Fuel Options
In today's society, it's important to weigh the costs and options for fuel. With oil prices on the rise and environmentalists concerned about the impact of global warming, we need to be aware of the different options that are available to us and the multitude of affects that different fuels could have on the economy and the environment.
According to the Environmental Protection Agency (EPA) there are five different types of fuel programs and regulations (Fuels and Fuel Additives, 2010). These consist of gasoline, diesel fuels, E15, renewable fuels, and alternative/clean fuels.
Gasoline is the most common type of fuel, and over the last 20 years, the U.S. has seen a decline in energy prices (Basic Information, 2007). Since the U.S. saw such cheap gasoline prices, the excitement for vehicles that were larger and more powerful grew. The demand for less fuel-efficient vehicles increased the demand for gasoline, but Refiners chose not to build new refineries in the U.S. Now, it comes down to a balance of supply and demand, which has led the price of gasoline to increase. In 2004, gasoline prices reached the highest level in two decades (Basic Information, 2007).
Gasoline is largely made of crude oil, which is the biggest contributor to the cost (aside from taxes). Even with an increase in cost, the demand for gasoline is still high. The amount that people travel in the U.S. is up and continues to increase faster than the population growth (Basic Information, 2007).
Diesel fuel is very similar to gasoline as it's created from crude oil. It powers vehicles that are equipped with diesel engines. It is generally made from petroleum, although there is an increase in the use of alternatives. Most of the diesel fuel in the U.S. is called ultra-low sulfur diesel (ULSD) and contains lower sulfur amounts. The price of diesel fluctuates year round as the demand for heating oil increases over the winter months. Heating oil is created in a very similar fashion as diesel (Fuels and Fuel Additives, 2010). Gasoline and diesel are non-renewable sources of fuel.
The fuel type known as E15 is a combination of gasoline and ethanol (which is an alcohol derived from corn [Iowa Corn -- Ethanol, 2008]). The special blend results in a fuel that is cleaner burning that gasoline alone. it's called E15 because it's generally mixed with 15% ethanol, but there is also E10, which is mixed at 10% ethanol. The downside to E15 is that it can only be used by some vehicles manufactured after 2007 (AFDC Ethanol, 2009) and that it's not as widely available as standard gasoline. E15 fuel is considered to be an alternative fuel source.
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