| Author: | Orisaremi, Kayode Kelvin |
| Title: | Inverse optimization applied to operations management in the petroleum industry |
| Advisors: | Fu, Xiaowen (ISE) Chan, T. S. Felix (ISE) |
| Degree: | Ph.D. |
| Year: | 2023 |
| Subject: | Petroleum industry and trade -- Management Petroleum industry and trade -- Environmental aspects Hong Kong Polytechnic University -- Dissertations |
| Department: | Department of Industrial and Systems Engineering |
| Pages: | xiv, 170 pages : color illustrations |
| Language: | English |
| Abstract: | Routine gas flaring in the petroleum industry poses a serious environmental challenge in most oil-producing nations due to the release of greenhouse gases. In addition to being an environmental threat, gas flaring also leads to a huge economic loss on the scale of billions of dollars when natural resources are depleted. Furthermore, the gas flaring process steals a clean and affordable source of energy from developing nations experiencing energy shortages, such as Nigeria and Venezuela. Considering climate change and a partnership aimed at reducing global gas flaring (GGFR), it is imperative that we estimate potential reductions in global gas flaring to better utilize flare gas within the industry. To this end, this research develops and applies novel strategies for achieving cleaner production of natural gas as a means of improving sustainability measures across the petroleum industry. Three phases of this research are conceptualized, each addressing key research questions concerning energy conversion, economic feasibility of flare gas recovery (FGR) technologies, lean production strategies, and optimal ways to alleviate energy poverty in selected oil-producing nations. The first phase of this research proposes converting waste gas or flare gas into electricity via gas-to-wire (GTW) process. However, the cost of installing and maintaining a single gas turbine for the GTW process is quite high, particularly for a developing nation like Nigeria. A GTW process must be implemented at an affordable cost by determining the optimal range of turbine units. This phase of the research is therefore highly fundamental, as it involves the development of a novel inverse data envelopment analysis (IDEA) model for the design of a cost-effective GTW process. Based on the developed IDEA model, optimal turbine units were calculated for the deployment of GTW technology in each oil-producing nation. Additionally, the IDEA model was successfully applied to implement policies of the World Bank regarding global gas flaring. From both an economic and environmental perspective, the second phase of this research examines the dynamics of the petroleum industry with respect to the incremental increases in oil production. A win-win solution is being proposed to achieve both industry and environmental objectives, one that increases oil production while generating less environmental waste in the form of flare gas. In order to achieve this objective, a sustainable lean production framework (SLPF) based on IDEA models was developed. With the introduction of the lean potential growth (LPG) concept, not only was gas flaring minimized, but it was also possible to determine multiple scenarios with increased oil production and reduced volumes of flared gas. In addition, the lean framework also addressed the limitations of the developed IDEA model in the first phase of this research by minimizing flare gas in efficient oil-producing nations. To meet the energy demand of selected oil-producing nations to some extent, gas flaring reductions were computed and converted to power with the aid of the GT13E2 gas turbine. Nigeria was found to be best positioned to benefit from the energy conversion process, having the highest estimate of gross power output. Further, an energy-based technique was developed for ranking the efficient producers in terms of their net energy production, and the results closely depict the real-world scenario. For the purpose of concluding this second phase, we offer managerial insights for production engineers in this industry. It is through these insights that lean practices can be implemented in the industry, which are far more rewarding than the conventional cost minimization approach. The final phase of this research seeks to determine the extent to which flare gas can be fully utilized to alleviate energy poverty in some oil-producing nations. This is critical since the gross power outputs computed by the lean framework in the second phase are neither maximum nor minimum. Instead, they are only associated with marginal increases in oil production. In light of this, it is imperative that the maximum amount of power that can be generated by flare gas be estimated. This estimation is especially useful when deciding on an optimal energy mix that includes gas power generation and renewable energy. This objective was accomplished by developing a directional DEA model incorporating both positive and negative data. Based on the findings, Venezuela had a promising energy mix, justifying the use of natural gas as a bridge fuel towards the transition to renewable energy. |
| Rights: | All rights reserved |
| Access: | open access |
Copyright Undertaking
As a bona fide Library user, I declare that:
- I will abide by the rules and legal ordinances governing copyright regarding the use of the Database.
- I will use the Database for the purpose of my research or private study only and not for circulation or further reproduction or any other purpose.
- I agree to indemnify and hold the University harmless from and against any loss, damage, cost, liability or expenses arising from copyright infringement or unauthorized usage.
By downloading any item(s) listed above, you acknowledge that you have read and understood the copyright undertaking as stated above, and agree to be bound by all of its terms.
Please use this identifier to cite or link to this item:
https://theses.lib.polyu.edu.hk/handle/200/12390