Tag Archives: Rising Oil Prices

Big Island, Education, Geothermal, Hydrogen, Lowering Electric Rates, Mauna Kea, Peak Oil, Science, Sustainability, Where We Live

A Big Picture Look

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Richard Ha writes:

Yesterday I sat in Judge Nakamura’s courtroom full of people both for and against the Thirty Meter Telescope (TMT) being built on Mauna Kea. I looked over at Kealoha Pisciotta, who has led the opposition all these years, and thought about how much I admire her.

As I sat there, I thought back to 2008, when rising oil prices started being such a big concern. At the top of my mind then was finding an economic alternative to tourism and opportunities for keiki education, both of which the TMT will provide. Locating the TMT here is a great opportunity, and I put a lot of effort into supporting it.

As I sat there yesterday, I thought, too, about how the TMT will help the Big Island cope with our rising energy costs and changing economy; because of it, money will flow into our economy instead of out. It will bring 10 years of construction jobs, and $1 million/year toward Big Island student education for each of more than 55 years. More importantly, it will bring to the Big Island an attitude of “Not, No Can. CAN!”

In 2007, I’d met Gail Tverberg at my first Peak Oil conference in Houston. A former insurance actuary whose job was to price insurance risk, she is someone who approaches the world oil supply problem from a risk management perspective. I helped bring her to the Big Island to give presentations, and she observed that our dependence on tourism makes Hawai‘i very vulnerable.

In 2008, shale and gas production hadn’t yet started in earnest. Natural gas prices were very high at $12/thousand cubic feet. According to a USDA analysis, there was an 80 percent correlation of natural gas price to ammonia fertilizer cost, and that had a frightening effect on local farmers. The price of natural gas dropped to $2/mcf, and now it’s around $4.50/mcf. This, coupled with a subsequent increase in natural gas supply, has given us some breathing room. But it’s only temporary.

We have another fairly unique opportunity to protect ourselves against seriously rising energy costs, which are already impacting our lives negatively and will continue to go up if we don’t make changes:

Geothermal energy.

After having attended five Association for the Study conferences (the only person from our state to do so) I’ve found that it’s all a matter of 1) cost, 2) what works and 3) comparative risk.

Geothermal addresses all three of those points. It’s inexpensive compared to using oil to produce our energy; we already know that it works; and after decades of experience with it here, the comparative risk is low.

It also allows the possibility of making hydrogen, which we can use to fuel our ground transportation, and also ammonia fertilizer for farmers. There are a lot of wins there.

Government, Science, Sustainability

We Are Unwilling To Be Led To The Slaughter

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Richard Ha writes:

I was part of a four-person panel at the recent GMO Summit. I was spokesperson for the farmer group that organized a convoy around the County building a short time ago. The others were

  • Kamana Beamer, who gave the cultural perspective, which is the long term view of things
  • Hector Valenzuela, who presented a negative view of biotechnology
  • Dr. Dennis Gonsalves, who gave a pro-GMO point-of-view.

Three of the speakers, then, all coming from different perspectives, were pro-GMO. I will ask the speakers if they are willing to give a synopsis of their presentation, and if so, I will post them here.

As farmers, our primary concern is that banning the use of GMOs only on Hawai‘i Island, while allowing them to be used on the other Hawaiian islands, will slowly but surely drive us out of business. We are unwilling to be led to the slaughter.

Here is what I presented at the GMO Summit:

Aloha. I am Richard Ha. Although we have a farm, I am here today as a representative of Hawaii Farmers and Ranchers United. This is a spontaneous farmer group that recently organized a convoy of more than 50 cattle, papaya and other farm trucks, as well as nearly 200 farmers, around the County building. It consists of the Hawaii Papaya Industry Association, the Big Island Banana Growers Association, the Big Island Cattlemen’s Council, the Hawaii Floriculture and Nursery Association and various Farm Bureau chapters.

In all my time in farming, I have never seen farmers so united and concerned about one issue. Why are they so concerned? Because they feel their survival is at stake.

Farmers are price takers, not price makers, and when the cost of energy quadrupled in the last 10 years, we farmers could not increase our prices to cover the increase in cost. We know how vulnerable we are to rising oil prices. The anti-GMO bill takes away future cost-saving tools for farming.

Here’s a reality check on growing food.

Hawai‘i is located in the humid subtropics and it is a weed, bug and plant-disease paradise. We have no winter here to help us kill off bugs.

Farmers are not pesticide-crazed sprayers of toxic chemicals. They use cost-effective solutions to the pest problems of their particular crops. They use what’s least toxic, because they don’t want to harm themselves. They don’t overspray, because that wastes money. Farmers have common sense.

When we send farmers into battle against the pests, don’t shoot arrows at their backs. When we send them into battle against pests that use cannons, don’t send them out with swords and clubs.

If we do not want the large biotech companies to grow corn for seed, then write a bill that prohibits that. If we do not want GMO foods at all, then start with corn flakes and soda and ban those.

Consider these facts:

  • Hawai‘i imports more than 85 percent of its food. That’s almost all of our food.
  • Hawaii uses oil to generate more than 70 percent of its electricity. The U.S. mainland, which is both our supplier and our competitor, uses oil for only 2 percent of its electricity – so its costs are not skyrocketing from rising oil prices as much as ours are.
  • The price of oil has quadrupled in the last 10 years, and will probably go higher.
  • As oil prices rise, Hawai‘i becomes less and less food secure.

These are the realities that Big Island farmers face every day. We must be one of the least food secure places in the world.

“Food security” means being able to get adequate and sufficient food, regardless of where it comes from. These days, it comes from all over the world. We are able to buy food from all over because money comes into our economy from the outside, with military spending and tourism being primary contributors. That provides us with money to pay for general services to our society and to buy our food.

Food security involves farmers farming. If the farmer makes money, the farmers will farm. And if the farmers make money, then their products will be competitive with imported foods. And that will mean lower cost foods for all.

Try to encourage those things that gives our farmers a competitive advantage. Leverage our sun that shines all year long. Don’t ban GMO corn that can give our cattle ranchers a fighting chance.

Maybe we can grow the grain that will encourage poultry farms and fish, too.

If we had poultry and cattle manure, our organic farmers would have a nitrogen source that could help them produce food for a profit.

Let’s all sit down and talk. Farmers are not the enemy.

In the 1800s, our Hawaiian population went from an estimated 700,000 to 50,000. We almost went extinct.

I’m sure they would have used new technology vaccines if they had been available.

Farmers have looked at all sides of the argument and have come down on the side of peer-reviewed science.

I would like to make one farmer observation about pesticides. The
dose makes the poison. Margaret Wille said she wants to ban the use of Roundup. Senator Ruderman introduced a bill to ban Roundup last session.

Let’s say there is a four-foot patch of weeds that one wants to control using Roundup. The amount of spray needed, which is already diluted 50-1 with water, is less than the thickness of a piece of typing paper. By contrast, rainfall in one year at Pepe‘ekeo
would result in a column of water 10 feet high over that spot. As I said, the dose makes the poison.

Previous to Roundup, farmers here used Paraquat, which is a skull-and-crossbones grass poison.

We don’t want to go back to that. We need a little bit of common sense here.

Here are three areas of concern to farmers:

  1. Farmers on the other islands would be able to use new biotech seeds, while Big Island farmers would not. I just saw where a British researcher said he developed a technique that would give every plant the ability to fix nitrogen from air. But if other
    islands could use it and we could not, this would eventually put Big Island farmers out of business. The Tomato Spotted Wilt Virus (TSWV)  threatens the State’s tomato industry, and there is a biotech solution that is ready to be implemented. Again, if other islands can use it while while Big Islanders cannot, this will eventually drive Big Island tomato farmers out of business.
  2. Under Brenda Ford’s bill, papaya and GMO corn farmers and ranchers have 30 months to get out of those crops or they risk 30 days in jail. Making criminals of farmers is just beyond belief.
  3. It isn’t the strongest or smartest that survive, but the ones that can adapt to change. This saying is attributed to Charles Darwin.

Although the bills by Ford and Wille might seem new and different and brave, below the surface they both prevent adapting to change. And that is one of the main reasons why farmers are against both attempts to prevent the planting of bioengineered
plants.

Farmers and ranchers have an abundance of common sense. My dad was a farmer. He only went to the sixth grade, but when I was 10 years old, he told me: “Find two solutions for every problem and then find one more just in case.”

He said, There are thousand reasons why no can. I looking for the one reason why CAN adapt to change.

Biofuel, Food Security, Geothermal, Iceland, Renewable Energy Sources

Iceland, In Conclusion

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I want to conclude my “Iceland Series” by pointing out something very simple and straightforward that they have learned in Iceland and put into practice, but that we in Hawai‘i have not:

Cheap and proven technology, and clean energy projects, protect an economy from oil crises.

If what the International Energy Association says is true – that we have come to the end of cheap oil – then the bottom line is that by decoupling from expensive oil, we protect ourselves. It is the cost that’s important, not the color or anything else.

In Hawai‘i, we are trying to replace fossil fuel oil with biofuels. But if the replacement is as expensive as oil – which biofuels for electricity generation is – this doesn’t do us any good.

Geothermal, on the other hand, would totally disconnect us from the high cost of energy. It’s the cost that is the most important. And because it’s safer to diversify, we should also maximize our other energy sources, such as wind and solar, without destabilizing the electric grid.

When you go over to Iceland, you see that they have inoculated themselves from rising oil prices. In doing so, they have also made themselves food secure, because their electricity is cheap relative to other sources of energy. For instance, when they export aluminum, which is electricity-intensive, as long as their electricity costs are lower than that of their competitors, they will always have money coming into their economy.

Iceland’s economy depends on cheap energy and fishing as its base. (And Iceland’s tourism increased when the country devalued its currency, so cheap energy had a double benefit.) Hawai‘i’s economy depends on the military and tourism. We need a third leg to give our economy some stability and security.

It was interesting for me to see how a native people, left to their own devices, coped. As of today, Iceland is more energy and food secure than Hawaii! This is why Ku‘oko‘a needs to purchase HEI. The rubbah slippah folks all know this to be true.

Cheap electricity makes an economy competitive in the world. This is where the people’s needs and the utility’s needs should coincide.

Everybody knows that Iceland’s economy crashed in 2008. That happened because they privatized their banking industry, the banks went crazy, and they got caught by the downturn. But because the country has cheap energy, they are pulling out of their recession and the excesses of their banks – while we are struggling to forestall a double dip recession.

This shows us that if you’re in a competitive position relative to energy, and you don’t do anything stupid, you can withstand any oil-induced depression or recession, which is where the world is headed.

Iceland is also concerned about its dependence on fossil fuel for transportation. It has a commercial hydrogen refueling station, and I rode in an SUV powered by methane from municipal waste. They are even looking into making liquid fuels from geothermal electricity and CO2.

Iceland is like a little lab. You go over there and look at the country and say, “Holy smokes! It can be done.”

Now to do it here.