Seven Core Crude Oil Grades to Help Purchasers
Measure Cost of Emissions Offsets
NEW
YORK and LONDON , July 17,
2023 /PRNewswire/ -- S&P Global Commodity
Insights, the leading independent provider of information and
benchmark prices for the commodity, energy and energy transition
markets, has launched carbon intensity measures for seven Middle
Eastern crude oil grades, including Dubai, Oman Blend, Al-Shaheen, Upper
Zakum, and Murban – the five grades deliverable into the Platts
Dubai benchmark –
together with Arab Light and Das Blend. This makes Platts
Dubai and Platts Oman
the first global medium-sour crude benchmarks to have a carbon
intensity value associated with all their component grades.
This follows the June 16, 2022,
S&P Global Commodity Insights first-to-publish launch
of carbon intensity measures for all of the crude grades in
the global light sweet benchmark Platts Dated Brent.
S&P Global Commodity Insights carbon intensity calculations
measure the impact of greenhouse gas emissions from initial
extraction and production to the storage terminal and are designed
to reflect the value of upstream-production carbon intensity for a
specific crude grade coming from an oil field. They 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.
Joel Hanley, Global Head of
Crude Oil & Fuel Oil Markets, S&P Global Commodity
Insights, said: "This expansion in carbon intensity values
to the Dubai and
Oman benchmarks, following the
2022 launch of the Dated Brent carbon intensity measures, is
particularly important given Dubai's position as a global bellwether
for other similar grades."
The carbon intensity for the crude grades is the
production-weighted carbon intensity from the fields that feed each
grade and is published in kilogram-per-CO2-equivalent per barrel of
oil (kgCO2e/b). These values are updated on the 15th of
each month, or the following publishing day if the 15th
falls on a non-publishing day. An associated daily carbon intensity
differential reflects the cost of offsetting emissions in the crude
oil supply chains.
Kevin Birn, Global Head of
Center of Emissions Excellence, S&P Global Commodity Insights,
said: "As companies aim to understand, reduce, and/or
offset emissions, having a crude-grade carbon intensity
measure is the next step in the supply chain for downstream
purchasers of crude."
S&P Global Commodity Insights believes taking a bottom-up
view of the carbon intensity and understanding the carbon price and
the cost to offset the emissions will help purchasers of crude
grades understand the potential cost of emissions in their
respective supply chains.
In association to these carbon intensity measures, Platts, part
of S&P Global Commodity Insights, will publish daily
carbon-accounted price differentials for each of the seven Middle
Eastern crude oil grades. Given that the marketplace would be
expected to pay more for a carbon-accounted crude oil than a
non-carbon-accounted crude, the differentials are expected to be
price premiums. These will build on the suite of carbon-associated
price premiums for Platts Dated Brent and the October
2021-launched, S&P Global Commodity Insights field-by-field oil
carbon intensity measures and associated price premiums
assessments, which now include well over 100 oil fields.
Platts Carbon Intensity Premiums for the crude grades are
calculated in $/b, with the value of the CI 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).
Emissions generated during the exploration and drilling stages
are currently not included as part of the S&P Global Commodity
Insights CI measures for Middle Eastern crude oils. Proprietary
research and analysis is used to calculate results, with the Oil
Production Greenhouse Gas Emissions Estimator (OPGEE) 2.0 model as
the foundation.
Media Contacts:
Americas: Kathleen
Tanzy + 1 917-331-4607, kathleen.tanzy@spglobal.com
EMEA: Paul Sandell + 44 (0)7816 180039,
paul.sandell@spglobal.com
Asia and India: Melissa
Tan
+ 65-6597-6241, melissa.tan@spglobal.com
S&P Global Commodity Insights
At S&P
Global Commodity Insights, our complete view of global energy and
commodity 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 commodity
markets, our coverage includes oil and gas, power, chemicals,
metals, agriculture, shipping and energy transition. Platts®
products and services, including the most significant benchmark
price assessments in the physical commodity markets, are offered
through S&P Global Commodity Insights.
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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/sp-global-commodity-insights-first-to-assess-carbon-intensity-of-crudes-forming-dubai-and-oman-benchmarks-and-other-middle-eastern-grades-301878157.html
SOURCE S&P Global Commodity Insights