Abstract

This work shows that dynamic and integer programming techniques can helpmaximize cost savings by minimizing fuel usage during transportation ofoil and gas by pipelines. This is done by properly selecting thepump/compressor combination at the stations. The paper illustrates these techniques by solving a sample problem. Introduction A proper selection of a combination of pumps andcompressors, based on their individual fuel rates, isnecessary to maximize cost savings by using aminimum of fuel for transporting oil and gas bypipelines. The following shows how integerprogramming (IP) and dynamic programming (DP) techniques can be used effectively in such adecision-making process.Oil and gas companies spend millions of dollarsevery year in fuel costs for operating the engines.With the cost of oil and gas skyrocketing, it hasbecome almost imperative for pipeline companies tooptimize fuel usage at the stations. This involveskeeping a constant tab on each pump's or compressor'sefficiency and the associated fuel rates forvarious options of loading.This work assumes that the engines are loaded100% (the point where they are most efficient) - i.e., at their rated horsepower. For loadings other than100%, the techniques described still can be appliedbut will require some fine tuning on the part of theengineer to come up with a global optimum.The objective of this work is to make the oil andgas industry aware of the potential area where dollarsavings can be realized. Techniques like thosepresented in this paper can be useful in minimizingfuel costs.Henceforth, "pump" will mean a pump or acompressor. Any set of consistent units can be usedfor volume, pressure, and cost. Problem With the pipeline systems running below capacity, there is more pumping capability at the stations thanactually is needed. The objective is to bring on-line acombination of only those pumps which will pumpthe desired volume for minimum fuel cost. Theproblem can be stated in two parts. Part 1 - Optimum Pump Combination Minimize subject to the following constraints Part 2 - Optimum Discharge Pressure The optimum discharge pressure at any given stationcan lie anywhere between the upper and loweroperational limits. JPT P. 2063^

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