Testifying for Geothermal Resolution

I went to O‘ahu on Thursday to testify for the geothermal
resolution.

SENATE CONCURRENT RESOLUTION 99–REQUESTING THE ESTABLISHMENT OF A WORKING GROUP TO ANALYZE THE POTENTIAL DEVELOPMENT OF GEOTHERMAL ENERGY AS THE PRIMARY ENERGY SOURCE TO MEET THE BASELOAD DEMAND FOR ELECTRICITY ON THE BIG ISLAND.

I strongly support Senate Concurrent Resolution 99.

Together with our workers and family, we farm 600 acres of diversified ag crops at Pepe‘ekeo. We have more than 25 years of farming experience.

I was the only person from Hawai‘i to attend the Peak Oil
conference in October of 2007 and again this past October (2009). For several years, I have been following energy issues very closely.

The world is not running out of oil; we are running out of cheap oil. According to the International Energy Association, the official
world barrel counters, world oil supply is declining at the rate of about 4 million barrels per day every year. Saudi Arabia puts out nearly 10 million barrels per day, so every 2 and a years or so, we need to find the equivalent of a Saudi Arabia.

We have maybe 6 million barrels per day of spare capacity now. But it will be used up in a year and a half or sooner, as the world
economy improves, so we do not have too much time to get off oil. And many reputable folks and institutions feel like it is 30 years maximum before the oil-exporting countries will no longer export oil.

On the Big Island we have a proven technology resource that makes cheap electricity—geothermal. One of the things I learned at the Peak Oil conference is the concept of Energy Return on Investment (EROI): the energy it takes to get energy. In the 1930s, the energy in one barrel of oil would help you get 100 barrels of oil. In the 1970s, that one barrel of oil could get you 30 barrels of oil, and now it will only get you about 10 barrels.

Clearly this trend is not good. It’s estimated that it takes a minimum of 3 to 1 (3 barrels of energy gotten by using one barrel) to maintain our present society. After that, we will have to leave it in the ground.

Geothermal on the other hand is 10 to 1 and will stay steady for centuries. EROI must be taken into consideration when evaluating energy projects.

The EROI for biofuels is less than 2 to 1. That is less than the minimum amount of 3 to 1 that we need to maintain our present society.

What about biofuels? Here is how a farmer views growing biofuels. There are 286 pounds in a barrel of oil. At $80 per barrel, that is equal to 28 cents per pound. Say the farmer needs to squeeze four pounds of stuff to make 1 pound of liquid. That farmer can expect no more than 7 cents per pound to grow the stuff, no matter what the stuff is. Lose money. More better plant cucumbers.

Say the farmer needs to make four times that, 28 cents, to break even. Then the price of oil needs to be 4 x $80, or $320 per pound.

By contrast, a Scientific American article points out that geothermal breaks even at $57 per barrel.

SCR 99 is about looking at the feasibility of geothermal for base power.  Of the three main base power sources, oil price is now $80
but everyone knows it will keep on rising. Locally grown biofuels will be expensive and their EROI is not good.

But geothermal is cheap and its EROI is favorable and stable.  Its EROI will stay steady and it will be cheap for centuries.

And of the base power sources, only geothermal is a resource for the Hawaiian community – right now, $600,000 goes to the Office of Hawaiian Affairs every year.

The main reason we need to put geothermal on line is because it is the folks on the lowest rung of the economic ladder whose lights will be turned off first. And when they benefit,  everyone will. People will have discretionary income and businesses will
flourish. Folks will have jobs and be able to raise their families.

If the most defenseless among us are safe, we are all safe.

Click here to read other supporters’ testimony for this
bill.

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