Platts proposes additional carbon intensity calculations, carbon offset premiums

Platts, part of S&P Global Commodity Insights, proposes to launch monthly carbon intensity calculations and daily carbon offset premium assessments for 23 additional crude oil fields, 27 crude grades and 23 transportation routes in Latin America and North America, effective April 15, 2024.

These new values would be added to the list of Platts' existing carbon intensity calculations, bringing the current total number of fields to 162, up from 139, and increasing transparency on carbon intensities in the global crude market.

Please refer to the Carbon Intensity Assessments Specifications Guide for a complete list of existing grades, fields, and transport routes: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/oil/carbon-intensity-assessments(opens in a new tab)

The proposed new fields include:

-El Medanito

-Canadon Seco

-Escalante

-Jubarte

-Roncador

-Cupiagua

-Rubiales

-Castilla (norte, este)

-Varadero

-Shushufindi-Aguarico

-Cuyabeno

-Ishpingo

-Jivino-Napo

-Liza 1

-Payara

-Xux

-Tsimin

-Abkatun

-Chuc

-Pol

-Galeota (Trintes)

-Santa Barbara

-Liza 2

The proposed new crude grades include:

-Medanito

-Canadon Seco

-Escalante

-Jubarte

-Roncador Heavy

-Vasconia

-Rubiales

-Castilla Blend

-Cuban Heavy

-Oriente

-Napo

-Liza

-Payara

-Unity Gold

-Olmeca

-Istmo

-Maya

-Galoeta Mix

-Merey 16

-Tupi

-Alaskan North Slope

-Eagle Ford

-Bakken

-West Texas Intermediate (MEH)

-West Texas Intermediate (Cushing)

-Wyoming Sweet

-Mixed Sweet Blend

Platts upstream crude carbon intensity calculations measure the impact of greenhouse gas emissions in the production lifecycle from production to storage terminal. The methodology guide for Platts upstream carbon intensity, midstream carbon intensity, and carbon offset premiums is available here: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/oil/carbon-intensity-assessments(opens in a new tab)

In line with the current methodology for carbon intensity scores that Platts publishes, the CI of these 23 new fields would be calculated using Stanford's Oil Production Greenhouse Gas Emissions Estimator (OPGEE) 2.0 model, combined with proprietary research and data from S&P Global.

Platts carbon intensity premiums for both the upstream and midstream calculations 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 $/bbl indication of how much it would cost to use the carbon removal credits to offset associated GHG emissions from the production of the crude as well as the route in question.

The proposed new routes include:

-El Medanito (Bahia Blanca) to Cherry Point

-Canadon Seco (Comodoro Rivadavia) to Long Beach

-Escalante (Comodoro Rivadavia) to Long Beach

-Jubarte (Madre de Deus) to Singapore

-Roncador (Madre de Deus) to Galveston

-Cupiagua (Covenas Terminal) to Sikka

-Rubiales (Covenas Terminal) to Jieyang

-Castilla (norte, este) (Covenas Terminal) to Jieyang

-Varadero (Mariel) to Antwerp

-Shushufindi-Aguarico (Balao) to Galveston

-Cuyabeno (Balao) to Houston

-Ishpingo (Balao) to Panama Canal

-Jivino-Napo (Balao) to Panama Canal

-Liza (FPSO Liza Destiny) to Rotterdam

-Payara (FPSO Prosperity) to Chiriqui Grande Terminal

-Xux (Dos Bocas) to Milazzo Anchorages

-Tsimin (Dos Bocas) to Corpus Christi

-Abkatun (Mexico STS) to Daesan

-Chuc (Coatzacoalcos) to Cartagena

-Pol (Mexico STS) to Yokkaichi

-Galeota-Trintes (Galeota Point) to Callao

-Santa Barbara (Jose Terminal) to Singapore

-Liza 2 (FPSO Liza Unity) to Chiriqui Grande Terminal

Please send any feedback to Platts_Carbon@spglobal.com and pricegroup@spglobal.com by March 18, 2024.

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