Development of Shale Gas Supply Chain Network under Market Uncertainties
Document Type
Article
Publication Date
1-1-2016
Abstract
The increasing demand of energy has turned the shale gas into one of the most promising alternative 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 network under uncertain conditions. A two-stage stochastic programing model is proposed to describe the shale gas supply chain including drilling and hydraulic fracturing of wells, freshwater acquisition and allocation, wastewater management, shale gas processing, and transportation of shale gas and different products. The inherent uncertainty present in the prices of the final products, such as natural gas and natural gas liquids (NGLs), is treated through the utilization of a scenario-based method. A binomial lattice model is utilized to approximate the stochastic process involved in the determination of future final products prices through the generation of scenario trees. The aim of the proposed model is to generate the most appropriate and realistic supply chain network configuration and scheduling of different operations developed throughout the planning horizon of a shale gas project.
Publication Source (Journal or Book title)
Computer Aided Chemical Engineering
First Page
901
Last Page
906
Recommended Citation
Chebeir, J., Geraili, A., & Romagnoli, J. (2016). Development of Shale Gas Supply Chain Network under Market Uncertainties. Computer Aided Chemical Engineering, 38, 901-906. https://doi.org/10.1016/B978-0-444-63428-3.50155-7
