The Saturday article in the Argus Leader deserves a pointed response. I cannot believe that they would print unsubstantiated facts just because a company executive speaks techno-babble. They need to check the facts to see if what Hyperion is saying is in fact the truth and not a bunch of propaganda. I have been saying for 3 years that this is a hoax and nobody has yet proved me wrong. I will ask a few questions and please take the time to research the answers with credible 3rd party sources.
1) Where will the oil come from and at what cost? TransCanada has already said that none of their tar sands is slated for Hyperion. It is costing TransCanada $4 Billion just to build the pipeline and all 500,000 barrels are spoken for by Conoco Phillips. They are destined to the Port Arthur Texas refinery that is upgrading to 400,000 barrel a day capacity which, by the way, is already funded.
2) Hyperion has stated that they will build their own pipeline. This process in itself with all the permits and easements (eminent domain) will take 2 – 5 years. Then you have to find somebody to build it.
3) Hyperion is a Real Estate Development company. They have a net worth of less than $75 Million dollars according to Dun & Bradstreet. How in the name of God can some company with that structure even dream of building a $10 Billion (2007 dollars) refinery? They do not have the money, expertise, manpower or anything else to undertake such a venture.
4) It will take many hundred people 2-4 years just to draw blueprints, take surveys and do geological studies. The company that will be the general contractor needs lead time to ask for bids to build the pipelines and the refinery equipment itself. You don’t just call and order off the shelf the equipment you need. Anyone that has been in this process knows that there will be reviews, studies, bids and elimination of high bidders for this. this is not something that is done in 6 months or a year.
5) Hyperion has not said they are coming yet. If you ask them today they will say we are a finalist for the site. If they were coming why wouldn’t they buy the land instead of still having it for options? They are spending hundreds of thousands of dollars on options when that could be used for the purchase. That means they are having trouble getting investor capital for this project.
6) Ask any reputable oil company who Hyperion is and what is the chance of them building a refinery when nobody else in the business can do it? They will tell you that Hyperion is just a small fish in a big pond.
7) Once they start the refinery they will have to find a way to get the product out of here. That means pipelines because there will be many products leaving the area. According to their statements, this will consist of gasoline, diesel, hydrogen, jet fuel, oh and don’t forget they are going to use IGCC which means they have to build a pipeline just for the CO2 because it cannot be sequestered in this area.These questions have been asked since the first public meeting 3 years ago and not one question has been answered. Why does the Argus Leader continue to print statements from Preston Phillips when he doesn’t have the facts to back up his statements?
There is an old statement in spewing propaganda. Tell a lie long enough and it becomes the truth.