IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v274y2020ics0306261920308461.html
   My bibliography  Save this article

Optimal design of supply chain network with carbon dioxide injection for enhanced shale gas recovery

Author

Listed:
  • Ahn, Yuchan
  • Kim, Junghwan
  • Kwon, Joseph Sang-Il

Abstract

To optimize the configuration of a supply chain network for shale gas production (SGSCN), we develop a novel optimization model that considers ‘enhanced gas recovery by carbon dioxide (CO2) injection’ (EGR-CO2) technology, which simultaneously achieves decrease in net CO2 emissions. Then, the developed framework is used to identify the optimal SGSCN configuration in a mixed-integer linear programming problem that maximizes the overall profit of shale gas production. The optimal framework of the proposed SGSCN model is compared to the case (Case 1) when the improvement technology for the shale gas production rate like EGR-CO2 is not used, to demonstrate its superiority over existing approaches. The simulation results that consider application on the Marcellus shale play indicate that the overall profit of SGSCN that uses EGR-CO2 technology and purchases the CO2 on the market (Case 2) achieves 2.56% higher profit than the SGSCN without an injection strategy (Case 1) and 10.00% higher profit than the SGSCN that uses CO2 that is recovered from the flue gases generated during combustion of shale gas to produce electricity (Case 3). The profitability of Case 3 is reduced by the cost of constructing and operating a CO2-capture facility. For Case 3 to achieve the same profitability as Case 2, the CO2 purchase must be more expensive than 5 US$ per MCF CO2 (0.18 US$ per m3).

Suggested Citation

  • Ahn, Yuchan & Kim, Junghwan & Kwon, Joseph Sang-Il, 2020. "Optimal design of supply chain network with carbon dioxide injection for enhanced shale gas recovery," Applied Energy, Elsevier, vol. 274(C).
    • Handle: RePEc:eee:appene:v:274:y:2020:i:c:s0306261920308461
    DOI: 10.1016/j.apenergy.2020.115334
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261920308461
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2020.115334?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Weijermars, Ruud, 2015. "Shale gas technology innovation rate impact on economic Base Case – Scenario model benchmarks," Applied Energy, Elsevier, vol. 139(C), pages 398-407.
    2. Wang, Ke & Li, Haitao & Wang, Junchao & Jiang, Beibei & Bu, Chengzhong & Zhang, Qing & Luo, Wei, 2017. "Predicting production and estimated ultimate recoveries for shale gas wells: A new methodology approach," Applied Energy, Elsevier, vol. 206(C), pages 1416-1431.
    3. Beamon, Benita M., 1998. "Supply chain design and analysis:: Models and methods," International Journal of Production Economics, Elsevier, vol. 55(3), pages 281-294, August.
    4. Raluy, Gemma & Serra, Luis & Uche, Javier, 2006. "Life cycle assessment of MSF, MED and RO desalination technologies," Energy, Elsevier, vol. 31(13), pages 2361-2372.
    5. Feijoo, Felipe & Iyer, Gokul C. & Avraam, Charalampos & Siddiqui, Sauleh A. & Clarke, Leon E. & Sankaranarayanan, Sriram & Binsted, Matthew T. & Patel, Pralit L. & Prates, Nathalia C. & Torres-Alfaro,, 2018. "The future of natural gas infrastructure development in the United states," Applied Energy, Elsevier, vol. 228(C), pages 149-166.
    6. Kang, Dohyung & Lim, Hyun Suk & Lee, Minbeom & Lee, Jae W., 2018. "Syngas production on a Ni-enhanced Fe2O3/Al2O3 oxygen carrier via chemical looping partial oxidation with dry reforming of methane," Applied Energy, Elsevier, vol. 211(C), pages 174-186.
    7. Yuan, Jiehui & Luo, Dongkun & Feng, Lianyong, 2015. "A review of the technical and economic evaluation techniques for shale gas development," Applied Energy, Elsevier, vol. 148(C), pages 49-65.
    8. Middleton, Richard S. & Gupta, Rajan & Hyman, Jeffrey D. & Viswanathan, Hari S., 2017. "The shale gas revolution: Barriers, sustainability, and emerging opportunities," Applied Energy, Elsevier, vol. 199(C), pages 88-95.
    9. Chang, Yuan & Huang, Runze & Ries, Robert J. & Masanet, Eric, 2014. "Shale-to-well energy use and air pollutant emissions of shale gas production in China," Applied Energy, Elsevier, vol. 125(C), pages 147-157.
    10. Jorge Chebeir & Aryan Geraili & Jose Romagnoli, 2017. "Development of Shale Gas Supply Chain Network under Market Uncertainties," Energies, MDPI, vol. 10(2), pages 1-31, February.
    11. DeNooyer, Tyler A. & Peschel, Joshua M. & Zhang, Zhenxing & Stillwell, Ashlynn S., 2016. "Integrating water resources and power generation: The energy–water nexus in Illinois," Applied Energy, Elsevier, vol. 162(C), pages 363-371.
    12. Ahn, Yu-Chan & Lee, In-Beum & Lee, Kun-Hong & Han, Jee-Hoon, 2015. "Strategic planning design of microalgae biomass-to-biodiesel supply chain network: Multi-period deterministic model," Applied Energy, Elsevier, vol. 154(C), pages 528-542.
    13. Middleton, Richard S. & Carey, J. William & Currier, Robert P. & Hyman, Jeffrey D. & Kang, Qinjun & Karra, Satish & Jiménez-Martínez, Joaquín & Porter, Mark L. & Viswanathan, Hari S., 2015. "Shale gas and non-aqueous fracturing fluids: Opportunities and challenges for supercritical CO2," Applied Energy, Elsevier, vol. 147(C), pages 500-509.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Jianye & Li, Zuxin & Luo, Dongkun & Duan, Xuqiang & Liu, Ruolei, 2020. "Shale gas production in China: A regional analysis of subsidies and suggestions for policy," Utilities Policy, Elsevier, vol. 67(C).
    2. Cao, Kaiyu & Son, Sang Hwan & Moon, Jiyoung & Kwon, Joseph Sang-Il, 2021. "A closed-loop integration of scheduling and control for hydraulic fracturing using offset-free model predictive control," Applied Energy, Elsevier, vol. 302(C).
    3. Guanyi Zheng & Xiaoyang Guo & Zaoyuan Li & Jinfei Sun, 2021. "Design and Evaluation of High-Temperature Well Cementing Slurry System Based on Fractal Theory," Energies, MDPI, vol. 14(22), pages 1-14, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jin, Xu & Wang, Xiaoqi & Yan, Weipeng & Meng, Siwei & Liu, Xiaodan & Jiao, Hang & Su, Ling & Zhu, Rukai & Liu, He & Li, Jianming, 2019. "Exploration and casting of large scale microscopic pathways for shale using electrodeposition," Applied Energy, Elsevier, vol. 247(C), pages 32-39.
    2. Li, Jing & Wu, Keliu & Chen, Zhangxin & Wang, Wenyang & Yang, Bin & Wang, Kun & Luo, Jia & Yu, Renjie, 2019. "Effects of energetic heterogeneity on gas adsorption and gas storage in geologic shale systems," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    3. Nguyen, Phong & Carey, J. William & Viswanathan, Hari S. & Porter, Mark, 2018. "Effectiveness of supercritical-CO2 and N2 huff-and-puff methods of enhanced oil recovery in shale fracture networks using microfluidic experiments," Applied Energy, Elsevier, vol. 230(C), pages 160-174.
    4. Zou, Youqin & Yang, Changbing & Wu, Daishe & Yan, Chun & Zeng, Masun & Lan, Yingying & Dai, Zhenxue, 2016. "Probabilistic assessment of shale gas production and water demand at Xiuwu Basin in China," Applied Energy, Elsevier, vol. 180(C), pages 185-195.
    5. Gong, Jianming & Qiu, Zhen & Zou, Caineng & Wang, Hongyan & Shi, Zhensheng, 2020. "An integrated assessment system for shale gas resources associated with graptolites and its application," Applied Energy, Elsevier, vol. 262(C).
    6. Wang, Yan & Zhong, Dong-Liang & Li, Zheng & Li, Jian-Bo, 2020. "Application of tetra-n-butyl ammonium bromide semi-clathrate hydrate for CO2 capture from unconventional natural gases," Energy, Elsevier, vol. 197(C).
    7. Yang, Ruiyue & Hong, Chunyang & Huang, Zhongwei & Song, Xianzhi & Zhang, Shikun & Wen, Haitao, 2019. "Coal breakage using abrasive liquid nitrogen jet and its implications for coalbed methane recovery," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    8. Middleton, Richard S. & Gupta, Rajan & Hyman, Jeffrey D. & Viswanathan, Hari S., 2017. "The shale gas revolution: Barriers, sustainability, and emerging opportunities," Applied Energy, Elsevier, vol. 199(C), pages 88-95.
    9. Yang, Run & Liu, Xiangui & Yu, Rongze & Hu, Zhiming & Duan, Xianggang, 2022. "Long short-term memory suggests a model for predicting shale gas production," Applied Energy, Elsevier, vol. 322(C).
    10. Wang, Hui & Chen, Li & Qu, Zhiguo & Yin, Ying & Kang, Qinjun & Yu, Bo & Tao, Wen-Quan, 2020. "Modeling of multi-scale transport phenomena in shale gas production — A critical review," Applied Energy, Elsevier, vol. 262(C).
    11. Kant, Michael A. & Rossi, Edoardo & Duss, Jonas & Amann, Florian & Saar, Martin O. & Rudolf von Rohr, Philipp, 2018. "Demonstration of thermal borehole enlargement to facilitate controlled reservoir engineering for deep geothermal, oil or gas systems," Applied Energy, Elsevier, vol. 212(C), pages 1501-1509.
    12. Huang, Liang & Ning, Zhengfu & Wang, Qing & Zhang, Wentong & Cheng, Zhilin & Wu, Xiaojun & Qin, Huibo, 2018. "Effect of organic type and moisture on CO2/CH4 competitive adsorption in kerogen with implications for CO2 sequestration and enhanced CH4 recovery," Applied Energy, Elsevier, vol. 210(C), pages 28-43.
    13. Zhou, Junping & Tian, Shifeng & Zhou, Lei & Xian, Xuefu & Yang, Kang & Jiang, Yongdong & Zhang, Chengpeng & Guo, Yaowen, 2020. "Experimental investigation on the influence of sub- and super-critical CO2 saturation time on the permeability of fractured shale," Energy, Elsevier, vol. 191(C).
    14. Xiaoqian Guo & Qiang Yan & Anjian Wang, 2017. "Assessment of Methods for Forecasting Shale Gas Supply in China Based on Economic Considerations," Energies, MDPI, vol. 10(11), pages 1-14, October.
    15. Li, Yanbin & Li, Yun & Wang, Bingqian & Chen, Zhuoer & Nie, Dan, 2016. "The status quo review and suggested policies for shale gas development in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 420-428.
    16. Jong-Hyun Kim & Yong-Gil Lee, 2017. "Analyzing the Learning Path of US Shale Players by Using the Learning Curve Method," Sustainability, MDPI, vol. 9(12), pages 1-8, December.
    17. Katende, Allan & Rutqvist, Jonny & Massion, Cody & Radonjic, Mileva, 2023. "Experimental flow-through a single fracture with monolayer proppant at reservoir conditions: A case study on Caney Shale, Southwest Oklahoma, USA," Energy, Elsevier, vol. 273(C).
    18. Wang, Ke & Li, Haitao & Wang, Junchao & Jiang, Beibei & Bu, Chengzhong & Zhang, Qing & Luo, Wei, 2017. "Predicting production and estimated ultimate recoveries for shale gas wells: A new methodology approach," Applied Energy, Elsevier, vol. 206(C), pages 1416-1431.
    19. Weige Han & Zhendong Cui & Zhengguo Zhu, 2021. "The Effect of Perforation Spacing on the Variation of Stress Shadow," Energies, MDPI, vol. 14(13), pages 1-16, July.
    20. Hong, Bingyuan & Li, Xiaoping & Song, Shangfei & Chen, Shilin & Zhao, Changlong & Gong, Jing, 2020. "Optimal planning and modular infrastructure dynamic allocation for shale gas production," Applied Energy, Elsevier, vol. 261(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:274:y:2020:i:c:s0306261920308461. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.