Pilot Co., the fuel retail giant under the umbrella of Berkshire Hathaway, is pulling the plug on its international oil trading operations, according to Reuters. The company, which was once part of Warren Buffett’s foray into the global oil trade, has decided to consolidate its efforts back into its core business—fuel retail across North America.
This decision marks a significant shift for the company, which had expanded its oil trading portfolio after Berkshire Hathaway acquired a controlling stake in 2017. Initially, Berkshire purchased 39% of Pilot Co. but gradually increased its stake to 80% by 2023, before fully acquiring the remaining 20%. Despite the initial push into international trading, Pilot Co. began scaling back its trading operations in 2023, shedding staff including senior management roles, and letting go of nearly all employees involved in the trading arm.
Gary Hoogeveen, Pilot Co.’s president, emphasized that the company’s core capabilities are centered on delivering reliable fuel to travel centers and customers across North America, rather than pursuing the complexities of international oil markets.
Berkshire Hathaway, known for its conservative but strategic energy investments, continues to bolster its position in conventional energy. Notably, Buffett’s company has made sizable investments in Occidental Petroleum over the years, fueling speculation about a potential acquisition of a controlling interest in the oil company. While Buffett has dismissed takeover rumors, his recent purchase of another 8.9 million shares of Occidental in December has taken his stake to over 28%—keeping analysts on high alert about future developments in the energy sector.
The strategic shift at Pilot Co. reflects a broader focus for Berkshire Hathaway, reinforcing its position as a significant player in both traditional energy and emerging renewable technologies. However, with the company’s investment decisions sparking questions about future direction, Berkshire Hathaway’s energy strategy remains closely watched by market analysts.
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