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I think I discovered why are fuel prices seems to be getting higher and higher...

I maybe wrong in this, but I recently come upon this article from Ethanol Producer Magazine called "Big Oil’s Last- Ditch Effort" and its talking about the American Coalition for Ethanol and others have been cautioning about the E10 blend wall, the need for higher blends of ethanol, more blender pumps, and flex-fuel vehicles—putting consumers, not oil companies, in control, and doing so in a way that avoids any future blend wall problem. When federal law requires 36 billion gallons of renewable fuel to be used by 2022, much of that ethanol, they must overcome the blend wall. Here’s why oil companies are in panic mode today. While ethanol production will remain flat or decline this year, the RFS provides for annual increases in ethanol use, so refiners are expected to draw upon their stockpile of renewable identification number credits (RINs). As RIN stockpiles thin, refiners will need to purchase physical gallons of ethanol to comply with their renewable volume obligations under the RFS for the latter half of 2013 and into 2014. Moreover, at the same time the RFS ensures annual increases in renewable fuel use, new fuel economy standards are shrinking overall gasoline consumption in the U.S. When the RFS2 was enacted in 2007, we consumed around 150 billion gallons of motor fuel. Today that total is closer to 130 billion gallons. An RFS calling for ethanol use to rise from 13.8 billion gallons in 2013 to 14.5 billion gallons in 2014, while the overall gasoline pool is shrinking, means refiners can no longer refuse to comply with the RFS by dragging their feet to adopt E15.
And it’s E15 that’s got the oil lobby talking about the blend wall. The idea of farmers and ethanol producers taking more market share via E15 is giving Big Oil sleepless nights.

But all of this was real boring to me, but I guess from what I am learning about is the E15 has the ability to ruin our cars engine. The EPA will require that gas pumps with E15 bear a warning sign noting the blend and that it is not recommended for cars older than the 2001 model year. Automakers are also warning against using E15. BMW, Chrysler, Nissan, Toyota, and Volkswagen have all said that their warranties do not cover problems caused by using E15, and another eight companies have said using it may void warranty coverage, if they determine that's what caused the problem. It's not that filling up with E15 one time will screw up your engine, rather, the concern is that repeated, long-term exposure could cause the higher-alcohol-content fuel to degrade engine parts like valves and cylinder heads—which could potentially cost thousands of dollars to replace. Short-term, some may notice that their car isn't performing as well, and the "check engine" light might come on. And it could keep coming on, repeatedly, which is probably more annoying than dangerous. A few manufacturers have said they think that there needs to be a lot more study conducted to make sure there are no longer term effects on the vehicle, but so far everything they've seen says there will be.

Sorry this is so long, but its worth the knowledge and make sure you pay attention at the pump...



** The blending wall refers to the amount of ethanol gasoline companies are permitted to blend with petroleum-based fuel. Federal standards set the amount at 10% (E10) of gasoline consumption and maybe soon to be 15%(E15)

** RFS Renewable Fuel Standard

Answer Question
 
Michigan-Mom74

Asked by Michigan-Mom74 at 1:15 AM on Feb. 27, 2013 in Politics & Current Events

Level 34 (66,351 Credits)
Answers (9)
  • That was a rough read!
    staciandababy

    Answer by staciandababy at 1:18 AM on Feb. 27, 2013

  • Ya tell me about it!! lol But its worth the read and to be careful at the pump. This article is recent as of 2013.
    Michigan-Mom74

    Comment by Michigan-Mom74 (original poster) at 1:31 AM on Feb. 27, 2013

  • So prices are going up because more ethanol will be used each year?
    Ballad

    Answer by Ballad at 1:42 AM on Feb. 27, 2013

  • Well with more ethanol being added, the less oil that will be needed...
    Michigan-Mom74

    Comment by Michigan-Mom74 (original poster) at 1:52 AM on Feb. 27, 2013

  • I worry that they go from that to adding water in your fuel. I do not drink but they are adding water to beer. PS Two more police here in CA killed
    sunshine196

    Answer by sunshine196 at 2:03 AM on Feb. 27, 2013

  • Sunshine196...You cannot mix water and gas. Gas is lighter then water, so the water will settle at the bottom on the tank and can cause serious damage. And if you live in the cold climates, the water will freeze and you are screwed.
    Adding water to beer and such isn't new. Some bars do it to save money, especially with liquor.
    And its sad that 2 more cops lost their lives in the line of duty..:( Gotta love the gun control!! Politicians are idiots.
    Michigan-Mom74

    Comment by Michigan-Mom74 (original poster) at 2:16 AM on Feb. 27, 2013

  • I've never been a fan of ethanol. I don't know if my info is accurate but I've been told that adding ethanol really doesn't reduce gas consumption. The newer, better engines that car manufacturers are making is responsible for the reduction in fuel consumption. Ethanol burns quicker thus causing our cars less efficient gas mileage. While its good for corn farmers, they can't use ethanol in the farm equipment. There is only 1 or 2 gas stations in a 50 mile radius that still sells pure gasoline. It's a racket to me.
    HHx5

    Answer by HHx5 at 10:01 AM on Feb. 27, 2013

  • Michigan-Mom74 I know that, as far as the beer thing some company is being sued for deluding the product
    sunshine196

    Answer by sunshine196 at 1:25 PM on Feb. 27, 2013

  • Michigan-Mom74 I know that, as far as the beer thing some company is being sued for deluding the product

    Yes and the lawyer doing the class action has never even had any samples tested. An independent company did some random testing and all tests showed the alcohol level to be accurate. He still thinks he can win. The goal of class action suits are to create wealth for the lawyer, while giving the "victims on the claim pennies. It is a big scam.
    Carpy

    Answer by Carpy at 1:25 PM on Mar. 3, 2013

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