Posted on: Monday, October 11, 2004

EDITORIAL
Shipping news: Oil doesn't grow on trees

It's easy, living in an island paradise removed by thousands of miles from the world's deepening challenges, to overlook their growing effect on our daily lives.

But last week's announcements of new increases in the fuel surcharge by shipping companies that carry goods to Hawai'i, Matson Navigation Co. and Horizon Lines, serve as blunt reminders of our nation's failure to deal effectively with a growing energy crisis.

Hawai'i is highly dependent, we all know, on shipping to bring goods to the Islands. About 80 percent of what is consumed in Hawai'i is imported, and 98 percent of that arrives by sea, shipping officials say.

That's why Hawai'i residents should be incensed at the lack of any meaningful national energy policy.

Driven by huge expansion of oil demand in China as well as the United States, the tight world oil market means that the Persian Gulf oil states will remain in the driver's seat in the foreseeable future.

Crude oil stood at a record price of $53 a barrel at week's end, and what that adds to the cost of shipping goods here will no doubt land on the backs of local consumers.

We can't drill our way out of this problem. The only remaining abundant oil reserves lie under Saudi Arabia, Iraq, Iran and Syria.

Our only hope for now is to sharply reduce our dependence on Middle Eastern oil, by developing alternatives, by weaning ourselves from gas-guzzling SUVs, by promoting hybrid engines for cars. Tax incentives and disincentives are needed.

From this perspective, Hawai'i's move toward biofuels — a 10 percent ethanol mix in gasoline — is better late than never.

We can bring the price of oil back down to $20 a barrel — if we dramatically reduce our use of it.

That must be a priority for the next president.