At least one investment house isn’t afraid of fossil fuels. And it happens to be one of the biggest in the world..That’s because Warren Buffett’s Berkshire Hathaway has doubled down on liquified natural gas (LNG) by taking an additional 50% stake in a US export terminal for a cool $3.3 billion in cash.. Warren BuffettWarren Buffett, the Oracle of Omaha .With the deal, Berkshire’s energy subsidiary increases its stake in the plant to 75%. It was already the operator of the Cove Point pipeline and storage terminal located in Lusby, Maryland..The facility is one of only seven functioning LNG terminals in the US and reportedly has capacity of 1.8 billion cubic feet per day with an additional 14.6 billion cubic feet of storage. It has long-term contracts with Japan’s Sumitomo Corp., which Berkshire also has a stake. .Although it’s chump change for the Oracle of Omaha — Berkshire is worth $750 billion — it’s just the latest in a series of contrarian energy buys as others divest of energy holdings..In March, Berkshire spent $372 million to increase its ownership stake in Los Angeles-based Occidental Petroleum to 25% and presently owns about 6% of Chevron worth $22 billion. In Canada, it owns Calgary-based AltaLink, Alberta’s largest electricity provider..Overall, it owns about $130 billion worth of energy assets..Even though natural gas prices are down more than 40% this year, Buffett clearly lives by his ‘buy low, sell high’ mantra. It comes as the US is poised to become the world’s largest LNG exporter amid energy security concerns in Europe stemming from the war in Ukraine..“It builds on their long-term theme of energy resources becoming more valuable and ownership of one of only a few US LNG exporters,” Bill Stone, chief investment officer at Glenview Trust and Berkshire shareholder told CNBC..“Buffett has liked pipelines for a long time, given their toll bridge-type revenues rather than pure commodity exposure, and this is likely similar. Natural gas prices are down a ton, but I think most of these exporters work on long-term take or pay contracts.”.By contrast Canada is a relative latecomer to the LNG game. The $40-billion LNG Canada project — a partnership between Shell, Petronas, Kogas, Mitsubishi and PetroChina — isn’t due to begin exports until 2025..Unlike Buffett, Canada’s government sees a shrinking role for natural gas. Last month the Canadian Energy Regulator forecast a 68% reduction in Canadian natural gas production to reach net zero targets..This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
At least one investment house isn’t afraid of fossil fuels. And it happens to be one of the biggest in the world..That’s because Warren Buffett’s Berkshire Hathaway has doubled down on liquified natural gas (LNG) by taking an additional 50% stake in a US export terminal for a cool $3.3 billion in cash.. Warren BuffettWarren Buffett, the Oracle of Omaha .With the deal, Berkshire’s energy subsidiary increases its stake in the plant to 75%. It was already the operator of the Cove Point pipeline and storage terminal located in Lusby, Maryland..The facility is one of only seven functioning LNG terminals in the US and reportedly has capacity of 1.8 billion cubic feet per day with an additional 14.6 billion cubic feet of storage. It has long-term contracts with Japan’s Sumitomo Corp., which Berkshire also has a stake. .Although it’s chump change for the Oracle of Omaha — Berkshire is worth $750 billion — it’s just the latest in a series of contrarian energy buys as others divest of energy holdings..In March, Berkshire spent $372 million to increase its ownership stake in Los Angeles-based Occidental Petroleum to 25% and presently owns about 6% of Chevron worth $22 billion. In Canada, it owns Calgary-based AltaLink, Alberta’s largest electricity provider..Overall, it owns about $130 billion worth of energy assets..Even though natural gas prices are down more than 40% this year, Buffett clearly lives by his ‘buy low, sell high’ mantra. It comes as the US is poised to become the world’s largest LNG exporter amid energy security concerns in Europe stemming from the war in Ukraine..“It builds on their long-term theme of energy resources becoming more valuable and ownership of one of only a few US LNG exporters,” Bill Stone, chief investment officer at Glenview Trust and Berkshire shareholder told CNBC..“Buffett has liked pipelines for a long time, given their toll bridge-type revenues rather than pure commodity exposure, and this is likely similar. Natural gas prices are down a ton, but I think most of these exporters work on long-term take or pay contracts.”.By contrast Canada is a relative latecomer to the LNG game. The $40-billion LNG Canada project — a partnership between Shell, Petronas, Kogas, Mitsubishi and PetroChina — isn’t due to begin exports until 2025..Unlike Buffett, Canada’s government sees a shrinking role for natural gas. Last month the Canadian Energy Regulator forecast a 68% reduction in Canadian natural gas production to reach net zero targets..This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
