Oil Shock And Resiliency; 1973-2026 - What has changed? By Mike Markrich Copyright 2026
Compariing the oil shocks in 1973 and 2026 There are more people crowded together now in fewer living spaces in Hawaii. People use more power for everything from phones to refrigerators to video streaming. This increases their vulnerability when power outages occur and the need for resilience hubs
NEW OIL SHOCKS MEAN NEW NEED FOR RESILIENCE HUBS IN HAWAII
In 1973, a war in the Middle East caused Hawaii to come to a standstill. Arab nations belonging to the Organization of Oil Exporting Countries (OPEC) imposed an embargo on shipping oil to the United States. Even though the US was the number 2 oil producing nation in the world that year there was a supply chain disruption. This had an immediate impact on Hawaii. There was suddenly a scarcity of gasoline and people at every level of society felt it.
People sat in long lines at gas stations. 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 and had their power cut off. Democratic Governor John A Burns directed state government - to help working class families and to promote energy conservation.
HERE WE ARE AGAIN
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 and the US is now the number 1 producer of oil in the world. However, supply chain issues are still prevalent and because of our small isolated electrical grids cause Hawaii to have the highest electricity prices in the US. This is causing record numbers of households to fall behind on their electric bills affecting thousands of people. 80,000 people are considered energy burden with 48,000 in critical need. (https://www.staradvertiser.com/2025/08/06/editorial/our-view/editorial-find-relief-for-isles-energy-burdened/) This is based on Hawaii Public Utilities Calculations.
Because of a lack of affordable housing, more people live concentrated in fewer living units. Although there is more renewable energy available, it is found primarily in upper middle class neighborhoods.
Those people who cannot afford the renewable energy installations for the food in their refrigerators or for air conditioning are perhaps even more vultnerable than people in the same situation would have been 50 years ago. We are still not sure what the full impacts of this oil shock will be But the effects could be even greater than in 1973 because -Hawaii is more dependent on tourism for tax revenue and employment than before. To make matters worse, climate change has increased our needs for air conditioning. In addition fear of wild fires has increased the vulnerability of our grids.
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. But Hawaii is still dependent 80 percent on fossil fuel for overall energy - for the generators that provide electricity and for the fuel needed for transportation. When power goes down, people lose not only the food in their refrigerators, but the ability to cook their food and stay in touch with the outside world.
Available Housing units haven’t keep pace with population
Over the past 50 years, Hawaii’s population has nearly doubled, (from 852,000-1.4 million) while the number of available affordable units has failed to keep pace. The reason is that most homes are priced out of affordable limits of the the local rental or ownership market. Although the actual number of units has also increased from 220,000 to 522,000- few are in a price range local families can afford. Many are off the market because they are occupied by out-of-state investors, rented for military housing that is subsidized by the federal government or are used as vacation rentals
The result is fewer and more expensive homes and apartments that are priced higher. - While in 1973 it took 3 x an annual family income to purchase a home in Hawaii, that today that number is 9 X an annual family income. As a consequence, few local families qualify for affordable home projects. This has resulted in more extended families living in fewer homes and condos.
MORE PEOPLE IN FEWER PROPERTIES - MANY IN POOR CONDITION
When power outages occur, whether due to grid problems, hurricanes or earthquakes - the impacts are magnified to a degree that did not exist in 1973. People no longer have land lines so they can’t charge their phones. They lose the food in their freezers and refrigerators that they buy in bulk. A single outage therefore causes a ripple effect that like, falling dominos ,affect large extended families living under one roof. making communities more vulnerable for food and power during fire, floods, storms, and prolonged electrical outages.
NEED FOR RESILIENCY HUBS
Resiliency hubs are means of strategically placing electrical power in the form of micro-grids, batteries in places where people need them. The resiliency hubs provide accessible services - like providing food or places to charge their batteries or air conditioned shelters- to people when they are cut off from the power grid. Planners look at the population of people in particular neighborhoods and map out how certain areas can provide energy and services to nearby residents in case of an emergency. In the past there were Civil Defense shelters in schools and other areas that provide some essential emergency services . But nore more services like phone charging are asked for and the needs - because of the increase in population are greater than ever
FROM 1973 to 2026 - A change in Mind Set.
The World War II generation, shaped by plantation labor and wartime suffering, understood the need to help low income people and young families. Today, efforts to reduce costs for struggling families, are unfortunately sometimes met met with the idea “It can’t be helped.” The idea of resiliency hubs is a means to counter this philosophy of fatalism and helplessness.
One example of the reluctance to help low income residents was seen in this years legislature. An effort to expand electric bill assistance for low-income households, the HI-HEAP energy assistance program. Despite the fact that Hawaii has the most expensive electricity prices in the country and there are almost 240,000 ( there is an average of 3 people per household in Hawaii) people who live in households considered energy burdened in Hawaii - there was simply not enough interest among Hawaii state senators or representatives to pass the bill.
The difference between 1973 and today is that, while still Hawaii remains isolated and vulnerable to global energy shocks, its people have struggled to unite around a shared response. The safety net of unions, churches, families and Democratic politicians is no longer able to manage the strain of helping those who cannot afford to pay their bills. When storms, fires or oil shocks happen this magnifies the problem because it puts the already straining local community safety net to its breaking point. We need resilience hubs more than ever.
