S&P Global Commodity Insights updates Crude Carbon Intensity Methodology

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

Platts, part of S&P Global Commodity Insights, publishes these monthly carbon intensity values for 41 crude grades and uses the 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 reallocates missions to natural gas where it is produced as a co-product to crude. The previous methodology assigned all emissions to oil production. As a result, for fields that co-produce a large amount of natural gas, the kgCO2e/bbl value will be lower than where it would have been according to the previous methodology.

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

To exemplify this change:

Troll Grade Marginal Carbon Intensity monthly calculation, which was assessed by S&P Global Commodity Insights at 280.64 kg CO2e/bbl for July, would have been assessed at 20.30 kgCO2e/bbl under 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/barrel using the current methodology to 23.3 cents/b under the new carbon intensity methodology.

This and other examples can be found below:

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

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