The integrated network model of pipeline, sea and road distribution of petroleum product

Ömer Öztürkoğlu, Oyewale Lawal

Abstract


Nigeria ranks high among the community of oil producers both in the world. It is, therefore, paradoxical that Nigeria, with such profile in Organization of Petroleum Exporting Countries (OPEC) statistics finds it difficult to optimize its supply distribution while spending so much money on transportation and distribution. This paper thus reviews the petroleum product supply and distribution systems in the country. Thus, we develop a single period, single product deterministic mathematical model to effectively distribute the product to the end user through the most effective channel to the interest of the economy of the country. In our model, we first consider a perfect condition in the petroleum industry irrespective of the production crises and conflicts like pipeline vandalism, communal instability. We then consider different scnearios that presumes several breakdown cases in pipeline connection to anaylze the survivability of the network of petroleum distribution.


Keywords


Distribution logistics; network model; pipeline; petroleum product

Full Text:

PDF

References


Furchtgott-Roth, D., Pipelines are safest for transportation of oil and gas [online]. Energy and Environment, Manhattan Institute for Policy Research, No. 23, 1-10 (2013). Available from: http://www.manhattan-institute.org/pdf/ ib_23.pdf [Accessed 10 January 2015].

Adebayo, A. and Dada A.S., An evaluation of the causes of oil pipeline incidents in oil and gas industries in Niger Delta Region of Nigeria. Journal of Engineering and Applied Sciences, 3(3), 279-281 (2008).

Auwal, U. and Mamman J.A., The downstream sector: An assessment of petroleum products supply in Nigeria [online], 5th Annual NAEE/IAEE International Conference, Abuja, Nigeria (2012). Available at: http://naee.org.ng/files/ Auwal_Mamman%20Full%20Paper%20NAEE2012%20(2).pdf? [Accessed 20 April 2015].

Ehinomen, C. and Adeleke, A., An assessment of the distribution of petroleum products in Nigeria. E3 Journal of Business Management and Economics, 3(6), 232-241 (2012).

Akpoghomeh, O.S. and Badejo, D., Petroleum product scarcity: a review of the supply and distribution of petroleum products in Nigeria. OPEC Review, 30(1), 27-40 (2006). Crossref

An, H., Wilhelm, W.E. and Searcy, S.W., Biofuel and petroleum-based fuel supply chain research: a literature review. Biomass and Bioenergy, 35(9), 3763-3774 (2011). Crossref

Catchpole, A.R., The application of linear programming to integrated supply problems in the oil industry. Operational Research Society, 13(2), 161-169 (1962). Crossref

Klingman, D., Phillips, N., Steiger D., Wirth R., Padman, R. and Krishnan, R., An optimization based integrated short-term refined petroleum product planning system. Management Science, 33(7), 813-830 (1987). Crossref

Herran, A., De la Cruz, J.M. and De Andrés B., A mathematical model for planning transportation of multiple petroleum products in a multi-pipeline system. Computers and Chemical Engineering, 34 (3), 401-413 (2010). Crossref

Oyewale, L. and Ozturkoglu, O., The distribution network model of petroleum product – a case study in Nigeria. In Proceedings of the XII. International Logistics and Supply Chain Congress, Istanbul, Turkey, 79-86 (2014).

NEITI (Nigeria Extractive Industries Transparency Initiative), 2012. Oil and Gas Industry Audit Report 2012 [online]. Available from: http://neiti.org.ng/sites/ default/files/pdf_uploads/2012-OIL-GAS-REPORT/2012-Oil-Gas-Audit-Report-Comprehensive.pdf [Accessed 10 January 2015].

Fantini, A.M., Organization of the Petroleum Exporting Countries Annual Statistical Bulletin [online] (2012). Available from www.opec.org/opec_web/ static_files_project/media/downloads/publications/ASB2012.pdf [Accessed 10 January 2015].

NNPC (Nigerian National Petroleum Corporation), 2012 Annual Statistical Bulletin [online] (2012). Available from http://www.nnpcgroup.com/Portals/0/ Monthly%20Performance/2012%20ASB%201st%20edition.pdf [Accessed 10 January 2015].




DOI: http://dx.doi.org/10.11121/ijocta.01.2016.00277

Refbacks

  • There are currently no refbacks.


Copyright (c) 2016 Ömer Öztürkoğlu, Oyewale Lawal

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

footer_771

   ithe_170     crossref_284         ind_131_43_x_117_117  Scopus  EBSCO_Host    ULAKBIM    PROQUEST   ZBMATH more...