Optimization Models for Optimal Investment, Drilling and Water Management in Shale Gas Supply Chains
Prof. Ignacio Grossmann
R. Dean University Professor
This presentation provides an overview of recent optimization models for shale gas production. We first describe a new mixed-integer optimization model for the design of shale gas infrastructures. The model is aimed at optimizing the selection of the number of wells to drill, size and location of new gas processing plants, location and length of pipelines, location and power of gas compressors, and planning of freshwater consumption from available reservoirs for well drilling and fracturing. The goal of this model is to maximize the net present value. We also describe a detailed operational model to optimize water use life cycle for well pads. The objective is to minimize transportation cost, treatment cost, freshwater cost, and additional infrastructure cost while also accounting for the credit of the production of shale gas within the specified time horizon. The goal is to determine an optimal fracturing schedule, recycling ratio, additional impoundment capacity, and treatment unit installation.
Biographical Information
Ignacio E. Grossmann is the R. Dean University Professor in Chemical Engineering and Director of the Center for Advanced Process Decision-making at Carnegie Mellon University. He holds degrees in B.S., M.S. and Ph.D. in Chemical Engineering from Universidad Iberoamericana and Imperial College. His research interests are in the areas of mixed-integer and disjunctive programming, energy and water systems, enterprise-wide optimization and stochastic programming. He is a member of the National Academy of Engineering, has received honorary doctorates from Abo Akademi, University of Maribor and Technical University of Dortmund. He has graduated over 50 Ph.D. students.