Awareness of carbon intensity values – while working in tandem with carbon markets, both voluntary and compliance-based, will accelerate investments into projects that will reduce or avoid greenhouse gas emissions for the future." By launching carbon intensity values and price premiums, Platts is bringing much needed transparency into the market. In order for the world to meet ambitious emissions reduction targets, a premium value needs to be associated with the lowest carbon intensity oil and gas assets as these fossil fuels continue to play a role in the overall energy mix. In turn, crudes that are produced with a higher volume of GHG emissions have a higher carbon intensity. Hence high CI crudes will carry a greater carbon intensity premium and require a greater volume of voluntary carbon credits to offset emissions than crudes with a lower CI.ĭeb Ryan, Head of Low Carbon Market Analytics at S&P Global Platts, said: "Oil and gas will remain part of the energy mix for decades to come. Oil produced with a lower amount of GHG emissions has a lower carbon intensity than crudes produced with higher emissions. Calculating the carbon intensity of different commodities has become one of the ways the market has started to measure greenhouse gas (GHG) emissions from specific types of production. Increased scrutiny of the upstream carbon intensity associated with the production of fossil fuels has led to investors, consumers and producers looking to reduce their carbon footprint or emissions, which has resulted in a growing demand for "low-carbon crude". The marginal carbon intensity (CI) calculations for different oil fields will help producers, investors, shareholders and downstream purchasers better understand the emission attributes of the crude where over time the carbon intensity of the production process can become its own attribute of the crude itself, like the density of the crude and how much sulfur is included. 26, 2021 /PRNewswire/ - S&P Global Platts (Platts), the leading independent provider of information, analytics and benchmark prices for the commodities and energy markets, today announced that commencing October 1 st, it will launch the first ever daily carbon offset premiums alongside monthly carbon intensity calculations for 14 major crude fields around the world. By combining energy storage solutions with lower carbon fuel sources, we can lower the overall carbon intensity of our products.SINGAPORE and LONDON and NEW YORK, Sept.
These types of efforts can reduce the direct and indirect emissions associated with our operations and lower the overall life cycle carbon intensity of our products.Įnergy storage is an important component to help address intermittency with renewable generation. We are increasing the use of renewables in a number of our products with the aim of reducing life cycle emissions, as well as working to provide verified, low-cost, high-quality offsets to our customers around the world in an effort to help them achieve their own lower carbon goals.īy sourcing more electricity from renewable sources, such as our 65 megawatt wind-power purchase agreement in the Permian Basin, we are switching to a lower carbon fuel source and working toward optimizing between purchased and self-generated power. We invest in wind and solar projects that have the greatest ability to cost-efficiently lower carbon emissions. Our strategy to deploy mature, renewable power generation solutions is focused and selective. Aggregated at a corporate level, such projects contribute significant reduction opportunities. Energy management emissions associated with our own energy use make up about 70% of our Scope 1 and Scope 2 emissions, which is why energy management is a key focus area for driving down emissions intensity.