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Modeling Crude Oil Lightering in Delaware Bay

Author

Listed:
  • Scott Andrews

    (Computer Command and Control Company, 2300 Chestnut, Philadelphia, Pennsylvania 19103)

  • Frederic H. Murphy

    (School of Business and Management, Temple University, Philadelphia, Pennsylvania 19122)

  • Xiao Pei Wang

    (Computer Command and Control Company, 2300 Chestnut, Philadelphia, Pennsylvania 19103)

  • Steve Welch

    (Maritrans Inc., One Logan Square, Philadelphia, Pennsylvania 19103)

Abstract

Crude oil destined for Philadelphia-area refineries is transferred to lighters from the tankers in Delaware Bay because the channel in the Delaware River is too shallow for fully loaded tankers. We developed a simulation model for studying the effects of various policies on service levels. The results were used by Maritrans, the provider of the lightering services, and its largest customer to examine ways in which they could improve their working relationship. Although the customer valued Maritrans' services, it was considering alternative lightering solutions and most seriously considering doing its own lightering. The results of the model provided a deeper understanding of the role of lightering in the customer's crude-oil logistics system, showing that acquiring a separate fleet would be costly and allowing both parties to evaluate other alternatives for reducing costs and improving response times.

Suggested Citation

  • Scott Andrews & Frederic H. Murphy & Xiao Pei Wang & Steve Welch, 1996. "Modeling Crude Oil Lightering in Delaware Bay," Interfaces, INFORMS, vol. 26(6), pages 68-78, December.
  • Handle: RePEc:inm:orinte:v:26:y:1996:i:6:p:68-78
    DOI: 10.1287/inte.26.6.68
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    Citations

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    Cited by:

    1. Murthy Mudrageda & Frederic H. Murphy, 2008. "OR PRACTICE---An Economic Equilibrium Model of the Market for Marine Transportation Services in Petroleum Products," Operations Research, INFORMS, vol. 56(2), pages 278-285, April.
    2. van Asperen, E. & Dekker, R. & Polman, M. & de Swaan Arons, H., 2004. "Arrival processes in port modeling: insights from a case study," Econometric Institute Research Papers EI 2004-16, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    3. Murthy V. Mudrageda & Frederic H. Murphy & Steve Welch, 2004. "Developing Strategies for Maritrans’ Business Units," Interfaces, INFORMS, vol. 34(2), pages 149-161, April.
    4. Jason R. W. Merrick & J. René van Dorp & Thomas Mazzuchi & John R. Harrald & John E. Spahn & Martha Grabowski, 2002. "The Prince William Sound Risk Assessment," Interfaces, INFORMS, vol. 32(6), pages 25-40, December.
    5. J. Dorp & Jason Merrick, 2011. "On a risk management analysis of oil spill risk using maritime transportation system simulation," Annals of Operations Research, Springer, vol. 187(1), pages 249-277, July.
    6. Frederic H. Murphy, 2005. "ASP, The Art and Science of Practice: Elements of a Theory of the Practice of Operations Research: A Framework," Interfaces, INFORMS, vol. 35(2), pages 154-163, April.
    7. van Asperen, E. & Dekker, R. & Polman, M. & de Swaan Arons, H., 2004. "On the effect of ship arrival processes on jetty and storage capacity," Econometric Institute Research Papers EI 2004-32, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    8. Jason R. W. Merrick & J. Rene Van Dorp & Varun Dinesh, 2005. "Assessing Uncertainty in Simulation‐Based Maritime Risk Assessment," Risk Analysis, John Wiley & Sons, vol. 25(3), pages 731-743, June.

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