The Energy And Market Page, T+31 -- February 20, 2017

Platts overhauls Brent crude benchmark for first time in a decade, adds Troll field. Reuters.

• to address falling supplies of the crude oil grades underpinning the benchmark that prices most of the world's oil
• a decline in supply from North Sea fields has led to concerns that physical volumes could become too thin; could be accumulated in the hands of just a few plays; vulnerable to manipulation
• Platts will add Norway's Troll to the basket of four British and Norwegian crude grades which is already uses to assess dated Brent from January 1, 2018
• this will join Brent, Forties, Oseberg, Ekofisk, or BFOE as they are known
• Troll had the most support to be added
• Troll: a light, sweet crude; operated by Statoil (also contributes to the Oseberg, Statfjord, Gullfaks, Grane and Asgard streams)
• supply of the current four BFOE grades: 1 million bopd, just over 1% of world output

Oil rises, but swelling US output caps rally. Over at Reuters. Oilprice.com probably sees this as "fake news."

Deadline looms for DAPL protest camp. Over at Bloomberg. Formal eviction letter for a specific individual at this site; sent to me by a reader. Wow, it must have taken quite a bit of Sherlocking sleuthing to find this one. On another note, I am being told that the $3 million raised for the DAPL protestors through a "GoFundMe" site will be transferred to "general operating funds for the Standing Rock Reservation. Much, much more to the story but I will leave it at that for now.

After OPEC cuts heavy oil, China teapot refiners pull US supply to Asia. At Reuters. Oilprice.com probably sees this as "fake news" also.

Saudi Arabia, 2016, production. For the archives, over at Bloomberg --

• set all-time records for oil exports and production in 2016
• exports: 7.65 million bopd on average, 2016; 7.39 million bopd in 2015
• production: 10.46 million bopd on average, 2016; 10.19 million bopd in 2015
• remember all that talk about 12 million bopd?

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Definitions

With regard to the story on Chinese teapot refiners and US oil, this is from a post some months ago:

NYMEX:

• light crude oil for domestic U.S. oil as having an API gravity between 37° API and 42° API 
• light crude oil for non-U.S. oil as being between 32° API  and 42° API

Canadian National Energy Board:

• light crude oil as having a density API gravity greater than 30.1°

Alberta, government; Alberta process most of Canada's oil:

• API gravity greater than 35° API

Pemex, Mexican state oil company:

• light crude oil as being between 27° API and 38° API 

This variation in definition occurred because countries such as Canada and Mexico tend to have heavier crude oils than are commonly found in the United States, whose large oil fields historically produced lighter oils than are found in many other countries.

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Benchmarks

From wiki.

WTI

• A wide variety of benchmark crude oils worldwide are considered to be light. The most prominent in North America is West Texas Intermediate (WTI):
• API gravity of 39.6° API; lighter than Brent, but not by much
• sulfur: 0.24% (sweet oil is defined as oil with sulfur content less than 0.5%)

Brent Crude

• the most commonly referenced benchmark oil from Europe is Brent Crude, which is
• 38.06° API

Dubai Crude

• the third most commonly quoted benchmark is Dubai Crude, which is 31° API
• this is considered light by Arabian standards but would not be considered light if produced in the U.S.

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Others

Saudia Arabia's Ghawar field:

• the largest oil field in the world, Saudi Arabia's Ghawar field
• light crude oils ranging from 33° API to 40° API

Alaska North Slope: from XOM -- 

• 31.4°
• sulfur: 0.96%

Bakken:

36 to 44 degrees API. The quality of this oil is excellent, almost identical to WTI. The benchmark crude oil is West Texas Intermediate, which is 40 degrees API sweet crude. It is the benchmark because it requires the least amount of processing in a modern refinery to make the most valuable products, unleaded gasoline and diesel fuel.

North Dakota Spearfish: 36°

• presentation, Corinthian, undated, perhaps early 2014 
• sulfur content: 0.8% to 1%

Mexico: generally heavy to medium-light; sulfur content

• Isthmus: 21.8°.3.3% sulfur
• Maya: 33.4°; 1.35% sulfur
• Olmeca: 37.3°; 0.84% sulfur

Iraqi: heavy oil

Crude oil found in Iraq varies significantly in quality, with API gravities generally ranging from 22° (heavy) to 35° (medium - light). Over 70% of national oil reserves are below 28° API  and the International Energy Agency (IEA) predicted in its 2012 report on Iraq that future production is likely to include a larger share of heavier crudes. However some of the crudes produced at the Taq Taq field in the norther semi-autonomous Kurdistan region are as light as 48° API, dubbed by Reuters as "champagne crude". 

California: heavy oil; pdf here -- old data, from 2004, but type of oil probably has not changed

• Kern County: heavy oil with 1.2% sulfur; accounts for 75% of California's on-shore production
• Los Angeles Basin: heavy oil; sulfur content 1.7% to 2.0%
• Off-shore: intermediate for the most part, 18° (heavy) to 36° (medium-light)

Ecuador: heavy oil; 24.1°

Seeks low-sulphur, light oil, September 1, 2015:

Net crude exporter Petroecuador issued a tender to import 30 million barrels of light sweet crude over the course of a year in an attempt to maximize diesel and gasoline production when its Esmeraldas refinery comes back online in the fourth quarter, market sources said Tuesday.

Petroecuador is seeking 30 million barrels of low sulfur crude oil with an API gravity of 28 degrees to be delivered in a one-year period, according to a tender issued late Monday.

The state-owned oil company is seeking the barrels "in order to optimize the Esmeraldas refinery operations, once the revamping has been complete," the tender said. 

Venezuela: heavy oil, similar to Canadian oil sands.