Study Finds Large Variability in Carbon Intensity of Crude Oil Supply Chains, Enabling Emissions Reductions Through Market Mechanisms

Petroleum fuels account for 32% of global energy but their production and transport accounts for ~1.9 Gt/year of CO2 emissions. There is heterogeneity in the carbon intensity (CI) of different crude oil supply chains.
This study does a high-resolution life cycle assessment, tracing crude oil from individual fields through blending and transport to refineries. It finds CI ranging from 0.74 - 39.41 gCO2/MJ with an average of 9.01 gCO2/MJ.
There is significant variability in CI between blends and between transportation routes. Tracking to refineries shows wide variability from 8.84 - 86.39 kgCO2/bbl.
The granularity of the analysis can enable policies to differentiate crudes based on CI, incentivizing low-carbon crude production and transport. Modeling shows this could reduce emissions by 1.5-6.1 Gt through 2050.
Improved emissions data reporting and integration with models like this can enhance accuracy. Market mechanisms using CI can shift crude pricing and supply curves to cut emissions beyond process improvements.

Petroleum fuels account for 32% of global energy but their production and transport accounts for ~1.9 Gt/year of CO2 emissions. There is heterogeneity in the carbon intensity (CI) of different crude oil supply chains.
This study does a high-resolution life cycle assessment, tracing crude oil from individual fields through blending and transport to refineries. It finds CI ranging from 0.74 - 39.41 gCO2/MJ with an average of 9.01 gCO2/MJ.
There is significant variability in CI between blends and between transportation routes. Tracking to refineries shows wide variability from 8.84 - 86.39 kgCO2/bbl.
The granularity of the analysis can enable policies to differentiate crudes based on CI, incentivizing low-carbon crude production and transport. Modeling shows this could reduce emissions by 1.5-6.1 Gt through 2050.
Improved emissions data reporting and integration with models like this can enhance accuracy. Market mechanisms using CI can shift crude pricing and supply curves to cut emissions beyond process improvements.