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http://swiftcraftymonkey.blogspot.com/2010/08/esters-peg-or-polyethylene-glycol.html PEG stands for polyethylene glycols or ethylene glycols, which are esters that have undergone a reaction with polyethylene glycol to create an ester that is water soluble and might behave as an emulsifier. This process is called ethoxylation and is an industrial process in which ethylene oxide is added to a fatty acid or fatty acid alcohol, and in the end non-ionic surfactants are produced. (Remember that surfactants are not necessarily foamy or lathery - there are many categories.) Surfactants have a hydrophilic (water loving) head and a lipophilic (oil loving) tail, which means they can help emulsify themselves

or other oil based ingredients we might want to include in our water based products.

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