Sid, you need a course in basic chemistry. Carbon and oxygen aren't produced, they're merely combined in different configurations. It's impossible to manufacture atoms of any element from nothing. Elements cannot just suddenly appear, they're all there all the time in a different form. The fuel is converted from a liquid to a gas, and the carbon and hydrogen in it are recombined with the oxygen in the air. The only thing that changes is the temperature, which changes the pressure, which is the cause of the water rising in your previous example.