Oil Shock And Resiliency; 1973-2026 - What has changed? By Mike Markrich Copyright 2026
Compariing1973 and 2026 Hawaii gasoline powered cars still dominate; But there are fewer homes for nearly 2 X the number of people.
In 1973, a war in the Middle East caused Hawaii to come to a standstill. There was suddenly a lack of gasoline in a state heavily dependent on imported fossil fuels. People sat in long lines for gasoline. Fishermen were unable to take their boats out, and tourism came to a standstill as prices spiked. High prices affected everything from toilet paper to food. Large numbers of people in the visitor industry found themselves unemployed.
In 2026, we are in the midst of another oil shock resulting from politics in the Middle East. There are no long lines for gasoline, but high electricity prices are causing record numbers of people to fall behind on their electric bills. We are still not sure what the full impacts of this oil shock will be, but if rising jet fuel costs cause significant drops in tourism, the effects could be even greater because Hawaii is more dependent on tourism for tax revenue and employment than it was 50 years ago.
What Has Changed?
Hawaii remains heavily dependent on imported fossil fuel. In the 1970s, approximately 20% of Hawaii’s electricity came from renewable sources such as bagasse, the fibrous residue left over from sugar production. Today, renewable electricity generation has risen substantially and is increasingly driven by solar energy. Yet transportation — including cars, trucks, aircraft, and shipping — still consumes most of the state’s petroleum. Electric vehicles account for roughly 4% of registered vehicles in Hawaii, one of the highest rates in the nation, but their impact has not yet substantially reduced household energy pressures.
Fewer Buildings / More People
Over the past 50 years, Hawaii’s population has nearly doubled, while affordable housing has failed to keep pace. When flooding occurred recently, it was not unusual to see 12-15 people displaced from a single home. Successive state and county governments have been more market developer-oriented than low income people-oriented. Developers sought permits and financing for investment properties and second homes, while government favored the tax revenue generated by higher-priced units that would come from investment properties. Low income subsidized housing units exist, but they are few in number and there is no strong political constituency to replace them as there was in the past.
Another issue is resiliency during storms. Because affordable and subsidized housing construction has lagged (its down by about one third) behind population growth, more people are crowded into smaller and fewer living spaces. When power outages occur, the impacts are magnified. A single outage can affect large extended families living under one roof. Hawaii’s housing shortage has also become a disaster-resiliency problem, making communities more vulnerable during fire, floods, storms, and prolonged electrical outages.
This has resulted in more families crammed into smaller spaces and unable to pay their bills. The World War II generation, shaped by plantation labor and wartime suffering, understood the need to help others. Today, efforts to reduce costs for struggling families, where electricity prices are the highest in the nation are often met with indifference An effort to expand assistance for low-income households through the HI-HEAP energy assistance program failed in the legislature this session.
The difference between 1973 and today is that, while Hawaii remains isolated and vulnerable to global energy shocks, its people have struggled to unite around a shared response. The problem today is not just an oil crisis; it is also a weakening belief in the aloha spirit — the idea that life should be made better and more affordable for everyone, not just the fortunate few.
