Tag Archives: Hawaii County

Peak Oil

How OPEC’s Decision Affects Hawaii

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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.

Hurricane

Hawaii County Just Declared Natural Disaster Area

Richard Ha writes:

The United States Department of Agriculture (USDA) has just designated Hawaii County a “primary natural disaster area.”

The USDA media release, as published on Hawaii247.com:

The United States Department of Agriculture (USDA) has designated Hawaii County in Hawaii as a primary natural disaster area due damages and losses caused by wind, rain and flooding that occurred August 7-9, 2014.

“Our hearts go out to those Hawaii farmers and ranchers affected by recent natural disasters,” said Agriculture Secretary Tom Vilsack. “President Obama and I are committed to ensuring that agriculture remains a bright spot in our nation’s economy by sustaining the successes of America’s farmers, ranchers, and rural communities through these difficult times. We’re also telling Hawaii producers that USDA stands with you and your communities when severe weather and natural disasters threaten to disrupt your livelihood.”

Hawaii County was designated a natural disaster area on September 3, 2014, making all qualified farm operators in the designated areas eligible for low interest emergency (EM) loans from USDA’s Farm Service Agency (FSA), provided eligibility requirements are met. Farmers in Hawaii County have eight months from the date of the declaration to apply for loans to help cover part of their actual losses. FSA will consider each loan application on its own merits, taking into account the extent of losses, security available and repayment ability. FSA has a variety of programs, in addition to the EM loan program, to help eligible farmers recover from adversity.

Producers are encouraged to contact the Hawaii County Office at (808) 933-8368 to make an appointment to avoid long wait times for service.

Additional programs available to assist farmers and ranchers include the Emergency Conservation Program, The Livestock Forage Disaster Program, the Livestock Indemnity Program, the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program, and the Tree Assistance Program. Interested farmers may contact their local USDA Service Centers for further information on eligibility requirements and application procedures for these and other programs. Additional information is also available online at disaster.fsa.usda.gov.

Mahalo to Diane Ley, director of the USDA’s Farm Service Agency, for her role in enabling special disaster farm loans for farmers who were hurt by Tropical Storm Iselle, and for her role in enabling the emergency declaration that was just announced, as well.

Diane participated in our after-hours emergency meeting right after the storm and we appreciated that very much.

Current Affairs, Food Security, Science

‘What if GMOs are the Only Option?’

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Richard Ha writes:

Universities in the public sector are supposed to do things in the interest of the public. One example here is that the University of Hawai‘i developed the Rainbow papaya. How come Hawai‘i County passed a bill banning all new GMOs? In the larger view, are we going to be able to feed all the people in the world without new biotech crops?

In the following video, scientists from Cornell, the Pulitzer Prize-winning New York Times writer Amy Harmon, and local boy/father of Rainbow papayas Dennis Gonsalves discuss the anti-GMO phenomenon.

The title is "Modifying the Future of Food: What If GMOs Are the Only Option?, Cornell Reunion 2014."

I have looked at this issue from all angles. If I were not convinced that it was safe, I would not have participated in a lawsuit challenging the anti-GMO bill on the Big Island. An overwhelming majority of farmers and ranchers on the Big Island, like the people on the panel, are very concerned that the correct story is not being told. 

 

Current Affairs, Government

Listen To My Hawaii Public Radio Conversation

Richard Ha writes:

I was on Hawaii Public Radio this morning. Beth-Ann Koslovich invited me onto her radio program “The Conversation.” Here’s how she introduced it, and you can listen to the audio below:

“It might be an understatement to call the battle over GMOs contentious. Given the vitriol from both sides and now the Kauai lawsuit to defend the ordinance calling for disclosure of pesticide use and genetically modified crops …plus  the ongoing question about what consumers have a right to know about their food…well….the conversation often gets ugly and sometimes, violent…. Which is why non GMO farmer Richard Ha says he’s glad a judge temporarily stopped GMO crop registration in Hawaii County last Friday Richard Ha joined the show from his farm on the Big Island.”

Listen here.

Government

Will You Send A Quick Email Of Support?

Richard Ha writes:

Will you write a quick email in support of Big Island farmers and ranchers?

We have formed a group Hawaii Farmers & Ranchers United, which is made up of the people who produce 93 percent of the agricultural products grown and raised on the Big Island. We came together in order to support House Bill 2506 and Senate Bill 3508, which amends Hawai‘i’s Right-To-Farm Act “to ensure that counties cannot enact laws, ordinances, or resolutions to limit the rights of farmers and ranchers to engage in modern farming and ranching practices.” This is in response to Hawai‘i County recently passing the anti-GMO bill.

Our Hawai‘i state lawmakers are being bombarded with emails, from the mainland and elsewhere in the world, urging them to defeat the Right-To-Farm Bill. Would you consider writing an email in support of the Right-To-Farm Bill?

Hawai‘i County’s recently passed anti-GMO bill prohibits Big Island producers from using any new biotech solutions to their farming challenges. Our competitors, elsewhere in Hawai‘i and on the mainland, will continue to have the benefit of advancing science and technology. Taking advantage of biotech solutions on the Big Island is about to become, literally, a criminal act.

If you can write a quick email in support, just say who you are, where you are from, and add a short note saying you supporting our local Big Island farmers and you support both HB2506 and SB3508.

Use this email to reach all Senators.

Use this email to reach all Representatives.

We appreciate your support.

Government

County Resolution Must Include Effects Upon People

Richard Ha writes:

The Hawai‘i County Council Comittee on Agriculture Water and Energy Sustainability will meet on Tuesday at 11 a.m. to discuss a resolution put forward by the committee.

Comm. 25: A RESOLUTION TO ENSURE THE ADVANCEMENT OF PRINCIPLES OF  (Res. 19-13) SUSTAINABILITY IN COUNTY GOVERNMENT DECISIONS AFFECTING  NATURAL AND CULTURAL RESOURCES 

From Council Member Margaret Wille, dated December 4, 2012, transmitting the  above resolution, which resolves that all County-level government decisions be  consistent with specific sustainability principles and policies, as listed.

This resolution does not include effects on people, and it would be stronger if it included that component.

Rising electricity rates such as we’re seeing act like a giant regressive tax on folks who are on the lowest rungs of the economic ladder. Actually, it’s worse than that, because people who can leave the grid will do so, leaving behind the folks unable to leave who will then have to pay an increasing share of the cost to maintain the grid.

Somehow, we need to incorporate people into this resolution.

Geothermal, Government

Health & Safety re: Geothermal in Puna

I was very encouraged at the County Council meeting on geothermal that was held in Pahoa this last Tuesday evening. The community had a chance to be heard.

The Puna community met several times prior to that meeting, and Steve Hirakami, acting as facilitator, identified the community’s main concerns. About 100 votes indicated that the Pele cultural issue was a top concern. Non-Hawaiians taking this position vastly outnumber Hawaiians. Seventy to 80 folks listed health and safety as their top issues.

From the testimony at Tuesday’s meeting, it is clear that the Puna community feels uneasy about geothermal. I understand that the Environmental Committee, chaired by Councilwoman Brittany Smart, will be holding hearings regarding environmental issues – specifically health and safety. The hearings will bring clarity to the issues.

What we do know right now is the State Department of Health does not allow open venting, and requires they be alerted when emissions exceed 25 parts per billion. Note that personal H2S monitors sold on the Internet measure in “parts per million.” A billion is a thousand million. The Department of Health’s requirement is a very conservative one.

IMG_0262

Hydrogen sulfide and sulfur dioxide coming out of the ground at the Sulfur Banks at Volcano, Hawai‘i

I commend Mayor Kenoi for initiating the Sister City relations with Ormoc City and for supporting the Geothermal Working Group, which was operating under an unfunded mandate. He has taken on the goal of making Hawaii County 100 percent reliant on non-fossil fuels by 2015.

That’s a high bar, but he has the guts to aim high. What’s at stake requires us to have a clear goal, for the benefit of all of us. Mayor Kenoi knows that geothermal will result in a better future for us all.

Patrick Kahawaiola‘a, President of the Keaukaha Community Association, told me, “It is about the process” – and so we need to aloha everyone, no matter what side of the issue they are on. And Kumu Lehua Veincent told me: “What about the rest?” He meant that this is about all of us, not just a few.

We all know that oil prices have doubled every 5.5 years recently. If it continues to follow that pattern, we do not have much time to act. We must all work together to find the best solution for all of us.

I visited both Iceland and the Philippines, and in both places open venting is allowed at their geothermal plants in certain circumstances. I learned that Hawai‘i’s air quality standards are very high compared to in those countries.

In August 2000, the EPA issued a report regarding the geothermal well blowout that occurred at Puna Geothermal Venture in June 1991. Read “Report on the Review of Hawaii County Emergency Operations Plan and Puna Geothermal Venture Emergency Response Plan” here. The Environmental Committee can use these findings and recommendations as a starting point.

From that report:

Blowout of well KS-8 June 12, 1991

Cause and Duration

“The blowout caused an unabated release of steam for a period of 31 hours before PGV succeeded in closing in the well. The report finds that the blowout occurred because of inadequacies in PGV’s drilling plan and procedures and not as a result of unusual or unmanageable subsurface geologic or hydrologic conditions.”

“Not only did PGV fail to modify its drilling program following the KS-7 blowout, but they also failed to heed numerous “red flags” (warning signals) in the five days preceding the KS-8 blowout, which included a continuous 1-inch flow of drilling mud out of the wellbore, gains in mud volume while pulling stands, and gas entries while circulating mud bottom up, in addition to lost circulation, that had occurred earlier below the shoe of the 13-3/8-inch casing.”

“PGV personnel took appropriate steps to control the well following the kick. However, there were certain inadequacies in PGV’s drilling operations and blowout prevention equipment. The mud cooler being used was inefficient. Monitoring equipment was not strategically placed. A sufficient supply of cold water was not available to pump into the wellbore to properly kill the well in the event of a blowout. The choke line was not of sufficient diameter to handle the volume of fluid that had to be vented, and there was no silencer on the end of the choke manifold line to reduce noise.”

It’s good that the County Council will be addressing all those issues. We all need to have a common frame of reference regarding safety. Everyone wants to do the right thing.

Community, Geothermal, Peak Oil

Peak Oil: Preaching to the Laupahoehoe Choir

Last night, I spoke at the Laupahoehoe Community Association meeting and shared the perspective I have gained from watching the world oil supply subject evolve over a short five years.

I related how I have attended four Peak Oil conferences, most recently as Hawai‘i County’s representative. The first thing I learned was that the world has been using twice as much oil as it has been finding for 20 to 30 years – a trend that continues.

Five years ago, oil prices were supply driven. When supply was restricted, oil prices rose, and when oil supply resumed, prices fell.

Last year, that correlation fundamentally changed. We now have a demand problem. And the demand is coming from the new economies: China, India and others.

That’s why, during this recession, we still have $100 per barrel oil. Unlike during the last 150 years, supply cannot seem to keep up with demand. If you are a subscriber to Nature magazine, or don’t mind becoming one, you can read a good article about that here.

Oil’s tipping point has passed

The economic pain of a flattening supply will trump the environment as a reason to curb the use of fossil fuels, say James Murray and David King.

…There is less fossil-fuel production available to us than many people believe. From 2005 onwards, conventional crude-oil production has not risen to match increasing demand. We argue that the oil market has tipped into a new state, similar to a phase transition in physics: production is now ‘inelastic’, unable to respond to rising demand, and this is leading to wild price swings…. Read the rest here

World oil supply is naturally declining at approximately five percent, meaning we need to find the equivalent of a Saudi Arabia every two to three years. Clearly we have not been doing that, nor is it likely we will do that.

To make matters worse, oil-exporting countries are forced to use more of the oil resource in their own countries or the people will revolt. Sooner or later, oil-exporting countries will keep all its oil for its own people. All the signs indicate that we have much less time than we think.

I told the folks that most of us, except the native Hawaiians, were immigrants. We all dream of a better future for our children and grandchildren, and rising oil prices are a threat to that dream.

We are very lucky, though, to have an indigenous alternative – Geothermal. Generating electricity from geothermal costs approximately 10 cents per kilowatt hour, while generating electricity from oil (at $100 per barrel) costs more than 20 cents per kilowatt hour. Geothermal-generated electricity prices will be stable for generations, while oil prices will keep on rising.

I was preaching to the choir. They wanted to know what could be done. I told them to contact their legislators and that I would make sure to keep in contact with their organization.

Geothermal, Government, Renewable Energy Sources

Mayor Kenoi Announces Hawaii County Will Use 100% Renewable Energy by 2015

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At the press conference announcing the Geothermal Working Group’s final report, Mayor Billy Kenoi announced that Hawai‘i County will use 100 percent renewable energy by 2015. That was significant.

Mayor Kenoi emphasized geothermal’s primary role as that of base load and he said we are lucky to have an array of options available, such as wind, solar and biomass. He mentioned that the County would be converting some of its passenger vehicle fleet to electrical. He said that we will need the help of the Federal, State and County governments, as well as that of the community.

He has already touched bases with Lieutenant Governor Shatz, and will be speaking with our congressional delegation next week. Senator Kahele and Representative Nakashima both reiterated the importance of enabling geothermal for base power.

More about the Geothermal Working Group’s final report press conference:

Big Island Video News: Geothermal Working Group Report Unveiled in Hilo

Hawaii 24/7: Geothermal Working Group Presents Findings

Although the topic of the press conference was the Geothermal Working Group’s final report, Mayor Kenoi’s announcement about taking the Big Island to 100 percent renewable energy by 2015 was the big news.

He is retaining the Geothermal Working Group, which will continue its work under the County of Hawai‘i.

As I have been saying, we are running out of time. Mahalo, Mayor Kenoi, for leading the Big Island to a safe place for us and future generations.

Following the Mayor’s lead, we can get there. Not, no can. CAN!

Geothermal, Government, Peak Oil

Geothermal Working Group Report is Unveiled

We know the era of cheap oil is over, and that it is only a matter of when and how high oil prices will rise.

What we need now is to see what we can do to enable geothermal. Two-thirds of our economy is made up of consumer spending, and stabilizing electricity prices will help our people cope.

From Hawaii Reporter:

Geothermal Working Group- Final Report unveiled by the County of Hawai‘i

REPORT FROM HAWAII COUNTY – HILO, HAWAII – The Geothermal Working Group, with the support of Hawai`i County Mayor Billy Kenoi, will present the final draft of the Geothermal Working Group Report on Wednesday, January 4, 2011 at 2:30 p.m.  The press conference will be held at the County building on the Mayor’s lanai at 25 Aupuni St., second floor.

The report was sponsored by the County of Hawai‘i to evaluate geothermal energy as the primary source of baseload power for electricity on the Island of Hawai‘i.  The report includes an analysis of technical data and expert testimony providing convincing rationale to develop local renewable energy plants and transition away from the county’s dependence on petroleum-fueled generators for baseload electricity.  The report, which is currently being circulated within Hawai`i’s State Legislation, was developed as research to help support Hawai`i’s Clean Energy Initiative goals…. Read the rest

As I’ve talked about here before, Iceland has made itself energy and food secure. We can too.