Buffett knows resources need rail: ex-Tory leader O’Toole

As U.S. protectionism intensifies under renewed tariff threats and energy pressures, Canada’s former Conservative leader Erin O’Toole is calling on the nation to double down on domestic resources and reassert its economic independence —starting with energy.

In a recent interview with CrashLabs host Denis Laviolette, O’Toole recalled the collapse of the proposed $9.5-billion Énergie Saguenay liquefied natural gas project in Quebec following nationwide rail disruptions in 2020 — an episode that prompted investor Warren Buffett to withdraw some $4 billion in funding.

“We couldn’t keep our trains running on time due to protests,” O’Toole said. “That undermines confidence in our ability to deliver energy projects.”

The legendary Buffett, whose $1.11-trillion (C$1.54-trillion) market cap Berkshire Hathaway (NYSE: BRK.A, BRK.B) owns the BSNF Railway, was in the news this week saying he would step down this year as CEO. The 94-year-old Oracle of Omaha named Edmonton-born Greg Abel as his replacement. 

O’Toole, who led the Conservative Party from August 2020 to February 2022, linked declining investor confidence to political instability and regulatory uncertainty. Canada’s long-term prosperity hinges on unlocking strategic assets like the Ring of Fire in northern Ontario and fully leveraging the country’s vast energy reserves, he said.

Remember when Warren Buffett pulled $4B from a Quebec LNG project in 2020?

Erin O'Toole explains: "Buffett saw that we couldn’t keep our trains running on time because of the Shut Down Canada protests."

These protests, blocking railways and pipelines, disrupted vital… pic.twitter.com/XbpFz3VVNp

— CEOCA (@ceodotca) May 8, 2025

“We should be a global leader in critical minerals and energy exports,” O’Toole said. “But we’ve spent too much time talking and not enough building.”

Located in the James Bay Lowlands, the Ring of Fire contains one of North America’s largest untapped reserves of critical battery metals, including nickel and cobalt. Despite its potential to drive the clean energy transition, development has stalled due to infrastructure gaps and environmental concerns.

O’Toole stressed that advancing projects like the ones in the Ring of Fire is crucial not only for economic growth, but also for national security. To counter China’s dominance in critical minerals, he said, Canada must “get our own house in order. That means mining, processing, and shipping from Canadian soil.”

He also warned that Canada’s reliance on the integrated North American manufacturing model is increasingly risky. If the country loses its role in the automotive supply chain due to rising U.S. tariffs, he said, the result could be job losses and higher consumer prices.

 

On the domestic front, O’Toole cited growing economic frustration, particularly around housing and employment. While expressing support for vaccines, he said COVID-19 mandates and divisive politics deepened national polarization. He also warned that millennials are being priced out of the housing market amid rising immigration and a persistent supply shortage.

With the U.S. proving to be a less dependable economic partner, O’Toole said it’s time for Canada to chart its own course.

“When their economy catches a cold, we get the flu,” he said, noting that 75% of Canadian exports go to the U.S. “It’s time we diversify and build resilience at home.”