All posts by Richard Ha

How OPEC’s Decision Affects Hawaii

Richard Ha blog
The OPEC flag

Last week, OPEC decided to maintain oil production at 30 million barrels/day. Robert Rapier comments on the issues involved at his blog Energy Trends Insider:

OPEC Crashed the U.S. Rig Count

 By Robert Rapier

June 10, 2015

The OPEC Free Fall

 There is a popular narrative going around that I want to address in today’s article. Last November, after several months of plummeting crude oil prices, the Organization of the Petroleum Exporting Countries (OPEC) met to discuss the oil production quotas for each country in the months ahead. Many expected OPEC to cut production in order to shore up crude prices that had been falling since summer. This was the strategy favored by OPEC’s poorer members, as many require oil prices at $100/barrel (bbl) in order to balance government budgets…. Read the rest

Here’s recent background: In the latter half of 2014, oil prices were declining steadily, influenced mostly by large supplies of U.S. shale oil. When OPEC met in November to decide on production quotas, lots of folks expected it to reduce production in order to push oil price higher, but instead the organization decided to maintain market share by maintaining production at 30 million barrels/day. The price of oil dropped from a high of over $100/barrel to mid-$40/barrel. There was lots of speculation as to whether or not shale producers could sustain themselves at $40/barrel. As it turns out, above $70/barrel or so is where shale production increases and below that price it decreases.

Of all the states, Hawai‘i is the most dependent on oil. As soon as oil prices plummeted in November, we knew it would be good for us. The University of Hawai‘i Economic Research Organization (UHERO) has forecasted that Hawai‘i County will have economic growth for the next several years.

So what will happen between now and OPEC’s next meeting? If demand increases, then when oil hits $70/barrel, U.S. shale will start to crank up and that will hold the price around $70. If demand is not sufficient, prices will decline. Either way, it’s good for Hawai‘i.

What about the next OPEC meeting in November? Robert Rapier says that OPEC will probably be dealing with the effect of Iran’s increase in supply if a nuclear deal is made. This means lower price pressure, assuming the world’s political problems remain manageable.

Now if we can find a solution to our liquid transportation problem sooner rather than later, we in Hawai‘i will be well on our way to energy security. Think hydrogen for ground transportation and the Big Island will be in the best possible position to achieve energy security.

False Alarm, But Let’s Keep Our Cool

Richard Ha blog

An article posted online by the Hawaii Tribune-Herald on June 8th says that, according to a Subaru Observatory spokesperson, the hole I wrote about in the last post was caused by the door “hitting a bolt sticking out from an intake manifold next to the side entrance.”

Thank goodness it was a false alarm. It’s a huge relief.

This warning did cause us to all pay closer attention to what is going on around us. It also made us realize we are all in this together, and that we need to dial down the temperature of the discussion going on about Maunakea.

The protectors are doing their best to  maintain kapu aloha on the mauna.

As we go forward, let’s all choose our words carefully as we engage together.

Bullet on the Mountain – Where are the Leaders?

Someone seems to have shot a bullet into the door of the Subaru Observatory at the summit of Mauna Kea over the weekend.

Richard Ha06-07-15_7 Bullet hole

06-07-15_1 View of east door-2
Richard Ha
This is what I’ve been talking about when I say we need Hawaiian leaders to dial down the temperature on the Thirty Meter Telescope (TMT) issue in the anti-TMT camp for the sake of safety.

Now it looks like someone has shot at one of the observatories. What next? Where are their leaders?

We have also seen posts like these:
post#1

 

post#2

I contacted Lanakila and he told me he advised the police about that second post. We are both concerned about safety for all on the mauna.

My concern is not the folks from the Big Island, but people who may come from off-island.

This is really getting out of hand.

Dialing Down the TMT Temperature

Here’s a sample of some recent comments I saw about something I wrote about the Thirty Meter Telescope (TMT) on Facebook:

Richard Ha

Richard Ha

I’m certainly not trying to tell people they need to change, or think like I think. Everybody can have their own opinion and say what they want to say, but I’d like to see the communication be more respectful than this. We need to keep the spirit of aloha with us.

I cannot remember a time when Hawaiians were attacking other Hawaiians loudly and in public. We need to dial the temperature down. Our native Hawaiian leaders need to step forward and lower the temperature.

I do know the Royal Order of Kamehameha stepped up early on and prohibited the use of the war god Ku up on the mountain. Before they did that, Lanakila was running around with an image of Ku. We need more such positive leadership examples.

If folks want to protest or engage in civil disobedience, that is their choice. People have given their lives so they can do that. But we all know that the TMT will start construction and it’s important to remember that it’s a dangerous environment on the mountain. We all need to be careful and respectful and abide by kapu aloha.

What some of the anti-TMT people are not hearing is that my point is really about the maka‘ainana. I always, always advocate for the maka‘ainana, the “rubbah slippah folk,” who are a huge part of Hawaiian culture.

I often wonder how many of the anti-TMT folks have studied up on and understand why so many of us consider geothermal, GMOs, and the TMT important to the Big Island’s future. We hear so many of their arguments based on incorrect assumptions.

We’re also hearing a lot about sovereignty and Hawaiian Kingdom issues wrapped up in the TMT. I don’t take a position on those issues. They will be decided over time. We’re talking here about the TMT.

Too often in the discussions surrounding geothermal, GMOs and astronomy in general, the consequences to the rubbah slippah folk are not taken into consideration. Too often the end justifies the means whether it makes sense or not. I don’t agree with that.

I’m open to discussion about any of these topics. My Facebook page has always been set to public. I’m pretty active there and also respond here at my blog. But for safety’s sake, we need to see the temperature dialed down a bit.

Why I Have a Problem With the Anti-TMT Movement

I have finally put my finger on exactly what bothers me about the anti-TMT movement.

My entire career has been about planning for the future and adapting to our changing energy needs. It’s been about finding a way to force change in order to get us from here to there, and doing it in such a way that we take care of all of us, not just a few of us. That’s the fundamental principle we go by.

We know that it’s not the biggest or smartest or strongest who are going to survive, it’s the ones who adapt to change.

But they, the ones who are protesting the TMT, have made it clear that they absolutely refuse to compromise. They refuse to adapt to change.

This is the fundamental problem.

They have no plan for adapting to our changing energy situation, and I don’t know what their end goal is. My disagreeing with them has nothing to do with race or racism, but everything to do with their refusing to adapt. I’m waiting for them to make a plan, but what bothers me the most is their unwillingness to adapt to change.

We need solutions that will take care of all of us, not just a few of us.

***

There’s quite a discussion going on over at my Facebook page. A spokesman for Ku Kia‘i, the movement blocking the TMT people from going up to the summit of Mauna Kea, has filed a complaint of war crimes – of unlawful confinement, deprivation of a fair trial, and destruction of public property – in Canada. These war crimes refer to 31 protestors being arrested last month on Mauna Kea, despite what the group considers the illegal occupation of the Hawaiian Kingdom by the United States, as well as the building and erecting of thirteen observatories currently on the mountain. More about this on the Hawaiian Kingdom blog.

Clearly this controversy is about the Hawaiian Kingdom, which is not due to any fault of the TMT. I am not against the Kingdom of Hawaii, but it appears to me that that process will take a long time to come to any ruling. Nothing has been decided yet. I will abide by a ruling, whatever it may be.

In the meantime, the TMT has followed all the appropriate U.S. laws, all of which allow them to start construction. We are a nation of laws, and we are following the laws of the USA. If we didn’t, we would have anarchy. Our leaders need to lead. The safety of the people is of number one importance.

It’s fine to save the world, but shouldn’t we take care of our people first? Why should our rubbah slippah folks forego 300 construction jobs, 120 full time jobs at first light, $1 million youth education, workforce development programs and $1 million in rent of which $800,000 would go to malama Maunakea and $200,000 would go to OHA? And, $26 million additional to the Big Islands economy – all because we want to make a point?

And all this is free money. No one else will ever give us this much free money for our rubbah slippah folk.

Interesting comments follow my Facebook posts about it:

One person noted that this is why the anti-TMT advocates have “lost all credibility – because they let the pro-sovereignty people hijack the movement and turn it into a completely irrelevant issue.” (He also posted a link to the Department of State’s procedures about how one legally renounces U.S. citizenship.)

Other commenters said:

• Any Hawaiian government, king or otherwise, would need revenue, and would probably jump at any opportunity involving a billion-plus dollar project. I really don’t think many TMT opponents have thought things through to the logical end.

• TMT and self determination are two separate issues. I believe the reason the self determination movement did not catch fire with most part Hawaiians is because tens of thousands of them are employed, own homes, have families, are retired, collect social security, pensions and are covered by Medicare. In other words they already have self determination.

• Most have not considered the loss of things like Section 8 housing, SSI, AFDC, Food Stamps, students loans and tax credits, the loss of tourism that would be inevitable if Hawaii were not under the aegis of the U.S. government, the huge loss of DoD dollars once the separatists kick the military out, the instasbility that would lead many of us to draw our assets out and park them in a safe place, government grants, etc., etc., The federal government expends $17 billion more in Hawaii every year than it collects in taxes. Is that what you call war crimes? The withdrawal of that money and the loss of other revenues resultant from separation would create a death spiral of deflation that would destroy the economy.

• Those that haven’t studied history (and I get the feeling there are far too many of them here) don’t realize that one of the reasons why Hawaiians lost their lands is because it was so hard to raise capital here, and easy to get it elsewhere. When someone needed cash, they ended up selling their property cheap to someone (usually a foreigner or someone who had access to foreign funds) at tremendous discounts, because there was so little capital in Hawaiian markets. If sovereignty happens, it is very likely to repeat that pattern again. Princess Ruth sold Paauhau ahupuaa to Samuel Parker for $1300 because she needed the money and no one else had any funds to buy it.

And it goes on from there.

More on the Hawaii Island Energy Cooperative

The Hawaii Island Energy Cooperative formed after the NextEra/HEI merger was announced. Several community grassroots organizations got together and asked the Kauai Island Utility Cooperative (KIUC) folks to come to Hilo and do a briefing on how they got started.

After that meeting back in December 2014, a steering committee of Big Island community members looked into the feasibility of the Big Island forming a utility co-op. Although HELCO was not for sale, the group decided to prepare just in case an opportunity came up to purchase it.

This post talks about that KIUC briefing and how we formed the co-op steering committee.

Henry Curtis wrote about the Hawaii Island Energy Cooperative today at Ililani Media:

Big Island Energy Cooperative on the Move

The Hawaii Island Energy Cooperative (HIEC) was founded in January 2015. HIEC proceeded to file a motion to intervene in Hawaii Public Utilities Commission Docket 2015-0022 and was granted party status by the Commission.
 
That regulatory proceeding is examining the proposed sale of Hawaiian Electric Company (HECO) and its subsidiaries Maui Electric Company (MECO) and Hawaii Electric Light Company (HELCO) to NextEra Energy (NEE). 
 
Attorneys David J. Minkin, Brian T. Hirai and Peter J. Hamasaki from the law firm McCorriston Miller Mukai MacKinnon LLP, represent both HIEC and the Kauai Island Utility Cooperative (KIUC) in the merger proceedings.
HIEC was formed not only to explore the possibility of a Big Island community-based electric utility cooperative but also to examine other energy issues such as sustainable transportation policies.
 
HIEC has staked out a clear position. It is no for or against the merger and it is not promoting an alternative to HELCO or NextEra. Rather “HIEC seeks to bring to the proceedings its specific focus on the energy needs of Hawaii Island and its unique perspective on potential cooperative ownership structures.” 
 
HIEC Spokesperson Marco Mangelsdorf asserted that “being able to have more direct control over Hawaii Island’s present and future energy profile would provide us with an extraordinary opportunity to showcase what can be done on our island on many different and innovative levels.”

 

What the TMT Controversy is Really About

All the controversy about the Thirty Meter Telescope is not about the TMT. What it’s become is a convenient vehicle for focusing on the Hawaiian sovereignty movement, and on the University of Hawai‘i not doing a good job in the past of caring for the mountain.

When celebrities got involved and the TMT subject went viral, it galvanized the energy of the younger folk. These folks were only in middle school when the TMT project started, so there is a very steep learning curve.

Over the last seven years, the TMT has gone through all the legal requirements and the judge ruled that it is the telescope project can begin construction.

Nobel prize-winning economist Joseph Stiglitz says that in order for a project to be sustainable, it needs to be socially, environmentally and economically sustainable. The TMT fulfills all these requirements.

I think people have the erroneous view that the TMT is a big, investor-owned, money making corporation. It is not. It’s a non-profit organization and Henry Yang, its president, doesn’t even draw a salary. He does it because he knows it will bring benefits to our community.

I recognized this from early in the project and it’s the reason I’m such a supporter of the TMT. I’m also a big supporter of the TMT’s THINK education fund, which will allow our youth to dream big.

The problem with dreaming small is that your dreams might come true.

We want our keiki to feel proud of themselves. We want them to dream big!

It’s Time to Speak Up in Support of TMT

It is time. We need to speak up in support of the Thirty Meter Telescope (TMT) now.

There are two easy ways to do this:

1) Please take this very quick, five-question OHA survey. It will literally only take you a minute or two.

2) In addition to the survey, we all need to speak up and tell OHA that we support the TMT. We cannot be afraid or intimidated to testify. There’s been too much of that, and there is too much at stake not to speak up.

Please email the OHA trustees before their meeting this Thursday, 4/30/15, and let them know, in your own words, that you support the TMT.

For your convenience, here are their email addresses:

robertl@oha.org, colettem@oha.org, petera@oha.org, reynoldf@oha.org, rowenaa@oha.org, crayna@oha.org, hulul@oha.org, dana@oha.org, leia@oha.org

For your own information, here is some good background about the TMT. The first offers clear, accurate, and easy-to-understand questions and answers about the TMT, and the second is a timeline showing the entire TMT process from 2008 to today:

Thank you for speaking up in support of the TMT by this Thursday. We who support the TMT haven’t been speaking out, but we need to. It’s time.

Where’s The Plan?

My letter to the editor titled Stay Home ran in today’s Hawaii Tribune-Herald.

Stay Home

Regarding the Thirty Meter Telescope: Now, outsiders are coming to the Big Island to run our lives. Since when is that pono? Stay home. We don’t want you here.

The outsiders want to stop the TMT. Listen: We have the state’s lowest median family income. We have drug problems, spousal abuse problems, teenage pregnancies and the social ills that follow from that. The TMT is the only entity actually putting its money — a lot of it — where its mouth is.

They are offering education, the great equalizer. We of the older generation, fortunate enough to have our educations, are lucky. No one can take that away from us. But what about the youngsters coming up? Who will help them?

Usually, the present generation tries to help the next generation do just a little bit better. But on the Big Island right now, it’s just the opposite. And it’s being influenced by folks with fame and money who don’t even live here.

I am a Hawaiian. I respect my culture and its religion and traditions. I also respect its future. The Facebook generation tends to think in terms of today and tomorrow, but we Hawaiians used to think in terms of seven generations.

In 140 years, there won’t be telescopes on the mountain at all. We need to think about this carefully and not just react. How will we save ourselves on the Big Island?

It concerns me that the TMT protestors are reacting, rather than planning. It’s short term and emotional decision-making. Where is their 10-year plan for getting where we need to be? There’s no plan at all.

The Thirty Meter Telescope people spent almost seven years interacting with the community about its concerns and developing a careful plan – now approved – that put lots of money, education, and jobs into our island’s economy. It was unprecedented. I know this because I attended almost every TMT meeting for seven years.

The people protesting now weren’t at those meetings. Most were only in middle school when the process began so they have no idea what went on and how much was accomplished. It was phenomenal, and set the bar for the level of engagement we can expect from a corporation coming onto the Big Island.

Tossing out the TMT people now would be an enormous mistake and send the worst possible message we could ever send to any other company that ever wants to do business in Hawai‘i.

I actually have great optimism about today’s young people. I see it in their faces when I work with them in the many issues I’m involved with – they are smart and passionate and engaged.

What we need now is for the ones who can see the big picture to step forward and lead. There are huge changes going on in the world right now, and some young people don’t understand this yet. Some older people don’t even fully realize it yet.

But everything you hear me talking about is to try to position our island and our next generations: So our electricity will be affordable. So our food will be affordable. So education will improve. So people will be able to find jobs. So our crime rate will not continue to soar. So our children and grandchildren won’t have to move to the mainland because they cannot afford to live here.

My message is always about having a plan for where our island and its people need to be in five, ten, fifteen years. The long-term plan needs to be about all of us, not just a few of us. The Thirty Meter Telescope will, in quite a few different ways, help us move toward that plan.

We need young people to lead us there, too.

OHA & the Thirty Meter Telescope

Richard Ha writes:

I testified at the Office of Hawaiian Affairs (OHA) on Wednesday regarding the protests over the Thirty Meter Telescope (TMT). Sixty-five people showed up, the vast majority of them in favor of the TMT.

I introduced myself as a Big Island farmer who produced more than 100 million pounds of fruits and vegetables in the last 35 years. I flunked out of the University of Hawai‘i and then got drafted and went to Vietnam, where the unspoken rule was that we all come back or no one does. After we all came back, I returned to school and majored in accounting to be able to keep score. I was the only person from Hawai‘i to attend five Peak Oil conferences. I have attended most of the TMT meetings over the past seven years.

I made two main points.

1. OHA needs to act like parents and kupuna.

We are starting to see lots of outside Islanders coming to stick their spoon into Big Island business. Activist Walter Ritte even came from Moloka‘i to advocate for the removal of all the telescopes from Mauna Kea.

When Big Islanders were in charge, I didn’t worry about public safety. Now, though, I am very worried. We are seeing folks wearing hoodies and bandanas, and they’re hiding their identities. The leaders have got to stop that. It puts a hair trigger on the situation, and it’s dangerous.

We saw someone like that recently, and we knew he wasn’t from the Big Island because he was driving a bright red Jeep. Nobody drives a bright red Jeep; those are only rental cars.

The folks protesting are getting false hope that they can get all the telescopes off the mountain if only they push back harder. And the discourse is pilau. People are insulting people. This is very dangerous.

OHA needs to act like parents and kupuna. This is not rocket science. You folks all know that the process was followed; that is why the permits were issued. Don’t give people false hope. The young people protesting who are college-age now were only in middle school when we started the process to make sure the project was done right. This is why they don’t know about the intricate, seven-year process the Thirty Meter Telescope people went through to work through all the issues the protestors are just now talking about.

It is OHA’s job now to do the right thing. Just tell them—they’re not going to change the law. Letting them think that will possibly escalate the problem and the mounting safety issues. That’s the kind of thing that is going to cause something to happen. We don’t want anybody getting hurt.

2. Remember what the TMT will bring to our community. The Big Island has the lowest median family income of all the counties. And the Kona side is higher than the county average, making the east side even lower than the county’s average. The Pahoa/Ka‘u/Kea‘au school complex is in the top four in the state for the free/subsidized lunch program. This island’s spouse abuse, substance abuse, and teen pregnancy rates are high.

Henry Yang, president of the TMT Corporation, came to the Big Island to talk with the community fifteen times. He came personally and talked to folks on the other side of the table, and he listened. He didn’t assign someone else to come; he came himself. That’s how the THINK fund was born. Nothing fancy, just listen. They are developing a work force so kids now in high school can follow a path to jobs. They did an environmental study, instead of taking the shorter way.

The TMT set the bar for how other big companies should interact with the community. To turn them away would be the most irresponsible thing we could do.

The Big Island needs jobs, and we need to diversify our economy to protect ourselves from rising oil and gas prices. The TMT is free money. The THINK fund helps our kids not fortunate enough to have gotten a Kamehameha Schools education. They are the ones who need help. Once you get an education, no one can take it away.

Acting like parents and kupuna will ensure that you address public safety as well as move up the folks on the lower rungs of the economic ladder—those not fortunate enough to go to Kamehameha Schools, or to take advantage of the GI bill like me. Education is the great equalizer.