As Zeihan says, in order to get diesel from Texas to California, boats have to load up on The Gulf Coast, go down through The Panama Canal, then, up to California!
Although BNSF uses diesel to transport, it’s a straight shot and completely eliminates the burden of The Jones Act.
Oh yeah, I can see why Buffett refers to BNSF and his “gem”, his “jewel”; even though in the 16 years BH has owned it, not a penny of profit has been made from it.
Min. 2:30 forward:
