Energy Efficiency in Petroleum Supply Chain Optimization: Push Segment Coordination

Abstract

Today, the world is transitioning from traditional energy to clean, renewable sources. The petroleum sector is to play a role in this transition by supporting material and energy needs related to developing new energy systems. It is, therefore, vital that in upcoming years, the petroleum sector runs in a smart and efficient way, which can be achieved by coordination and the meaningful integration of decision-making issues in petroleum supply chains (PSCs). The existing literature on PSC optimization reveals a research gap; specifically, there is an insufficient level of technological detail considered while planning capacities of new infrastructures and its impact on the efficiency of further operations, specifically in the push segment of the PSC. This paper proposes a mixed-integer nonlinear programming model for planning capacities and coordinating activities within the mentioned PSC segment. The infrastructure capacity planning model covers technological details such as hydraulics and pump systems’ operational efficiency. The results reveal that the proposed model and its technological decision-making criterion of minimizing energy consumption drive infrastructural choices and operational modes to achieve machinery performance close to the best efficiency point. Also, the computational results demonstrate how traditional (minimum-cost) approaches lead to inefficient energy use while producing and transporting hydrocarbons. The proposed framework aims to facilitate the preliminary design stage of projects undertaken by engineering contractors in the energy sector.