A multi-objective optimization model for tactical planning of upstream oil & gas supply chains

The supply-chain of oil and gas is known as the hydrocarbon supply-chain (HCSC). HCSC constitutes a significant part of the world economy of the energy sector. Consequently, planning the activities of the HCSC is an important and challenging research area. Here we present a multi-objective optimization model for intermediate-term planning of HCSC. The model brings forward sustainability and the environment aspect of planning HCSC operations. Sustainability is considered as an objective by minimizing the depletion rate. The environment is considered as a constraint in the model by restricting CO₂ release. In addition, the model includes minimizing the total cost and maximizing revenue as two objectives. The proposed model assists decision makers to study trade-offs among alternative decisions. Decisions have an impact on meeting demand, depletion rate of natural resources, minimizing costs and/or maximizing revenue. A case study based on real data is provided to demonstrate model practicability and a sensitivity analysis is conducted to derive managerial insights. For instance, oil and gas reserves can be sustained for a longer period without the reduction of market share and simultaneously, return covers the total cost.