Production and distribution planning in petroleum supply chains regarding the impacts of gas injection and swap

Abstract

Abstract Nowadays, the optimization of different sectors of petroleum industry, including recovery, production and distribution is of great interest to researchers. In this paper a mixed integer linear programming (MILP) model is presented to maximize the net present value (NPV) of a crude oil network. The model includes production planning, facility location-allocation, and distribution planning. The impact of gas injection and swap is considered simultaneously in the proposed model innovatively. Gas injection into oil reservoirs is one of the most essential factors in the protection of oil reserves and one of the strategies for sustainable production. Associated petroleum gas (APG) is re-injected into gas injection well to enhance oil recovery. Also, applying the oil swap helps to reduce oil distribution costs. A petroleum network in Iran is studied to demonstrate the model performance and validity. The computational results demonstrate the efficiency and the sensitivity analysis of important parameters and consideration of impact of the mentioned items on long-term profits is investigated in large scale simulate problems.