My blog is based on a short article I read in the wall street journal. Although it does not have a lot of information I think it addresses an important movement in the oil and gas industry. According to this article the EPA(Environmental Protection Agency) recently approved an increase in the ethanol level in gasoline for news cars(those manufactured after the year 2007). It will, from now on, allow ethanol to make up about 15% of fuel mixture (a 5% increase from before). In addition, the EPA has also issued a “labeling program” where gasoline stations are expected to label the amount of ethanol included in the fuel they provide and a list of automobiles for which the fuel is approved for. This new decision has caused a lot of confusion and doubt among auto makers, many equipment makers and the petroleum industry. Many who oppose this decision feel that the “EPA [should] postpone [their] decision until more testing [is] done." However, the director of EPA’s clean-air agency believes that sufficient amount of testing has been done for the increase of ethanol in fuel to be approved.
I was a little skeptical at first but now I am starting to think that it is a good decision. For example, using more ethanol may lower the cost of fuel, increase income for farmers that produce corn, reduce harmful emissions, and possibly create more jobs.
The only problem, in my opinion, is that E85(fuel with 15% ethanol) cannot to be used with existing engines- they have to somewhat be modified (which is why many automaker have issues with this decision). I think the government should offer these automobile production companies with greater incentives so they can make engines that is compatible with increase level of ethanol in the fuel.
http://online.wsj.com/article/SB10001424052748703673604575550261503126190.html?mod=WSJ_Energy_leftHeadlines
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