SUBSCRIBER NOTE: Platts to launch USGC Bakken assessments, redefine Williston basis

Houston (Platts)--23Jul2018/859 am EDT/1259 GMT

S&P Global Platts has decided to launch two new daily price assessments for Bakken crude oil on the US Gulf Coast, and rename and further define its existing Bakken assessments, with effect from August 1, 2018.

Platts originally published a subscriber note May 25, proposing to launch new Bakken assessments at Patoka, Illinois, and on the US Gulf Coast, as well as further define its existing Bakken assessment in North Dakota. This was initially proposed for a launch July 17.

Platts currently assesses the value of Bakken crude at three locations: close to the wellhead at North Dakota terminals with the operational capability to move crude by rail or pipeline; injected at Guernsey, Wyoming; and injected at Clearbrook, Minnesota.

NEW BAKKEN FOB USGC ASSESSMENT: Platts has decided to launch a daily price assessment for Bakken FOB USGC from August 1. This assessment will reflect an Aframax-sized cargo, which is typically about 600,000 barrels, loading 15-45 days forward. For example, on August 1, Platts will assess Bakken FOB USGC cargoes loading August 16-September 15. This change would align with the revised FOB USGC Eagle Ford crude and condensate and WTI assessments.

The new Bakken FOB USGC assessment will be published as an outright price (ABAKC00) as well as a differential versus a 15-45 day NYMEX WTI Light Sweet Crude Oil futures strip (ABAKD00). Platts would publish bids, offers and trades for Bakken FOB USGC cargoes during the Market on Close assessment process, with clearly stated locations and dates.

NEW BAKKEN USGC PIPE ASSESSMENT: Platts will also launch a new daily pipeline assessment for Bakken crude on the US Gulf Coast. This will reflect the value of Bakken crude in pipe at the Nederland and Beaumont terminals in Texas, where Bakken crude is actively traded.

The new Bakken USGC pipe assessment will be published as an outright price (ABAKA00) and as a differential to the corresponding NYMEX WTI Light Sweet Crude Oil futures calendar month average (ABAKB00). It will follow the roll calendar of the existing Bakken pipeline assessments i.e. it will roll to the next front month on the date pipeline nominations are due. Platts follows the nomination schedule published by the Crude Oil Logistics Committee on its website for its Bakken pipeline assessments.

RENAME AND REDEFINE NORTH DAKOTA ASSESSMENT: The Dakota Access Pipeline (DAPL)and Energy Transfer Crude Oil Pipeline (ETCOP) projects that have come online recently have led to differences in the price for Bakken crude in the Williston Basin, depending on location. Therefore, from August 1, Platts will rename and redefine its Bakken assessment near the wellhead in North Dakota as a Bakken Williston assessment reflecting barrels for DAPL injection. This will continue to be published as an outright price as well as a differential versus the corresponding NYMEX WTI Light Sweet Crude Oil futures calendar month average.

In addition, Platts will standardize the names of its existing Bakken assessments across all publications, on Platts Global Alert and in the Platts price database, from August 1.

The names of the existing assessments will be standardized to:

ASSESSMENT NAME CODE Bakken Williston AAXPP00 Bakken Williston vs NYMEX WTI CMA AASRX00 Bakken Guernsey AASRR00 Bakken Guernsey vs NYMEX WTI CMA AASRV00 Bakken Clearbrook AASRU00 Bakken Clearbrook vs NYMEX WTI CMA AASRW00

In the May 25 subscriber note, Platts had originally proposed launching a daily price assessment for Bakken at Patoka, Illinois. Following feedback and market observation, Platts has decided not to launch a Bakken assessment in Patoka, but will continue to monitor market activity and publish price indications when received.

The Platts Bakken assessments appear on Platts Global Alert pages 210, 214 and 260; in the Crude Oil Marketwire, North American Crude & Products Scan, and Oilgram Price Report publications; as well as in the Platts price database.

Please send any further questions or comments to americas_crude@spglobal.com and pricegroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.