Development of Shale Gas Supply Chain Network under Market Uncertainties

The increasing demand of energy has turned the shale gas and shale oil into one of the most promising sources of energy in the United States. In this article, a model is proposed to address the long-term planning problem of the shale gas supply chain under uncertain conditions. A two-stage stochasti...

Full description

Saved in:
Bibliographic Details
Published in:Energies (Basel) 2017, Vol.10 (2), p.246-246
Main Authors: Chebeir, Jorge, Geraili, Aryan, Romagnoli, Jose
Format: Article
Language:English
Subjects:
binomial option pricing model
Energy sources
Long-term planning
market uncertainty
Markets
Mathematical models
Natural gas
Natural gas exploration
Networks
Shale
Shale gas
shale gas supply chain
Stochastic processes
Stochasticity
Supply chains
two-stage stochastic programming
Uncertainty
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The increasing demand of energy has turned the shale gas and shale oil into one of the most promising sources of energy in the United States. In this article, a model is proposed to address the long-term planning problem of the shale gas supply chain under uncertain conditions. A two-stage stochastic programming model is proposed to describe and optimize the shale gas supply chain network. Inherent uncertainty in final products' prices, such as natural gas and natural gas liquids (NGL), is treated through the utilization of a scenario-based method. A binomial option pricing model is utilized to approximate the stochastic process through the generation of scenario trees. The aim of the proposed model is to generate an appropriate and realistic supply chain network configuration as well as scheduling of different operations throughout the planning horizon of a shale gas development project.
ISSN:1996-1073
1996-1073
DOI:10.3390/en10020246