Warren Buffett Invests in Oil Sand Producer Suncor | TigerDroppings.com

Posted byMessage
Interception
Providence Fan
Member since Nov 2008
11089 posts

Warren Buffett Invests in Oil Sand Producer Suncor


LINK

quote:

Warren Buffett just injected himself into one of the hottest environmental debates in the country.
On Thursday Buffett's Berkshire Hathaway announced through a regulatory filing with the Securities and Exchange Commission that it bought $524 million worth of Suncor stock last quarter.

Suncor is a Canadian oil company that derives most of its current oil production -- and future expansion plans -- from Alberta's oil sands.

Preventing oil sands expansion is the main reason why environmentalists are urging President Obama to reject the Keystone XL pipeline, the controversial $5.3 billion project slated to carry oil from Alberta to the Gulf Coast.

Oil from the oil sands region is thought to emit 17% more greenhouse gases than traditional crude, primarily due to the energy it takes to separate the oil from the sand.

Oil sand proponents say the oil will still make it to market whether Keystone is built or not, via other pipelines to Canada's coasts or by rail. That's an argument the Obama administration has bought up until now.


quote:

Politics aside, it's possible Buffett bought Suncor to help ensure a steady supply of oil for his BNSF railroad to move. Oil currently accounts for about 4% of BNSF's freight, the company's president was quoted saying Wednesday by the Houston Chronicle's FuelFix blog. That's expected to double over the next several years.

But analysts say it's more likely Buffett bought Suncor because it's a good old-fashioned value.

The company is well run and owns huge tracts of oil sands resources from which oil production -- despite the objections of environmentalists -- is projected to continue to grow
.

quote:

Oil sands producers have been in a bit of a bind of late, as trouble moving the oil out of Alberta has caused a buildup of it in the middle of the continent, depressing both oil prices and the stock prices of companies in the space, including Suncor.

But Suncor doesn't have the same transportation issues as some other oil sands producers, said David McColl, an oil analyst at Morningstar. It's locked up more than enough pipeline and rail capacity to move its current and planed production for several years.

Plus, it owns several refineries, which help the firm avoid having to sell its crude for the depressed, mid-continent prices.

McColl expects the stock to go from its current $32 a share to $52 a share in five years.









Back to top
Share:
Zahrim
Colorado Fan
McCamey Texas
Member since Mar 2009
4460 posts

re: Warren Buffett Invests in Oil Sand Producer Suncor


not surprised he did this to keep that oil flowing on his rail.





Back to top
GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
23941 posts

re: Warren Buffett Invests in Oil Sand Producer Suncor


quote:

not surprised he did this to keep that oil flowing on his rail.






Back to top
Paluka
LSU Fan
One State Over
Member since Dec 2010
3966 posts

re: Warren Buffett Invests in Oil Sand Producer Suncor


He knows how to make money and making money is his main goal. He's only in on the environmental crap to boost his fortune. I know...I'm Captain Obvious!





Back to top
wickowick
LSU Fan
Head of Island
Member since Dec 2006
22212 posts
 Online 

re: Warren Buffett Invests in Oil Sand Producer Suncor


Keystone is dead, it's over...





Back to top
upgrayedd
Southern Miss Fan
Further on up the road
Member since Mar 2013
6903 posts

re: Warren Buffett Invests in Oil Sand Producer Suncor




Pipelines are dangerous to people and the environment. Transportation of crude by rail is the the only safe and environmentally sound transportation method.






Back to top
PerceivedReality
LSU Fan
Black Hills
Member since Apr 2013
589 posts

re: Warren Buffett Invests in Oil Sand Producer Suncor


quote:

upgrayedd







Back to top
ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6142 posts

re: Warren Buffett Invests in Oil Sand Producer Suncor


Buffet didnt build hat





Back to top


Back to top




//