HONOLULU -- Gov. Linda Lingle tried to reduce Hawaii's fear about the economy Friday, saying the media is over-reporting bad news.

Lingle said that high energy costs could actually provide a boost to our economy.

Two weeks ago, Lingle's economists said job losses at Aloha Airlines and related companies could flatten Hawaii's economic growth. Meanwhile, rising energy costs are affecting everyone in the state and could discourage tourists.

On Friday, however, Lingle said she sees a rosier picture.

Lingle told the Hawaii Economic Association that they should repeat a more upbeat message of a lower unemployment rate, fewer foreclosures, a state budget surplus and areas like west Oahu experiencing healthy growth.

"I am trying to paint a very objective picture for the people of this state to recognize that we're in a much better situation that many states are suffering terribly," Lingle said.

Even though high gas and oil prices are eroding buying power and threatening tourism, Lingle pledged to turn the energy problem into opportunity with ambitious goals for renewable energy.

"One of the big problems in the economy right now is that banks are less willing to finance things like hotel and home construction, but because of high energy prices, they may be willing to invest a lot in alternate energy projects," Lingle said. "That's when you'll really start to see some tremendous penetration of renewable (fuels) and the kind of infrastructure needed to support renewable (fuels) in the island."

Kevin Kolevar, with the U.S. Department of Energy, said he came to Hawaii to help change utility policies that stifle alternate sources like Hawaiian Electric Co.'s right to pass on all its oil costs.

"You have to be very careful not to get everybody's expectations and hopes up immediately. It will take time," Kolevar said.

After listening to Lingle's speech, economists said she may have been a little too rosy about the immediate future, but they agreed that spurring alternate energy development has the potential to stabilize and diversify Hawaii's economy in the long term.