Wednesday, July 17, 2013

Is your engine at risk? How ethanol threatens the gas industry

New legislation requiring a minimum amount of ethanol to be blended with gasoline is causing quite a stir amongst the United States gas industry. By 2022, they’ll be mixing approximately 36 billion gallons of ethanol with their standard gasoline.

Is this a savvy consumption cutting maneuver? Or is it simply placing a bandage over a wound without washing it out first? We all know what happens when a wound gets infected…

A tough economy is forcing Americans to cut down on their daily driving. Last year, Americans drove 93 billion miles less than in 2007. This, combined with greater fuel-efficiency standards in newer vehicles, contributed to an 8 billion gallon decline in gas consumption – not an easy hit for the industry to absorb.

In the near future, all gasoline sold in the U.S. will contain at least 10% ethanol.

“Who cares?” you ask.

Well, most cars sold today feature engines with warranties that don’t extend to ethanol concentrations that high. Basically, a lot of angry motorists are going to be wondering why they have to lug their vehicles in for regular monthly maintenance, NONE of which is covered.

The Environmental Protection Agency waived restrictions in 2012 that allowed refineries to begin increasing the amount of ethanol being mixed into the gasoline - from 10% to 15%  - despite concerns raised from auto manufacturers. Raising the ethanol content of gasoline any further could decrease fuel efficiency by as much as 30%!

Gasoline with high ethanol content can also cause severe damage to your vehicle’s engine. Four years ago, Lexus was forced to recall vehicles with model years between 2006 and 2008 after reports that ethanol-blended gasoline was corroding their fuel injection lines.

Ethanol is considered the poster-child of government intervention gone awry. Originally intended as a means of reducing harmful emissions, new studies suggest that increased corn production and processing nullifies any potential carbon reductions.

Nowadays, roughly 40% of U.S. corn is used to produce ethanol rather than food. This has created a spike in food prices both domestically and abroad. In some countries, like Egypt and Brazil, rising food costs have led to civil protest.

All in all, ethanol has proven why government intervention in the development of new energy is futile, and more often than not, destructive. Instead of continuing to fight a losing battle, the U.S. needs to admit defeat, repeal the legislation calling for increased ethanol content, and allow the free market to dictate energy policy.

By allowing companies like NRGLab to develop and create innovative energy alternatives, we can ensure the future is brimming with fresh ideas, new perspectives, and the best possible intentions.


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