Platts to launch carbon offset premiums for 14 major crude oil fields from Oct 1

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SINGAPORE — Carbon emissions launched

through the course of of manufacturing crude oil from Canada’s Chilly

Lake, Iraq’s Kirkuk and the U.S. Bakken shale fields will value

producers essentially the most to offset, mentioned world commodities company S&P

International Platts, forward of the launch of recent carbon

pricing devices from Oct. 1.

Platts will launch carbon offset premiums on Oct. 1

alongside month-to-month carbon depth calculations for 14 main

crude fields in Saudi Arabia, Iraq, Norway and the Americas, the

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company mentioned in a press release forward of the Platts APPEC 2021

convention.

These devices are aimed toward assembly rising demand for

low-carbon crude provides amid growing scrutiny on greenhouse

gasoline emissions in oil manufacturing processes, it mentioned.

Platts’ transfer comes after producers like Occidental

and Lundin Vitality bought so-called 100%-carbon impartial

crude utilizing carbon credit score offsets earlier this 12 months.

Final week, Asia’s largest refiner, Sinopec Corp,

additionally used carbon credit for the primary time to completely offset

emissions from a 30,000-tonne Angolan crude cargo shipped to its

refinery for processing.

“Oil and gasoline will stay a part of the power combine for many years

to return,” mentioned Deb Ryan, Platts’ head of low carbon market

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analytics.

“To ensure that the world to fulfill formidable emissions

discount targets, a premium worth must be related to

the bottom carbon-intensity oil and gasoline belongings.”

Platts’ month-to-month carbon depth calculates greenhouse gasoline

emissions from effectively manufacturing to the storage terminal and takes

into consideration the API gravity and sulfur content material for a particular

crude grade coming from an oil discipline.

The calculation, in kilograms of carbon dioxide equal

per barrel of oil equal, at present excludes emissions

through the exploration and drilling course of.

Platts may also publish month-to-month assessments of

transportation carbon depth alongside one related route per

supply of crude.

The day by day carbon depth premium evaluation is the premium

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{that a} purchaser would pay to offset the greenhouse gasoline emissions

generated via the manufacturing of every kind of crude. That is

calculated utilizing the day by day Platts Carbon Elimination Credit score

evaluation, the company mentioned.

For instance, crude oil produced from Canada’s Chilly Lake and

Iraq’s Kirkuk are ranked No. 1 and No. 2, respectively, for

having the very best carbon depth among the many 14 fields.

Norway’s Johan Svendrup and Ekofisk have the bottom, Platts’

evaluation in July confirmed.

It’s going to value producers of Chilly Lake crude $1.637 per barrel

of oil equal (boe) to offset greenhouse gasoline emissions in a

$20 carbon worth surroundings, and about $4 a barrel per boe for

a $50 carbon worth.

“Calculating carbon depth (CI) for oil fields permits a

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better understanding of the respective carbon footprint, which

permits market individuals to deal with using the bottom

carbon belongings,” Paula VanLaningham, world head of carbon at

Platts mentioned.

Crude Grade July Sulphu API CI CI

marginal r % Premium Premium

upstream CI $20 $50

(kgCO2eq/bo carbon in carbon in

e) $/boe $/boe

Center East Fields

Kirkuk (Iraq) 58.84 2.24 36 1.177 2.942

Ghawar (Saudi 18.16 1.96 34 0.363 0.908

Arabia)

Africa Fields

Girassol 14.86 0.34 32 0.297 0.743

(Angola)

Europe Fields

Tengiz 19.26 0.51 46.4 0.385 0.963

(Kazakhstan)

Johan Sverdrup 3.73 0.81 28 0.075 0.187

(Norway)

Ekofisk 11.18 0.21 38.4 0.224 0.559

(Norway)

North American Fields

Chilly Lake 81.87 3.5 20.73 1.637 4.094

(Canada)

Bakken (US) 30.86 0.07 42.24 0.617 1.543

Eagle Ford (US) 17.55 0.1 45.74 0.351 0.878

Mars-Ursa (US) 14.78 1.92 28.8 0.296 0.739

Permian 17.36 0.05 44.67 0.347 0.868

Delaware (US)

Permian Midland 19.97 0.04 39.37 0.399 0.999

(US)

Latin America Fields

Tupi (Brazil) 24.69 0.36 28 0.494 1.235

Cantarell 18.37 3.27 22 0.367 0.919

(Mexico)

Supply: S&P International Platts

(Reporting by Florence Tan; Enhancing by Kenneth Maxwell)