Optimal planning of oil and gas development projects considering long-term production and transmission

• Published in: Computers & chemical engineering 2014-06, Vol.65, p.67-80
• Main Authors: Shakhsi-Niaei, M., Iranmanesh, S.H., Torabi, S.A.
• Format: Article
• Language: English
• Subjects: Applied sciences; Decision theory. Utility theory; Energy; Energy economics; Energy policy; Exact sciences and technology; General, economic and professional studies; Mathematical modeling; Mathematical programming; Oil and gas development; Operational research and scientific management; Operational research. Management science; Optimization; Production planning; Scheduling, sequencing; Transmission planning
• ISSN: 0098-1354; 1873-4375
• DOI: 10.1016/j.compchemeng.2014.03.002

•Modeling development, production, & transmission decisions via an integrated bi-objective MILP.•Considering gas injection, swap, and cash flows based on decision variables.•Using industry-based cost indexes for inflating different kinds of upstream costs.•Analyzing the sensitivity of the results to the most influential uncertainties.•Proposing a linear formulation for fixed cost of over-normal production. This paper proposes an integrated model for making a group of strategic decisions about oil and gas development projects simultaneously over a long-term planning horizon. These decisions involve: selection of field and pipeline development projects, scheduling of selected projects, production planning, and upstream transmission planning. The proposed model is formulated as a linear mixed-integer-programming model. It is implemented in a case study to demonstrate its usefulness and applicability in practice. Finally, a number of sensitivity analyses are carried out to analyze the impact of most influential uncertainties on the solutions and the corresponding results are discussed.