S&P Global Commodity Insights to update Crude Carbon Intensity Methodology

The S&P Global Commodity Insights analytics team will update its methodology for calculating crude carbon intensity values, effective Dec. 13, 2024.

Platts, part of Commodity Insights, publishes monthly carbon intensity values for 41 crude grades and utilizes information from the analytics team to calculate daily Crude Carbon Intensity Premiums.

The methodology changes will impact these premiums from Dec. 16, 2024.

The updated analytics methodology will reallocate emissions to natural gas where it is produced as a co-product to crude. The current methodology assigns all emissions to oil production. As a result, for fields that co-produce a large amount of gas, the kgCO2e/barrel value will reduce from what it would be reported according to the current methodology.

For fields that have nearly 100% oil production, there will be a minimal impact on what is currently reported.

For example, the Troll Grade Marginal Carbon Intensity monthly calculation, which Platts assessed at 280.64 kgCO2e/b for July, would have been assessed at 20.30 kgCO2e/b using the new methodology.

The updated methodology would lead to a change in the Troll CI Premium from Aug. 15, which would go from $3.227/b using the current methodology to 23.30 cents/b because of the change to the carbon intensity methodology.

This and other examples can be found below:

A full list of crude Carbon Intensity values and premiums published by Platts can be found in the Carbon Intensity Assessments Specifications Guide linked here.

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