Buffett's new Suncor stake could be the start of something bigger

|By:, SA News Editor

Warren Buffett's (BRK.A, BRK.B) new ~$524M stake in Suncor (SU +3%) is a declaration of support for controversial Canadian oil sands and could be the start of something bigger, perhaps plays in other Canadian oil sands projects, 24/7's Jon Ogg speculates.

The SU purchase will help ensure a steady supply of oil for Buffett's BNSF railroad to move; oil accounts for ~4% of BNSF's freight and is expected to double during the next several years.

SU doesn't have the same transportation issues as some other oil sands producers, a Morningstar analyst says; it has locked up more than enough pipeline and rail capacity to move its current and planed production for several years.