Obama Crony Warren Buffett Raking It In From Transporting Bakken Oil By Rail


If built, the Keystone XL pipeline would take about 100,000 barrels of North Dakota’s Bakken oil per day (to put that into perspective, that’s the equivalent of taking about 500 tanker trucks off the roads a day). But the Keystone XL pipeline isn’t being built as President Obama continues to obstruct the process with regulation.

In the mean time, oil producers have turned to rail to get oil out of the oil patch, which has led to an explosion in growth in the rail industry, which in turn is putting a lot of money in Warren Buffett’s pockets:

Warren Buffett and Carl Icahn are reaping the benefits of surging demand for railroad tank cars to haul shale oil from beyond the reach of existing pipelines.

Buffett’s Union Tank Car Co. is working at full capacity and Icahn’s American Railcar Industries Inc. (ARII) has a backlog through 2014. Trinity Industries Inc., the biggest railcar producer, began converting wind-tower factories last year to help meet demand for train cars that can transport the petroleum product.

All three are getting a boost from a shale-oil boom that’s poised to make the U.S. the world’s largest crude producer by 2020. Rail carloads of crude tripled last year to more than 200,000, and demand for tanks designed for it soared, helping both Trinity and American Railcar outstrip the Standard & Poor’s 500 Index.

“People who want to ship oil can’t get them,” Toby Kolstad, president of the consultant firm Rail Theory Forecasts LLC said, referring to railcars. “They’re desperate to get anything to move crude oil.”

I’ve got no problem with rail, but it’s a more dangerous avenue for transporting oil than pipelines (trains derail more a lot more often than pipelines leak) not to mention more expensive.

It’s hard to see what’s happening here and not think that the fix is in. Obama is roadblocking pipeline infrastructure to manufacture demand for rail capacity.

In related news, remember that Trinity Industries bought out wind industry manufacturer DMI Industries in Fargo. What does Trinity do? In addition to manufacturing wind towers, they make rail cars.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters.

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  • http://Sayanythingblog.com The Whistler

    The good news is that Obama is less likely to shut down the oil fields when his biggest backer has a stake in it.

    • two_amber_lamps

      When the time comes and the ends justify the means, then they shall put the kibosh on that enterprise.

      • Bat One

        For liberals, the end justifies the means is about the only “principle” they believe in.

        • $8194357

          Its all lucifer believes in as well, huh….

          • borborygmi

            really The End , Eternal Salvation is Justified by the Means Christ Suffering Dying and Rising. It is the Bedrock of Christianity.

          • $8194357

            Now thats a warped twist on Gods love for His creation..
            but then lucifer is warped, huh. Look what God made me do has worked on you apoligists since the Garden..
            Still does….

    • Bat One

      I disagree. Obama is notorious for using people to get what he wants and then tossing them under the bus once their usefulness is ended. Not much different than any other tin-horn dictator. Mr. Buffett has served his purpose. Obama got his tax hile on the rich.

      • borborygmi

        You are living in la la land if you think you toss aside let alone use one of the worlds richest men. With wealth comes power and you don’t screw with Mr Buffet without consequences.

        • Bat One

          Really? Got any examples of those “consequences” you’d like to share, something factual and verifiable. Or are you just doing like little Hanni and preening for the cameras?

          • borborygmi

            Common Sense unless you wish to affirm that Mr. Buffet is a nice old gentleman with gobs of cash that just wants to help. If you don’t want to help him I believe he could use the money and power he has to your detriment IMO.

          • Bat One

            So-called “common sense” is nowhere near as common as you might think. As for Mr. Buffett, I don’t believe there are examples of him using his “money and power” to the detriment of someone who opposed him. Not everyone thinks and behaves like a tin horn Chicago thug.

  • Snarkie

    This is just a case of the market doing what’s best. Lulz.

    • yy4u2

      This is just a case of govt engineering the market to best fit them and their cronies.
      There, fixed it for ya.

      • Snarkie

        That pipeline smacks of government engineering too. What, crossing all those country and state borders. I don’t trust it.

        • Onslaught1066

          Your wife cross a lot of boarders, did she?

          That why you killed her?

          Poor Buttfuckle.

  • tony_o2

    I think Buffet should do us a solid and donate all this new wealth to the U.S. Treasury. Surely he’s reached that point where he’s made enough money. He’s even asked to have his taxes raised, but those mean old Republicans are forcing him to keep his money. It must sadden him to make all that money from a company he didn’t build…..

    • Bat One

      Truth is, if they confiscated ALL the wealth of all the nation’s billionaires, it wouldn’t pay for even a single year of Obama’s deficits.

      • Snarkie

        Obama’s deficits? You mean the debt + interest from all those wars of insecurity that the last admin got us into, and maybe out of…

        So… how’s the Afghanistan war going these days? Yawn.

        • Onslaught1066

          Is that why you killed your wife?

          Did she bore you?

          Poor Buttfuckle.

          Any more of your family on their “Death Bed” you’d like to share with us?

          How’s Mom and Dad?

          • two_amber_lamps

            Gone… probably worth a pallet of popov between the both of em.

        • Bat One

          Nice try – considering – but still no cigar. The debt and interest from the Iraq and Afghanistan wars under Mr. Bush don’t add up a single one of Obama’s $1 trillion plus deficits.

  • mikemc1970

    Nice try Rob, next you’ll tell me that Obama has also been giving large and graciously termed worry free government “loans” to bundlers in the green energy sector. We all know something so corrupt would never happen, because the main steam media would be exposing him for the crook he is.

  • borborygmi

    Warren is a very shrewd businessman. Don’t eff with him. I do agree with you on this one. Drag your feet on pipeline, letting the other guy mop up, although the manufacturer of all those new tankers coming through Fargo must be really happy also.

  • Snarkie

    I think it’s another conspiracy! Pass the tin foil, I’ll get Alex Jones on the batphone.

  • WOOF

    Raisng money for Operation Evita Peron.

    • guest

      Raising money for her new cage in the zoo.

  • $8194357

    Buffet and Soros OSI…
    Big spenders raking in big bucks off the taxpayer dhimmis backs…
    Crony what?…Capitalism……Marx met Wall Street in 1908 thanks
    to Illuminati Bankers backing communism in Europe and Woodrow Wilson
    giving us the international progressive Federal Reserve central bank in 1913…….

  • Zsa Zsa

    It amazes me how the so called Anti Capitalist’s continue to Capitalize. Al Gore, Hill and Bill, Michael Moore, and the list goes on…

    • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

      It amazes me how nutters believe capitalists are socialists.
      Al Gore, Hill and Bill, Michael Moore, and the list goes on…

  • SusanBeehler

    Which in turn is putting food on the table for railroad workers: railroad workers who do not burden taxpayers with social security and medicare.

    • http://sayanythingblog.com Rob

      I don’t have a problem with railroads, per se.

      I just have a problem with the government purposefully manipulating the market for the benefit of one industry over another.

      I guess I just sort of have a bias for fairness.

      • borborygmi

        I suppose no one really likes it (unless you benefit) when the powerful wealthy buy favor or at least access to the gov’t but can anyone name me a time when that wasn’t true? Rob you are the one that believes anyone at anytime should be able to donate as much money as they want to a candidate. Why do you think they do that except to gain favor.

        I guess I never heard you complain once about the Koch Brothers. Why?

        • JW-American

          Why would we complain about the Koch Bros? Are they getting some sort of Govt subsidize too? I didn’t thinks so, what they do get is an annual anal exam by the IRS,EPA, DOJ and every other agency that has their fingers in regulating a multi-national energy company, any wonder why the Bros. fight back so hard? DUH! wake up and stop listening to Ed the Red every night.

      • SusanBeehler

        So finding the means to deliver the oil faster than waiting around for a Canadian pipeline is fairer. The oil producer ONEOK (unless I do not understand what ONEOK was proposing) was proposing a pipeline and no other producers bought into it. This is the market working. I guess I do not understand how a Canadian pipeline should take precedent over another means to deliver service. The railroad has the infrastructure to deliver the oil so why not let the market use it, why wait around for a pipeline?

        • willieB

          Pipeline…what pipeline?

          “But the Keystone XL pipeline isn’t being built as President Obama continues to obstruct the process with regulation.”

          Try to catch up.