Oil and water not mixing but excessive water is dripping and steaming from the exhaust pipe while running
Water coming from a exhaust is normal. The newer the car, the more emission control it has at protecting the environment and the more water you will see.
Remember that the combustion of hydrocarbon fuel produces both carbon
dioxide AND water vapor as a normal part of the process. All gasoline
engines produce water vapor and all water vapor condenses if the exhaust
pipe is cool.
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