Platts launches additional carbon intensity calculations, carbon offset premiums

Platts, part of S&P Global Commodity Insights, has launched monthly carbon intensity calculations and daily carbon offset premium assessments for 13 additional crude oil fields, eight crude grades and 13 transportation routes, effective July 14, 2023.

Platts proposed to add these new assessments and calculations on June 1, which can be found here.

The decision to launch these new assessments and calculations was published on June 16 in a note found here.

These new values will be added to the list of Platts existing carbon intensity calculations, bringing the current total number of fields to 139, up from 126, and increasing transparency on carbon intensities in the global crude market.

The new fields include:

• Falah
• Rashid
• Upper Zakum
• Lower Zakum
• Al-Shaheen
• Oman Basin
• Hassi Messaoud
• Khurais
• Abu Hadriya
• Umm Shaif
• Nasr
• El Bunduq
• Abu Al Bukhoosh

The new crude grades include:

• Dubai Grade
• Oman Grade
• Al-Shaheen Grade
• Upper Zakum Grade
• Das Blend Grade
• Arab Light Grade
• Saharan Blend Grade
• Murban Grade

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.

In line with the methodology for the current carbon intensity scores of the 126 crude fields that Platts publishes, the carbon intensity of these 13 new field will 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 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 carbon removal credits to offset associated GHG emissions from the production of the crude, as well as the route in question.

The 13 new routes include:

• Falah to Kiire
• Rashid to Kiire
• Upper Zakum to Zhoushan
• Lower Zakum to Sikka
• Al-Shaheen to Singapore
• Oman Basin to Tranmere
• Hassi Messaoud to Tranmere
• Khurais to Ain Sukhna
• Abu Hadriya to Ain Sukhna
• Umm Shaif to Sikka
• Nasr to Sikka
• El Bunduq to Sikka
• Abu Al Bukhoosh to Sikka

Please send any further feedback to Platts_Carbon@spglobal.com and pricegroup@spglobal.com.

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