LP Application Oil Gas

8/2/2019 LP Application Oil Gas

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APPLICATIONOF LINEAR PROGRAMMINGIN OILAND GAS INDUSTRY

Presented by:

Saurabh Jain (R020208031

Shankar Deo Rajpal (R020208032)

ABSTRACTOFPAPERS


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LP MODEL : TERMS INVOLVED

Decision Variable: Various Alternatives or Courseof Action to look upon

Objective Function: A function associated with anoptimization problemwhich determines how good asolution is,

Constraints: They exist because certain limitationsrestrict the range of a variable's possible values.


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LP MODEL

Objective Function : Max or Min

Subject to Constraints.

nnxaxaxaz ..........2211

1313212111 cxbxbxb 2333222121 cxbxbxb


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PROBLEM FORMULATION. (CONT.)

Add any implicit constraints, such as non-negativerestrictions.

Arrange the system of equations in a consistentform suitable for solving by computer. For example,place all variables on the left side of their equationsand list them in the order of their subscripts.


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LINEARPROGRAMMING ASSUMPTIONS

Certainty

Divisibility or Continuity

Additivity

Linearity or proportionality


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APPLICATIONOF LINEARPROGRAMMING

LP is one of the most powerful and widespread businessoptimization tools. And may be hard to believe but thetool, can be used in a very large variety of businessproblems. They include:

Product Mix Planning

Transportation

Distribution networks

Human Resource Planning

Financial and Tax Planning

Corporate Restructuring

Facility Planning

Fleet Scheduling


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USING SOFTWAREFOR LINEARPROGRAMMING

Modern optimization techniques have challengedorganizations to rethink the way they conductbusiness both internally and externally, i.e. howefficiently and effectively their entire business is

managed. Some of the softwares are

Lindo

Lingo

Solver

Dataforms

GAMS


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APPLICATIONIN OILAND GASINDUSTRY

Grassroots refinery design/configuration

Selection and evaluation of crude oils and raw materials

Long-range and short-term operations planning

Capital investments evaluation for process equipment

Analysis of the profitability of merging and acquisition plansand the creation of ad-hoc models for joint venture refineries

Evaluation of processing agreements and product exchangecontracts

Evaluation of new process technologies

Control of the refinery performance Product blending control

Down-time planning

Inventory management


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PAPER 1

The Use of LP & mathematical model inunderground oil production

J.S.Aronofsky & A.C. Williams

Socony Mobil Oil company Inc. New York City This paper describes how linear programming can

be used to solve crude oil production problem forthe purpose of economic planning of coordinatedoperations.

Started with Single well system and then integratedthe to multi well system


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MULTI RESERVOIR SINGLE WELL


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TERM & SUBSCRIPTS USED

Reservoir : is a subsurface pool of hydrocarbonscontained in porous rock formations. The naturallyoccurring hydrocarbons are trapped by overlyingrock formations with lower permeability.

J1, J2.Jj Used for 1 to J Reservoirs

Time period denoted I = 1 to I

Reserve capacity Bj denotes removable oil in JthReservoir.

Pipeline Capacity Ri at time period i

Flow rate qj and Pressure denoted pi


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PROBLEM

It is required to compute that production schedulefor many sources and over a series of time periodsfor which resulting profit is a maximum, and forwhich all assumptions as to

1. behaviour of underground reservoirs,

2. restrictions on surface facilities, and

3. economies requisite to preparing a "profit andloss" statement, are satisfied.

Assumptions from all three categories are requiredin order to present a linear program model that is ofinterest.


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BEHAVIOR OFUNDERGROUNDRESERVOIR

For each reservoir, there must be an expression thatrepresents the technology of flow through porousmediathe behaviour of underground reservoirs. Sucha relationship between the well pressure and theproduction flow rate is given in equation (1).

The function f(T) deserves some special consideration.It describes how the well pressure, pw, changes with

time when the flow rate changes abruptly from zero to aconstant rate, q. It is sometimes referred to as aninfluence function. It is dependent upon properties, suchas: reservoir rock, fluid characteristics, and reservoirgeometry

)(.)(0 fqpp w


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BEHAVIOR OFUNDERGROUNDRESERVOIRCONT

The same equation is superimposed for series of time period for variationof q in different wells. The equation will be as

q denotes production rate of jth reservoir for ith period

Well pressure can take any value provided it does not go below somespecified value Dj.

toJj

toIkkijkjkjwj fqqpp

1

11,1,0 )().()(

jwj Dp )(


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PRODUCTION CONSTRAINTS 1

Cumulative production cannot be greater thenreserve

= ii-1

The constant Bj in this inequality represents theremovable oil in place for Jth Reservoir

Hence there will be J equations for J reservoirs.

I

i jiji Bq1 , .


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TRUNKPIPELINECONSTRAINT

The production rate at any time period should notexceed the pipeline capacity Ri

Thus Ri represents the flow of oil through the ithtime period.

J

j iiji Rq1 , .


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THE OBJECTIVEFUNCTION

To find all sets of qij which satisfy all constraints and theprofit is largest , We wish to maximize.

The term profit is defined to include all economic factorthat are involved in producing and selling crude oil topipeline facility.

All the economic factors pertaining to revenue andexpenses are contained in the profitability index, di,jwhich has the dimensions of dollars and represents totalprofit for the entire lifetime of project.

i

J

j

I

i

jiji dq 1 1,.,


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TOWARDS SCHEDULINGPRODUCTIONRATESFROMMULTIWELLSYSTEM


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MAXIMIZING CDU1 OUTPUT,RIL

CDU1 REVENUE CALCULATION MODEL FORPERIOD 1.12.2001 TO 7.12.2001

DATA REFERENCE - RELIANCE IND.LTD,JAMNAGAR


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SOLVER

APPLICATION INEXCEL

LP Application Oil Gas

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