Tuesday, January 24, 2012

Warren Buffett Benefits from Pipeline Cancellation

Remember how Obama denied a permit to TransCanada Corp to build the Keystone XL pipeline?  Obama claimed that he did it because the deadline that was imposed for approval was too short. But here's the real reason.

Warren Buffett, Democrat-Who-Supports-Higher-Taxes-on-Rich-People,  and a major contributor to the Obama campaign, will benefit from the cancellation of the pipeline.

Warren Buffett’s Burlington Northern Santa Fe LLC is among U.S. and Canadian railroads that stand to benefit from the Obama administration’s decision to reject TransCanada Corp.’s Keystone XL oil pipeline permit.

With modest expansion, Buffett's railroads can transport all new oil produced in western Canada through 2030, according to an analysis of the Keystone proposal by the U.S. State Department.

The State Department denied TransCanada a permit on Jan. 18, saying there was not enough time to study the proposal by Feb. 21, a deadline Congress imposed on President Barack Obama. Calgary-based TransCanada has said it intends to re-apply with a route that avoids an environmentally sensitive region of Nebraska, something the Obama administration encouraged.

Transporting oil by rail would be a lot costlier.  It also means greenhouse gas emissions would be worse than the pipeline and the chances for a catastrophic accident and oil spill are much higher. But that doesn't matter when you're paying back your campaign contributors, does it, Obama?

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