GM (NYSE:GM), Ford (NYSE:F) Joining Battle Against E15 Ethanol

With the potential to do extraordinary damage to vehicles and machinery, the obsession by some with forcing more ethanol on the American people is being opposed by a growing number of people and corporations, with GM (NYSE:GM) and Ford (NYSE:F) the latest to join the battle against increasing the ethanol mix in gasoline.

They know when vehicles they sell end up getting damaged from ethanol, it'll be them that have to pay to cost of fixing it, or possibly even being sued over it.

The increasingly destructive Environmental Protection Agency forced the mix of gasoline to go up from 10 percent to 15 percent in October, creating the parameters of limiting it to cars and trucks that are newer.

All that stands between destruction of a vehicle (assuming it is safe for new cars and trucks) is for someone to accidentally put it in a vehicle it's not made for.

The answer of the Environmental Protection Agency is to be sure the pumps are marked. Really! That's it. That's what stands in the way of consumers and the destructive E15 ethanol forced on American drivers.

At this time the guidelines offered by the EPA is that cars built in 2007 and later can use E15. The EPA is incredibly and reportedly going to waive cars built after 2001 as well.

Hopefully consumers will refuse this nonsense and continue using E10.

As for safety, even E10 is known to cause a tremendous amount of damage to just about every type of small engine and many older cars as well.

Lawmakers ignored or neglected the opportunity to end this farce when they voted to extend the tax cuts last week. Now we'll have to continue on with this menace until next time the issue is raised.

Exxon Mobil (NYSE:XOM) Blasts Ethanol and E15 Decision

Exxon Mobil’s vice president of government and public affairs, Ken Cohen, said on their website that the decision by the U.S. Environmental Protection Agency to approve the 15 percent ethanol blend, or E15, was a “a rush to
judgment.”

Ethanol at the E10 level has been devastating and costly to owners and users of small engine equipment like garden tillers, lawn mowers, boat motors, tools, motorcycles, and all types of other small engine equipment people and businesses used.

What a disaster when this completely irresponsible decision devastates the property of Americans even more and causes them even more hardship.

Who knows the usual unintended consequences that will come with the misguided decision for owners of cars as well. Only vehicles made in 2007 or later should use the blend, although we'll quickly find out if it damages the cars.

The incredibly naive and ignorant federal Renewable Fuel Standards would force ethanol to be used at a rate of 36 billion gallans by 2022. That could result in the blend being raised to as high as 25 percent. What a disaster that would be.

There is also the huge inputs involving corn-based ethanol, which is extremely hard on the environment.

Concerning ethanol use in general, Cohen concluded:

“Beyond the specific E15 issue, many observers have questioned government support of ethanol in general. They have seen that the federal government has provided substantial subsidies for ethanol fuel for more than 20 years, yet economic studies have concluded that the ethanol market could collapse without federal subsidies. Why? Observers and economists point to the fact that there are virtually no economies of scale associated with ethanol processing; production costs have not declined significantly over time; and ethanol production is a very mature technology.”

The bottom line though is the consumer has made the decision they don't want this junk. And maybe with a change in Washington these laws can be eliminated and the market decide what type of fuel we're willing to use.

Ethanol is a disaster and it should be dropped from being a part of our fuel strategy.