Annals of Operations Research

, Volume 255, Issue 1–2, pp 421–437 | Cite as

Multi-stage goal programming models for production optimization in the middle and later periods of oilfield development

  • Shiwei Yu
  • Shuwen Zhang
  • Lawrence Agbemabiese
  • Fukun Zhang
Article
First Online:

Abstract

The present paper proposes two weighted goal-programming models for optimizing crude oil production in the middle and later periods of oilfield development. These models divide the oil yield optimization problem into two stages according to the characteristics of Chinese oil companies’ yield compositions. In the first stage, the total planned crude oil yield will be optimized by four sub-yields, while each sub-yield will be allocated optimally among different oil extract plants in the later stage. A case study is conducted to validate the proposed models. The results show that the model can address the annual crude oil yield planning subjectively. Moreover, the proposed model can rationally allocate resources among various extract oil plants and effectively reduce production costs in the context of ensuring planned oil yields.

Keywords

Oil production optimization Goal programming Production composition In the middle and later periods 
This is a preview of subscription content, log in to check access.

Notes

Acknowledgments

The authors gratefully acknowledge the financial support from the National Natural Science Foundation of China under Grant No. 71103016; the New Century Excellent Talents in University NCET-12-0952; and the China University of Geosciences (Wuhan) Takeoff Plan.

References

  1. Aouni, B., Colapinto, C., & La Torre, D. (2014). Financial portfolio management through the goal programming model: Current state-of-the-art. European Journal of Operational Research, 234(2), 536–545.CrossRefGoogle Scholar
  2. Azmi, R. & Tamiz, M. (2010). A review of goal programming for portfolio selection. In: New Developments in Multiple Objective and Goal Programming (pp. 15–33). Springer.Google Scholar
  3. Barzilai, J. (1997). Deriving weights from pairwise comparison matrices. Journal of the Operational Research Society, 48(12), 1226–1232.CrossRefGoogle Scholar
  4. Charnes, A., Cooper, W. W., & Ferguson, R. O. (1955). Optimal estimation of executive compensation by linear programming. Management Science, 1(2), 138–151.CrossRefGoogle Scholar
  5. Echeverria Ciaurri, D., Isebor, O. J., & Durlofsky, L. J. (2011). Application of derivative-free methodologies to generally constrained oil production optimisation problems. International Journal of Mathematical Modelling and Numerical Optimisation, 2(2), 134–161.CrossRefGoogle Scholar
  6. EIA. (2015). Annual Energy Outlook 2014 Early Release Overview. Washington.Google Scholar
  7. Feng, L., Guo, D., Zhong, Y., Zhu, W., & Liu, C. (2009). Produciton composition optimization model based on multiple criteria and multi-constraint levels linear programming. Petroleum Planning & Engineering, 20(6), 14–20.Google Scholar
  8. Gunnerud, V., Foss, B., McKinnon, K., & Nygreen, B. (2012). Oil production optimization solved by piecewise linearization in a Branch & Price framework. Computers & Operations Research, 39(11), 2469–2477.CrossRefGoogle Scholar
  9. Gunnerud, V., Foss, B., Nygreen, B., Vestbø R. & Walberg, N.C. (2009). Dantzig-Wolfe decomposition for real-time optimization-applied to the Troll west oil rim. In: ADCHEM conference (pp. 12–15).Google Scholar
  10. Lai, Y.-T., Wang, W.-C., & Wang, H.-H. (2008). AHP- and simulation-based budget determination procedure for public building construction projects. Automation in Construction, 17(5), 623–632.CrossRefGoogle Scholar
  11. Liu, Z.-B., Ding, H., Gao, M., & Yang, Y.-H. (2004). Optimal model for oil production composition of oilfield development programming and its application. Acta Petrolei Sinica, 25(1), 63–65.Google Scholar
  12. NBSC. (2012). National Bureau of Statistics of China. China statistical yearbook. Beijing: China Statistics Press.Google Scholar
  13. Nygreen, B., Christiansen, M., Haugen, K., Bjørkvoll, T., & Kristiansen, Ø. (1998). Modeling Norwegian petroleum productionand transportation. Annals of Operations Research, 82, 251–268.CrossRefGoogle Scholar
  14. Ortuño, M. T., & Vitoriano, B. (2011). A goal programming approach for farm planning with resources dimensionality. Annals of Operations Research, 190(1), 181–199.CrossRefGoogle Scholar
  15. Schniederjans, M. J., & Garvin, T. (1997). Using the analytic hierarchy process and multi-objective programming for the selection of cost drivers in activity-based costing. European Journal of Operational Research, 100(1), 72–80.CrossRefGoogle Scholar
  16. Shakhsi-Niaei, M., Iranmanesh, S., & Torabi, S. (2014). Optimal planning of oil and gas development projects considering long-term production and transmission. Computers & Chemical Engineering, 65, 67–80.CrossRefGoogle Scholar
  17. Shang, M.-Z., Ge, Y.-J., Zhong, T.-X., & Li, S.-R. (2003). Non-linear optimal modeling of production manipulation and its application. Petroleum Exploration and Developmen, 30(4), 92–94.Google Scholar
  18. Sharma, S., & Balan, S. (2013). An integrative supplier selection model using Taguchi loss function, TOPSIS and multi criteria goal programming. Journal of Intelligent Manufacturing, 24(6), 1123–1130.CrossRefGoogle Scholar
  19. Silva, T. L., & Camponogara, E. (2014). A computational analysis of multidimensional piecewise-linear models with applications to oil production optimization. European Journal of Operational Research, 232(3), 630–642.CrossRefGoogle Scholar
  20. Song, H.-C., & Li, Y. (2012). Researches and application of oil field production development plan model. Science Technology and Engineering, 12(7), 1611–1628.Google Scholar
  21. Tian, C. (2014). China’s 2013 oil and gas imports/exports. International Petroleum Economics, 3, 29–41.Google Scholar
  22. Willersrud, A., Imsland, L., Hauger, S. O., & Kittilsen, P. (2013). Short-term production optimization of offshore oil and gas production using nonlinear model predictive control. Journal of Process Control, 23(2), 215–223.CrossRefGoogle Scholar
  23. Xie, X.-J., Xiong, W.-L., Qu, H.-L., & Tao, L. (2008). Oil produciton composition bilevel programming model of oilfield and it’s application. Journal of Southwest Petroleum University (Science & Technology Edition), 30(2), 163–166.Google Scholar
  24. Yan, J.-N., Hou, G.-T., Li, J.-J., Li, N.-W., & Lu, Y.-P. (2012). Economic efficiency forecast and latter appraises studies about mid and late period measure investment of oilfield development. Natural Gas Geoscience, 23(5), 973–977.Google Scholar

Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Shiwei Yu
    • 1
    • 2
  • Shuwen Zhang
    • 1
  • Lawrence Agbemabiese
    • 2
  • Fukun Zhang
    • 3
  1. 1.School of Economics and ManagementChina University of GeosciencesWuhanChina
  2. 2.Center for Energy and Environmental PolicyUniversity of DelawareNewarkUSA
  3. 3.No. 9 Oil Production PlantDaqing Oilfield of China National Petroleum Corporation (CNPC)DaqingChina

Personalised recommendations