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First refinery in the U.S. since 1976

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This topic contains 4 replies, has 2 voices, and was last updated by  Anonymous 13 years, 10 months ago.

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  • #3989

    Anonymous


    Hyperion eyes South Dakota for oil refinery
    Friday, June 15, 2007

    Associated Press
    Elk Point, S.D. – Thousands of acres of farmland in the southeastern tip of South Dakota could become home to the nation’s first new oil refinery since 1976.
    Hyperion Resources Inc., a privately held Dallas-based energy company, is considering Elk Point and several other Mid west sites for the $8 billion refinery, which would turn 400,000 barrels of crude oil from Canada per day into low- sulfur gasoline and low-sulfur diesel fuel, said Preston Phillips, a Hyperion executive.
    This refinery is going to be the most advanced state-of-the- art facility in the U.S. and the world,” Phillips said at a news conference Wednesday.
     
    Construction of the refinery would average 4,500 workers over a four-year period, and the plant would employ 1,800 with an average hourly wage of $20 to $30 per hour, Phillips said.
    Rumors about the secretive project – dubbed “Gorilla” by local residents – have been rampant since word got out that the area was being considered for a large development project.

  • #7363

    Anonymous

     
    New US Refinery ‘Project Gorilla’ Enhances Energy Sector Attractiveness
    Friday June 15, 5:32 am ET
    Todd Chalem submits: In an earlier post about Tidwater  (screened during the recent downdraft and, sadly, not bought) I commented about my position in Holly Corporation and the challenges of bringing a refinery to market and then turning a profit. Yesterday brought an announcement about plans to build the first refinery in the U.S. since 1976 (WSJ Online subscribers can get background here) called Project Gorilla.
     
    I’ve only invested modestly in the energy sector. I go where the cheap stocks are and HOC was pretty cheap when I bought it. Also, I don’t put much effort into broad, thematic investing (I’m not smart enough, frankly). That said, I’ve looked cursorily at ethanol which, to my understanding, requires more energy to make than it saves (vs. oil). Nevertheless, since almost half the U.S. Senate comes from farm states, you can be sure we’ll have ethanol. A wind farm needs to be something like three times the size of Manhattan to generate two gigawatts, giving the average person in NYC 1/40 of his or her annual power usage. We’ll have solar just as soon as someone puts a meter on the sun. While each of these alternatives get lionized in the press, I’m skeptical about their value to the individual investor.
    But, at least for me, with refining capacity so difficult to add, and energy demand only going in one direction, owning a few well priced businesses in that sector is a sound approach.

  • #7362

    Charles Randall
    Participant

     US 2nd new Refinery on Planning books – Move over Yuma here comes Dallas’ Hyperion “Gorilla” Refinery S.Dakota?

    Looks like Yuma has a “contender”  for the title to be “First new refinery since 1975”  – the one in 1975 was Marathon Garville Coking refinery – carries current  title of having “Worlds largest diameter Coke drums or….at least until Suncor installs its 3rd Upgrade coker.
     
     None of these early stage news items tell if this state of the art “Gorilla” refinery wanna-be has coking unit …..  but at $8 billion price tag and target to process Canadian Bitumen Crudes – someone screwed up if it doesn’t. And …… if it is going to be stuck in South Dakota it better have Petcoke IGCC included as well.
    Regards

  • #7319

    Anonymous

    Oil refinery boss visits Elk Point

    By The Associated Press
    ELK POINT — The head of a Texas firm that might build an $8 billion to $10 billion oil refinery in southeastern South Dakota was in Elk Point Wednesday for a private picnic with landowners.

    Albert Huddleston, Hyperion Resources president, said he wanted to get acquainted with the locals and get a better feeling for the town’s “harmony and chemistry.”

    But Huddleston refused to answer questions about the secretive project. “I don’t want to ever say anything that I’m going to have to back up on,” he said. The visit came two weeks before some local land-option agreements expire.

    Hyperion announced in June that a site 10 miles north of Elk Point is among candidates for a large oil refinery, the first new refinery in the U.S. since 1976.

    Company officials have said it would take 4,500 workers to build the plant, and it would provide about 1,800 permanent jobs.
    Opponents worry the refinery may pollute the environment.

    Huddleston and Richard White, a former Marathon Oil executive, planned to attend an evening picnic at the home of Joyce Bortscheller, who said the purpose was to talk with landowners who had signed the agreements.

    After the picnic, landowner Donald Abraham said it was purely social.

    “I couldn’t detect anything but good will,” he said, adding that he did not hear any talk of choosing the Elk Point area for the refinery site or of renewing land options. “It was fun to attend, because you actually see the people that you’re doing business with. But there was no business,” Abraham said.

    Jana Foltz, Union County register of deeds, said she had heard about the meeting from landowners but was not invited. It’s possible Hyperion executives wanted to reassure landowners who had signed option agreements that expire Aug. 31, she said.

    The agreements allow Hyperion to renew for another year at its discretion and for an undisclosed fee.
    “I have heard that a couple of people want to renege on their options,” Foltz said. Hyperion officials have said more information will be released once it picks a site from among several being considered.

    The Argus Leader reported that a timeline on the company’s Web site indicates construction would begin in 2009 and that the plant would be in full operation by 2013.

  • #7318

    Charles Randall
    Participant

    The attached news item is an Update on 2nd candidate for US first new grassroots refinery in 31 years which plans to be on-stream by 2013, if construction starts in 2009. Sounds like they are keeping option open on Elk Point site (among others) and making soothing noises about environmental impact …… good luck to them, environmental issues still has Arizona candidate in gridlock.
    Regards
    Charlie Randall
    Independent Carbon & Coke consultant
    charlierandall01@msn.com
    ——————–

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