I can't believe it, I just can't believe it.
<$BlogMetaData$>January 13th, 2010
I can’t believe it, I just can’t believe it!
I don’t know why I should be surprised, but last Saturday’s Argus Leader headline was all about Hyperion promising to begin construction on the refinery. Shovels in the ground by 2011. I sent an email to the reporter that wrote the article asking the same questions I’ve been asking for almost 3 years. I mentioned that Hyperion has not refuted these claims and that nobody has yet proved me wrong on my assertions that Hyperion cannot possibly pull this off.
I asked why if Hyperion is truly coming here they are still just paying for options on the land. Unless they intend to sell the land, they could have started construction the day after the air permit was approved. This tells me that they don’t have the money to buy the land and can’t find investors willing to buy it. They released 6000 acres last year and must either buy the land or renegotiate the options this year. Renewing the option is not an option they can afford.
I mentioned again that they still don’t have a contract with anyone in Canada to provide them with tar sands. Better yet, Canada is putting restrictions on companies building up there by charging a tax on any new company that cannot meet emission standards set by the government of Canada. So this means that there will be fewer companies going into the tar sands business, which is restricting the number of companies that Hyperion can do business with. Does one get the feeling that we are beating our heads against the wall here? Does anyone know how long TransCanada has been working to get the pipeline through the state? I remember getting a postcard in the mail a few years ago announcing that they were coming through SE South Dakota and were having a informational meeting about the pipeline. Where did that end up – going through Yankton. I guess Hyperion is going to start construction on the same premise of ‘field of dreams’. Build it and they will come. Yeah right.
I reminded him that 5 refineries were shut down last year, including a 200,000 barrel per day refinery in Delaware owned by Valero. The other 145 refineries are cutting back to only 60-70% production capacity and Hyperion thinks this is a good time to get started? You’ve got to be kidding me. Who in their right mind would invest with a dinky company like Hyperion who touts this huge monstrosity when everyone else in the business is wondering if they are going to survive? No wonder they are having a tough time getting investor capital.
Here is a real good quote by Preston Phillips. Refining oil is still profitable at $60 per barrel. What a bunch of hooey (synonym for crap). On many occasions over the last 2 years Preston has been quoted that it is not economically feasible if oil falls below $90 a barrel. Now it is down to $60. So much for their honesty and straight forwardness huh? Hello-o-o-o!
Why does the hair stand up on the back of my neck every time Hyperion opens their mouth anymore? Is it because they are still trying to convince us that this is happening or is it to continue to convince themselves that this is real? I’ll bet the folks in Elk Point that invested in this project are about ready to poop their panties. This is like the bluff in a Texas Hold-Em game only they can’t keep a straight face. The worst of this is that they have said it so much they are beginning to believe it.
One thing that really bothers me about this whole deal is that reputable papers like the Argus Leader print this story and don’t check their facts. This is pure psycho-babble. If one were to talk to actual oil refiners, I think they will tell you that Hyperion is just a teeny tiny pebble in the industry. Kind of like an itch you can’t scratch if you know what I mean. They bother the heck out of you and don’t know which way is up. Why don’t you just go away and quit bothering me.
Exxon Mobile lost $203 million dollars last quarter. Valero lost $459 million. Production is down, investors are taking a hike and Hyperion wants to build. This is why Al Huddleston is the huge success that he is. Enough said.
Have you seen the new ‘No’ Hyperion signs? If you don’t have one, give Ed Cable a call. You know, with all this crappy weather we are having , this would be a good time to sit down and write a nice letter to your county commissioners and tell them what you think about Hyperion.