Barack Hussein Obama, doing what’s worst for America and her allies, and doing what’s best for her enemies.
Post #5
The winner!
Warren Buffett Profits Hugely from Obama Keystone Decision
Running the oil via railroad will cost much more than running it through the pipeline. Captive shippers have previously complained about the higher rates BNSF has been charging due to the premium Buffett’s Berkshire Hathaway paid for the company. BNSF’s higher rates have even affected the cost of shipping food on the railroad. Recently, The National Association of Wheat Grower’s past President Wayne Hurst testified to the Surface Transportation Board that growers are increasingly concerned about the higher cost of shipping on the BNSF railroad.
Buffet also stands to profit from the rising oil costs in the United States. Coal is a major alternative to oil and its derivative, natural gas. Coal also plays a large role in the profits of BNSF. In fact, hauling coal made up a quarter of BNSF’s revenue during 2009, and BNSF railway cars hauled coal more than any other single material. BNSF plans $3.9 billion in capital spending this year, as the company boosts capacity for coal shipments. If oil and natural gas had won out through approval of the Keystone XL pipeline, this could have had a significant negative impact on BNSF’s large coal business.
The Keystone XL permit was denied after loud opposition from environmentalists, this despite the fact that three years of environmental impact studies were conducted by the State Department that determined the pipeline would have “no significant impacts.” Among the groups leading the charge for no pipeline was the group “Bold Nebraska.” The “Bold Nebraska” campaign was funded to a great extent by Dick Holland, an old Buffett friend and associate. Both are big Democratic Party contributors.