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Warren Buffett’s controversial stance on the Keystone XL pipeline

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[Left: Warren Buffett file photo; Right: Pipe stacked at the southern site of the Keystone XL pipeline on March 22, 2012 in Cushing, Oklahoma. / Getty Images]

When Warren Buffett endorses something, it can have a tremendous ripple effect, which is why Buffett’s support of the Keystone XL pipeline is not something to take lightly.

“I think probably the Keystone pipeline is a good idea for the country,” Buffett said in regards to the United States during an appearance on CNBC in 2014.

Keystone XL, a 1,897-kilometre pipeline running from Hardisty, Alberta, south to the United States’ Gulf Coast, was intended to tap unused Canadian oil sands crude, carrying 830,000 barrels of oil across the border each and every day.

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In November 2015, President Obama rejected the completion of Keystone XL on environmental grounds, stopping in its tracks the fourth stage to the already-completed Keystone pipeline.

“America is now a global leader when it comes to taking serious action to fight climate change, and frankly, approving this project would have undercut that leadership,” Obama said.

Tycoon Buffett, however, disagreed.

“I think that we have an enormous interest in working with Canada, as they have in working with us. That oil is going to get sold. If we make it more difficult for them, who knows how they’ll feel about making things more difficult for us someday,” he said.

At first glance, Buffett’s opinion come as a surprise for those who follow his investments. The tycoon, whose net worth is pushing an unimaginable $70 billion, is owner of Burlington Northern Santa Fe (BNFS) railroad. This is a noteworthy point, as BNFS is a major player in transporting oil from the buzzing Bakken region of North Dakota.

Despite the seemingly direct competition a pipeline would pose to BNFS, Buffett not only has remained consistent in his protests, he has completely downplayed speculation.

“It’s not that big a competitor,” Buffett remarked.

Though his dissatisfaction with Obama’s ruling did not change the President’s mind, it is possible Buffett has not been beaten, yet.

This year, TransCanada, the organization behind the pipeline’s construction, announced legal action against the U.S. Administration, citing the North American Free Trade Agreement (NAFTA).

In addition, a raucous political election season is underway in the U.S. It is only a matter of weeks, not years, before a new president takes the helm, and all bets are off as to who this new Commander in Chief might be, let alone where their allegiance in regards to the pipeline will lie.

Canadians, meanwhile, will have to decide for themselves whether Buffett is friend or foe. The new pipeline could mean thousands of new jobs, some argue. It also could mean environmental ramifications that would only add to an already catastrophic situation, others retort.

While Buffett won’t have the final say on Keystone, decision makers and voters alike will likely heed his advice on the controversial project.