Another day, another story about crony capitalism:
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. (TRP)’s Keystone XL oil pipeline permit.
With modest expansion, railroads can handle all new oil produced in western Canada through 2030, according to an analysis of the Keystone proposal by the U.S. State Department.
“Whatever people bring to us, we’re ready to haul,” Krista York-Wooley, a spokeswoman for Burlington Northern, a unit of Buffett’s Omaha, Nebraska-based Berkshire Hathaway Inc. (BRK/A), said in an interview. If Keystone XL “doesn’t happen, we’re here to haul.”
It’s okay though, because Buffett will no doubt send any extra profit he makes directly to the US Treasury in order to lower the national debt (pause for laughter).
Buffett was so happy about the Keystone denial that he picked up a ukulele and sang “I’ve been working on the railroad”:
Update: Guess who’s going to sit next to FLOTUS at the State of the Union speech tonight? Not Warren Buffett, but very close.