Warren Buffett's Pilot Co Exits Oil Trading: A Strategic Shift

In a strategic move, Warren Buffett's Pilot Co has decided to shut down its international oil trading business, according to three sources familiar with the matter. The company, a unit of Berkshire Hathaway, aims to refocus its resources on its core businesses, such as Pilot Flying J service stations and truck stops in the U.S. (Reuters, 2025).

The decision to exit the international oil trading business comes amidst a decline in Pilot Co's pre-tax earnings. In 2023, the company's pre-tax profit halved from over $2.3 billion in 2022 to $1.06 billion. This decline, coupled with a legal dispute over the company's valuation with billionaire Jimmy Haslam, led Buffett to take over the remaining 20% stake in January 2024 (Reuters, 2025).

By shutting down the international oil trading business, Pilot Co seeks to reduce its exposure to global market fluctuations and geopolitical risks. The company will now focus on delivering reliable fuel supply to its travel centers and customers across North America (Reuters, 2025).

The closure of the international oil trading business will also allow Pilot Co to redirect resources towards more stable and lucrative investments within the U.S. This strategic shift aligns with Berkshire Hathaway's long-term investment goals, which focus on acquiring and holding stakes in well-managed, profitable, and growing companies (Investing.com, 2025).

In addition to refocusing on its core businesses, Pilot Co has also been investing in alternative fuels, such as compressed natural gas (CNG) and hydrogen, through a partnership with VoltaGrid. This initiative aims to further diversify the company's fuel offerings and cater to the growing demand for low-carbon and sustainable energy sources (Pilot Co, 2022).

The push for energy security and cost reduction is compelling some global energy businesses to reconfigure their value chains to meet dual demands: maintaining profitability and resilience while pursuing a greener path in selected and strategic interventions. Positioning natural gas as a key transition fuel to bridge the gap between oil and renewables drives massive investments in conventional and unconventional natural gas assets. Integrated energy majors – mainly NOCs – also invest in building new capacity in petrochemicals and acquiring chemical holdings as part of their growth and diversification strategies (Source: McKinsey & Company, 2024).

In conclusion, Warren Buffett's Pilot Co has decided to shut down its international oil trading business as part of a strategic shift to refocus on its core businesses and reduce its exposure to global market fluctuations and geopolitical risks. By doing so, the company aims to improve its financial performance and maintain its competitive edge in the U.S. market.