The internal combustion engine, especially the gasoline type, is not very efficient. The exhaust gases leaving the cylinder on the exhaust stroke are still very hot, and therefore take a lot of heat with them. In a car this is just rejected to the atmosphere via the exhaust system. In addition the engine must be cooled to avoid damage to the cylinder head and block, and this loses heat via the car's radiator to the atmosphere.
Heat (from friction)
Heat energy is mostly produced - and wasted.
It is not. Gasoline is not energy. Rather, it HAS energy.If gasoline is burned or otherwise combines with oxygen, energy is released. This type of energy (related to how atoms are connected with one another) is called "chemical energy".
Chemical Energy into Mechanical Energy
The chemical energy is stored in the fuel, ie gasoline or diesel, and released when it is burned in the engine.
The chemical energy becomes heat energy when the gasoline is burned. Oxidation releases chemical energy stored in the carbon-carbon bonds of fossil fuels and in the diatomic bonds of O2.
The energy that is contained in a consumable fuel (like gasoline) is chemical energy. The energy that it is converted into when it is burned is heat energy.
heat energy
gasoline is matter, it is burned to create energy
A battery stores chemical energy which can be converted to electrical energy on demand. Any fuel (gasoline, wood,fuel oil, etc) stores chemical energy which is released as heat when burned.
The energy released from gasoline when it is used in a gasoline engine is chemical energy.
The chemical energy (the fuel) turns into kinetic energy (the car moving) and heat energy(given off by burning fuel).