Puneet Kollipara and Dan X. McGraw
Houston Chronicle staff writers
The ongoing Keystone XL debate has turned into a political circus, and Berkshire Hathaway CEO Warren Buffett and the Koch brothers have turned into a sideshow.
Rep. Henry Waxman, D-Calif., has pushed for the David and Charles Koch, who own Koch Industries, to testify about the impact of the Keystone XL on their business after reports claimed the company would benefit from the pipeline’s construction.
Reuters reported in October 2011 that Flint Hills, a Koch Industries subsidiary, told Canadian energy regulators that it has a “direct and substantial interest” in the pipeline.
“I want to know why Koch would tell Congress one thing and the Canadian government the exact opposite,” Waxman said. “We are left with unanswered questions. Why does this company get special treatment while American people get left in the dark?”
Analysts have pointed out that the entire energy industry, including Koch Industries, would benefit from construction of the pipeline.
Koch Industries has repeatedly denied it has a financial interest in the pipeline and it has called the Reuters story inaccurate. The company had filed as an “intervenor” with Canadian energy regulators who were holding hearings on the project. But Philip Ellender, president and chief operating officer for government and public affairs at Koch Companies Public Sector, claimed that filing as an intervenor doesn’t mean the company has a financial stake.
“By definition, an intervener [sic] is anyone who wants to learn more about a project,” the company said in a recent statement. “In this case, interveners [sic] included individuals, environmental groups, businesses and many others.”
Rep. Ed Whitfield, R-Ky., responded to Waxman by saying the same questions could be asked of Buffett, whose firm Berkshire Hathaway Inc. owns railroad company Burlington Northern Santa Fe Corp.
“We have not made any effort to call him to testify at this hearing,” Whitfield said. “We do not think he has direct financial interest in the pipeline. “I really do not view Warren Buffett and the Koch brothers any different on this situation.”
Buffett, who has long supported President Barack Obama, could profit off the pipeline because its rejection could shift more oil from the Bakken shale play in North Dakota to refineries.
Buffett told the Omaha World-Herald that he hasn’t talked to the president, member of the administration or politician about the pipeline.
“I’m not qualified to have an opinion being neither an engineer, a geologist or having any other skill that would give me special qualifications for making a decision,” Buffett said in an email to the World-Herald.
This story was last updated at 3:54 p.m.
I say it’s time to knock the rich down a notch and pay taxes on all their revenue.
Steve, sounds like Venezuela would be a more appealing place for you to make your home. They love that kind of mentality down there. You should go visit. And, buy a one way ticket.
Koch brothers also had nothing to do with the Wisconsin governor and his attack on those pesky worker’s unions.
Koch is a private company so there is very little information about their line of business and how they make money. Whether they are in the Keystone pipeline is up to them….The project is not dead, just delayed. There is nothing wrong with that, as a lot of Government projects from the BLM take a long time for an EA(Environmental Assessment) and sometimes an EIS(Environmental Impact Statement) that take long to perform. This is a requirement by NEPA and skipping this would go against a US act passed a long time ago….