A wonderful counter post by Sirtuc1956 to jmjjw on iscum (before it gets deleted by Crowin or Homebrew). The jmjjw post in brackets:
[ The astute among you will note that the green lines are all natural gas pipelines - not related to MMEX's business, except on the cost side, as a fuel source for firing the topping unit's crude heater.
There are no, as in zero, crude transmission lines in the vicinity of MMEX's facility.]
I am wondering if this is the same MMEX facility that can be seen from the highway or is it the one shown on the MMEX map that took me 45 minutes to access by walking in a straight line down the railroad tracks?
While I am not very astute I can assure you that if MMEX needs oil to their facility one of the many midstream companies will step up and build as many pipelines as is needed.
[The South Orient/Texas-Pacifico rail line is virtually impassible south of Ft. Stockton, and does not extend into Mexico - it won't until 2019 - 2020 at best. ]
Ahhh, now it looks like things are turning, I remember when it was said there were no intentions to rebuild the railroad or the bridge. last week I spoke to the guys with Texas Pacifico and they told me that they would upgrade the railway system and that it would take approximately 6 months to get the upgrades done.
[There are no customers to the northeast,]
How would an outside person know this inside information? There is a town that is located 20 miles South West of the MMEX refinery location, it is called Fort Stockton and to the North and South East of this town is half of a country called the United States and they use oil and gas and all of the products that mmex proposes to make.
[and only one potential supplier, who does not have a functional rail terminal.]
I have stated before that not only the people that I work for but many midstream companies that are in the area will happily build a pipeline to and from MMEX facilities.
Believe me when I say that if Jack goes to them and shows that he can afford to hold up his part of a contract they will build a pipeline to him and it won't be a big problem.
The matter of Right-of-Ways and cost will be taken care of in contract negotiations. In fact the company that was mentioned in the last letter from Jack that will be supplying gas to the facility also has oil transfer lines, I have no doubt that they will be willing to do the same with oil as they are doing with gas. These companies don't care who they Supply to, they are out there to make money.
[Using data that you don't understand works against the MMEX case. No pipeline connectivity, no viable rail connectivity, leaving only OTR haul-in/haul out by truck, with a minimum $3/bbll margin hit on supply and output. A complete and total non-starter.]
In some cases people like to give you data that you don't understand then they can tell you anything that they want and if you don't understand it then you don't know what's what. My thoughts are if Jack has the ability to do the things that he's done so far then it would seem that he's got the other covered.
I am certain that he is not stumbling around in the dark and saying "wow I got that done, imagine that".
Looks like he has a concise and well thought out plan. It's been my experience that it is best to "plan your work and work your plan". Looks like that is what Jack is doing.
[ The astute among you will note that the green lines are all natural gas pipelines - not related to MMEX's business, except on the cost side, as a fuel source for firing the topping unit's crude heater.
There are no, as in zero, crude transmission lines in the vicinity of MMEX's facility.]
I am wondering if this is the same MMEX facility that can be seen from the highway or is it the one shown on the MMEX map that took me 45 minutes to access by walking in a straight line down the railroad tracks?
While I am not very astute I can assure you that if MMEX needs oil to their facility one of the many midstream companies will step up and build as many pipelines as is needed.
[The South Orient/Texas-Pacifico rail line is virtually impassible south of Ft. Stockton, and does not extend into Mexico - it won't until 2019 - 2020 at best. ]
Ahhh, now it looks like things are turning, I remember when it was said there were no intentions to rebuild the railroad or the bridge. last week I spoke to the guys with Texas Pacifico and they told me that they would upgrade the railway system and that it would take approximately 6 months to get the upgrades done.
[There are no customers to the northeast,]
How would an outside person know this inside information? There is a town that is located 20 miles South West of the MMEX refinery location, it is called Fort Stockton and to the North and South East of this town is half of a country called the United States and they use oil and gas and all of the products that mmex proposes to make.
[and only one potential supplier, who does not have a functional rail terminal.]
I have stated before that not only the people that I work for but many midstream companies that are in the area will happily build a pipeline to and from MMEX facilities.
Believe me when I say that if Jack goes to them and shows that he can afford to hold up his part of a contract they will build a pipeline to him and it won't be a big problem.
The matter of Right-of-Ways and cost will be taken care of in contract negotiations. In fact the company that was mentioned in the last letter from Jack that will be supplying gas to the facility also has oil transfer lines, I have no doubt that they will be willing to do the same with oil as they are doing with gas. These companies don't care who they Supply to, they are out there to make money.
[Using data that you don't understand works against the MMEX case. No pipeline connectivity, no viable rail connectivity, leaving only OTR haul-in/haul out by truck, with a minimum $3/bbll margin hit on supply and output. A complete and total non-starter.]
In some cases people like to give you data that you don't understand then they can tell you anything that they want and if you don't understand it then you don't know what's what. My thoughts are if Jack has the ability to do the things that he's done so far then it would seem that he's got the other covered.
I am certain that he is not stumbling around in the dark and saying "wow I got that done, imagine that".
Looks like he has a concise and well thought out plan. It's been my experience that it is best to "plan your work and work your plan". Looks like that is what Jack is doing.
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