The Hyperion Energy Center was issued its air permit Thursday by the South Dakota Board of Minerals and the Environment, a major step toward this project becoming the first new oil refinery to be constructed in the United States since 1976. The board voted unanimously, 9-0.At first South Dakota appears a bizarre location for a refinery - doubly land-locked, and not particularly near any domestic demand centers either. This one is all about the Canadian oil sands.
"In terms of supply and demand, we're still importing more oil and refined products than we should from outside North America. The need for additional heavy refining capacity is there, and we've always believed North American oil should stay in North America," Phillips said. "Canada is currently the largest exporting country to the United States, and it is in both countries' best interests to create strategic and economic synergies."The is a testament to the confidence refiners have in the oil sands as a source of supply going forward - in general the refining industry is facing overcapacity and terrible margins, so it's striking that someone would choose to build a new refinery now (although the capacity is not specified, so could be tiny).
On the topic of oil sands, which are not as dirty as people think and I believe should be a major mitigator of Peak Oil fears, here's a story with some interesting details at The Oil Drum. This is obviously PR, but I was nevertheless impressed by this photo of an oil sands mine in the "intermediate stage" of reclamation:
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