It would appear that the Obama administration’s astounding decision, regarding the Keystone pipeline XL, will benefit more than just environmentalist groups.

According to IBD, since the plans for North Dakota’s Bakken fields to use the Keystone pipeline were circumvented, they will be forced to  ship the oil to refineries by way of the Burlington Northern Santa Fe (BNSF) railroad.   The BNSF is owned by none other than Warren Buffett.  North Dakota is the fourth largest oil producer in the US, according to The Republic and is forecast to soon trail only Texas in crude output.  What’s more, 75%  of the oil currently shipped, by rail, out of North Dakota is administered by Buffett’s Burlington Northern Santa Fe LLC.

Similarly, back when Obama began cessation of offshore oil production, another famous billionaire, George Soros, invested massively in Brazilian oil company Petrobras.  While no offshore oil production was taking place in the US, at that time, the US Export-Import Bank loaned $2 billion to Petrobas…for deep-water drilling off of Rio de Janeiro and Sao Paulo.

Last week, President Obama delayed the XL pipeline proposal even though proponents and critics alike have pointed out that pipelines are the safest and most economical mode of transportation for oil.  According to Tony Clark, chairman of the North Dakota Public Service Commission, “Pipelines are by far the safest and most economically efficient way to transport oil, but we are left with a limited number of options if pipelines are off the table.”  Clark added that “once the oil is flowing, it has to go somewhere.”

Alison Ritter, a spokeswoman for the North Dakota Department of Mineral Resources, has maintained that producers and the state were counting on the on the Keystone XL in order to move North Dakota crude.  Shipping crude via pipeline in North Dakota adds up to $1.50 to its cost, compared to $2 or more a barrel for rail shipments, according to producers.

“Oil that would have moved by the Keystone XL is now going to shift to rail transportation,” Ritter said.

Even a spokesman for the Sierra Club concurs that “there is no question that [transporting] oil by rail or truck is much more dangerous than a pipeline.”

In a recent development, as reported by Gateway Pundit, new legislation has been introduced by Rep. Lee Terry (R-Neb.) which “imposes narrow time constraints and creates automatic mandates that prevent an informed decision.”   The legislation would make the final determination the responsiblity of the Federal Energy Regulatory Commission (FERC), instead of that of the State Department.  In addition to that, the bill would allow FERC to issue a permit, while limiting its discretion to reject the Keystone project.

The House GOP leadership is considering attaching the bill to upcoming legislation which extends the payroll tax cut for the rest of the year.

Notwithstanding Buffett’s secretary, Debbie Bosanek, and her symbolic guest appearance at last night’s State of the Union address, it may be that not all of the president’s agenda will come to fruition – at least, in regard to the Keystone XL pipeline.

-Candice Lanier

Related posts:

1. BREAKING: Obama rejects Keystone pipeline
2. Sens. Vitter, Lugar & Hoeven Introduce Keystone XL Pipeline Legislation
3. SOTU: Too Little. Too Late.