North Sea’s latest crude oil stream is out of fashion, but still in demand: Fuel for Thought

Nov 26 13:11 2019 Print This Article

The razzle dazzle of US tight oil and new rules on marine fuels could have meant a chilly reception for the arrival of the North Sea’s Johan Sverdrup.

The medium sour crude grade could be the region’s last big production boost at a time when, especially in Europe, there has been a shift to cleaner, less-sulfurous fuels. But China, India and the US will likely welcome it with open arms.

While much of the talk of the onset of Johan Sverdrup has been around the resilience of the North Sea, with the first phase set to add 440,000 b/d by next summer and 660,000 b/d by 2023, the real story is the global appeal of the medium sour crude grade.

Johan Sverdrup has a density of 28 and sulfur level of 0.8%, which means it is of slightly inferior quality to UK’s Forties, the largest of the five grades that comprise the Dated Brent benchmark. Forties’ quality is 37.31 API gravity with a 0.54% sulfur content.

Read More

About Article Author

The Barrel

S&P Global Platts provides market insights so people can make more informed trading and business decisions.. They're the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to their expertise in news, pricing and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil and gas, power, petrochemicals, metals, agriculture and shipping. S&P Global Platts provides critical information for the commodities & energy markets to make physical commodity markets more transparent and efficient. S&P Global Platts blog, The Barrel, provides the essential perspective on global commodities.

Related Items

Agriculture markets eye normality as countries ease export restrictions

The global food supply chain, as well as demand for agricultural products, faces an unprecedented threat from the coronavirus pandemic. Livelihoods have been destroyed and economies dragged down, while prices of basic foodstuffs soared and countries imposed measures to limit exports and shore up do ...

Precipitate Gold $PRG.V $PREIF Adds Major Barrick Gold $GOLD as Shareholder

Precipitate Gold Corp. is a mineral exploration company focused on exploring and advancing its mineral property interests in the Pueblo Viejo Mining Camp and Tireo Gold Trend of the Dominican Republic. Precipitate is also actively evaluating additional high-impact property acquisitions with the pot ...

Biggest Gold Asset in S. America Got New CEO with Great M&A Record

During this quarantine I have been blessed to speak to some extremely successful entrepreneurs in the mining sector.  It has been during this pandemic crisis that opportunities arise for astute investors who can think quickly.   Many smart investors who left the mining sector to real estate, cann ...

Don’t write an obituary for shipping’s dirtiest fuel

High sulfur fuel oil, once the cheap staple diet of the shipping industry, has been usurped by an abundance of low-cost, premium quality bunker fuel. That’s led to seafarers freezing orders for equipment to remove the sulfur from HSFO and maximizing compliant fuels. But don’t write off shipping ...

Insight Conversation: Christopher LaFemina, Jefferies

Christopher LaFemina is managing director, global metals and mining equities research at Jefferies, a global investment bank and financial services company. He talked to Diana Kinch and Paul Hickin about metals market trends as the COVID-19 crisis gradually eases, and how the industry might develop ...

Commodity Tracker: 4 charts to watch this week

A recovery in Chinese independent refiners’ oil imports tops this week’s pick of trends in energy and raw materials markets. EU carbon markets, the relationship between US rig counts and tubular steel prices, and LNG supply to Europe are also on the agenda. 1. Saudi crude supply to Chinese ind ...

Gold About To Breakout $1800

It was 2008 and we were in the middle of the Great Financial Crisis.  At the time I was working as a math teacher with a small family.  I was already investing in junior gold miners for 10 years before I took the plunge to go full time into becoming a mining entrepreneur leaving a secured tenure ...