Nov 08, 2021
S&P Global Platts will begin publishing monthly carbon intensity calculations and daily carbon offset premium assessments for 70 additional crude oil fields, effective Nov. 15, 2021.
The new assessments will be added to the list of Platts existing carbon intensity calculations, bringing the initial total of 14 to 84.
Platts started publishing monthly calculations of crude oil field carbon intensity in kilograms of carbon dioxide equivalent per barrel of oil equivalent (kgCO2e/boe); monthly calculations of transportation carbon intensity along one relevant route per crude in kilograms of carbon dioxide equivalent per barrel (KgCO2e/b); and daily offset premium assessments in $/b for both using the daily Platts Carbon Removal Credit (CRC) voluntary carbon credit assessment on Oct 1.
The launch note is available here: Platts launches monthly carbon intensity calculations, daily carbon offset premium assessments for 14 different crude fields | S&P Global Platts (spglobal.com)
Measuring the Carbon Intensity (CI) of different commodities has become one of the ways the market has started to calculate the greenhouse gas emissions from specific types of production.
While CI is currently being used by the market as a way to determine the volume of carbon credits needed to offset the GHG emissions of specific activities, CI has the capacity to eventually act as an attribute for specific commodities.
The Platts Carbon Intensity methodology is designed to reflect the value of upstream production for a specific crude grade, which reflects CI in its value.
The methodology guide for Platts upstream carbon intensity, midstream carbon intensity, and carbon offset premiums is available here: Specifications Guide Carbon Intensity Assessments | S&P Global Platts (spglobal.com)
As per the original 14 crude fields, the CI of these 70 new fields will be calculated using Stanford’s Oil Production Greenhouse Gas Emissions Estimator (OPGEE) 2.0 model, combined with proprietary research and data from Platts Analytics.
Platts carbon intensity premiums for both the upstream and midstream calculations which reflect the cost to offset the emissions from each of the crudes, in addition to a separate premium reflecting the offsetting cost for each specific transportation route.
Crude streams and different transportation routes have a variety of carbon intensities depending on where the crude comes from and the distance to the refinery.
Depending on the carbon intensity of each crude and carbon intensity of the route, the calculation is a $/b indication of how much it would cost to use the carbon removal credit to offset the associated GHG emissions from the production of the crude as well as the route in question.
These new assessments will be available in Crude Oil Marketwire; as well as in Platts Dimensions Pro and in the Platts Pricing database under the following codes:
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