This report was prepared by the Pacific Power Association for the U.S Department of Interior. The purpose of this document is to report on the energy consumption for seven (7) U.S.-affiliated Insular Areas.
The U.S.-affiliated Insular Areas included in this report (Insular Areas) are (a) the U.S. territories of Guam, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI) and the U.S. Virgin Islands; and (b) three sovereign nations in ―free association‖ with the U.S. (Freely Associated States), the Republic of the Marshall islands (RMI), the Federated States of Micronesia (FSM), and the Republic of Palau. The FSM includes the states of Chuuk, Kosrae, Pohnpei, and Yap.
A portion of the high cost of fuel oil in the Pacific Region reflects the lack of competition among suppliers in the region. The RMI has its own bulk fuel facility and purchases fuel from the bulk market. RMI therefore provides wholesale bulk fuel prices to its power plant and is able to provide Mobil Oil competition for fuel sales to the regional fishing fleets. One of the major uses of petroleum products in all of the islands is for transportation. Opportunities for reducing the use of fossil fuels in the transportation sector are very limited. Commercial airlines are one of the major users of petroleum fuels.