How the US oil embargo hits Achilles’ heel in the Hawaiian economy

The state of Hawaii in the United States is heavily dependent on oil for its energy supply. The recent rise in oil prices and the US embargo have significantly increased the pressure on the Hawaiian economy.

Compared to the European Union, the United States seemed to ignore everything Russian oil importsUnlike the EU, the United States is not dependent on Russian gas and oil, but the embargo still has an impact here and there. The energy crisis is very painful for the island state of Hawaii.

Department of Transportation

Hawaii is the most oil-rich state in the United States. About 85 percent of Hawaii’s energy consumption is based on oil Aloha State It is far ahead of Vermont, second only to 56 percent in the United States on the list of oil-rich states.

Oil is not the only major source of energy. The archipelago is highly dependent on oil, especially for transportation. For example, boats going from one island to another require petrol and diesel and kerosene for aircraft. This makes the transportation sector better at consuming two-thirds of the island’s oil.

So the Hawaiian government is trying to greatly encourage the use of electric vehicles, offering discounts on the electricity needed to charge EVs, and often allowing EVs to be parked for free. As a result, it ranks second in the number of individual electric vehicles in the United States.

Russian oil

The archipelago has no gas, oil or coal resources to generate energy. So Hawaii is completely dependent on imports for crude oil supply. Until March 4, Russia was the largest supplier of petroleum to the American island nation. One-third of total oil came from Russia.

On March 4, just days before US President Joe Biden imposed a national oil embargo, the Hawaiian government announced an immediate halt to all imports from Russia. “We do not expect this decision to have a significant impact on the price that Hawaiian consumers pay,” Eric Wright said. See Hawaii, Know. Burr is the only oil refinery in the state of Hawaii.

Unfortunately, there seems to be little truth in Wright’s reassuring words. Hawaii oil prices are higher in the United States than in California.

Possibility of renewable resources

Although the Hawaiian Islands have no oil, gas or coal, there are two sources of energy: sunlight and wind. Fortunately, the Hawaiian government has known for years that their external dependence on fossil fuels is their Achilles heel. Since 2007, the island state has been building infrastructure Renewable energy sources⁇

The sun in particular is an important source of energy. As a result, Hawaii has the largest number of solar panels per household in the United States. By 2020, solar energy will generate up to 64 percent of the total renewable energy share. By 2022, solar power generation through small-scale solar panels in residential and commercial buildings will be about 1,000 MW. The state’s largest solar farm can produce up to 49 MW, and two new farms, each with a capacity of 60 MW, are expected to be operational by 2022.

There is also a lot of potential in other renewable sources such as wind energy and biothermal energy generated from the island’s volcanic heat. How the ocean waves generate energy is also explored.

Trade

But such a far-sighted turn does not happen from one day to the next, and the government is sometimes a hindrance. For example, any plan to build a nuclear power plant would require a two-thirds majority in the Hawaiian Parliament and Senate. Strict laws that protect Hawaii fauna and flora prevent the construction of additional solar and wind farms.

Like the rest of the world, according to Melissa Miyashiro, director of the NGO Blue Planet Foundation, Hawaii has trade deals in using land for renewable energy sources.

(fjc)