Securities and Exchange Commission

Thu, 2014-01-02 10:54Steve Horn
Steve Horn's picture

Warren Buffett Bought Stake in Pipeline Company on Same Day as North Dakota Oil Train Explosion

On December 30, the same day a Burlington Northern Sante Fe (BNSF) oil train derailed and exploded in Casselton, North Dakota, Warren Buffett — owner of holding company giant Berkshire Hathaway, which owns BNSF — bought a major stake in pipeline logistics company Phillips Specialty Products Inc.

Owned by Phillips 66, a subsidiary of ConocoPhillips, Phillips Specialty Products' claim to fame is lubricating oil's movement through pipelines, increasingly crucial for the industry to move both tar sands crude and oil obtained via hydraulic fracturing (“fracking”) in an efficient manner.

“Phillips Specialty Products Inc…is the global leader in the science of drag reduction and specializes in maximizing the flow potential of pipelines,” explains its website.

Buffett — the second richest man in the world — sees the flow lubricant business as a lucrative niche one, increasingly so given the explosion of North American tar sands pipelines and fracked oil pipelines.

“I have long been impressed by the strength of the Phillips 66 business portfolio,” he said of the deal in a press release. “The flow improver business is a high-quality business with consistently strong financial performance, and it will fit well within Berkshire Hathaway.”

Wed, 2013-07-03 06:00Sharon Kelly
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Growing Doubts on the Numbers from Fracking Giant Chesapeake Energy

America is in the midst of the biggest onshore oil and gas rush in recent history, with excitement spreading across the U.S. Oil and gas companies have cashed in on this frenzied excitement by courting huge investment domestically and abroad.

But a growing chorus of independent analysts and law enforcement agencies have their doubts and have questioned whether shale drillers are overhyping their financial prospects and overestimating how much oil or gas they can profitably pull from the ground. Just this week, one of America's biggest agricultural lenders, the Netherlands-based Rabobank, announced that it would no longer lend money to companies that invest in shale gas extraction (nor to farmers worldwide who lease their land to these drillers).

The way that oil and gas companies describe their prospects in their financial statements matters because investors – and not just the uber-wealthy ones but also pension funds, university endowments, average folks with retirement savings or 401(k)s – can lose catastrophically if the information they rely on is faulty.

This matters to taxpayers too, since lawmakers need accurate information when making long-term decisions about the industry subsidies and tax breaks granted to encourage the drilling boom. The shale fracking rush could prove to be an expensive bust for taxpayers if oil and gas wells do not perform as promised.

Concern that companies have been over-exuberant about shale led Wall Street's two top cops, the Securities and Exchange Commission (SEC) and the New York Attorney General to investigate whether oil and gas companies have been “overbooking” their reserves (translation: inflating their appeal by promising investors more fossil fuels than their wells can actually deliver).

One company in particular – Chesapeake Energy – has attracted the most attention from these investigators.

Fri, 2012-01-27 18:40Brendan DeMelle
Brendan DeMelle's picture

Greenpeace Calls On SEC To Investigate TransCanada’s Inflated Jobs Claims

Greenpeace USA President Phil Radford sent a formal complaint this week to the Securities and Exchange Commission (SEC) calling for an investigation into TransCanada’s use of wildly inflated jobs figures in promoting its application to build the Keystone XL tar sands pipeline. The letter asks the SEC to review the false and misleading claims made by TransCanada on a number of matters related to the pipeline. Greenpeace recieved confirmation from the SEC that the complaint had been referred to its Division of Enforcement.

Although President Obama rejected the company’s first proposal to build the Keystone XL tar sands pipeline, industry-friendly Republicans continue to push for its construction, often citing vastly inflated jobs figures. The Perryman Report commissioned by TransCanada is the source of much of the bogus pipeline jobs information. 

Despite the fact that the State Department and independent reviews definitively debunked the claims to “20,000 jobs” and even “hundreds of thousands of jobs” tied to the Keystone XL project, the lie lives on like a zombie, parroted by the echo chamber led by the U.S. Chamber of Commerce, API’s Jack Gerard, and of course Mitt Romney and the GOP.

This lie must be stopped or it will continue to contaminate the public discourse.


The Greenpeace SEC letter [PDF] states:

Tue, 2008-06-17 12:12Bill Miller
Bill Miller's picture

Solutions: New trading funds highlight expanding role of wind in global warming struggle

Two new Exchange Traded Funds, filed within days of each other with the U.S. Securities and Exchange Commission, will focus on companies that provide products and services to the wind-energy industry, such as turbine makers and utilities with wind farms.

Wind energy reduces carbon dioxide emissions and cuts natural gas and water use. Of particular interest to investors, wind power is unaffected by price swings in natural gas, coal and uranium — all of which soared this year.

The new filings reflect the deepening role of wind in the battle against climate change.

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