The Upside of High Oil Prices: Part 1, Short-term Effects

The U.S. and several other countries are in an economic recession which was caused in part by the extraordinary increase of crude oil prices from $16 in 1999 and several years afterward, to $147 in July, 2008. This 1,000% spike was followed by a precipitous fall of crude oil prices to about $55 in November 2008 and still falling. India’s growth, hurricanes in the Gulf, refinery shut downs for repairs and most importantly China’s hyper development in preparation for the 2008 Olympic Games contributed substantially to an unprecedented spike in oil prices, which in turn were manifest as high prices at the pump, shipping surcharges, and high electric bills and airfares.


High oil prices put oil producing counties in a significant advantage, oil consuming countries in a significant disadvantage and they are indifferent to countries who have achieved substantial fossil fuel independence (e.g., Brazil via sugar cane ethanol and France via nuclear power.) The discussion below is focused less on politics and more on energy, economy, technology, transportation and personal effects of high oil prices. High oil prices despite their obvious high cost disadvantages have several benefits and long term advantages. Some effects are realized almost immediately and others take several years to develop. This part covers the short term effects; the majority of which are likely to be observed within five years.

OIL EXPLORATION: There are forms and deposits of crude oil that when the price per barrel is low they are financially unprofitable to explore and exploit. But many of them break even and become profitable at a per barrel cost of over $50.00. Others require even higher prices.

INVESTMENT: The large swings in oil prices have the potential for quick fortunes to be made (and lost) through investment in futures and energy funds by investors and large retirement funds. The Sacramento Bee reports that “CalPERS [California Public Employees' Retirement System] has racked up a 68 percent return playing the commodities market in the past 12 months.”

RENEWABLE ENERGY: Most forms of renewable energy such as solar (photovoltaic), wind energy, geothermal, deep ocean upwelling and wave energy are expensive ways of converting natural forces or energy to electricity. High crude oil prices make several of these profitable.

TRANSPORTATION ALTERNATIVES: High energy prices are a strong incentive for carpooling, bicycling, telecommuting, condensed work weeks (4x10) and switch to mass transit.

AUTOMOTIVE TECHNOLOGY: Obviously, high prices at the pump make large cars with large engines much less affordable to operate. The market for them shrinks, and this becomes a strong incentive for manufacturers to develop lighter, smaller vehicles with more efficient engines. It also provides strong incentives for both government and private R&D to work on less conventional car power plants such as direct gas injection, diesel, electric, compressed natural gas (CNG,) alone or in hybrid combinations.

INTELLIGENT TRANSPORTATION SYSTEMS: Redoubles efforts for freeway and arterial management, incident management, traffic light coordination, fleet management and optimum routing of vehicles through congested networks. Some private fleet operators work with very low profit margins, so congestion and high fuel prices can quickly turn a profitable operation to a money losing one.

High oil prices can have a large positive effect on the sustainability of modern societies. Alas, reduced demand has caused a precipitous reduction in crude oil prices. Now is the right time for the U.S. Congress to take the following actions:

• The fuel tax at the pump should be adjusted to reflect the nation’s highway infrastructure funding needs. This may cause the 38 cent tax to triple, but it is a necessary action.
• After this is done, a simple inflation adjustment formula should be legislated so that the “infrastructure purchasing power” of the gasoline tax retains its strength over time.
• In the longer term, more thought should be given about the nation’s highway needs, the impacts of congestion, the critical contribution of freight and the effects of non-taxable fuels used in hybrid, electric and fuel cell vehicles. The highway funding mechanism should provide tax collections that are proportional to the vehicle miles traveled on the nation’s highways.
• Finally, a small “renewable energy surcharge” such as two to five cents per gallon should be added to generate funds for much needed research and development. The proposed National Cooperative Renewable and Alternative Energy for Transportation Program can be administered by the Transportation Research Board which administers similar programs.

The EZWay Transportation Plan for Oahu

The basic goals of this plan are to provide (a) substantial congestion relief largely caused at the H-1/H-2 and H-1/Moanalua freeway merges by adding critical high occupancy capacity, and (b) express bus mass transit primarily in the west Oahu to downtown corridor. In addition, the plan addresses other major congestion spots in Honolulu and provides express transit connections to the University of Hawaii at Manoa. The basic ingredients of the plan are:

• the EZWay which consists of three elevated reversible zipper lanes from the H-1/H-2 merge to Iwilei,
• express buses having exclusive use of freeway shoulders in order to travel at near free flow speeds from/to the EZWay,
• a downtown underpass for efficient in-town traffic distribution, and
• a priority BRT from downtown to the UH and a new transit center for west Oahu bus passenger distribution in downtown, Kakaako, Ala Moana and Waikiki.

The elements of the EZWay transportation plan are briefly described below.

(1) Kapolei and Ewa Beach Bus Rapid Transit (BRT) connectors to Waipahu: Hybrid or fuel cell buses will be allowed to use shoulders on on-ramps and a number of elevated passages or priority lanes at intersections (queue jumpers) which allow them to get by chronically congested spots. Includes a Waipahu (Farrington Hwy.) on-ramp to/from the EZWay.

(2) Express buses from Waianae and Makakilo may use upgraded H-1 freeway shoulders to get to the EZWay quicker. The same priority treatment applies to express buses from Mililani and Waihiawa.

(3) The EZWay structure is a fully managed expressway facility that can be described as three reversible elevated zipper lanes starting at the H-1/H-2 merge and terminating at Pier 16 with off-ramps at Aloha Stadium/Pearl Harbor, Lagoon Drive and Waiakamilo Street. The right lane is an exclusive bus lane throughout the length of the facility. At Iwilei, one elevated lane goes to Hotel St. to connect with King/Beretania BRT (University spur BRT).

EZWay will open with a minimum occupancy requirement of three people per vehicle. This requirement may be increased in the future to avoid congestion. No tolls will be collected. Automated steep fines applied to low occupancy violators. No trucks allowed at any time. Open to all emergency vehicles at all times. Open to green vehicles with greater than 35 mpg EPA highway fuel consumption. This threshold is also subject to change in order to maintain at least 50 mph speeds in peak periods.

(4) Ala Moana Blvd. Downtown Underpass (mini-tunnel) starting east of River Street and ending both at Alakea Street and Halekauwila Street. Same tunnel reverses in the PM period from Halekauwila Street and Bishop Street to Nimitz Hwy. contraflow lane onto the elevated zipper lanes. The underpass may continue to large new parking lot(s) east of Punchbowl Street. As a result, a large portion of vehicular traffic may actually "disappear" from downtown by going from the EZWay, through the mini-tunnel directly into a parking structure.

(5) New Ward Centers bus terminal on Auahi Street. Express buses that arrive from the EZWay stop at this terminal and either return to origin, or continue as regular bus to Ala Moana Center. Contracted tour buses may be deployed at this terminal for direct worker distribution to Waikiki hotels.

(6) University BRT runs on priority lanes and with priority signaling along King Street and Beretania Street.

(7) Other elements include traffic signal optimization, other underpasses, several freeway bottleneck fixes, upgrades to TheBus and TheHandiVan scheduling and routing with advanced technologies, contracted express bus and special passenger service, deployment and incentives for 4x10 work hours, and encouragement to UH-Manoa to change start time for students, faculty and administration staff to 9 AM.

Features and Advantages

• Elevated zipper lanes with no tolls -- Bus lane running at 50+ mph: Waipahu to downtown in 12 minutes -- Express point-to-point buses every 5 to 10 minutes
• Same or better travel time than rail – Much fewer transfers. No transfers for major origins and destinations, e.g., Waipahu-Pearl Harbor and Airport, Waipahu-Kalihi, Waipahu-Downtown, Waipahu-Waikiki
• Congestion relief on H-1 freeway (remove high occupancy and green vehicles) -- Congestion relief downtown
• The plan works with buses which are adaptable to non-fossil fuel propulsion technology such as fuel cells and electric drives
• Twice the service reach (length) compared with the 20 mile rail at about one half the cost
• Reliable travel times between Ewa and Kapolei in Leeward, and Kakakao and UH in town
• Flexible, expandable, adaptable with familiar technology; no specialized labor to install or maintain vehicles or structures of the plan
• FTA New Starts fundable exclusive bus lanes and BRT
• Nimitz Hwy. flyover has approved EIS.
• Key parts of the plan can begin construction or operation in late 2009
• Removes all buses and vanpools from zipper lane and allows HDOT to convert it to a HOT lane

UH-Manoa Announces Competition on Sustainability

I am thrilled that the UHM has put sustainability front and center with today’s announcement of an internal $1,000,000 research competition, an unprecedented undertaking in and of itself. I quote from the announcement by the Vice President for Research:

“Sustainability, or lack thereof, is most critical in Hawai’i given our geographic isolation, fragile ecosystems, limited resources, and resulting increased costs (monetary and otherwise) to function in an island economy/ecosystem. To this end, it is imperative that we focus our efforts to reach and ultimately move beyond a plateau of sustainability. The University of Hawai‘i at Mânoa should play a key leadership role in this endeavor, as the flagship UH Campus and a leading research institution.”

“As an initial step in support of the stated objectives the Office of the Vice Chancellor for Research and Graduate Education is pleased to announce an internal competition open to University of Hawai‘i-Mânoa faculty for a single 1 million dollar research grant in the broad area of sustainability.”

“The proposals will be reviewed by a committee of internal and external scholars and the recipient(s) of the 1 million dollar grant will be announced on Earth Day (April 22, 2009). Project funding will run from June 1, 2009 through May 31, 2011.”

I am also pleased that a group of faculty at the Department of Civil and Environmental Engineering (CEE) took the initiative to develop some ideas for sustainability for which civil engineers are uniquely qualified to research and develop. A brief summary of draft ideas under the umbrella concept of a SIT Center is given below.

Advanced work on sustainability will put both the University and the entire state in the front lines of development for the long term survival of the human race on Earth. I look forward to this competition and results.

Sustainable Infrastructure and Transportation (SIT) Center

Mission: The Sustainable Infrastructure and Transportation Center (SIT Center) will contribute directly to both national and Hawaii security and mobility. The mission of the SIT Center is to lead heavily populated island communities like Hawaii to a path of sustainability through the
• careful management of energy resources,
• expansion of renewable sources of energy,
• optimization of urban travel, and
• minimization of solid and liquid wastes through remanufacturing the wastes into useful products.

The mission will be accomplished via research, education, technology transfer, and advocacy. Sustainability is critical to Hawaii as a remote island state, and the lessons learned are applicable to many populated island communities such as Guam, Caribbean Islands, Cyprus, Crete, Sicily, Corsica, Madagascar, Sri Lanka, Philippine Islands, Taiwan, Singapore, and Okinawa. In addition, the transformation of Hawaii into a resource-sustainable society will demonstrate to the rest of the nation what can be done to increase sustainability nationwide.

Definition: The goal of sustainability is to provide efficient and effective infrastructure and transportation for people, services, and goods while optimizing energy requirements and minimizing the usage of non-renewable energy resources. It addresses system design and operations, management, policies, technology transfer and deployment, and public-private partnerships.

Organization: The SIT Center is planned to consist of two main tracks, one focusing on sustainable infrastructure and the other on sustainable transportation and energy.

Sustainable Infrastructure focuses on 1) resource efficiency of the built infrastructure; 2) recycling and reuse of wastes, which leads to a no-landfill solution for household waste; and 3) the remanufacture of useful products from the waste stream. All activities will stimulate local economic development, as industry develops to commercialize the technology. SIT will serve the technology transfer needs for this new industry. Already, the CEE department has established research in the recycling and reuse of waste materials ranging from discarded glass and tires in concrete and asphalt, fly-ash produced by the H-Power plant, and reclaimed wastewater.

Sustainable Transportation and Energy focuses on ways to reduce dependency on fossil fuels while maintaining high levels of urban mobility. Constantly evolving intelligent transportation systems (ITS) are currently a national focus and provide the means to optimize traffic operations and management. Economic research provides the foundation for pricing and tolling schemes that externalize the full cost of trip-making. Renewable energy sources are the long term key to energy independence, particularly in places like Hawaii where solar, geothermal, wind and wave energy abound. SIT will complement the new UH National Renewable Marine Energy Center.

The overall goal of SIT is to promote technology transfer and deployment of sustainable transportation and energy operations via research, outreach, and education using Hawaii as the demonstrable test bed. The Center will provide a critical mass for expertise to conduct research, educate, and collaborate with public and private partners.

Some Options for Architects Who Dislike Traditional Elevated Rail

The architects’ society, AIA Honolulu, drafted comments on the rail DEIS. Basically they are in favor of the rail concept but they do not want elevated rail. To quote their December 4, 2008 draft letter to the City: “In comparison with elevated systems, at grade systems would require less taxpayer funding and offer greater flexibility and affordability in planning for future extensions.”

On Oahu, at grade rail will be cheaper in terms of guideway costs, and it will have a much lower aesthetic impact, but its requirements for condemnation and roadway congestion will both skyrocket. Condemnation would be extensive (and very expensive) because at grade space must be found for the wide turns that trains make and for 20+ stations. Roadway lanes will be lost to light rail; not only one lane per direction, but also adjacent lanes to install stations. For example, an at-grade light rail installation between downtown and the UH will practically take all of Beretania Street and maybe allow for one lane left for local access and deliveries. Lane-taking in Honolulu, one of the most lane starved cities in the nation, is not rational. Overall AIA’s recommendation for at grade rail is not a practical one.

Would a light version of the Japanese roof-mounted monorail make better sense?



This is the Ofuna Enoshima monorail. The guideway and posts of this system can be made slimmer by designing them for smaller and lighter trains, so the visual impact when a train is absent is small. But of course its stations would still be big and obtrusive. Such a system was not presented or evaluated in the DEIS.

Another fixed guideway option is the PPT, or personal public transit, but all of them are experimental or drawing board concepts. There are several concepts but the SkyTran concept for personalized magnetic levitation (Maglev) rapid transit (http://www.unimodal.com/) is exciting and All American. Its light structure makes it much more suitable for beautiful Honolulu.



If Honolulu were to develop 12 miles of HOT lanes now to solve its leeward Oahu congestion issues, in 20 years some of the PPT could be market ready and they have the potential to be fast, quiet, convenient and inexpensive. With HOT lanes, underpasses, smart traffic lights and PPT, Honolulu in 2030 would be an international transportation technology capital. This would be accomplished at a locally affordable cost and with minimal impact to aesthetics, cultural and historical sites.

20 Simple but Important Questions for the Rail DEIS

The Draft Environmental Impact Statement (DEIS) of the City’s proposed rail system is the document that should provide answers to all reasonable impacts. It is available at all public libraries. It is also available at the city’s website honolulutransit.com along with a lot of the rail propaganda that your tax dollars paid for.

Below I list 20 simple but important questions. Does the DEIS answer them clearly?

1. The bus routes will change. What happens to your route? What happens to express buses?
2. Lanes will be taken away, some temporarily for construction and some permanently. Where are those lane closures and what is their duration? Are there traffic rerouting plans?
3. Will there be bike racks on the train and where will they be located? Will bikes be allowed on the train? Will there be a place for surfboards? What about luggage? What about construction workers’ tools? Will there be a place for people to put large items they purchase at a big box retailer? What’s the size limitation?
4. Will there be washrooms at the stations? How about convenience stores, vending machines? Will the platforms have seats? How many?
5. Under land use, Aloun farms needs to relocate. Is that possible? Where will they go?
6. A relatively simple job of sewer upgrades in Kailua and Kapiolani lead to the loss of businesses and jobs. Are details provided about similar effects during the construction of the rail?
7. Is there a detailed plan for the effect of rail construction on water, sewer, gas and electric utilities? Will there be disruptions of service? Who pays for all these?
8. About $107 million will be spent on the soft costs of this project. This “paperwork” cost is rather exorbitant for a single 20 mile rail line. How did $107 million get spent?
9. The DEIS list of preparers for technical content shows that it was done almost exclusively with out-of-Hawaii engineers, planners and specialists. (See this document under Consultants: http://www.honolulutransit.org/library/files/end.pdf.) H-3 freeway was designed mostly with Hawaii based engineers. If Hawaii engineers are not able to design rail, who will supervise and build this unfamiliar-to-Oahu infrastructure?
10. Rail construction involves unique skills and certifications that Hawaii construction workers do not have. How will this be addressed?
11. The city has declared that in many cases only a portion of a parcel needs to be condemned and taken away. Can the business survive with the remaining portion? Are they forced to mandatory downsizing and some loss of employment?
12. There are 16 schools that are adjacent to the alignment. Will the overhead structure, the continuous high current exposure and the intermittent noise and vibration affect the learning environment? Is it prudent to relocate the schools?
13. Does rail fit our Hawaiian Sense of Place? How was the impact to tourism and local quality of life by a large elevated structure through town been assessed?
14. Does the DEIS address the impacted vistas and scenery? Are the aesthetics of the structure and each station explained and presented adequately?
15. What will happen in the event of a hurricane? Will the train operate? The train in Houston was shut down for 10 days due to hurricane Ike.
16. BART in the Bay Area uses rail cars made of aluminum to combat corrosion. Is the city’s position that corrosion is not an issue?
17. It appears that General Excise Tax surcharge proceeds for rail will be much lower than expected for at least four years in a row. How is this deficit going to be made up?
18. If ridership turns out to be lower than forecast, then what? If the city is forced to provide free train rides like in Puerto Rico, how is the shortfall going to be covered?
19. I heard that the Ala Moana station will now be at a lower elevation, at the west end of Kona Street and not above Nordstrom’s. What is the exact plan for the Ala Moana Center station and how is the train going to Waikiki and UH afterwards?
20. Starting construction in Kapolei makes little sense. It may be expeditious and convenient but it is not smart. Why can’t a temporary rail yard be established near the airport or Aloha Stadium and build rail east into the city and west out to Kapolei simultaneously?

The billion dollar question that no DEIS could address is this: With President Obama at the helm and Senator Inouye chairing the Senate Appropriations Committee can we get four billion for rail? How about splitting the bill 50-50 with the feds? Other cities got a 50% or better federal match. Why does Honolulu get less than 25%?

These and many more questions require simple and clear answers.

In addition to the 429 page DEIS, the following files contain information and visuals. The City distributes them on a DVD.

• Historic Resources.pdf
• Land Use.pdf
• Transportation Tech Report.pdf
• Street Trees.pdf
• Electric and Magnetic Fields Technical Report.pdf
• Visual and Aesthetic Technical Report.pdf
• Historic Appendix B.pdf
• Cultural Resources.pdf
• Economics.pdf
• Geology, soils, farmlands, and natural hazardsTech Report.pdf
• Haz Waste and Mat Tech Report Appendix A.pdf
• Natural Resources.pdf
• Noise&Vibration.pdf
• Haz Waste and Mat Tech Report.pdf
• tEISTravelForecasting ENTIRE.pdf
• Community Impacts.pdf
• Archaeological Resources.pdf
• Water Resources.pdf
• AQ&Energy.pdf

The City released this huge document just before the November 4 elections and in a period that includes the most holidays and days off. (The deadline for comment is January 7, 2009.) The hearings on the adequacy of the Alternatives Analysis were also conducted and concluded in the late November to late December 2006 period to make it as hard as possible for citizens to participate. (If it looks like a Banana Republic and acts like a Banana Republic ...)