Six Popularly Traded Crude Oil Grades to Help
Purchasers Measure Cost of Emissions Offsets
NEW
YORK, June 16, 2022 /PRNewswire/ -- S&P
Global Commodity Insights, the leading independent provider of
information and benchmark prices for the commodity and energy
markets, has launched the oil industry's first carbon intensity
measures for all six crude grades forming the global Brent
benchmark, including Dated Brent and BFOE (Brent, Forties, Oseberg,
Ekofisk, plus Troll and WTI Midland1). The carbon
intensity for these grades will be published in
kilogram-per-CO2-equivalent per barrel (kgCO2eq/b) and makes Brent
the first carbon-measured global benchmark allowing purchasers of
crude grades to evaluate the cost of emission offsets in their
supply chains.
Platts, part of S&P Global Commodity Insights, will publish
daily the carbon-associated price premiums of Brent, Forties,
Oseberg, Ekofisk, Troll and WTI Midland. These will build on
the October-2021-launched, S&P Global Commodity Insights
field-by-field oil carbon intensity measures and associated price
premiums assessments. Over 100 oil fields are now covered,
including those that underpin the six crude grades of the benchmark
Brent complex.
Deb Ryan, Head of Low Carbon
Commodities, S&P Global Commodity Insights, said: "By
adding these six grades that form the global Brent benchmark, the
industry now has not only its oil benchmark, but a carbon intensity
measure as well. Carbon intensity measures are currently used by
the industry to offset emissions, but over time is expected to
become an attribute of the traded commodity, like API viscosity and
sulfur standards for oils."
As companies look to offset and/or understand the emissions from
all their activities, having a crude-grade carbon intensity measure
is the next step in the supply chain for downstream purchasers of
crude.
Paula VanLaningham, Global
Head of Carbon Pricing at S&P Global Commodity Insights,
said: "By taking a bottoms-up view of the carbon intensity,
understanding the carbon price and the cost to offset the
emissions, purchasers of crude grades can now start to understand
the cost of emissions in their supply chain."
The S&P Global Commodity Insights upstream carbon intensity
calculations measure the impact of greenhouse gas emissions from
well production to the storage terminal and is designed to reflect
the value of upstream-production carbon intensity for a specific
crude grade coming from an oil field. The measures reflect the main
sources of emissions relevant to specific operations, including
production, flaring and venting, maintenance activities, production
processing and transport to the storage hub. Emissions
generated during the exploration and drilling stages are currently
not included as part of the S&P Global Commodity Insights
upstream carbon intensity calculation. Proprietary research and
analysis is used to calculate results, with the Oil Production
Greenhouse Gas Emissions Estimator (OPGEE) 2.0 model as the
foundation.
The carbon intensity for the crude grades is the
production-weighted carbon intensity from the fields that feed each
grade, and is evaluated in kgCO2eq/b. These values are updated on
the 15th of each month, or the following business day if
the 15th falls on a non-business day.
Platts Carbon Intensity Premiums for the crude grades are
calculated in $/b, with the value of the carbon intensity premium
calculated using the daily Platts Carbon Removal Credit Assessment
(Platts CRC). To learn more about the Platts CRC assessment please
visit: method_carbon_credits.pdf (spglobal.com)
Media Contacts (S&P Global Commodity
Insights)
Global/EMEA: Alex
Ortolani + 1 917-618-0709,
alex.ortolani@spglobal.com Asia: Melissa Tan + 65-6597-6241,
melissa.tan@spglobal.com Americas: Kathleen Tanzy + 1 917-331-4607,
kathleen.tanzy@spglobal.com
About S&P Global Commodity Insights
At S&P
Global Commodity Insights, our complete view of global energy and
commodities markets enables our customers to make decisions with
conviction and create long-term, sustainable value.
We're a trusted connector that brings together thought leaders,
market participants, governments, and regulators and we create
solutions that lead to progress. Vital to navigating commodities
markets, S&P Global Commodity Insights coverage includes oil
and gas, power, chemicals, metals, agriculture, shipping and energy
transition.
S&P Global Commodity Insights is a division of S&P
Global (NYSE: SPGI). S&P Global is the world's foremost
provider of credit ratings, benchmarks, analytics and workflow
solutions in the global capital, commodity and automotive markets.
With every one of our offerings, we help many of the world's
leading organizations navigate the economic landscape so they can
plan for tomorrow, today. For more information visit
https://www.spglobal.com/commodityinsights
1Platts, part of S&P Global Commodity Insights,
announced on June 8, 2022 that it
will reflect cargoes of WTI Midland crude oil in its Dated Brent,
Cash BFOE and all related assessments across the Brent complex with
effect from June 2023 cargo
deliveries.
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SOURCE S&P Global Commodity Insights