Plans for the first new oil refinery in the U.S. in more than 20 years are underway and it's not who you think it might be. Hyperion Resources plans to build an $8 billion oil refinery in the Midwest which will refine crude from the Canadian oil sands in Alberta to feed the U.S. market, the company said.

The announcement came as something as a surprise to energy market gurus, as most new capacity is being targeted for the Middle East, not the Midwest. "Gas prices are the highest in U.S. history and the U.S. refining industry hasn't seen a significant change since 1976," said Hyperion Project Executive J.L. "Corky" Frank, a former Marathon Ashland Petroleum president, in a Reuters report. "The fact is refining capacity in this country has not kept pace with demand." Construction is expected to take four years and cost from $8–$10 billion.

The Wall Street Journal points out that "Refineries face high regulatory barriers, are expensive to build and often face heavy opposition from local residents. Investors often shun the projects because of their historically low profit margins. Arizona Clean Fuels Yuma LLC, a Phoenix company, has been planning a refinery in Arizona since 1989. It plans to break ground on that project next year."