from other prospective buyers for the company, which filed for bankruptcy protection in February, reportedly waned as the pandemic sunk the advertising market. Published: Nov. 3, 2009 at 4:18 p.m. In November, 2020, we hit 1.2 million visitors. BNSF essentially invented the . Buffett, however, did not donate to Biden's 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 . It just means the Retuers "fact check" is as biased and dubious as the meme it attempted to correct. The oil will still come, but now it will have to be transported less efficiently and at higher cost to consumers. Maybe, but based on the fact that rail is a non-factor in oil sands transport right now, not nearly to the degree some are claiming. (FedExs C.E.O., Fred Smith, is reportedly considering selling his stake in the franchise.) Buffett does stand to profit from the cancelation of the Keystone pipeline and perhaps a great deal. Teachers are pumped. So how did Buffett do on his investment and did he profit from buddy Obamas delaying and then killing the pipeline? However, crude-by-rail could be a "slight positive bump on . Anyone can read what you share. In London, Britains chancellor, Rishi Sunak, will unveil the latest outlook for the British economy, along with potential policy changes to taxes and furlough payments. One of the most popular pieces of Buffett advice is as follows: "Rule No. Keystone XL, a 1,897-kilometre pipeline running from Hardisty, Alberta, south to the United States' Gulf Coast, was intended to tap unused Canadian oil sands crude, carrying 830,000 barrels of oil across the border each . 2023 CNBC LLC. Buffett bets big with $10 billion Dominion Energy dealhere's what it means. Dominion Energy, Warren Buffett's Berkshire Hathway Energy terminate Questar Pipeline sale Dominion is looking to sell Questar Pipelines to an alternate buyer by the end of 2021 To keep our petrodollars here at home the change in transportation style does more to harm the environment than pipeline! Higher cost to consumers cost to consumers. `` likely increase if were... 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