Here We Go Again

I do like writing articles so that I can share my opinions with people in the area. Of course, while I may think that my point of view that I send out is accurate, I invite you to write me and let me know what your view is. It does not matter whether what you are providing to me is positive or negative to what I have just set out. I would be very pleased to post your comments if you wish as well. I would be very happy to let all my readers know what the positions of other people are.

I want to set out something right away in this Blog article that I think is quite interesting in Detroit. I saw this story and it shocked and disappointed me to be direct. I hope it works out well given the history of this organization but who knows. I did have personal contact with the party involved which may help explain why I am letting you know about what is going on:

"The oldest hat retailer in the United States, Henry the Hatter "has lost its lease and must close" its downtown Detroit location, a news release announced Friday.

The last day of business for the store founded in 1893, with hats worn by such high-profile people as U.S. President Dwight D. Eisenhower and musician George Clinton, is Aug. 5. The other location in Southfield will remain open.

"It's not a good day for independents like me," said Paul Wasserman, 70, owner of Henry the Hatter. His lease on the building at 1307 Broadway is ending, and he said his landlord of 22 years is using an escape clause. "They had the legal right to do what they did. It's their building to do what they see fit." (Robert Allen, Detroit Free Press, June 30, 2017) 

I bought a wonderful hat from this store a number of years ago. It seemed to me to be the best place on both sides of the river where a great product like this could be purchased. The hat that I found was terrific so I was very happy to be purchaser of it. Here is what that hat looks like and also the box that was provided as part of the sale.

Oh sure, it appears that one might still be able to buy a magnificent hat from the store again but one would have to travel quite a distance to its other outlet in order to get one. I hope that someone can find another store location in their present area for them to replace the store that they are losing now!

Let me get back to the traditional way that write an article in this website. I thought that I would add just one other story this time so that I can go back to letting you know about interesting stories that are taking place now.

IS THE KEYSTONE XL PROJECT COMING BACK TO LIFE OR DEAD AGAIN

It certainly seems as if the oil industry in Canada has a reason to be concerned about having more big problems these days.  Some interesting changes in the structure of companies. Here is news of what is going on with a number of the oil companies now:

"Shell sells out of the oilsands. Was it climate or costs?

Another major international oil company is out of the oilsands

Royal Dutch Shell's deal to sell most of its stake in Alberta's oilsands was in the works for more than a year, says the company's chief executive Ben van Beurden.

"We said we would high-grade the portfolio," he said at the CERAWeek energy conference in Houston.

"We would get out of positions where we do not have the scale or the capability, or that did not fit us in the longer run strategically. And the oilsands is one of them." (Tracy Johnson, CBC News March 9, 2017) 

Here is another one:

"Seven oil multinationals that are pulling out of Canada’s tar sands

Shell’s withdrawal from the tar sands is the latest move in a growing trend in Canada’s oil industry: the world’s largest oil companies are retreating from the tar sands, as low oil prices, stronger policies to fight climate change, and the accelerating global shift to renewable energy make the tar sands uneconomical…

The world’s largest oil companies are finally starting to see the writing on the wall. The world is flooded with cheap oil that can’t be burned as we ramp up global climate action. The oil industry’s business model is becoming obsolete and the first casualties will be high-cost, high-carbon sources like tar sands oil that can’t compete in a world of low prices and declining demand."  (Patrick DeRochie, Environmental Defence, March 14, 2017) 

The changes are remarkable.  How can the industry change so quickly? It just seems unbelievable that decisions can be made that will change the nature of oil companies in this country.

Let me point out to you a very interesting story involving a company that I am sure that most believed was going to be extremely successful now. Do you remember reading about the Keystone XL oil project:

"KXL is a modern infrastructure project with construction to take place in Montana, Nebraska, South Dakota, Alberta and Saskatchewan. The pipeline means billions of dollars of private capital investment and thousands of well-paying private sector jobs. It will carry crude oil safely from where it is produced to where it’s refined and used for everyday products, and will strengthen North America’s energy security.

KXL represents a safe, reliable and environmentally sound way to transport the energy needed to fuel the daily lives of Americans."  (Keystone XL)

As you will remember, that project was supposedly effectively ended during the presidency of President Obama. However, everything changed in March, 2017:

"The fight to build the Keystone XL oil pipeline will move from Washington D.C. to Nebraska after U.S. President Donald Trump approved the controversial and long-delayed project on Friday.

Trump, flanked by TransCanada Corp. president and CEO Russ Girling in the Oval Office, issued a presidential permit for the $8 billion Keystone XL pipeline, more than eight years after the 830,000 barrels-per-day oil pipeline between Alberta and the U.S. Gulf Coast was first proposed…

“It’s a great day for American jobs, and a historic moment for North America, and energy independence. This announcement is part of a new era of American energy policy that will lower costs for American families, . . . reduce our dependence on foreign oil and create thousands of jobs.” (Geoffrey Morgan, Financial Post, March 24, 2017)

It appeared as if the Keystone XL was back to life now. Everything was now back to normal, right… Hardly. Who knows what the reality is now. It looks like it is dead again but for different reasons than before. However, perhaps it might come back to life once again in the future:

"A New Problem for Keystone XL: Oil Companies Don't Want It

Keystone XL is facing a new challenge: The oil producers and refiners the pipeline was originally meant to serve aren’t interested in it anymore.

Delayed for nearly a decade by protests and regulatory roadblocks, Keystone XL got the green light from President Donald Trump in March. But the pipeline’s operator, TransCanada Corp., is struggling to line up customers to ship crude from Canada to the U.S. Gulf Coast, say people familiar with the matter…

Refiners want the flexibility of being able to buy oil from wherever it is cheapest. In a world awash in low-price oil, Canadian crude doesn’t look as attractive as it once did. Many refiners thus far are unwilling to commit to long-term deals for Canadian crude, say people familiar with the matter." (Christopher M. Matthews and Bradley Olson, Wall Street Journal, June 29, 2017) 

I must admit that I could not understand how this could take place at this time when I saw the story in the newspaper. I thought for sure now that the Canadian project in Alberta was going to move forward quickly. Now however no one may want it at all anymore.

To be blunt about it who knows what is going to happen next and when.