This, my friends, is why I have such a hard time trusting the "public." This is the worst thing Hawaii could have done. Just hope the "public" doesn't start shouting for this in the rest of the states (like I expect they will.)

I lived in Honolulu for 3 years from 1991 to 1994 as part of a job assignment while working for the federal government. The local government and the way things are done in Hawaii doesn't make a lot of sense - then or now. Their two senators right now, Daniel Akaka and Daniel Inouye are about as far left as you can get.

The culture in Hawaii is divisive - with locals looking down their noses at Caucasians (haoles as they call them) and a significant part of the population believes in restoration of the Hawaiian Monarchy and ceding from the US completely.

They did, in 2002, elect a governor who is a Republican, Linda Lingle, but I wonder how she will succeed in the ultra-liberal atmosphere which governs most of Hawaii.

I loved the islands for their spectacular beauty and magnificent weather, but at the same time, I was glad to leave after being subjected to the racism and cultural stratification that is modern Hawaii.

Gas prices have always been higher in the islands, as are most things, due to the need to ship them 4,000 miles from the mainland. Hawaiians don't seem to care much about that because their primary economy is now totally based on tourism with some income from military bases. Their farming industries are for the most part ancient history. Just try to get a Hawaiian pineapple anymore.

So how do they survive? Sock it to the tourists. A vacation in Hawaii is a wonderful experience; living there was even better at first; but these will sap you of your finances. Just one crazy example is that the outrageous housing prices for homes in Hawaii does not include the land that the home sits on. That is a separate charge you must pay and is often more expensive (by far) than the home was in the first place - and the "leaseholder" must agree to sell you the land, which many do not. The Bishop Estate holds the deed to much of the land in Hawaii and they decide who can buy the land and for what price. You can imagine what the housing prices look like. I rented a 30 year old house with 3 bedrooms (1600 sq ft.) for $1,600 per month and it was on the market for $1.2 million - without the rights to the land it sat on. And that was 11 years ago. Crazy! That whole place is crazy and I am not surprised they'd try this crazy move.

Scar - Very interesting :)

Are there any petroleum industry experts out there willing to post a comment on their ideas where we are going with all of this stuff? I'm talking ideas about 2 years out to 15 years out. I run a hedge fund, but I am always interested on what the industry "insiders" really see. Is this a somewhat temporary move higher in oil (until market forces take over) or is this the begining of the dreaded "peak oil" moment?

Thanks guys!

When I said things in Hawaii are strange, I meant it. How can you possibly explain the operation of the island of Ni'ihau? No one not of native island descent is allowed to set foot on the island. This does not sound like America to me - it sounds racist in the extreme. But it is the law in Hawaii.

"extra dumb would be to have the Hawaiian government (ie, the Hawaiian taxpayers) subsidise the suppliers."

Okay, anyone who would consider that would have to be completely clueless about money. Gas would cost the same... just part of the cost you would pay to the government first, who would then pass it on to those you didn't want to give it directly to.

So, the actual real cost would never be less... in reality it would more, because setting up such a system would include hiring personel, setting them up in offices, and creating the inevitable paperwork to track it all.