IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v203y2020ics036054422030877x.html
   My bibliography  Save this article

On the optimization of water-energy nexus in shale gas network under price uncertainties

Author

Listed:
  • Oke, Doris
  • Mukherjee, Rajib
  • Sengupta, Debalina
  • Majozi, Thokozani
  • El-Halwagi, Mahmoud

Abstract

This study develops a framework for water-energy nexus optimization in shale gas production and distribution network under uncertainty. Sustainable design of the network is achieved through treatment of wastewater using thermal membrane distillation, whereby a comprehensive design model is integrated within the network to account for energy requirement of the unit. The proposed model also accounts for the problem of scheduling hydraulic fracturing using a continuous time formulation. Various uncertainties are associated with the network. Among different uncertain variables, uncertainties associated with price and demand are crucial as they can affect the optimal configuration significantly. Incorporation of uncertainty in the model seeks to meet the demand of natural gas consumers whilst accounting for the uncertainties associated with the price of final products. Uncertainties are modelled via randomly generated scenarios using beta distribution of the price generated using historical data. The stochastic model is applied to a case study through the maximization of net profit. Three different scenarios are considered for analysis. Results from the three different scenarios show 14.39%, 11.49%, and 12.34% increase in profit respectively as compared to the deterministic approach. Solving all the scenarios together gives an ensemble-average solution with 13.74% increase in expected profit. Savings in the freshwater requirement for fracturing and the energy associated with water management amounted to 23.2% and 42.7%, respectively.

Suggested Citation

  • Oke, Doris & Mukherjee, Rajib & Sengupta, Debalina & Majozi, Thokozani & El-Halwagi, Mahmoud, 2020. "On the optimization of water-energy nexus in shale gas network under price uncertainties," Energy, Elsevier, vol. 203(C).
    • Handle: RePEc:eee:energy:v:203:y:2020:i:c:s036054422030877x
    DOI: 10.1016/j.energy.2020.117770
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S036054422030877X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2020.117770?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. James B. McDonald, 2008. "Some Generalized Functions for the Size Distribution of Income," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Duangkamon Chotikapanich (ed.), Modeling Income Distributions and Lorenz Curves, chapter 3, pages 37-55, Springer.
    2. J. David Hughes, 2013. "A reality check on the shale revolution," Nature, Nature, vol. 494(7437), pages 307-308, February.
    3. Fadhil Y. Al-Aboosi & Mahmoud M. El-Halwagi, 2019. "A Stochastic Optimization Approach to the Design of Shale Gas/Oil Wastewater Treatment Systems with Multiple Energy Sources under Uncertainty," Sustainability, MDPI, vol. 11(18), pages 1-39, September.
    4. Jiang, Zhiqiang & Li, Rongbo & Li, Anqiang & Ji, Changming, 2018. "Runoff forecast uncertainty considered load adjustment model of cascade hydropower stations and its application," Energy, Elsevier, vol. 158(C), pages 693-708.
    5. Oke, Doris & Mukherjee, Rajib & Sengupta, Debalina & Majozi, Thokozani & El-Halwagi, Mahmoud M., 2019. "Optimization of water-energy nexus in shale gas exploration: From production to transmission," Energy, Elsevier, vol. 183(C), pages 651-669.
    6. Jorge Chebeir & Aryan Geraili & Jose Romagnoli, 2017. "Development of Shale Gas Supply Chain Network under Market Uncertainties," Energies, MDPI, vol. 10(2), pages 1-31, February.
    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. Mu, Yunfei & Wang, Congshan & Cao, Yan & Jia, Hongjie & Zhang, Qingzhu & Yu, Xiaodan, 2022. "A CVaR-based risk assessment method for park-level integrated energy system considering the uncertainties and correlation of energy prices," Energy, Elsevier, vol. 247(C).
    2. Haider, Md Alquma & Chaturvedi, Nitin Dutt, 2023. "A mathematical formulation for robust targeting in heat integrated water allocation network," Energy, Elsevier, vol. 264(C).
    3. Huang, Shanshan & Suo, Cai & Guo, Junhong & Lv, Jing & Jing, Rui & Yu, Lei & Fan, Yurui & Ding, Yanming, 2023. "Balancing the water-energy dilemma in nexus system planning with bi-level and multi-uncertainty," Energy, Elsevier, vol. 278(C).

    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. Fadhil Y. Al-Aboosi & Mahmoud M. El-Halwagi, 2019. "A Stochastic Optimization Approach to the Design of Shale Gas/Oil Wastewater Treatment Systems with Multiple Energy Sources under Uncertainty," Sustainability, MDPI, vol. 11(18), pages 1-39, September.
    2. Dickens, Richard & Machin, Stephen & Manning, Alan, 1998. "Estimating the effect of minimum wages on employment from the distribution of wages: A critical view," Labour Economics, Elsevier, vol. 5(2), pages 109-134, June.
    3. Meya, Jasper N. & Drupp, Moritz A. & Hanley, Nick, 2021. "Testing structural benefit transfer: The role of income inequality," Resource and Energy Economics, Elsevier, vol. 64(C).
    4. Jie Zhang & Xizhe Li & Weijun Shen & Shusheng Gao & Huaxun Liu & Liyou Ye & Feifei Fang, 2020. "Study of the Effect of Movable Water Saturation on Gas Production in Tight Sandstone Gas Reservoirs," Energies, MDPI, vol. 13(18), pages 1-14, September.
    5. Abbring, Jaap H. & van den Berg, Gerard J., 2003. "A Simple Procedure for the Evaluation of Treatment Effects on Duration Variables," IZA Discussion Papers 810, Institute of Labor Economics (IZA).
    6. van den Berg, Gerard J., 2007. "On the uniqueness of optimal prices set by monopolistic sellers," Journal of Econometrics, Elsevier, vol. 141(2), pages 482-491, December.
    7. Mathias Silva, 2023. "Parametric models of income distributions integrating misreporting and non-response mechanisms," AMSE Working Papers 2311, Aix-Marseille School of Economics, France.
    8. Hajargasht, Gholamreza & Griffiths, William E., 2013. "Pareto–lognormal distributions: Inequality, poverty, and estimation from grouped income data," Economic Modelling, Elsevier, vol. 33(C), pages 593-604.
    9. Saissi Hassani, Samir & Dionne, Georges, 2021. "The New International Regulation of Market Risk: Roles of VaR and CVaR in Model Validation," Working Papers 21-1, HEC Montreal, Canada Research Chair in Risk Management.
    10. Puente-Ajovin, Miguel & Ramos, Arturo, 2015. "An improvement over the normal distribution for log-growth rates of city sizes: Empirical evidence for France, Germany, Italy and Spain," MPRA Paper 67471, University Library of Munich, Germany.
    11. Camelia Minoiu & Sanjay Reddy, 2014. "Kernel density estimation on grouped data: the case of poverty assessment," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 163-189, June.
    12. Dmitry I. Malakhov & Nikolay P. Pilnik & Igor G. Pospelov, 2015. "Stability of Distribution of Relative Sizes of Banks as an Argument for the Use of the Representative Agent Concept," HSE Working papers WP BRP 116/EC/2015, National Research University Higher School of Economics.
    13. Alexey Kudryavtsev & Oleg Shestakov, 2023. "Estimates of the Convergence Rate in the Generalized Rényi Theorem with a Structural Digamma Distribution Using Zeta Metrics," Mathematics, MDPI, vol. 11(21), pages 1-10, October.
    14. Masato Okamoto, 2014. "Interpolating the Lorenz Curve: Methods to Preserve Shape and Remain Consistent with the Concentration Curves for Components," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(2), pages 349-384, June.
    15. Peter Grösche & Carsten Schröder, 2014. "On the redistributive effects of Germany’s feed-in tariff," Empirical Economics, Springer, vol. 46(4), pages 1339-1383, June.
    16. Alexander, Carol & Cordeiro, Gauss M. & Ortega, Edwin M.M. & Sarabia, José María, 2012. "Generalized beta-generated distributions," Computational Statistics & Data Analysis, Elsevier, vol. 56(6), pages 1880-1897.
    17. Ali Elkamel, 2018. "Energy Production Systems," Energies, MDPI, vol. 11(10), pages 1-4, September.
    18. Belzunce, Félix & Pinar, José F. & Ruiz, José M. & Sordo, Miguel A., 2013. "Comparison of concentration for several families of income distributions," Statistics & Probability Letters, Elsevier, vol. 83(4), pages 1036-1045.
    19. Natalia Walczak & Zbigniew Walczak & Tomasz Tymiński, 2022. "Laboratory Research on Hydraulic Losses on SHP Inlet Channel Trash Racks," Energies, MDPI, vol. 15(20), pages 1-18, October.
    20. Lei, Kaixuan & Chang, Jianxia & Long, Ruihao & Wang, Yimin & Zhang, Hongxue, 2022. "Cascade hydropower station risk operation under the condition of inflow uncertainty," Energy, Elsevier, vol. 244(PA).

    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:203:y:2020:i:c:s036054422030877x. 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.