Warren Buffett Bets Big On American Oil

Warren Buffett Bets Big On American Oil

May 24, 2019

If you had $10 billion, where would you put it?

For billionaire and investor savant Warren Buffett, that’s a question he thinks about often. As it turns out, Buffett thinks America’s booming energy industry is a smart investment.

As Forbes explains, Buffett recently committed $10 billion to help bankroll a bid by Occidental Petroleum to acquire another oil company. Why is this opportunity so lucrative to Buffett?

Because of the Permian Basin.

Forbes notes, “Much of the opportunity in that sector these days is related to hydraulic fracturing (fracking), which has turned the entire original paradigm for the oil business upside down…One of those regions is the Permian Basin, which was the major attraction in the Anadarko deal since it now produces more oil per day than the United Arab Emirates.”

That’s right, the Permian Basin has become America’s oil powerhouse, helping us become the world’s largest oil producer.

Buffet, during a CNBC interview, explained his investment as “a bet on the fact that the Permian Basin is what it’s cracked up to be.”

As any oil worker in New Mexico and Texas will tell you, he’s making a smart investment. Jobs in that region are plentiful, and it has become difficult for companies to keep up with demand.

American energy is the key to economic growth, and even left-leaning Warren Buffett sees it. That’s great news for workers and America as a whole.