Sioux City Journal

It's not going to happen

Posted: Thursday, June 12, 2008

SIOUX CITY -- So now that the vote is finalized and approved, Hyperion will begin construction within the next week or two, correct?

Does anyone actually believe that if this refinery is built we would see gas prices plummet? How long before a tornado or blizzard rips through Elk Point and shuts production down for a few days and we see $15-per-gallon gas?

Making Alaska look like Swiss cheese will drive prices down, as well. That’s some of the most naive thinking I’ve ever heard. It’s cute.

Anway, back to Hyperion. I can’t hear enough of that. Does anyone know how many barrels of oil Hyperion has refined in their existence? How many crude oil reserves do they own or have a stake in? How much expertise do they have in building a petroleum-related facility? By now, you see where this is headed.

I’m crossing my fingers. This company with all this experience is going to build a 400,000-per-barrel-per-day refinery? It’s not going to happen, people.

But by all means continue to discuss the issue. I find it adorable. - Rick Flaugh

Story Comments

Duane wrote on Jun 24, 2008 3:01 PM:

" Let me tell you from once living in an area for over 20 years and leaving do to a depressed no growth part of the country. You people have lost large companies,thousands of jobs! No one wants to invest in this area! Then when you do get investors you won't work with them. Give your kids and grand kids reason to stay and invest back into the HEARTLAND "

Moderate Observer wrote on Jun 18, 2008 9:05 PM:

" Farmer- You are discussing apples and oranges. Hyperion is not going to sell crude oil. They are going to buy it from Canada. The U.S. companies that export
crude oil have oil wells near shipping lanes (like Prudhoe Bay, Alaska, to Japan). Your EIA data shows that U.S. crude oil exports are a pittance. Our imports are about 400 billion dollars. Please show me where we are currently exporting any crude oil to Russia or the Middle East. We might be selling them small amounts of exotic refined products, but not heavy crude oil from Canada. "

Farmer wrote on Jun 18, 2008 2:20 PM:

" According to the Energy Information Administration the US exports (as of June 13, 2008) crude oil and petroleum products at 1417 thousand barrels a day. US crude oil exports came to $732 million in 2007. Higher profits can be made with raw crude sold on the world markets to balance the losses here in the US. "

Moderate Observer wrote on Jun 17, 2008 11:46 AM:

" Farmer...your example is the opposite of the situation that
I discussed. Yes, the Arabs and Russians could export refined oil products to us. No, we couldn't afford to export these products to them. Our production and transportation costs are much higher. These countries are sitting on huge
reserves of light crude oil. Hyperion products would be sold in the U.S. "

Farmer wrote on Jun 16, 2008 3:59 PM:

" Exporting is plausible as ridiculous as it sounds. At one time we were not able to sell our oats as the markets in Kansas where it should have gone, were flooded with oats from the Scandanavian countries! We raise oats and do not need to import it, but whatever makes money for the grain company! I imagine it's the same with oil. "