Oil Earth Out Of Balance

The Perfect Storm – Part 2

/1 Comment/in /by BeyondKona

Oil and gas companies are looking at a bonanza from the Ukraine war

Oil and gas companies see new profits and a stay of execution from the Ukraine war. Few in the industry want to admit it, but many fossil fuel interests are leveraging the current supply disruptions created by Russian embargos as the perfect storm – one to justify soaring prices, while engaging in a narrative of panic and self-reaffirming “we told you so” feeding the fears of fuel shortages and fossil fuel dependency.

More than a momentary perfect storm, the fossil fuel industry has been forestalling the overdue day of reckoning when the cost of addiction meets the cost of recovery in what will prove to be a truly titanic struggle.

In part one of the “Perfect Storm” we identified the obvious and less talked about costs of our ongoing fossil fuel dependency, beginning with humans modifying the planet’s climate and environment in the name of energy with disastrous consequences to poisoning humans with deadly health outcomes.

“There is a huge opportunity for oil and gas companies, though I’m sure it is not one they would have chosen,” said Robert Buckley, head of relationship development at Cornwall Insight, an energy analysis company. “They have the opportunity to reposition themselves [as crucial to policymakers]. There is going to be a very high price for oil for a very long time, and even the prospect of physical energy shortages.”

Scientists and climate experts warn that oil and gas companies were using the Ukraine emergency to further their own interests, by encouraging governments to prioritize oil and gas production and make decisions now on investments that would have little impact on the current crisis, but would vastly increase fossil fuel use for years to come and further accelerate global warming.

A stark reminder of the likely consequences of further dependence on oil and gas came from the International Energy Agency, reported Tuesday that greenhouse gas emissions had shown the highest ever annual increase in 2021.

The global energy watchdog found that energy-related carbon dioxide emissions, which make up the bulk of greenhouse gases, had risen by 6% in 2021 to 36.3bn tons, their highest-ever level, as the global economy rebounded from the Covid-19 pandemic, relying heavily on coal to power the growth. The increase in global CO2 emissions was more than 2bn tons, the largest in history in absolute terms, outweighing the decline in emissions seen during the lockdowns of 2020.

Hawaii’s transition to renewables becomes all the more urgent

Overall, the U.S. consumes use very little Russian oil. In 2021, oil from that country represented just 3% percent of total U.S. crude imports and just 1% of the oil processed by U.S. refineries, according to the American Fuel and Petrochemical Manufacturers (AFPM) trade association.

But Hawaii is an outlier among other U.S. states. The state imports several million barrels of Russian crude oil annually, accounting for 10% to 25% of Russian crude shipments to the U.S. depending on the year.  As Russia’s invasion of Ukraine rattles energy markets it is also a wake up call for Hawaii’s clean energy ambitions.

Soaring oil prices—the benchmark Brent and U.S. crude futures are up over 15% since Russia invaded neighboring Ukraine last week, touching at least 10-year highs—come at a particularly inconvenient time for the island state. Its coal-powered AES electrical plant in West Oahu, the biggest plant on its most populated island, is set to shutter in September 2022.

The renewable energy projects meant to replace it face a number of utility-led delays and supply-chain setbacks. Extending the life of state’s oil dependency and adding questionable biomass power plants are part of a fallback plan to keep the lights on for Oahu residents.

“We have warned about leaving the cost of this transition up to world oil markets, and this week’s events are another reminder of the price we pay for oil dependence,” Jay Griffin, chair of the Hawaii Public Utilities Commission.

The Russian invasion of Ukraine has also led the United States and its European allies to impose severe economic penalties on Russia.

Par Pacific, the largest operating refinery in Hawaii, announced that it would stop buying Russian crude oil for its Kapolei refinery “in light of recent geopolitical events.” “The geopolitical landscape and energy markets are dynamic. We will continually monitor and evaluate our posture on Russian crude over the coming weeks and months,” the company said in a statement.   Par Pacific added that it will look to South America and Canada to help meet fuel production requirements.

Hawaii’s external energy dependences

President Joe Biden announced Tuesday that the U.S. will target “the main artery of Russia’s economy” by banning the import of Russian energy products.” “Putin’s war is already hurting American families at the gas pump,” Biden said. “I’m going to do everything I can to minimize Putin’s price hike here at home.”

Hawaii relies heavily on Russian crude oil and we can expect an outsized share of the pain at the gas pump, specifically impacting the majority of drivers who depend on ICE vehicles for transportation.

“We’re banning all imports of Russian oil and gas and energy,” Biden said. “That means Russian oil will no longer be acceptable at U.S. ports and the American people will deal another powerful blow to Putin’s war machine.”

Oil prices were already up before the President’s announcement as post-Covid consumer demand was outstripping short term supplies. And on again, a familiar pattern can seen in the disruptive nature wars have on oil and gas prices. It’s a pattern that is familiar to historians – a  pattern linking modern wars to oil and gas.

In 1940 Japan invaded French Indochina in an effort to embargo all imports into China, including war supplies purchased from the U.S. This move prompted the United States to embargo all oil exports destined for Japan , an action which supported the Imperial Japanese Navy’s global war designs, and provided Japan the perfect excuse to attack Hawaii on December 7th, 1941, which marked the beginning of its undeclared war on the United States.

Now the uncertainties caused by the Russian attack on the Ukraine and corresponding energy supply shocks across Europe (who are more dependent on Russian oil) is fueling higher oil and gas profits and prices for consumers, further adding to inflationary fears born out of an uncertain Covid-impacted global supply chain system.

One year ago, President Biden called climate change “the number one issue facing humanity.” Alongside other world leaders, he made a slew of ambitious pledges to mitigate the use of fossil fuels and transition to renewable energy sources.  A year later, the economic consequences of war on consumer energy costs has once again threatened progress in a global transition to a world operating within a sustainable and clean energy economy, and perhaps a final cure of world’s oil and gas addiction.

An energy addiction Hawaii must break

The cause and effect of regional wars inevitably effect the price of crude, often regionally, and less often on a global scale, as the current Ukrainian war has demonstrated by sending oil prices, already roiled by rising inflation, well over $150 a barrel range.

In addition to increasing the pain at the pump as gas prices rise, Hawaii will see electric bills increase substantially in the coming months following an outright ban on the U.S. import of Russian oil, natural gas and coal amid Russia’s invasion of Ukraine.

Hawaii’s state ​utility regulations require that the cost of fuel required for electricity generation be passed onto ratepayers. In short, be prepared for a significant increase in Hawaiian Electric energy bills.

The energy price shocks and impact will be less so for our friends in Kauai whose local utility, KUIC, is much more dependent on the Sun than Russian oil for delivering power to their customers.

Hawaiian Electric Co. Senior Communications Consultant Kristen Okinaka explained the utility’s outlook this way … “Over the next several months, we could be seeing a bill increase of up to 20% on Hawaii Island. As the U.S. and other nations stand with the people of Ukraine and impose powerful economic sanctions on Russia, including the refusal to buy Russian oil, Hawaii will see higher prices at the gas pump and in electric bills.”

Is the Cure Worse than the Disease

Department of Energy (DOE) Secretary Jennifer Granholm speaking Tuesday at Lawrence Berkeley National Laboratory’s national energy storage summit, made comments about the importance of shoring up battery and EV manufacturing and supply chains as a way to accelerate the clean energy transition and ensure energy independence for the United States, made two points that effectively counter the panic arguments of Big Oil’s agents that the US must throw caution-to-the-wind and double down on gas and oil extraction, production, and consumption — in short, feed the beast.

Granholm added, “Clean energy offers us a better way forward, and the only way to get closer to true energy independence [and] national security is by building out the technology at home with a reliable supply chain. “Nobody has ever held a country hostage over access to the sun or access to the wind.“

Hawaii’s biomass advocates of burning trees and trash for energy purposely fail to recognize the environmental, climate, and health consequences of fuel-combustion as means of generating electricity. Far from the proven zero emissions energy options now available, biomass energy combustion, even when fossil fuels are not involved, represent a dead end path to Hawaii’s clean energy future.

When fuels are burned, the stored carbon and other greenhouse gases are released into the atmosphere. An excess buildup of greenhouse gases in the atmosphere has caused dramatic changes to Earth’s climate—a trend that will worsen as more fossil fuels are burned on top of 150 years of accumulated levels of GHG emissions, now stored in the Earth’s oceans, forests, and atmosphere.

Scientific and health organizations correctly defined the public health consequences conventional biomass options this way…

“Biomass is far from “clean” – burning biomass creates air pollution that causes a sweeping array of health harms, from asthma attacks to cancer to heart attacks, resulting in emergency room visits, hospitalizations, and premature deaths.”*

*The Allergy & Asthma Network, American Academy of Pediatrics, American Lung Association, American Public Health Association, Asthma and Allergy Foundation of America, National Association of County & City Health Officials, National Environmental Health Association, and Physicians for Social Responsibility.

Currently, we have a cadre of local fossil fuel and biofuel stakeholders whose financial interests lay squarely with Hawaii’s fossil fuel future, continue to view the world through a distorted lens closely aligned with energy replacements for coal, oil, and diesel, but which carry with them the energy production-combustion liabilities of greenhouse emissions and polluting byproducts.

Biomass advocates of these same so-called firm energy alternatives to solar, wind, and storage ignore history and brush aside the proven track record of reliability and cost-performance available today with zero emissions on-demand energy options. They position their “firm” energy  arguments as “reliable” energy alternatives to fossil fuels, and ignore the environmental and climate consequences and costs of these so-called “firm” energy alternatives.

Taking an uncertain energy path of so-called “firm energy” alternatives to proven solar, wind, and energy storage options available now may produce less fossil fuel consumption burned for electricity production, but it will also deliver two significant certainties on the path to Hawaii’s acclaimed “clean energy” future;  higher energy costs for our island communities, and a lost opportunity to fully address environmental-climate consequences plaguing our island state and the world today.

The role of the state’s largest utility

Hawaiian Electric is not unique within the utility community who view their rooftop solar customers as power-provisioning competitors.  But world events have shaken this self-serving view, the power circumstances on Oahu have dramatically change with the long-awaited and mandated shut-down of Hawaii’s only coal-fired powerplant, AES, scheduled for this September.

The utility recently announced, and none too soon, that it will offer Oahu households with rooftop solar and batteries an option to aggregate up to 50 megawatts of capacity during peak consumption hours — a rare moment of collaborative outreach for Hawaiian Electric driven by desperation by tapping into its highly underappreciated energy asset, its rooftop solar customers. It was a good start for what should be an on-going and collaborative business model available in all energy markets HE serves, and one that serves the interests of both energy consumers and producers.  Hawaiian Electric claims to also be pursuing a new 20-megawatt battery project and energy-conservation measures – details to follow.

Yes, an “economic” war with Russia is indeed a wake-up call to all that now is the time to complete the transition off our 20th century energy legacy and its unsustainable and a consequential addiction to fossil fuels.

Or we can put our heads in the sand, and wishfully believe we can continue in our 150 years of a dirty energy dependency, now needed more than ever in light of local and global events which are turning our world energy dependency and assumptions upside down.

Addendum

The winners in this titanic battle for survival in a fossil-free fuel world; the United States and the free-world.  The losers, vested global  fossil fuel interests, and the biggest fossil fuel companies in the world, and annual beneficiaries to some of the over $ Six Trillion USD in global taxpayer subsidies —

  • Saudi Arabian Oil Co. ( Saudi Aramco)
    • Revenue (TTM): $1.3 trillion
    • Net Income (TTM): $330.3 billion
    • Market Cap: $7.5 trillion
  • Exxon Mobil Corp. ( XOM)
    • Revenue (TTM): $280.4 billion
    • Net Income (TTM): $23 billion
    • Market Cap: $325.4 billion

  • TotalEnergies SE (TOT)

    • Revenue (TTM): $184.6 billion
    • Net Income (TTM): $16 billion
    • Market Cap: $146.4 billion
  • PetroChina Co. Ltd. ( PTR)*
    • Revenue (TTM): $367 billion
    • Net Income (TTM): $13 billion
    • Market Cap: $95.8 billion
  • China Petroleum & Chemical Corp. ( SNP)*
    • Revenue (TTM): $353.2 billion
    • Net Income (TTM): $14.3 billion
    • Market Cap: $62.3 billion

  • Chevron Corp. (CVX)

    • Revenue (TTM): $155.6 billion
    • Net Income (TTM): $15.6 billion
    • Market Cap: $261.3 billion
  • British Petroleum  PLC (BP)
    • Revenue (TTM): $157.7 billion
    • Net Income (TTM): $7.6 billion
    • Market Cap: $101.6 billion
  • Rosneft (JSC)
    • Rosneft is Russia’s biggest integrated oil and gas company, generating $111.9 billion in revenue during 2019, producing 5.8 million barrels of oil per day
    • The majority of its oil production takes place in Russia, but the company also has ongoing exploration and production activities in Canada, Vietnam, Norway, and Brazil, among other countries.
    • Prior to its initial public offering (IPO) in 2006, all of Rosneft’s shares were owned by the Russian government through its holding company JSC Rosneftegaz, and as of 2019, the government maintains control of 50% of the company’s stock.

BP is abandoning its stake in Russian oil giant Rosneft in an abrupt and costly end to three decades of operating in the energy-rich country, marking the most significant move yet by a Western company in response to Moscow’s invasion of Ukraine.  Rosneft accounts for around half of BP’s oil and gas reserves and a third of its production and divesting the 19.75% stake will result in charges of up to $25 billion, the British company said, without saying how it plans to extricate itself.

 

Wind Solar

The Perfect Storm – Part 1

/0 Comments/in /by BeyondKona

A Nexus of Climate, War, and Energy

Russian oil imports represent less than 3% of US crude oil imports, while Hawaii’s share of Russian crude consumption represents up to one quarter (25%).

The United States moved forward this week with a ban on Russian oil imports, and without the participation of allies in Europe.  Officials said President Biden had struggled for days over the move amid deep concerns about accelerating the already rapid rise in the price of gasoline hitting the pocketbooks of U.S. Consumers, and Hawaii’s residents will be especially hard hit by energy price increases not only in transportation, but in their electricity and water utility bills, services also dependent on fossil fuels.

Hawaii’s residents, more than any other state, will experience  higher fuel and energy costs due to Russia’s war with Ukraine.  It’s no state secret that …“Isolated by the Pacific Ocean, Hawaii is the most petroleum-dependent U.S. state”; source: U.S. Energy Information Administration.

Blood for Oil

Oil and it’s cousins natural gas and coal are 19th and 20th century energy essentials that made and still enable the world’s economies.  They are also primary and secondary reasons wars are fought.  Between 1912 and 2010, countries fought 180 times over territories that contained—or were believed to contain—oil or natural gas resources.

The energy conflicts ranged from brief, nonfatal border violations to the two world wars. Many of these clashes—including and not limited to World Wars I and II, were exemplified by the Chaco War between Bolivia and Paraguay (1932-1935), the Vietnam War (1963-1975), Iraq’s invasion of Kuwait (1990), the U.S. invasion of Iraq (1990 and again in 2003), the Iran-Iraq War (1980-1988), and numerous international conflicts in which countries fight to obtain and maintain petroleum resources.

Oil, Gas, Coal an Unsustainable Addiction

Fossil fuels—including coal, oil, and natural gas currently supply about 80 percent of the world’s energy.

The foundations of these fossil fuels are finite. Formed millions of years ago from the carbon-rich remains of animals and plants, as they decomposed were compressed and heated underground in various forms of fossil fuel energy: oil, gas, coal.

These same energy resources we take for granted today are also extremely costly to the world’s economies, all humankind, and the environment and corresponding biosphere in which all living things on planet Earth are interdependent — this is not tree-hugger talk, it is scientific fact and a reality of a living world which many humans take for granted.

As an energy sector, oil, gas (aka Big Oil), and secondarily coal,  has had an unprecedented and historic free ride at the public expense. It’s certainly true the fossil fuel sector has delivered on its promise of energy for all, Gas Prices March 2022but at what price; a question only recently asked and answered, as the energy status quo has become increasingly unsustainable by any reasonable measurement.

The Oil and Gas sector has been and remains the world’s most politically powerful and enriched sector of the global economy; otherwise the following would not have been possible:

  • the fossil fuel industrial sector receives in excess of $5.6 Trillion USD (adjusted for inflation) annually in global taxpayer subsidies per World Bank / IMF studies. .
  • the fossil fuel industrial sector operates mostly liability-free from the global effects of its resource extraction, production-transportation, and the consequences of consumers combustion costs to the environment, society (US alone spends over $1 trillion USD public health costs addressing health costs associated with fossil fuel pollution), certain and escalating climate costs (GHG emissions).
  • The EPA reported this year about 8,000 people die prematurely each year because of the fine particles and ozone precursors from air pollution fuel power plants produce, adding that power plants cause about $80 billion a year in health costs.

  • Over 170 million Americans who were adults in 2015 were exposed as children to harmful levels of lead (previously a prime component of gasoline until banned). The contamination of air and water by lead particulates from gasoline emissions has been linked to high blood-lead levels in widespread early childhood lead exposure.  Extensive research has determined that lead exposure has had a significant impact on cognitive development in children between 1940 and 2015.  Leaded gasoline for on-road vehicles was phased out starting in the 1970s, but not finally banned until 1996. The enormous health costs to the public from this fossil fuel pollutant is still being calculated.

  • And then there are the mounting costs directly linked to GHG emissions from a globally fossil-fueled economy.  By some measurement, still too costly to fully calculate as emissions continue to rise, and as do the effects on the planet. Costs are compounding daily from the  effects of a fossil-fueled world in terms of social, economic, climate and environmental costs.   Some experts and governments have limited this quantitative task to just calculating the social cost of carbon (fossil fuels; from extraction to tailpipe, and to power plant emissions), however, today’s climate related costs extend well beyond social impacts.

In short, what happens when climate change factors are baked into the economy and these changes affect economic outcomes, especially hard hit, lower and middle income families.  Cpi Inflation1These impacts go well beyond the price of groceries or a tank of gas, and extend into agricultural productivity.. damages caused by sea level rise (presently about 40% of the world’s population lives within 50 miles of an ocean coastline).. environmental destruction on a global scale.. a decline in human health and labor productivity — and even this is a limited measurement of the impacts on humans and the planet economists use to determine CPI and other economic benchmarks to measure to the full weight and cost of our current fossil fuel dependency.

To understand the true cost of continuing to rely on fossil fuels to power the world, that’s a work in progress, but you don’t need an economist to tell you we’re in trouble. The deeper our understanding, the greater the need for shift action away from humankind’s reliance on GHG / polluting energy sources, and the essential need to limit the destructive consequences that comes with living under past energy assumptions.

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Lock Image

Digital INSECURITY

/0 Comments/in /by BeyondKona

Breaking News, July 18, 2021 —

Israeli spyware maker NSO ensures no mobile phone is safe and secure.

The New York Times reported today that NSO Group’s “Pegasus” product documentation states that its spyware tech allows for “unlimited access to a target’s mobile devices.”

The company’s promotion claims include its technology can …“remotely and covertly collect information about your target’s relationships, location, phone calls, plans and activities — whenever and wherever they are.”  And, “It leaves no traces whatsoever.”

The NSO Group further asserts that its tracking software and hardware can install itself in any number of ways, including “over the air stealth installation,” and is tailored to text messages and emails, through public Wi-Fi hot spots where NSO software is secretly installed and activated.

Massive data leak reveals Israeli NSO Group's spyware used to target activists, journalists, and political leaders globally | Amnesty International

For the last six years, the NSO Group’s surveillance and tracking system Pegasus, has been used by a growing number of government agencies around the world to target a range of smartphone users — including iPhones, Androids, and BlackBerry and Symbian systems — and without leaving a trace.

Data leaked suggests the powerful cyberespionage tool is enabling governments to spy on and target news organizations, rights activists, dissidents, journalists, opposition politicians, political dissidents, and academics.

Although such intelligence gathering capabilities have played an integral part for intelligence agencies of United States, Russia, China, Britain, and the EU, what set’s NSO apart is its technology sales to anyone who can pay, including authoritarian regimes that use the spyware for purposes that go far afield of the company’s stated aim: targeting terrorists and criminals

The Pegasus software has been deployed against journalists, rights campaigners and policymakers in Azerbaijan, France, Hungary, India, Morocco. Bahrain,  Mexico, Morocco, Saudi Arabia and the U.A.E.

To learn more about the Pegasus spyware, and its potential relationship to your phone, view this two minute video:  https://youtu.be/2iQuk3p95M8

Originally Reported,  July 6th, 2021 —

Ransomware hackers demand $70m, over 1,500 businesses attacked

The hackers who claimed responsibility for this latest global security breach demanded $70m to restore all the affected businesses’ data, if the targeted retail and medical services victims wanted to mitigate the economic harm of extended business disruptions.

After the recent major oil-gas pipeline disruption impacting most of the US east coast fossil fuel supplies, the White House said this week they were “checking to see whether there was any “national risk” posed by this most recent cyber attack targeting retailers. So far there is no evidence of any nationally important organizations being impacted — at this time.

Today we live with the threat of digital attacks and data breaches defined within one of more of these four categories:

  1. State-sponsored attacks designed to disable and disrupt their target countries and gathering intelligence, e.g. the United States, China, Russia, Iran and Israel
  2. Commerce-directed attacks designed to extort money and inflict economic harm (as in this latest reported attack)
  3. Intellectual property theft, historically led by state actors, e.g., China and Russia, and affiliated or independent organized crime entities
  4. Data breaches designed to steal personal and private consumer information from presumably secure private and public sector data warehouses

~ In this article we explore the vulnerabilities most Americans face as participants in a world gone digital ~

Major Private Sector Computer Breaches

It is the latter data breaches this article is focused on — the type of information theft that affects the daily lives and credit ratings of anyone connected to the Internet.   Not long ago, a breach that compromised the data of a few million people would have been big news. Now, breaches that affect hundreds of millions or even billions of people are far too common.

About 3.5 billion people saw their personal data stolen in the past 10 years.

The largest cybersecurity breaches of the past three years, and their effects on companies - TechRepublic

The smallest incident on this list involved the data of a mere 134 million people.

eBay reported an attack exposed its entire account list of 145 million users in May 2014, including names, addresses, dates of birth and encrypted passwords.

Yahoo announced in September 2016 that in 2014 it had been the victim of what would be the biggest data breach in history. The attackers, which the company believed we “state-sponsored actors,” compromised the real names, email addresses, dates of birth and telephone numbers of 500 million users. Yahoo revised that estimate in October 2017 to include all of its 3 billion user accounts.

Four years ago Equifax made headlines for the exposure of private information of millions of people.

Equifax, one of the largest credit bureaus in the US, said on Sept. 7, 2017 that an application vulnerability in one of their websites led to a data breach that exposed about 147.9 million consumers. The breach was discovered on July 29, but the company says that it likely started in mid-May. The breach compromised the personal information (including Social Security numbers, birth dates, addresses, and in some cases drivers’ license numbers) of 143 million consumers; 209,000 consumers also had their credit card data exposed. That number was raised to 147.9 million in October 2017.

Marriott International announced in November 2018 that attackers had stolen data on approximately 500 million customers. The breach initially occurred on systems supporting Starwood hotel brands starting in 2014. The attackers remained in the system after Marriott acquired Starwood in 2016 and were not discovered until September 2018.

The attackers were able to take some combination of contact information, passport number, Starwood Preferred Guest numbers, travel information, and other personal information. The credit card numbers and expiration dates of more than 100 million customers were believed to be stolen.  The breach was eventually attributed to a Chinese intelligence group seeking to gather data on US citizens, the New York Times reported.

The 15 biggest private sector data breaches in recent history, (publicly revealed):

  • Adobe
  • Adult Friend Finder
  • Canva
  • Dubsmash
  • eBay
  • Equifax
  • Facebook
  • Heartland Payment Systems
  • LinkedIn
  • Marriott International
  • My Fitness Pal
  • MySpace
  • NetEase
  • Sina Weibo
  • Yahoo
  • Zynga  — Once a giant of the Facebook gaming scene, Farmville creator Zynga is still one the biggest players in the mobile game space with millions of players worldwide.  The hack stole account information from Zynga’s database of Draw Something and Words with Friends players to the 218 million accounts. Zynga later confirmed that email addresses, salted SHA-1 hashed passwords, phone numbers, and user IDs for Facebook and Zynga accounts were stolen.

Data Breaches

Major Public Sector Computer Breaches

The U.S. (federal) government agencies to state agencies have also been targets of cyber attacks and information theft, revealing to attackers millions of U.S. citizens’ private information through every level of government.

Here’s a list from smallest to largest in terms of the number of individuals affected, the 10 biggest government data breaches include:

  • 10. State of Texas: 3.5 Million Affected (April 2011)
  • 9. South Carolina Department of Revenue: 3.6 Million Affected (October 2012)
  • 8. Tricare: 4.9 Million Affected (September 2011)
  • 7. Georgia Secretary of State Office: 6.2 Million Affected (November 2015)
  • 6. Office of the Texas Attorney General: 6.5 Million Affected (April 2012)
  • 5. Virginia Department of Health Professions: 8.3 Million Affected (May 2009)
  • 4. U.S. Office of Personnel Management (OPM): 21.5 Million (June 2015)
  • 3. U.S. Department of Veteran Affairs: 26.5 Million Affected (May 2006) – A suspected Russian attack
  • 2. National Archives and Records Administration (NARA): 76 Million Affected (October 2009)
  • 1. U.S. Voter Database: 191 Million Affected (December 2015) – A Russian attack was suspected and likely, just ahead of the 2016 Presidential election.

Since 2020 …

Last year, we also began to see the Federal Trade Commission (FTC) impose hefty fines and penalties on organizations, such as those relating to the Equifax breach and Facebook data leaks, to settle charges of improper handling of Personally Identifiable Information (PII).

According to the Identity Theft Resource Center, the overall number of data breaches affecting Americans is even higher, reporting more than 1,108 breaches in the United States in 2020 alone.

There was a whirlwind of scams and fraud activity in 2020. Data breaches continue to expose consumers’ Personally Identifiable Information (PII) at an alarming rate, putting close to three hundred million people at risk of identity theft and fraud. Cybercriminals are also focusing their time on other lucrative cyberattacks, such as ransomware, credential stuffing, malware, and Virtual Private Network (VPN) exploitation.

January 11, 2021: A Chinese social media management company, Socialarks, suffered a data leak through an unsecured database that exposed account details and Personally Identifiable Information (PII) of at least 214 million social media users from Facebook and Instagram, and LinkedIn.

Researchers from the University of Michigan School of Information showed 413 people facts from up to three breaches that involved their own personal information. The researchers found people were not aware of 74% of the breaches.   “This is concerning. If people don’t know that their information was exposed in a breach, they cannot protect themselves properly against a breach’s implications, e.g., an increased risk of identity theft, says doctoral candidate Yixin Zou.

How does all this affect me?

The Have I Been Pwned database engaged in a recent study of global cyber attacks and lists nearly 500 online breaches over the last decade.

According to the Identity Theft Resource Center, the overall number of data breaches affecting Americans is even higher, reporting more than 1,108 individual data breaches in the United States in 2020 alone.

Of all information that was breached, email addresses were compromised the most, followed by passwords, usernames, IP addresses, and dates of birth.

Most participants expressed moderate concern and were most worried about the leak of physical addresses, passwords, and phone numbers. In response to their compromised accounts, they reported taking action or an intention to change passwords for 50% of the breaches.

“It could be that some of the breached services were considered ‘not important’ because the breached account did not contain sensitive information. However, low concern about a breach may also be explained by people not fully considering or being aware of how leaked personal information could potentially be misused and harm them,” says Peter Mayer, postdoctoral researcher at Karlsruhe Institute of Technology.

Risks range from credential stuffing—or using a leaked email address and password to gain access to other accounts of the victim—to common identity theft and fraud.

Most of the breaches never made the news, and often they involved little or no notification to affected individuals.   “Today’s data breach notification requirements are insufficient,” Zou says. “Either people are not being notified by breached companies, or the notifications are crafted so poorly that people might get an email notification or letter but disregard it. In prior work, we analyzed data breach notification letters sent to consumers and found that they often require advanced reading skills and obscure risks.”

What Should I do when (not if) my personal information has been digitally stolen?

  1. Check whether accounts were part of a breach using free services such as https://haveibeenpwned.com/ or https://monitor.firefox.com/.
  2. Read breach notifications carefully.
  3. Websites like the FTC’s https://identitytheft.gov/ can help create a recovery plan after identity theft.
  4. Make sure to change the password of the breached account and any others for which the same password was used. Doing this once should be enough unless there is a new breach.
  5. Sign up for identity monitoring services you get offered. Though not perfect, they are better than nothing.
  6. If you experience actual harm from a breach you may also be entitled to further support.
  7. To prevent future data breaches:
  8. Use a unique password for each online account. No one can remember dozens of these so it’s best to use a password manager to store and create strong passwords.
  9. Use two-factor authentication, wherever possible, that requires a code by phone in addition to a username and password in order to access an account.
  10. Freeze credit reports at the three major bureaus (Equifax, Experian, and TransUnion) to make it more difficult for identity thieves to cause financial harm.
Vertial Farming 1

No Soil, No Growing Seasons — Just Add Water, Technology, Energy, and Cash

/0 Comments/in /by BeyondKona

Tech-driven Vertical Farming company Kalera (Euronext Growth Oslo ticker KAL, Bloomberg: KSLLF), announced last December its intention to open a facility in Honolulu, Hawaii in 2021.

Kalera’s Oahu island location will be the Company’s eighth facility announced, making it one of the fastest growing Vertical Farming companies in the United States. It will also be the largest Vertical Farming operation in Hawaii. According to the company, the Honolulu based operation will eventually employ approximately 60 people; the company presently has three management positions open in Glassdoor.

Vertical Farming is a new breed of hydroponic farm, huge and high-tech, and these high-tech farms are popping up in indoor spaces all over America, drawing investors and critics, but is this the answer to Hawaii’s desire to break away from its current and costly imported food dependency?

Vertial Farming 1

Indoor hydroponic farming in the form of “vertical-farming” manipulates light, humidity, temperature and other conditions to grow fresh produce in a totally controlled environment – repeatedly and consistently.

In this new generation of agricultural, vertical hydroponic farms can create precise growing conditions using technological advances like machine-learning algorithms, data analytics and proprietary software systems to coax customized flavors and textures from fruits and vegetables. And they can do it almost anywhere on Earth or even in outer space, and certainly in Hawaii.

Across the United States a new generation of hydroponic greenhouses are popping up, as is the case in an industrial setting near the Hackensack River in Kearny, N.J., where trays filled with sweet baby butterhead lettuce and sorrel that tastes of lemon and green apple are stacked high in a windowless warehouse.

In the Kearny, N.J. example of a new breed of high-tech greenhouses, the site is as large 50 football fields adorned with thousands of LED and power hungry high-pressure sodium lights. Without a teaspoon of soil, nearly 3 million pounds of beefsteak tomatoes grow on 45-feet-high vines whose roots are bathed in nutrient-enhanced rainwater. Other vines hold thousands of small, juicy snacking tomatoes and separately, or vertical rows of popular lettuce varieties.

Vertical-farming has arrived at a pivotal moment in human history.  Swaths of the country and the planet wither in the heat and drought of climate change, and face, with increasing frequency, once-in-century super storms which damage and destroy crops.

At the same time, the demand for locally grown and organic food has never been stronger, as an ongoing pandemic has already demonstrated; the global food supply chain isn’t as resilient as previously believed and now is subject to greater supply uncertainties in face of rising market demand.

Vertical farming advocates site benefits as the way to significantly increase food production while reducing the environmental footprint of traditional forms of agricultural by reducing land, water, chemical, and fertilizer use and increasing overall efficiency. But what are the pros and cons for this new wave of agricultural?

The Advantages of Vertical Farming

  1. Stable crop yields (Hawaii Economic Plus)
  2. Protection from outside conditions  (Hawaii Climate Plus)
  3. Crop yields all year long  (Hawaii Economic Plus)
  4. Protection against pests  (in Hawaii – to be determined)
  5. Fewer crop losses (Hawaii Climate Resiliency Plus)
  6. Increase in profits (Hawaii – to be determined)
  7. Protection from animals & invasive plant species (Hawaii Plus)
  8. Ability to grow all kinds of plants (Hawaii – to be determined)
  9. Savings in water (Hawaii Climate Plus)
  10. Vertical farming can be fully organic (in Hawaii – operator dependent)
  11. Fewer crop imports needed (major Hawaii Plus)
  12. More efficient land use (major Hawaii Plus)
  13. Less habitat destruction (major Hawaii Plus)
  14. Energy generation through composting (Hawaii – to be determined)

The Disadvantages of Vertical Farming

  1. Expert needed to set up a vertical farming project (added Hawaii Cost factors for imported expertise)
  2. High upfront costs  (add in local Hawaii Cost factors)
  3. Significant operational costs (add in local Hawaii Cost Negative)
  4. High energy consumption  (add in local Hawaii energy costs and a major negative for Climate mitigation goals)
  5. High labor costs  (add in local Hawaii Cost factors)
  6. Significant maintenance efforts (add in local Hawaii Cost factors)
  7. Carelessness could lead to a spread of pests (in Hawaii – to be determined)
  8. Pollination problems  (in Hawaii – to be determined)
  9. May need official permissions (in Hawaii – to be determined)
  10. Technology not mature yet (to be determined)
  11. Infrastructure regarding processing of crops is missing  (add in local Hawaii Cost factors)
  12. Only suitable for certain kinds of plants  (in Hawaii – to be determined)
  13. Plants may contain fewer nutrients  (in Hawaii – to be determined)
  14. Technology issues may cause huge problems  (to be determined)
  15. People in rural areas may lose their livelihood (potential Social Negative – TBD)

iFarm is but one example of a growing number of companies claiming to address the operating and environmental costs associated with Vertical farming.

Verical Farming Hardware

One of the advantages of the iFarm fertigation system is that it allows to mix any number of nutrient solutions for a variety of crops (salads, herbs, tomatoes, cucumbers, strawberries and edible flowers). This is achieved by adding six mother liquors (concentrates of nutritional ingredients thinned to get solutions with a certain number of nutrients) to the system at a time.

Not everyone is on board.

Huge vertical farming  operations grow produce in nutrient-rich water, not the healthy soil that many people believe is at the heart of both deliciousness and nutrition.

For vertical farming to create a virtual indoor environment which emulates nature without any downside, investors and farm operators face, beyond the initial set-up costs, is the concentrated 24×7 consumption of large amounts of power.

Vertical farming opponents also point to clear evidence that the farming method can consume vast amounts of electricity.  That is major barrier of entry for a state with nation’s highest cost electricity and one that is dedicated to a transition to 100% clean (zero emissions) and locally produced electricity.

There is nothing to prevent vertical farming from becoming carbon-neutral and power self-sufficient by installing onsite solar generation and storage, but add costs and requires added facility site space, and in Hawaii that means likely outside the traditional urban and industrial settings of this type of farming operation, and on land already zoned for agricultural, but potentially without the necessary infrastructure to support this type of high-tech operation.

One example of Vertical Farming operating components:

  • LED lamps to illuminate the farm. As vertical farms are situated indoors, you don’t need to rely on sunlight for plant growth, including white, red, blue, yellow and green spectra, to create optimal growing conditions.
  • Air conditioning system to circulate and cool the air
  • Osmotic water purification system
  • A fertigation unit, to prepare a nutrient-rich solution for plants.
  • Pumps to deliver fertilizers to plants
  • Air humidifiers are required during the first few months of operation. Once plants are mature, they’re able to maintain appropriate humidity levels naturally and air humidifiers are no longer needed.
  • Air dryers are used on larger farms where mature plants process more water.
  • Controllers and automation systems maintain a stable microclimate, control mixing solutions and facilitate plant growth with minimal human input.
  • Lamps used to illuminate the farm interior
  • Computers and communications used to log and manage operations remotely.
  • Webcams to monitor plants, and detect growth deviations or diseases using computer vision technology.
For Vertical Farming operations, technology and operating experience continue to evolve into greater efficiencies, with improvements in power consumption at top priority.
Vf 2In the case of the iFarm system, the company claims electricity consumption is divided into LED lamps (65%), air conditioners (20%) and dehumidifiers (10%) – which accounts for 95% of electricity usage, while the remaining devices use less than 5%.  No total kWh power consumption comparisons to production examples were provided by the company.

iFarm’s web site states: “The amount of electricity your vertical farm uses will depend on exactly which crops you choose to grow. We’ve calculated how much electricity it takes to grow light-loving Romaine lettuce, shade-loving rocket and garden strawberries to give you an example of energy usage on vertical farms.”

Reducing energy consumption makes your vertical farm more environmentally friendly and has the added bonus of reducing your operating costs. By using iFarm technologies to manage your farm, you can significantly reduce the amount of electricity you use…”  For more information on this see: https://ifarm.fi/blog/2020/12/how-much-electricity-does-a-vertical-farm-consume 

The Real Organic Project offers an alternative to vertical farming without the environmental and economic baggage.

OrganicOrganic farming, put simply, is returning organic matter to the soil so that the life in the soil cycles nutrients back to the crop. Highly soluble fertilizers kill much of the life in the soil, whereas organic matter feeds it. Organic farming is much more closely aligned with Hawaii’s traditional (non-corporate) farming practices. Organic produce, for example, merits a premium price in the retail store sales and higher profits for organic farmers.

Real Organic Project claims the results include vastly less soil erosion, vastly better water retention, less drought, less flooding, less water pollution, better carbon sequestration, and a more resilient and reliable agricultural system.

Organically grown food benefits include:

  • No GMOs
  • Supports healthy soil
  • More nutrition and flavor
  • Supports, rather harms pollinators
  • Healthier working environment for farmers
  • Resistance to pests and diseases
  • Natural Fertilizers are created on-site
  • Opportunity for specializing
  • Is climate-friendly

For consumers, organic grown crops offer beyond the obvious health benefits to themselves and the environment in which spraying poisons for food is not required, organics eliminate the agriculture’s petrochemical and biotech dependencies, which among other negatives, contributes to global biodiversity destruction.

Dave Chapman, a Vermont farmer and the executive director of the Real Organic Project is passionate about what he does and describes today’s Vertical Farming this way;  “Hydroponic production is not growing because it produces healthier food. It’s growing because of the money. Anyone who frames this as food for the people or the environment is just lying.”

Henry Curtis

Hawai`i Mainstream Media; a megaphone for Hu Honua Narrative

/0 Comments/in , /by Henry Curtis, Contributing Editor

Hu Honua History Lesson

Hu Honua proposed burning trees to generate electricity to be sold to Hawai`i Electric Light Company (HELCO) in 2008.

The Public Utilities Commission issued HELCO a waiver from competitive bidding for the project in 2008 and approved the HELCO-Hu Honua contract in 2013.

Hu Honua failed to meet milestones.

HELCO terminated their contract due to Hu Honua missing required deadlines.

HELCO submitted a Revised and Amended Power Purchase Contract to the PUC in 2017. The PUC approved it.

Life of the Land challenged the decision. The Hawai`i Supreme Court upheld the appeal, mandating that the PUC must consider life cycle greenhouse gas emissions.

HELCO filed an amended agreement to the PUC in 2017. The PUC approved it and Life of the Land filed an appeal. The Hawaii Supreme Court upheld the appeal in 2019.

The PUC rejected the Waiver from Competitive Bidding for the proposed Hu Honua Bioenergy plant on the Big Island in 2020, justifying its decision on the Hawaii Supreme Court`s 2019 ruling supporting Life of the Land`s appeal.

Hu Honua appealed.

The Hawai`i Supreme Court upheld the Hu Honua appeal in May 2021 on the grounds that the PUC should not have cited the court remand decision for the reason the waiver for competitive bidding was rejected.

The proceeding has been remanded back to the PUC.

Going Forward

The PUC may now again reject the waiver, but if it does so, it can`t be based on the court`s 2019 remand. The PUC may decide that the waiver is no longer valid — game end for Hu Honua…

There are two key decision points in the public interest the PUC has yet to consider in any Hu Honua approval to proceed decision:

  1. Greenhouse Gas Emissions and
  2. the cost competitiveness of the Hu Honua PPA which is greater twice the ratepayer cost of solar+storage zero emissions energy options.

Although not widely reported, the Court’s ruling this week concluded with the following: “…The (PUC) hearing must also include express consideration of GHG emissions that would result from approving the Amended PPA, whether the cost of energy under the Amended PPA is reasonable in light of the potential for GHG emissions, and whether the terms of the Amended PPA are prudent and in the public interest, in light of its potential hidden and long-term consequences.”

Hawai`i Media Megaphone

HPR: Hawaii Supreme Court Ruling Advances Big Island Biomass Energy Plant

Hawaii Tribune-Herald: Parties pleased with ruling: State Supreme Court remands Honua Ola case to PUC by John Burnett

Big Island Video News: Hawaii Supreme Court Vacates PUC’s Hu Honua Order, Remands Case – The power purchase agreement between Hu Honua and Hawaiian Electric remains vacated, and the 2017 competitive bidding waiver remains valid and in force, the court rules.

Hawaii News Now: PUC to reconsider approval of halted bioenergy project after high court ruling

Honolulu Star-Advertiser: Big Island renewable energy plant wins appeal by Dave Segal

Pacific Business News: Hawaii Supreme Court ruling gives Hu Honua biomass project new life

HPR – Hawai`i Public Radio: The Conversation.

Catherine Cruz: “The Hawai`i Supreme Court has remanded a case involving a big island bioenergy plant back to Public Utilities Commission. We talked to Warren Lee, the head of Honua Ola, formerly known as Hu Honua, about what this could mean for the green energy project which has been delayed for two years because of legal challenges. The company planned to burn eucalyptus trees or albizia trees and other invasive species to provide electricity for the community. It’s been mired in the courts because of an issue with greenhouse gases and legal technicalities. Here`s Warren.”

Warren Lee: “The State Supreme Court`s ruling was a major milestone for us. Yeah we hope the PUC will look at the issues that were outlined by the remand and move forward with us so that we can provide firm renewable energy to the Big Island.”

Catherine Cruz: “How many workers do you have right now as this case works its way through the courts?”

Warren Lee: “Well we have approximately 30, 34, 35 positions within Honua Ola itself. Then we would have contractors do the harvesting, planting, the re=planting, the re-growth, the hauling, and the ancillary services. So, it comes out to a couple hundred at least.”

Catherine Cruz: “So, have things just been at a standstill?”

Warren Lee: “Pretty much, we have slowly been doing construction. We are 99% complete.  A few months doing very minimal construction activities right now.”

Catherine Cruz: “And what do you believe that this Supreme Court decision does for your case?”

Warren Lee: “Well, I think it makes it very clear what the Supreme Court remanded a couple of years ago that the issue of greenhouse gas reduction be addressed fully, and to let the participants like Life of the Land, participate fully. So I think it reaffirmed their order from two years ago. So, we`re back to where we were and we hope we can get it done with the Public Utilities Commission and the parties are interested, so that we can move forward. Get the plant online.”

Catherine Cruz: “Have you had a chance to check in with the PUC, any idea you know what the schedule, is going be like for the summer or how soon you can get in before them.”

Warren Lee: “Yeah, well we haven`t, well the order came out this morning. So the ball is with the Public Utilities Commission now to set the procedural schedule. They originally set up a procedural schedule two years ago where we were going through the opening statements, updated the project, did the greenhouse gas studies that were submitted by ourselves, and one was submitted by Hawaiian Electric or HELCO. So we hope, they`ll pick it up from there and move forward and satisfy the remand of the issue that the Supreme Court laid out for the Public Utilities Commission and the parties.”

Catherine Cruz: “So you think then, this will give everybody a chance to weigh the arguments?”

Warren Lee: “Well, I think it will give everybody a chance to understand why we`re saying that we are going to be carbon negative, or carbon neutral when our goal is to be carbon negative at the end of the 30-year purchase power agreement which is on the table. So everybody that`s part of the evidentiary hearing is to present that, which is the study that we filed, and to answer any questions that may come up.”

Catherine Cruz: “Explain how this legal issue, this legal cloud, has affected the project there?”

Warren Lee: “Back in 2017, when the amended purchase power agreement was approved by the Public Utilities Commission, Hawaiian Electric did present a greenhouse gas reduction plan, and based on the appeal, we`ve lost, or been delayed, say about two years. From the plant operating. So, there is a cost, it`s a huge investment that`s been made by the ownership, and we just want to be sure that we can get this plant running and provide biomass renewable green energy in Hawai`i. And the delay hasn`t helped.”

Catherine Cruz: “What about the workers?”

Warren Lee: “We`ve kept the workers on, going through the legal processes. You know some have left for other jobs, opportunities, but the core group, approximately 30 remain on the payroll, they’re trained and ready to go, ready to operate. We need to finish out the Construction which is 99% done. Then we need to commission the plant. That will be done once we get through the purchase power agreement process, Public Utilities Commission.”

Catherine Cruz: “If all goes well, what`s your hope?”

Warren Lee: “A lot of it depends on back to your original question of when the PUC`s is going to handle this. We`ve been waiting so long and with the Supreme Court ruling, if we can get the purchase power agreement and all the processes within the next several months, I think there`s a good chance that we could be online by maybe the end of this year or early next year.”

Catherine Cruz: “How much construction needs to be completed?”

Warren Lee: “Well more specifically what we need to do, is we need to finish up a couple of our cooling water wells. One of them is almost ready for testing. And then we need to submit the application, the permits to operate to the Department of Land and Natural Resources and also other permits with the Department of Health and just do the remaining work and then commission the plant. Commissioning a new generating power plant is not an everyday easy task. It could take a while.”

Catherine Cruz: “That was part of a conversation we had with Warren Lee, yesterday, afternoon, following the issuance of the ruling by the Hawai`i Supreme Court. Lee again hopes that the second opportunity for the PUC can clear the way for the plant to complete its construction and get the necessary permits to begin operating, Lee hopes that it can happen by the end of this year or early next year. The PUC says it is not clear at this point how soon it can re-schedule the new hearing.”

 

 

A Pyrrhic Victory for Hu Honua; Hawaii’s Supreme Court Decision

/1 Comment/in /by Steve Holmes, Contributing Editor

While the spin machine for Hu Honua Biomass would have you believe that a recent Hawaii Supreme Court decision was a great victory for them, that really isn’t the full story.

Justice Michael Wilson in a concurring opinion for the majority makes it clear that the Public Utilities Commission may still decline a waiver from the competitive process that Hu Honua had sought.

The court decision was more a form of legal housekeeping that clarifies an earlier ruling. PUC attorneys have the ability under current regulations to issue a new waiver denial they just need to change the justification. It is the stuff only lawyers love.

Back in 2006, the PUC adopted a competitive bidding framework under administrative rules that have the effect of law. Waivers are really obsolete now. The intent is to get ratepayers the best deal for electricity. Waivers are anti-competitive and not in the public interest.

Hu Honua simply cannot compete in the current energy marketplace. Burning trees for fuel is highly inefficient. Prices for solar and batteries have dramatically dropped making them the better choice.

When the PUC re-issues its new waiver denial in accordance with their rules, it will send a message to Puna Geothermal which also seeks the special treatment of a waiver. They, too, are not competitive.

With no open competitive bids for additional renewables, both Hu Honua and PGV efforts to get special treatment actually leave them with no opportunity until another round opens up and even then it is highly unlikely that they will succeed.

In the meantime, two solar farms on the Big Island with 60 MW of capacity and massive battery storage have been approved and are moving quickly to start construction.

Another larger solar farm at 60 MW went through Phase 2 competition and is awaiting PUC approval.

As Hawaii moves down the path to 100% clean and renewable energy, with it comes island sustainability and energy independence.

Hawaiian Electric ratepayers can also look forward to reduced costs for electricity, altogether a win-win for Hawaii’s residents and businesses when Hawaii can move past Hu Honua to a clean and sustainable energy future.

For additional information, see Steve’s earlier article on the “Hu Honua Meltdown”: https://www.beyondkona.com/hu-honua-meltdown/

“The PUC denied the waiver from competition because they found that Hu Honua wanted too much money for electricity and that it wasn’t in the public interest to raise rates for all consumers including State and County facilities on the Big Island …”

Steve Holmes is the former Energy and Sustainability Coordinator for the City and County of Honolulu.   He won the U.S. Department of Energy’s National Energy Champion Award in 2002.  He served 12 years on the Honolulu City Council putting large areas into parks and preservation.    He was a state energy analyst in Hilo, a Park Ranger at Hawaii Volcanoes National Park, Executive Director of Hawaii’s Thousand Friends, Hawaii Chapter Conservation Chair of the Sierra Club, President of Kokua Hilo Bay, and has won numerous awards for his efforts on behalf of Hawaii’s environment.
Cyber Security2

A 21st Century Power Struggle: bombs are out, bots are in!

/1 Comment/in /by BeyondKona

Article Updates

— April 26, 2021

Russia ‘likely’ kept access to US networks after SolarWinds hack

Russia’s alleged success with the SolarWinds hack might not have ended just because US agencies and companies have bolstered their defenses. CNN sources aware of the investigation claim Russia’s SVR intelligence agency “likely” still has access to American networks despite efforts to close exploits. The attackers are still “very much out there,” one contact said.

Deputy National Security Adviser Anne Neuberger didn’t directly acknowledge the allegation when CNN asked, but did say that formally blaming the SVR was meant to “shape [Russia’s] calculus” on the value of hacks. The US wasn’t going to dissuade Russia with a single action, the adviser said.

A continued presence in American networks is consistent with history. Russia continued to mount cyberattacks against the US after the Obama administration imposed sanctions in late 2016, targeting politicians (Sen. Claire McCaskill) and other systems during the 2018 midterms and beyond. Even if the US successfully dislodged Russia from government systems, there was a good chance it would find another security hole.

If the report is accurate, though, it illustrates just how difficult it may be to secure a lasting victory against state-sponsored cyberattacks. Even the large-scale response to a campaign like the SolarWinds hack apparently wasn’t enough to dislodge the intruders. The US might not get a reprieve for a long, long time to come.

— April 11, 2021

Israel confirms it carried out cyberattack on Iran nuclear facility

Israel appeared to confirm claims that it was behind a cyber-attack on Iran’s main nuclear facility on Sunday, which Tehran’s nuclear energy chief described as an act of terrorism that warranted a response against its perpetrators.

The apparent attack took place hours after officials at the Natanz reactor restarted spinning advanced centrifuges that could speed up the production of enriched uranium, in what had been billed as a pivotal moment in the country’s nuclear program.

As Iranian authorities scrambled to deal with a large-scale blackout at Natanz, which the country’s Atomic Energy Agency acknowledged had damaged the electricity grid at the site, in statement today by Israeli defense chief, Aviv Kochavi.

Natanz has remained a focal point of Israeli fears, with an explosion damaging a centrifuge assembly plant last July, and a combined CIA and the Mossad cyber-attack using a computer virus called Stuxnet in 2010 that caused widespread disruption and delayed Iran’s nuclear program for several years.

Original Article Post

With barely sixty days into his administration, President Joe Biden got a taste of what the next four years may look like: a new era of bitter superpower competition, marked by perhaps the worst relationship Washington has had with Russia since the fall of the Berlin Wall, and with China since 1972, marked by the beginning of diplomatic relations with the United States.

In recent years, Putin’s Russia and Xi Jinping’s China both took sharp turns toward authoritarianism.  President Biden acknowledged a reporter’s question-statement that Putin was a “killer”, in reference to a long string of not-so-mysterious deaths of people on Putin’s enemy list.

Then there’s the first Biden administration meeting with Chinese officials last month in Alaska, when Chinese representatives lectured the American delegation about their arrogant view that the world wants to replicate their freedoms.  It may have been political theater, but the underlining issues were real enough for both sides.

The Cold War period has not resumed, there are no drop drills or super power nuclear brinkmanship, the current competition is over technology, cyber attacks, and influence operations — scenes which are now playing in the shadows of those bygone bad old days.

Russia today

Putin, however, has lamented that the Russia of the early 21st century is a shadow of the former Soviet Union. Russia’s economy is roughly the size of Italy’s and is based on two assets of the past, fossil fuels and weapons.

The real power in Putin’s Russia, in the 21st century, is mostly limited to cyber warfare in disrupting governments and societies, instilling fear, stealing trade and state secrets,  silencing dissension, and using the state’s highly advanced cyber abilities for personal political and economic gain.

Today’s Russia mostly resembles a mafia-run enterprise more than a former superpower. Its state goals are not social or idealistic, but for profiting the few and powerful within Putin’s inner circle, an almost czar-like government.  It’s a far cry from the idealistic workers revolution of 1917 which created the former Soviet Union.

China today

After several decades experimenting with shades of capitalism, China’s recently installed (in relative terms) president Xi Jinping has placed China back onto its authoritarian path to power by building new networks, rather than disrupting old ones.

Economists debate when the China will assume the title (currently held by the United States) of having the world’s largest gross domestic product — some economists predict within less than 10 years.

Underlying the goal of global economic dominance, China’s national goals are building the world’s most powerful military and dominating the race for key technologies by 2049 — the 100th anniversary of Chairman Mao’s revolution. Their military aspirations are not to repeat the costly mistakes of their former ally the Soviet Union.

The United States invented the Internet, we own it through one means or another from the idea of the Internet to its underlying technology, standards and regulatory entities.  But that is changing, and changing at technology fast speeds.Russian Cyber Center

For China, it’s all about expanding economic might by positioning their government-subsidized technology to wire developing nations — be it Latin America or the Middle East, Africa or Eastern Europe — with Chinese 5G wireless networks intended to tie them ever closer to Beijing. Like competing rail monopolies of the 19th century, it was all about who owned the rails, not the trains that mattered.

For China today, Internet competition and cyber dominance comes in the form of laying the undersea cables. China is presently connecting the developing world with undersea and terrestrial fiber and 5G wireless networks running on Chinese-owned (not US) circuits.

China is developing the “second” worldwide Internet. The one we know and the one that’s coming under the control of Chinese minders, placing national and commercial interests of the United States and its democratic allies at risk; not as enemies, but as economic competitors for market and mind share.

The United States (a new sheriff is in town)

Shortly after taking office, President Biden met by phone with President Xi Jinping.   In the two hour conversation, Biden told Xi that the Chinese narrative of the U.S. in decline was badly mistaken.   It was a foundational statement from this new president whose mission is to right the America ship of state which had been adrift the previous four years and was sailing through a foreign policy fog.

President Biden’s leadership mission for the United States is summed up on the White House web site as…

This is the moment to reimagine and rebuild a new economy.

The American Jobs Plan is an investment in America that will create millions of good jobs, rebuild our country’s infrastructure, and position the United States to out-compete China. Public domestic investment as a share of the economy has fallen by more than 40 percent since the 1960s.

The American Jobs Plan will invest in America in a way we have not invested since we built the interstate highways and won the Space Race.

Biden’s Infrastructure plan clearly recognizes what’s needed at a time of a growing global threat to US dominance. Elements of the plan include a historic national investment – consisting principally of one-time capital investments in our nation’s productivity and long-term growth.

The plan will invest about 1 percent of GDP per year over eight years to upgrade our nation’s infrastructure, revitalize manufacturing, invest in basic research and science, shore up supply chains, and solidify our care infrastructure.

In total, the plan will invest in America nearly about $2 trillion this decade – perhaps this is what Biden meant when he told president Xi of China “the Chinese narrative of the U.S. in decline was badly mistaken”.

Solar-Winds

Yang Jiechi, China’s most senior diplomat, put China’s present day’s feeling about the United States this way…“I don’t think the overwhelming majority of countries in the world would recognize that the universal values advocated by the United States or that the opinion of the United States could represent international public opinion…”   In another words, there is room for oligarchs and dictators, just not democracies.

The ongoing cyber attacks by Russia and China (and others) on the United States and Western democracies is ample evidence that a new age of soft warfare is well underway — practiced daily by both the United States and its competitors. Less obvious than the cold war days of classroom drop drills, but equally representative of times. Cyber Security3

In 2020, a major cyberattack by a group backed by a foreign government penetrated thousands of organizations globally including multiple parts of the United States federal government, leading to a series of data breaches.

While malicious attacks occur every day through phishing, malware, and other means, the so-called SolarWinds attack (because hackers used the SolarWinds software platform — unbeknownst to the company) to facilitate the hackers’ attack and enable the attackers code scale to spread across companies and government agencies. It is especially shocking by weaponizing third-party software operating on targeted systems as the means of attack.

The hackers’ attack spread into data systems around the world faster than a pandemic.

Austin-based SolarWinds sells technology products to an extensive list of sensitive targets, including all five branches of the U.S. military.  The company sells it’s technology products to an extensive list of sensitive targets, including all five branches of the U.S. military. The company said it has more than 300,000 customers worldwide, including a large number of the U.S. Fortune 500 who have been affected by the attack..

The SolarWinds cyberattack and data breaches were reported to be among the worst cyber-espionage incidents ever suffered by the U.S., due to the sensitivity and high profile of the targets, as well as  the long duration (eight to nine months) before being detected. Hackers had access to the systems data and data operations. Within days of discovery, at least 200 organizations around the world had reported being affected by the attack, and some of these suffered serious data breaches.

The attack, which had gone undetected for months, was first publicly reported on December 13, 2020, and was initially only known to have affected the U.S. Treasury Department and the National Telecommunications and Information Administration (NTIA), a part of the U.S. Department of Commerce.  Key agencies within the United Kingdom, European Parliament were also attacked, as well as Microsoft and many of its large private and public sector customers. Microsoft reported they knew of at least 60 major customers with compromised email systems, in which the same attackers had used email for reconnaissance purposes.

In addition to the theft of data, the attack caused costly inconvenience to tens of thousands of SolarWinds customers, who had to check whether they had been breached, and had to take systems offline and begin months-long decontamination procedures as a precaution.

U.S. Senator Richard J. Durbin described the cyberattack as tantamount to a declaration of war.

US intelligence agencies have been expectedly silent on the hack, but technology experts strongly believe the pattern of the attack suggests it originated with Russia’s Federal Security Service, the FSB.

How Secure Is Hawaii?

State and local governments have been begging the Federal government for help and more resources since they are on the front lines of a growing number of cyberattacks.

State and local government computer systems have, in effect, been locked up by hackers seeking a ransom payout before they release the attacked computer systems data files, and some cases system access.

The intended targets of this type of cyber attack is normally directed to government data silos responsible for vital services. Digital applications and databases, some of which are even more critical during a pandemic – including hospitals, schools and government benefit distribution systems.

It’s a problem growing exponentially according to the US Department of Homeland Security’s cybersecurity division. Hawaii is not exempt from these attacks — the question is are we prepared?

 

Beyond Kona Energy Feed

Legislative Update; EV Market Analysis

/0 Comments/in , /by BeyondKona

Hawaii EV Legislative Update

Ev Charging L 1 2 3

As we reported earlier, there is a variety of EV bills in this year’s legislative cycle. One of those bills, Senate Bill SB756 SD2, is still alive (and made it out of committee) and is presently before the House Energy & Environment Committee for full consideration. Today’s hearing is open to public testimony. If you missed today’s hearing, you can view the hearing and public testimony at:

https://www.youtube.com/watch?v=KPULuxV-FMY&ab_channel=HawaiiHouseofRepresentatives

The SB756 bill-specific testimony begins at 1:15 mark.

SB756 SD2 is a particularly important bill as it addresses the state’s multi-island deficient EV charging infrastructure. One of the key aspects of the bill is its intent to address the need for an effective public charging infrastructure, and which will enable equitable access to electric vehicles for Hawaii’s residents and visitors.

Many within Hawaii’s growing EV owner community charge their vehicles at home. But for Hawaii’s mass market EV adoption to be realized, both state and private sector partners must join together and address a growing demand by the state’s residents and future EV owners; especially those who live in condos and apartments and those who are renters, who altogether today do not have practical access to convenient vehicle charging options.

SB756 is designed to address these and other of Hawaii’s infrastructure components needed to fulfill the potential of a 100% statewide transition to electrification in ground transportation.

For more details on the status of current EV legislation, and more specifically SB756, we recommend you visit: https://hawaiiev.org/2021-hawaii-ev-legislation

EV Market Analysis; present and near future

Bank of America analysts have calculated that a shift to a 100% Electric Vehicle (EV) world would need more than $2.5 trillion in investments, coming from companies, investors, and governments across the world.

So far, Wall Street and Silicon Valley have poured billions of dollars into electric-vehicles and supplier companies over the past year. They’re betting on the future dominance of EV’s and the sunset of ICE vehicles, fueling valuations, and creating an economic catalyst for EV start-ups and major automakers alike.

There is little doubt that the automotive industry is trending toward electric vehicles amid the rise of Tesla Inc.  Within the past 10 years, the pure EV universe was owned by Tesla, with only tentative and limited EV production steps taken by GM and Nissan, along with a smattering of R&D stage fuel-cell companies. In the past two years along comes China, now a major driving force for both EV market makers and for EV demand.

In total, at least $28 billion was invested in public and private electric-vehicle companies in 2020, according to the Dow Jones Market Data Group.

This bird has flown

No longer confined to regulatory-driven market experiments, EV’s have gone main stream. “The writing is on the wall with regard to the long-term EV versus internal combustion debate,” said John Mitchell, a partner at Blue Horizon Capital. In several countries around the world, people will no longer be allowed to purchase internal combustion-engine vehicles within a short decade or two, and global automakers have realized that “the transition to electrified vehicles is the only way to compete,” he said.

According to Mitchell, the enabling elements on EV’s:

  • declining prices with technology breakthroughs enabling cheaper, longer-lasting, and faster-to-recharge battery options
  • increasing availability of electric vehicles,; and
  • potential political strides towards a national EV infrastructure buildout, together with other “green friendly” government initiatives now taking root, the U.S. and elsewhere are on a path forward to a national and global switch in the electrification of transportation.
  • Marine and aviation sectors are presently in the R&D stages of applying battery tech towards the eventual  replacements of ICE powered planes and ships.

“The EV party is just beginning, buckle the seat belts,” Wedbush analyst Dan Ives said recently. Recent weakness are short-term “growing pains,” he said.

Market investments, driving meaningful change

A switch from combustion engines to electric cars will not be an easy ride for consumers and manufacturers or take place quickly, with so many legacy stakeholders working to retard the growth of EV’s.

Electric cars currently make up around 2-3% of global auto sales, and estimates for a future market penetration share vary from a low-end forecast of 10% to 20% of cars sold by 2030 to as much as two-thirds of the market by that time.

Much more money will be needed to fund the switch, despite the billions that already found its way to EV-related investments. Boding well for the future, however, Blue Horizon’s Mitchell pointed to the increasing quality and technical improvements for EVs.

“Battery life is only going to be extended and with the trillions being invested globally by all those supporting the electrification of the transportation system the infrastructure for widespread adoption and usage of EV technology is only going to increase,” he said.

Analysts at UBS forecast that global auto makers’ revenues from EVs are going to shift to $1.16 trillion by year 2030, from $182 billion today.

Conversely, revenue from ICE vehicles, at $1.77 trillion today, will dwindle to $1.07 trillion. Revenues for software will make an even bigger slice of that revenue pie by 2030, at nearly $2 trillion.

Building a charging infrastructure for Hawaii and the nation.

The electric vehicle charging stations market is a highly concentrated market which includes key players and local players. The market has witnessed increased various strategic developments producing a favorable market scenario.Ev Charger Market

The market has a prominent growth in upcoming years due to increasing demand for electric vehicles, incentives & subsidies by government for electric vehicles and increasing environmental concerns. The vehicle-to-grid (v2g) technology for EV charging stations and renewable sources of energy for electricity are also posing as an opportunity for the market.

Electric Vehicle Charging Stations Market Trends

For bills like Senate Bill SB756 SD2 to become successful, regulators, Hawaiian Electric, and private sector partners must engage in a market ready and consumer friendly cost effective charging architecture – and one based on clean, renewable, and locally produced energy.

Global electric vehicle charging stations market today is segmented into five segments: the charging station, vehicle type, charging stations standards, installation type, and last but not least, the technology employed which must resilient and easily maintained.

  • The present market segmentation for EV chargers are confined to AC charging stations (Level 1 & 2), DC charging and inductive charging stations. The DC charging station segment is projected to grow at the highest CAGR in the forecast period of 2019 to 2026.
  • Vehicle type is the second grouping, with a market today segmented into both (all) battery electric vehicles (BEV), and plug–in hybrid vehicles (PHEV)
  • EV Chargers are generally segmented into level 1, level 2, level 3, and Tesla’s advanced, and vary fast, Supercharger network (presently, not available for Hawaii’s neighbor islands)
  • Charging stations are evolving quickly, as are standards governing chargers.  The current chargers are segmented not only their rate of charge, but their plug type, e.g., CHAdeMO, CCS, Tesla Supercharger, SAE J1772 and IEC 62196
  • And finally building a charging infrastructure must be structured to address two basic market segments; residential and commercial

Disruptive EV Market Factors

  • Tesla, the established global EV leader

Its first-mover advantage widely viewed as substantial, as ICE competitors continue to chase Tesla’s taillights for piece of the emerging EV marketplace.

The UBS analysts calculate that Tesla has a cost advantage around $1,000 to $2,000 per electric vehicle over other auto makers, although competition is increasing.  Analysts see large legacy auto makers, like VW, will be able to reach an EV manufacturing cost and margin parity with Tesla today within five years – which in terms of building market share can be a lifetime in business and technology terms.

The problem for VW and other Tesla competitors is the company is not standing still waiting for its competitors to catch up. Innovation and cost and profit performance will be the deciding factors in the next few years.

Today, VW is the No. 2 auto maker in the world, but lags behind Tesla in terms of battery costs, software, and EV production tech. Tesla likely to keep its price advantage in the battery space due to its vertical integration and technology advances.

 

  • EVs, not FSDs (full self-drive) vehicles could be the real game-changer

Related to investor’s inflows to electric-vehicle makers is the interest generated by lidar, batteries, sensors and other components hailed as key to autonomous vehicles.

Full autonomy (FSD) has proven to be a stubborn and costly problem to solve, with regulatory, legal, and technological hurdles aplenty.

Despite lofty driver automation goals, most cars on the road today offer advanced driver-assistance systems that are not dramatically different from previous years’ systems and still far from being the game-changer they are expected to be for lives and economies in a not-so-distant future.

For now, in spite the hype, automakers are mostly focused on partial autonomy and ADAS offerings that can be commercialized in the short term, as EVs continue to pull ahead in terms of consumer interest and the current regulatory push.

 

  • Pandemic Life Lessons; working without a daily commute

As appealing to some of the promise of a fully automated and self-driving vehicle may be, there is the larger of the role and demand for personal vehicles, electric and otherwise.

During past year of COVID-19 lockdowns and working remotely, an unintended social experiment was underway. In highway-heavy Los Angeles the average commuter saved 10.25 days last year by working from home during the pandemic the past year.

In Honolulu, a similar number of days saved while working at were logged.  Working at home commuter saved Hawaii’s primary workforce (Oahu) a total time in days saved, altogether were logged in at 9.68 days.  If someone said to you, here, take these 10 (saved) days add the to your life, and do with the saved time what you want – that too would be an interesting experiment.

According to a December Pew Research study, about 71 percent of the American workforce was working from home during the past pandemic year. Only 20 percent worked from home before the pandemic.

About half of those Pew surveyed said they want to continue to work from home after the pandemic ends — perhaps they’ve gotten used to the break from commuting.

The study used data from the U.S. Census Bureau and calculated the above rate by averaging the number of days most people work in a year. On average, Americans work about 242.8 days a year, factoring in sick and vacation time.

If the pandemic has forever changed us in the way many of us will work and socialize, then what does that say about future demand for personal vehicles or that second car or truck? Only time will tell us the answer to that question.

Beyond Kona Energy Feed

Senate Bill 243, a Wake-up Call for Hawaii’s Clean Energy Ambitions

/0 Comments/in /by Henry Curtis, Contributing Editor

previous published in ililani media

  • The Biden administration plans to decarbonize the U.S. power sector by 2035.
  • Hawaii plans to decarbonize its electric grid by 2045.

The Hawaii Legislature proposes to tax rather than to ban fossil fuel, as this will send a message to the marketplace, rather than imposing sustainability on the out-of-control fossil fuel industry.

The fossil fuel industry got us into this mess, and by being taxed, they will find solutions to get us out of this mess. So, the theory goes. Just like tobacco which then discovered flavored stuff.

Hawaii proposes using a crystal ball to develop strategic plans to reach future goals.

Imagine the pre-internet, pre-cell phone world from 25 years ago.

Imagine having a crystal ball in 1995 and being asked to map out what 2020 would look like.

Imagine being paid to do this. That is, having the taxpayers fund your analysis.

Fast forward to the new, exciting, cutting edge, energy revolution.

Solar and wind are now the cheapest forms of electricity for virtually everyone on the planet. Energy storage on a large scale has just begun and is poised to take-off.

The electric grid has become a dynamic, two-way, flow of real and reactive power, and communications, with smart devices installed throughout.

The simple world of yesterday`s electricity generation and distribution is becoming vastly complex. New regulatory mechanisms like incentive regulation are being implemented.

Imagine being paid to determine what the world would look like in 2045.

Football and a Crystal Ball: Data Privacy Predictions for 2016

Paid by taxpayers – Hawaii Senate Bill 243 was signed onto by over half of the Senators.

“The legislature finds that section 269-92, Hawaii Revised Statutes, requires each utility company that sells electricity for consumption in this State to establish a renewable energy portfolio standard of one hundred per cent of its net electricity sales by December 31, 2045.”

“The legislature also finds that section 225P-5, Hawaii Revised Statutes, establishes a zero emissions clean economy target to sequester more atmospheric carbon and greenhouse gases than emitted within the State as quickly as practicable, but no later than 2045.”

“The legislature finds that no strategic plan currently exists for the attainment of either of these goals.”

“The Hawaii state energy office … shall establish a strategic plan.”

The problem is pesky community people who pushed for these laws to be passed in the first place and who also care about equity, respect, community values, and participatory democracy.

The goal of the strategic plan is to “provide clarity for utilities, utility-scale developers, and energy distributors in planning to achieve the benchmarks.”

Two different groups would be funded by Legislators to study this impossible analysis of the future.

The University of Hawaii, Mānoa`s Hawaii Natural Energy Institute of the University of Hawaii “shall conduct a feasibility study on the State’s ability to achieve its goal.”

The Hawaii State Energy Office “shall submit its strategic plan, including proposed strategies, benchmarks, and metrics.”

Both studies would be paid for by taxpayers.

The Hawaiian Electric Companies and the Hawaii Public Utilities Commission already tried this.

The Power Supply Improvement Plans (PSIPs) were developed from 2013-16 and are already out-of-date.

Long-term utility planning used to examine scenarios 15-20 years in the future. Today, that has shrunk to five years.

The dynamic electricity sector is changing too fast for longer-term analysis.

 

Pv To Ev

New PUC Model Holds the Promise of Lower Rates

/0 Comments/in /by BeyondKona

A new PUC regulatory framework will have repercussions for most of Hawaii’s electricity consumers, and in advancing the state’s transition to a 100% clean energy economy.

The new framework governing Hawaiian Electric’s operations establishes a rate-setting basis designed to incentivize the state’s largest electric utility’s transition off imported fossil fuels, beyond the state’s current 2045 and 100% clean energy mandate. Hawaiian Electric (HE) will soon find itself operating in the new regulatory world of a “Performance Regulatory Framework” (PBR).

According to a statement by Hawaii’s PUC, the new regulatory framework will transition Hawaiian Electric from a system wherein energy rates are determined by the cost of providing service to one which the company is rewarded for providing “exemplary performance” – in effect, a balanced approach between incentivizing and penalizing Hawaiian Electric based on the company’s performance and actions.

Performance-based ratemaking rewards utilities for performing well on key metrics, such as efficiency, customer service and greenhouse gas emissions reduction. PBR is a departure from the traditional utility model of reaping returns from capital-intensive investments (the cost-of-service model).

The PUC, in its governing role as the state regulatory body ensures HE’s performance and compliance in meeting state goals, and the utility’s ability to profit from its operations, but the PUC also foresees the new PBR model as an opportunity for HE customers and the utility to reduce customer electricity bills.

– Legacy and PBR Utility Operating Models –

 

Utility Puc Performance Model

 

PBR is new, but not unique to Hawaii

A total of 19 states and Washington D.C. have seen recent legislative and/or regulatory developments related to PBR. That’s six more than a year ago, according to new data on PBR activity by utility commissions and utilities compiled by regulatory intelligence firm EnerKnol and analyzed by Wood Mackenzie.

Yet analysis of regulatory and legislative activity shows that while PBR is becoming more widespread, linking new performance metrics with financial consequences for utilities remains rare. How well Hawaii’s largest electric utility does in this PBR environment remains to be seen.

According to EnerKnol research, … “Utilities increasingly view the programs as critical for locking in more stable revenues in the face of declining power sales and costly environmental mandates.”

Incentives are a key element of the PBR regulatory framework, but so far are mostly absent in most state-regulated PBR utility programs.  Performance mechanisms for PBR are divivded into three general categories,, according to Wood Mackenzie:

  • Metrics: Required reporting of quantifiable and verifiable metrics (greenhouse gas emissions, clean peaks, efficiency and customer satisfaction are typical examples)
  • Scorecards: When metrics are associated with targets and utility performance can be scored to compare to its historical levels or with peer utilities
  • Incentives: When scorecards are associated with financial incentives and/or penalties, giving performance mechanisms real enforcement power

Among the 11 states and territories with 100 percent renewable or carbon-free goals either signed into law or being acted upon in the state legislature, nine of them have recent PBR developments at the state or utility level: Colorado, District of Columbia, Hawaii, Illinois, Minnesota, New Mexico, Nevada, New York and Washington.