IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v141y2017icp991-1003.html
   My bibliography  Save this article

Production and distribution planning in petroleum supply chains regarding the impacts of gas injection and swap

Author

Listed:
  • Farahani, Mohsen
  • Rahmani, Donya

Abstract

Nowadays, the optimization of different sectors of petroleum industry, including recovery, production and distribution is of great interest to researchers. In this paper a mixed integer linear programming (MILP) model is presented to maximize the net present value (NPV) of a crude oil network. The model includes production planning, facility location-allocation, and distribution planning. The impact of gas injection and swap is considered simultaneously in the proposed model innovatively. Gas injection into oil reservoirs is one of the most essential factors in the protection of oil reserves and one of the strategies for sustainable production. Associated petroleum gas (APG) is re-injected into gas injection well to enhance oil recovery. Also, applying the oil swap helps to reduce oil distribution costs. A petroleum network in Iran is studied to demonstrate the model performance and validity. The computational results demonstrate the efficiency and the sensitivity analysis of important parameters and consideration of impact of the mentioned items on long-term profits is investigated in large scale simulate problems.

Suggested Citation

  • Farahani, Mohsen & Rahmani, Donya, 2017. "Production and distribution planning in petroleum supply chains regarding the impacts of gas injection and swap," Energy, Elsevier, vol. 141(C), pages 991-1003.
    • Handle: RePEc:eee:energy:v:141:y:2017:i:c:p:991-1003
    DOI: 10.1016/j.energy.2017.10.013
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544217316821
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2017.10.013?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pongsakdi, Arkadej & Rangsunvigit, Pramoch & Siemanond, Kitipat & Bagajewicz, Miguel J., 2006. "Financial risk management in the planning of refinery operations," International Journal of Production Economics, Elsevier, vol. 103(1), pages 64-86, September.
    2. Moradi Nasab, N. & Amin-Naseri, M.R., 2016. "Designing an integrated model for a multi-period, multi-echelon and multi-product petroleum supply chain," Energy, Elsevier, vol. 114(C), pages 708-733.
    3. Bjørn Nygreen & Marielle Christiansen & Kjetil Haugen & Thor Bjørkvoll & Øystein Kristiansen, 1998. "Modeling Norwegian petroleum productionand transportation," Annals of Operations Research, Springer, vol. 82(0), pages 251-268, August.
    4. Hamedi, Maryam & Zanjirani Farahani, Reza & Husseini, Mohammad Moattar & Esmaeilian, Gholam Reza, 2009. "A distribution planning model for natural gas supply chain: A case study," Energy Policy, Elsevier, vol. 37(3), pages 799-812, March.
    5. Duarte, Alexandra E. & Sarache, William A. & Costa, Yasel J., 2014. "A facility-location model for biofuel plants: Applications in the Colombian context," Energy, Elsevier, vol. 72(C), pages 476-483.
    6. Guajardo, Mario & Kylinger, Martin & Rönnqvist, Mikael, 2013. "Speciality oils supply chain optimization: From a decoupled to an integrated planning approach," European Journal of Operational Research, Elsevier, vol. 229(2), pages 540-551.
    7. Kazemi, Yasaman & Szmerekovsky, Joseph, 2015. "Modeling downstream petroleum supply chain: The importance of multi-mode transportation to strategic planning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 111-125.
    8. Gothe-Lundgren, Maud & T. Lundgren, Jan & A. Persson, Jan, 2002. "An optimization model for refinery production scheduling," International Journal of Production Economics, Elsevier, vol. 78(3), pages 255-270, August.
    9. J. S. Aronofsky & A. C. Williams, 1962. "The Use of Linear Programming and Mathematical Models in Under-Ground Oil Production," Management Science, INFORMS, vol. 8(4), pages 394-407, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carmona-Benítez, Rafael Bernardo & Cruz, Héctor, 2023. "A multiproduct gasoline supply chain with product standardization and postponement strategy," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    2. Emenike, Scholastica N. & Falcone, Gioia, 2020. "A review on energy supply chain resilience through optimization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    3. Bilgen, Bilge & Ozkarahan, Irem, 2007. "A mixed-integer linear programming model for bulk grain blending and shipping," International Journal of Production Economics, Elsevier, vol. 107(2), pages 555-571, June.
    4. Sylvia Mardiana, 2023. "Gasoline Policy Simulation to Increase Responsiveness Using System Dynamics: A Case Study of Indonesia’s Gasoline Downstream Supply Chain," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 109-118, November.
    5. Chávez, Marcela María Morales & Sarache, William & Costa, Yasel, 2018. "Towards a comprehensive model of a biofuel supply chain optimization from coffee crop residues," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 136-162.
    6. Moradi Nasab, N. & Amin-Naseri, M.R., 2016. "Designing an integrated model for a multi-period, multi-echelon and multi-product petroleum supply chain," Energy, Elsevier, vol. 114(C), pages 708-733.
    7. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    8. Pudasaini, Pramesh, 2021. "Integrated planning of downstream petroleum supply chain: a multi-objective stochastic approach," Operations Research Perspectives, Elsevier, vol. 8(C).
    9. Kumar, Sourabh & Barua, Mukesh Kumar, 2022. "A modeling framework and analysis of challenges faced by the Indian petroleum supply chain," Energy, Elsevier, vol. 239(PE).
    10. Klepikov, Vladimir Pavlovich & Klepikov, Vladimir Vladimirovich, 2020. "Quantitative approach to estimating crude oil supply in Southern Europe," Resources Policy, Elsevier, vol. 69(C).
    11. Abdul-Salam, Yakubu & Kemp, Alex & Phimister, Euan, 2022. "Energy transition in the UKCS – Modelling the effects of carbon emission charges on upstream petroleum operations," Energy Economics, Elsevier, vol. 108(C).
    12. Üster, Halit & Dilaveroğlu, Şebnem, 2014. "Optimization for design and operation of natural gas transmission networks," Applied Energy, Elsevier, vol. 133(C), pages 56-69.
    13. Espinoza Pérez, Andrea Teresa & Camargo, Mauricio & Narváez Rincón, Paulo César & Alfaro Marchant, Miguel, 2017. "Key challenges and requirements for sustainable and industrialized biorefinery supply chain design and management: A bibliographic analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 350-359.
    14. Jaume Belles‐Sampera & Montserrat Guillén & Miguel Santolino, 2014. "Beyond Value‐at‐Risk: GlueVaR Distortion Risk Measures," Risk Analysis, John Wiley & Sons, vol. 34(1), pages 121-134, January.
    15. Pongsakdi, Arkadej & Rangsunvigit, Pramoch & Siemanond, Kitipat & Bagajewicz, Miguel J., 2006. "Financial risk management in the planning of refinery operations," International Journal of Production Economics, Elsevier, vol. 103(1), pages 64-86, September.
    16. Chen, Yan & Huang, Zhenhua & Ai, Hongshan & Guo, Xingkun & Luo, Fan, 2021. "The Impact of GIS/GPS Network Information Systems on the Logistics Distribution Cost of Tobacco Enterprises," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    17. Palacio-Ciro, Santiago & Vasco-Correa, Carlos Andrés, 2020. "Biofuels policy in Colombia: A reconfiguration to the sugar and palm sectors?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    18. Cebi, Selcuk & Ilbahar, Esra & Atasoy, Aylin, 2016. "A fuzzy information axiom based method to determine the optimal location for a biomass power plant: A case study in Aegean Region of Turkey," Energy, Elsevier, vol. 116(P1), pages 894-907.
    19. Alessandro Aliakbargolkar & Edward F. Crawley, 2013. "Architecting methodology for spatially and temporally distributed resource extraction systems," Systems Engineering, John Wiley & Sons, vol. 16(3), pages 277-286, September.
    20. Vladimir Pavlovich Klepikov & Vladimir Vladimirovich Klepikov, 2018. "Crude Oil Logistics, Production and Refining in Northern Europe," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 18-28.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:141:y:2017:i:c:p:991-1003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.