IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v249y2022ics0360544222004844.html
   My bibliography  Save this article

The era of renewables: Infrastructure disposal strategies under market decline of oil products

Author

Listed:
  • Zhu, Zhu
  • Liao, Qi
  • Liang, Yongtu
  • Qiu, Rui
  • Zhang, ZeZhou
  • Zhang, Haoran

Abstract

As the demand of fossil fuel declines, improving the infrastructure development of fossil fuel supply chain is the efficient way to reduce cost and carbon emissions. This paper analyzes the impact of declining oil demand on the infrastructure development of the oil products delivery system. A mathematical model is proposed to simulate the transportation and storage schemes, and then is generalized to different forms based on four disposal strategies of idle depots and five sub-scenarios of declining demand. The discussed disposal strategies include storage of other fuels, relocation, destruction and to be sold. A comprehensive evaluation system is also formulated to evaluate the utilization efficiency of the transit depots. Finally, the oil products delivery system in Northwestern China is used to validate the proposed method. Compared with the current system, improving the utilization rate of the depot under declining demand sub-scenarios can improve the economic efficiency by 10.6%, 8.9%, 17.3%,21.3% and 21.6%. With the decline in demand, the economy of destruction of transit depot is better than others, while the environmental benefit of storing other fuels is better than other strategies.

Suggested Citation

  • Zhu, Zhu & Liao, Qi & Liang, Yongtu & Qiu, Rui & Zhang, ZeZhou & Zhang, Haoran, 2022. "The era of renewables: Infrastructure disposal strategies under market decline of oil products," Energy, Elsevier, vol. 249(C).
    • Handle: RePEc:eee:energy:v:249:y:2022:i:c:s0360544222004844
    DOI: 10.1016/j.energy.2022.123581
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544222004844
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2022.123581?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. Jaradat, Ra’ed M. & Keating, Charles B., 2014. "Fragility of oil as a critical infrastructure problem," International Journal of Critical Infrastructure Protection, Elsevier, vol. 7(2), pages 86-99.
    2. Li, Jingrui & Wang, Rui & Wang, Jianzhou & Li, Yifan, 2018. "Analysis and forecasting of the oil consumption in China based on combination models optimized by artificial intelligence algorithms," Energy, Elsevier, vol. 144(C), pages 243-264.
    3. Shi, Huiting & Chai, Jian & Lu, Quanying & Zheng, Jiali & Wang, Shouyang, 2022. "The impact of China's low-carbon transition on economy, society and energy in 2030 based on CO2 emissions drivers," Energy, Elsevier, vol. 239(PD).
    4. Li, Zhimin & Pan, Yanchun & Yang, Wen & Ma, Jianhua & Zhou, Ming, 2021. "Effects of government subsidies on green technology investment and green marketing coordination of supply chain under the cap-and-trade mechanism," Energy Economics, Elsevier, vol. 101(C).
    5. Qiu, Rui & Liao, Qi & Yan, Jie & Yan, Yamin & Guo, Zhichao & Liang, Yongtu & Zhang, Haoran, 2021. "The coupling impact of subsystem interconnection and demand response on the distributed energy systems: A case study of the composite community in China," Energy, Elsevier, vol. 228(C).
    6. Fan, Mu-wei & Ao, Chu-chu & Wang, Xiao-rong, 2019. "Comprehensive method of natural gas pipeline efficiency evaluation based on energy and big data analysis," Energy, Elsevier, vol. 188(C).
    7. Yuan, Meng & Zhang, Haoran & Wang, Bohong & Zhang, Yang & Zhou, Xingyuan & Liang, Yongtu, 2020. "Future scenario of China's downstream oil reform: Improving the energy-environmental efficiency of the pipeline networks through interconnectivity," Energy Policy, Elsevier, vol. 140(C).
    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. Guo, Qunwei & Geng, Jiaqi & Pan, Jiawen & Chi, Bo & Xiong, Chunyan & Pu, Jian, 2023. "A-site deficient La1-xCr0.95Ru0.05O3-δ perovskites for N-hexadecane steam reforming: Effect of steam activation and active oxygen," Renewable Energy, Elsevier, vol. 219(P2).

    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. Xu, Xiaoping & Chen, Xinyang & Choi, Tsan-Ming & Cheng, T.C.E., 2024. "Platform financing versus bank financing: “When to choose which” for green production systems," European Journal of Operational Research, Elsevier, vol. 317(2), pages 515-532.
    2. Xiaofeng Xu & Xiangyu Chen & Yi Xu & Tao Wang & Yifan Zhang, 2022. "Improving the Innovative Performance of Renewable Energy Enterprises in China: Effects of Subsidy Policy and Intellectual Property Legislation," Sustainability, MDPI, vol. 14(13), pages 1-24, July.
    3. Erna Farina Mohamed & Azlina Abdullah & Amar Hisham Jaaffar, 2024. "Energy Efficiency in Developing Countries: A Systematic Review of Current Findings and Directions towards a Net Zero Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 495-508, September.
    4. Meixia Wang, 2024. "Predicting China’s Energy Consumption and CO 2 Emissions by Employing a Novel Grey Model," Energies, MDPI, vol. 17(21), pages 1-25, October.
    5. Bongsuk Sung & Hong Chen & Sang Do Park, 2024. "Who Drives Policy Discourse of China’s Energy Transition: Considering Time Series Perspective, Network and Core-Peripheral Analysis," SAGE Open, , vol. 14(2), pages 21582440241, May.
    6. Yang, Yi & Qin, Huan, 2024. "The uncertainties of the carbon peak and the temporal and regional heterogeneity of its driving factors in China," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    7. Wen, Jun & Zhang, Sen & Chang, Chun-Ping & Anugrah, Donni Fajar & Affandi, Yoga, 2023. "Does climate vulnerability promote green investment under energy supply restriction?," Energy Economics, Elsevier, vol. 124(C).
    8. Wenxue Ran & Teng Xu, 2023. "Low-Carbon Supply Chain Coordination Based on Carbon Tax and Government Subsidy Policy," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    9. Zheng Liu & Wenzhuo Sun & Bin Hu & Chunjia Han & Petros Ieromonachou & Yuanjun Zhao & Jiazhuo Zheng, 2023. "Research on Supply Chain Optimization Considering Consumer Subsidy Mechanism in the Context of Carbon Neutrality," Energies, MDPI, vol. 16(7), pages 1-14, March.
    10. Xinwen Lin & Angathevar Baskaran & Yajie Zhang, 2023. "Watershed Horizontal Ecological Compensation Policy and Green Ecological City Development: Spatial and Mechanism Assessment," IJERPH, MDPI, vol. 20(3), pages 1-21, February.
    11. Tao, Miaomiao & Wen, Le & Sheng, Mingyue Selena & Poletti, Stephen, 2024. "Appraising the role of energy conservation and emission reduction policy for eco-friendly productivity improvements: An entropy-balancing DID approach," Energy Economics, Elsevier, vol. 132(C).
    12. Baratsas, Stefanos G. & Niziolek, Alexander M. & Onel, Onur & Matthews, Logan R. & Floudas, Christodoulos A. & Hallermann, Detlef R. & Sorescu, Sorin M. & Pistikopoulos, Efstratios N., 2022. "A novel quantitative forecasting framework in energy with applications in designing energy-intelligent tax policies," Applied Energy, Elsevier, vol. 305(C).
    13. Xiao Zhou & Xiancong Wu, 2023. "Decisions for a Retailer-Led Low-Carbon Supply Chain Considering Altruistic Preference under Carbon Quota Policy," Mathematics, MDPI, vol. 11(4), pages 1-23, February.
    14. David Morillón Gálvez & Iván García Kerdan & Germán Carmona-Paredes, 2022. "Assessing the Potential of Implementing a Solar-Based Distributed Energy System for a University Using the Campus Bus Stops," Energies, MDPI, vol. 15(10), pages 1-16, May.
    15. Wu, Xiaoping & Liu, Peng & Yang, Lin & Shi, Zhuangfei & Lao, Yongshuai, 2024. "Impact of three carbon emission reduction policies on carbon verification behavior: An analysis based on evolutionary game theory," Energy, Elsevier, vol. 295(C).
    16. Li, Xuelian & Zhou, Wei & Lin, Jyh-Jiuan & Chang, Ching-Hui, 2023. "Insurer financing for borrowing producers in a supply chain under alternative carbon allowance trades," Energy Economics, Elsevier, vol. 121(C).
    17. Güngör, Bekir Oray & Ertuğrul, H. Murat & Soytaş, Uğur, 2021. "Impact of Covid-19 outbreak on Turkish gasoline consumption," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    18. Tahseen AL-Saadi & Alexey Cherepovitsyn & Tatyana Semenova, 2022. "Iraq Oil Industry Infrastructure Development in the Conditions of the Global Economy Turbulence," Energies, MDPI, vol. 15(17), pages 1-29, August.
    19. Li, Zhengbing & Liang, Yongtu & Ni, Weilong & Liao, Qi & Xu, Ning & Li, Lichao & Zheng, Jianqin & Zhang, Haoran, 2022. "Pipesharing: economic-environmental benefits from transporting biofuels through multiproduct pipelines," Applied Energy, Elsevier, vol. 311(C).
    20. Lingzhi Shao & Qianwen Liu, 2022. "Decision-Making and the Contract of the Complementary Product Supply Chain Considering Consumers’ Environmental Awareness and Government Green Subsidies," IJERPH, MDPI, vol. 19(5), pages 1-27, March.

    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:249:y:2022:i:c:s0360544222004844. 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.