SlideShare a Scribd company logo
Quantitative Methods for Strategic and Investment Planning in the
                                  Oil-Refining Industry
                 Brenno C. Menezes1, Ignacio E. Grossmann2, Jeffrey D. Kelly3, Lincoln F. Moro1
             1Refining   Optimization, PETROBRAS, Rio de Janeiro, Brazil. 2Department of Chemical Engineering, Carnegie Mellon University, Pittsburgh, United States. 3IndustrIALgorithms, Toronto, Canada.

                                                                                                         Mixed-Integer Problem:


                                         Kerosene




                                           C3 +C3=




                                                                                                      Capital Cost Constraint:
Refining Modeling:


                                                                                                           Logic Constraints for Expansions and Installations:




                                                                                                       Logic Constraints for Unit Type Investments (structural precedence):




Blending Equations:




                                                                                                      MINLP Case: 30 bi U$ to invest. Net Present Value (NPV) for 12 years without demand




Crude Choice and Processing Equations:




                                                                                                      Conclusion: Trendy into invest in gasoline with CDU and RFCC structure

More Related Content

More from Alkis Vazacopoulos

Automatic Fine-tuning Xpress-MP to Solve MIP
Automatic Fine-tuning Xpress-MP to Solve MIPAutomatic Fine-tuning Xpress-MP to Solve MIP
Automatic Fine-tuning Xpress-MP to Solve MIP
Alkis Vazacopoulos
 
Data mining 2004
Data mining 2004Data mining 2004
Data mining 2004
Alkis Vazacopoulos
 
Amazing results with ODH|CPLEX
Amazing results with ODH|CPLEXAmazing results with ODH|CPLEX
Amazing results with ODH|CPLEX
Alkis Vazacopoulos
 
Bia project poster fantasy football
Bia project poster  fantasy football Bia project poster  fantasy football
Bia project poster fantasy football
Alkis Vazacopoulos
 
NFL Game schedule optimization
NFL Game schedule optimization NFL Game schedule optimization
NFL Game schedule optimization
Alkis Vazacopoulos
 
2017 Business Intelligence & Analytics Corporate Event Stevens Institute of T...
2017 Business Intelligence & Analytics Corporate Event Stevens Institute of T...2017 Business Intelligence & Analytics Corporate Event Stevens Institute of T...
2017 Business Intelligence & Analytics Corporate Event Stevens Institute of T...
Alkis Vazacopoulos
 
Posters 2017
Posters 2017Posters 2017
Posters 2017
Alkis Vazacopoulos
 
Very largeoptimizationparallel
Very largeoptimizationparallelVery largeoptimizationparallel
Very largeoptimizationparallel
Alkis Vazacopoulos
 
Retail Pricing Optimization
Retail Pricing Optimization Retail Pricing Optimization
Retail Pricing Optimization
Alkis Vazacopoulos
 
Optimization Direct: Introduction and recent case studies
Optimization Direct: Introduction and recent case studiesOptimization Direct: Introduction and recent case studies
Optimization Direct: Introduction and recent case studies
Alkis Vazacopoulos
 
Informs 2016 Solving Planning and Scheduling Problems with CPLEX
Informs 2016 Solving Planning and Scheduling Problems with CPLEX Informs 2016 Solving Planning and Scheduling Problems with CPLEX
Informs 2016 Solving Planning and Scheduling Problems with CPLEX
Alkis Vazacopoulos
 
ODHeuristics
ODHeuristicsODHeuristics
ODHeuristics
Alkis Vazacopoulos
 
Missing-Value Handling in Dynamic Model Estimation using IMPL
Missing-Value Handling in Dynamic Model Estimation using IMPL Missing-Value Handling in Dynamic Model Estimation using IMPL
Missing-Value Handling in Dynamic Model Estimation using IMPL
Alkis Vazacopoulos
 
Finite Impulse Response Estimation of Gas Furnace Data in IMPL Industrial Mod...
Finite Impulse Response Estimation of Gas Furnace Data in IMPL Industrial Mod...Finite Impulse Response Estimation of Gas Furnace Data in IMPL Industrial Mod...
Finite Impulse Response Estimation of Gas Furnace Data in IMPL Industrial Mod...
Alkis Vazacopoulos
 
Industrial Modeling Service (IMS-IMPL)
Industrial Modeling Service (IMS-IMPL)Industrial Modeling Service (IMS-IMPL)
Industrial Modeling Service (IMS-IMPL)
Alkis Vazacopoulos
 
Dither Signal Design Problem (DSDP) for Closed-Loop Estimation Industrial Mod...
Dither Signal Design Problem (DSDP) for Closed-Loop Estimation Industrial Mod...Dither Signal Design Problem (DSDP) for Closed-Loop Estimation Industrial Mod...
Dither Signal Design Problem (DSDP) for Closed-Loop Estimation Industrial Mod...
Alkis Vazacopoulos
 
Xmr im
Xmr imXmr im
Distillation Curve Optimization Using Monotonic Interpolation
Distillation Curve Optimization Using Monotonic InterpolationDistillation Curve Optimization Using Monotonic Interpolation
Distillation Curve Optimization Using Monotonic Interpolation
Alkis Vazacopoulos
 
Multi-Utility Scheduling Optimization (MUSO) Industrial Modeling Framework (M...
Multi-Utility Scheduling Optimization (MUSO) Industrial Modeling Framework (M...Multi-Utility Scheduling Optimization (MUSO) Industrial Modeling Framework (M...
Multi-Utility Scheduling Optimization (MUSO) Industrial Modeling Framework (M...
Alkis Vazacopoulos
 
Advanced Parameter Estimation (APE) for Motor Gasoline Blending (MGB) Indust...
Advanced Parameter Estimation (APE) for Motor Gasoline Blending (MGB)  Indust...Advanced Parameter Estimation (APE) for Motor Gasoline Blending (MGB)  Indust...
Advanced Parameter Estimation (APE) for Motor Gasoline Blending (MGB) Indust...
Alkis Vazacopoulos
 

More from Alkis Vazacopoulos (20)

Automatic Fine-tuning Xpress-MP to Solve MIP
Automatic Fine-tuning Xpress-MP to Solve MIPAutomatic Fine-tuning Xpress-MP to Solve MIP
Automatic Fine-tuning Xpress-MP to Solve MIP
 
Data mining 2004
Data mining 2004Data mining 2004
Data mining 2004
 
Amazing results with ODH|CPLEX
Amazing results with ODH|CPLEXAmazing results with ODH|CPLEX
Amazing results with ODH|CPLEX
 
Bia project poster fantasy football
Bia project poster  fantasy football Bia project poster  fantasy football
Bia project poster fantasy football
 
NFL Game schedule optimization
NFL Game schedule optimization NFL Game schedule optimization
NFL Game schedule optimization
 
2017 Business Intelligence & Analytics Corporate Event Stevens Institute of T...
2017 Business Intelligence & Analytics Corporate Event Stevens Institute of T...2017 Business Intelligence & Analytics Corporate Event Stevens Institute of T...
2017 Business Intelligence & Analytics Corporate Event Stevens Institute of T...
 
Posters 2017
Posters 2017Posters 2017
Posters 2017
 
Very largeoptimizationparallel
Very largeoptimizationparallelVery largeoptimizationparallel
Very largeoptimizationparallel
 
Retail Pricing Optimization
Retail Pricing Optimization Retail Pricing Optimization
Retail Pricing Optimization
 
Optimization Direct: Introduction and recent case studies
Optimization Direct: Introduction and recent case studiesOptimization Direct: Introduction and recent case studies
Optimization Direct: Introduction and recent case studies
 
Informs 2016 Solving Planning and Scheduling Problems with CPLEX
Informs 2016 Solving Planning and Scheduling Problems with CPLEX Informs 2016 Solving Planning and Scheduling Problems with CPLEX
Informs 2016 Solving Planning and Scheduling Problems with CPLEX
 
ODHeuristics
ODHeuristicsODHeuristics
ODHeuristics
 
Missing-Value Handling in Dynamic Model Estimation using IMPL
Missing-Value Handling in Dynamic Model Estimation using IMPL Missing-Value Handling in Dynamic Model Estimation using IMPL
Missing-Value Handling in Dynamic Model Estimation using IMPL
 
Finite Impulse Response Estimation of Gas Furnace Data in IMPL Industrial Mod...
Finite Impulse Response Estimation of Gas Furnace Data in IMPL Industrial Mod...Finite Impulse Response Estimation of Gas Furnace Data in IMPL Industrial Mod...
Finite Impulse Response Estimation of Gas Furnace Data in IMPL Industrial Mod...
 
Industrial Modeling Service (IMS-IMPL)
Industrial Modeling Service (IMS-IMPL)Industrial Modeling Service (IMS-IMPL)
Industrial Modeling Service (IMS-IMPL)
 
Dither Signal Design Problem (DSDP) for Closed-Loop Estimation Industrial Mod...
Dither Signal Design Problem (DSDP) for Closed-Loop Estimation Industrial Mod...Dither Signal Design Problem (DSDP) for Closed-Loop Estimation Industrial Mod...
Dither Signal Design Problem (DSDP) for Closed-Loop Estimation Industrial Mod...
 
Xmr im
Xmr imXmr im
Xmr im
 
Distillation Curve Optimization Using Monotonic Interpolation
Distillation Curve Optimization Using Monotonic InterpolationDistillation Curve Optimization Using Monotonic Interpolation
Distillation Curve Optimization Using Monotonic Interpolation
 
Multi-Utility Scheduling Optimization (MUSO) Industrial Modeling Framework (M...
Multi-Utility Scheduling Optimization (MUSO) Industrial Modeling Framework (M...Multi-Utility Scheduling Optimization (MUSO) Industrial Modeling Framework (M...
Multi-Utility Scheduling Optimization (MUSO) Industrial Modeling Framework (M...
 
Advanced Parameter Estimation (APE) for Motor Gasoline Blending (MGB) Indust...
Advanced Parameter Estimation (APE) for Motor Gasoline Blending (MGB)  Indust...Advanced Parameter Estimation (APE) for Motor Gasoline Blending (MGB)  Indust...
Advanced Parameter Estimation (APE) for Motor Gasoline Blending (MGB) Indust...
 

Recently uploaded

DevOps and Testing slides at DASA Connect
DevOps and Testing slides at DASA ConnectDevOps and Testing slides at DASA Connect
DevOps and Testing slides at DASA Connect
Kari Kakkonen
 
RESUME BUILDER APPLICATION Project for students
RESUME BUILDER APPLICATION Project for studentsRESUME BUILDER APPLICATION Project for students
RESUME BUILDER APPLICATION Project for students
KAMESHS29
 
Climate Impact of Software Testing at Nordic Testing Days
Climate Impact of Software Testing at Nordic Testing DaysClimate Impact of Software Testing at Nordic Testing Days
Climate Impact of Software Testing at Nordic Testing Days
Kari Kakkonen
 
20240609 QFM020 Irresponsible AI Reading List May 2024
20240609 QFM020 Irresponsible AI Reading List May 202420240609 QFM020 Irresponsible AI Reading List May 2024
20240609 QFM020 Irresponsible AI Reading List May 2024
Matthew Sinclair
 
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdf
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdfObservability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdf
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdf
Paige Cruz
 
Unlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdf
Unlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdfUnlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdf
Unlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdf
Malak Abu Hammad
 
20240605 QFM017 Machine Intelligence Reading List May 2024
20240605 QFM017 Machine Intelligence Reading List May 202420240605 QFM017 Machine Intelligence Reading List May 2024
20240605 QFM017 Machine Intelligence Reading List May 2024
Matthew Sinclair
 
Pushing the limits of ePRTC: 100ns holdover for 100 days
Pushing the limits of ePRTC: 100ns holdover for 100 daysPushing the limits of ePRTC: 100ns holdover for 100 days
Pushing the limits of ePRTC: 100ns holdover for 100 days
Adtran
 
GraphSummit Singapore | Neo4j Product Vision & Roadmap - Q2 2024
GraphSummit Singapore | Neo4j Product Vision & Roadmap - Q2 2024GraphSummit Singapore | Neo4j Product Vision & Roadmap - Q2 2024
GraphSummit Singapore | Neo4j Product Vision & Roadmap - Q2 2024
Neo4j
 
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024Encryption in Microsoft 365 - ExpertsLive Netherlands 2024
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024
Albert Hoitingh
 
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...
DanBrown980551
 
GridMate - End to end testing is a critical piece to ensure quality and avoid...
GridMate - End to end testing is a critical piece to ensure quality and avoid...GridMate - End to end testing is a critical piece to ensure quality and avoid...
GridMate - End to end testing is a critical piece to ensure quality and avoid...
ThomasParaiso2
 
Essentials of Automations: The Art of Triggers and Actions in FME
Essentials of Automations: The Art of Triggers and Actions in FMEEssentials of Automations: The Art of Triggers and Actions in FME
Essentials of Automations: The Art of Triggers and Actions in FME
Safe Software
 
Large Language Model (LLM) and it’s Geospatial Applications
Large Language Model (LLM) and it’s Geospatial ApplicationsLarge Language Model (LLM) and it’s Geospatial Applications
Large Language Model (LLM) and it’s Geospatial Applications
Rohit Gautam
 
Mind map of terminologies used in context of Generative AI
Mind map of terminologies used in context of Generative AIMind map of terminologies used in context of Generative AI
Mind map of terminologies used in context of Generative AI
Kumud Singh
 
Full-RAG: A modern architecture for hyper-personalization
Full-RAG: A modern architecture for hyper-personalizationFull-RAG: A modern architecture for hyper-personalization
Full-RAG: A modern architecture for hyper-personalization
Zilliz
 
A tale of scale & speed: How the US Navy is enabling software delivery from l...
A tale of scale & speed: How the US Navy is enabling software delivery from l...A tale of scale & speed: How the US Navy is enabling software delivery from l...
A tale of scale & speed: How the US Navy is enabling software delivery from l...
sonjaschweigert1
 
National Security Agency - NSA mobile device best practices
National Security Agency - NSA mobile device best practicesNational Security Agency - NSA mobile device best practices
National Security Agency - NSA mobile device best practices
Quotidiano Piemontese
 
Introduction to CHERI technology - Cybersecurity
Introduction to CHERI technology - CybersecurityIntroduction to CHERI technology - Cybersecurity
Introduction to CHERI technology - Cybersecurity
mikeeftimakis1
 
GraphSummit Singapore | Graphing Success: Revolutionising Organisational Stru...
GraphSummit Singapore | Graphing Success: Revolutionising Organisational Stru...GraphSummit Singapore | Graphing Success: Revolutionising Organisational Stru...
GraphSummit Singapore | Graphing Success: Revolutionising Organisational Stru...
Neo4j
 

Recently uploaded (20)

DevOps and Testing slides at DASA Connect
DevOps and Testing slides at DASA ConnectDevOps and Testing slides at DASA Connect
DevOps and Testing slides at DASA Connect
 
RESUME BUILDER APPLICATION Project for students
RESUME BUILDER APPLICATION Project for studentsRESUME BUILDER APPLICATION Project for students
RESUME BUILDER APPLICATION Project for students
 
Climate Impact of Software Testing at Nordic Testing Days
Climate Impact of Software Testing at Nordic Testing DaysClimate Impact of Software Testing at Nordic Testing Days
Climate Impact of Software Testing at Nordic Testing Days
 
20240609 QFM020 Irresponsible AI Reading List May 2024
20240609 QFM020 Irresponsible AI Reading List May 202420240609 QFM020 Irresponsible AI Reading List May 2024
20240609 QFM020 Irresponsible AI Reading List May 2024
 
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdf
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdfObservability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdf
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdf
 
Unlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdf
Unlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdfUnlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdf
Unlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdf
 
20240605 QFM017 Machine Intelligence Reading List May 2024
20240605 QFM017 Machine Intelligence Reading List May 202420240605 QFM017 Machine Intelligence Reading List May 2024
20240605 QFM017 Machine Intelligence Reading List May 2024
 
Pushing the limits of ePRTC: 100ns holdover for 100 days
Pushing the limits of ePRTC: 100ns holdover for 100 daysPushing the limits of ePRTC: 100ns holdover for 100 days
Pushing the limits of ePRTC: 100ns holdover for 100 days
 
GraphSummit Singapore | Neo4j Product Vision & Roadmap - Q2 2024
GraphSummit Singapore | Neo4j Product Vision & Roadmap - Q2 2024GraphSummit Singapore | Neo4j Product Vision & Roadmap - Q2 2024
GraphSummit Singapore | Neo4j Product Vision & Roadmap - Q2 2024
 
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024Encryption in Microsoft 365 - ExpertsLive Netherlands 2024
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024
 
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...
 
GridMate - End to end testing is a critical piece to ensure quality and avoid...
GridMate - End to end testing is a critical piece to ensure quality and avoid...GridMate - End to end testing is a critical piece to ensure quality and avoid...
GridMate - End to end testing is a critical piece to ensure quality and avoid...
 
Essentials of Automations: The Art of Triggers and Actions in FME
Essentials of Automations: The Art of Triggers and Actions in FMEEssentials of Automations: The Art of Triggers and Actions in FME
Essentials of Automations: The Art of Triggers and Actions in FME
 
Large Language Model (LLM) and it’s Geospatial Applications
Large Language Model (LLM) and it’s Geospatial ApplicationsLarge Language Model (LLM) and it’s Geospatial Applications
Large Language Model (LLM) and it’s Geospatial Applications
 
Mind map of terminologies used in context of Generative AI
Mind map of terminologies used in context of Generative AIMind map of terminologies used in context of Generative AI
Mind map of terminologies used in context of Generative AI
 
Full-RAG: A modern architecture for hyper-personalization
Full-RAG: A modern architecture for hyper-personalizationFull-RAG: A modern architecture for hyper-personalization
Full-RAG: A modern architecture for hyper-personalization
 
A tale of scale & speed: How the US Navy is enabling software delivery from l...
A tale of scale & speed: How the US Navy is enabling software delivery from l...A tale of scale & speed: How the US Navy is enabling software delivery from l...
A tale of scale & speed: How the US Navy is enabling software delivery from l...
 
National Security Agency - NSA mobile device best practices
National Security Agency - NSA mobile device best practicesNational Security Agency - NSA mobile device best practices
National Security Agency - NSA mobile device best practices
 
Introduction to CHERI technology - Cybersecurity
Introduction to CHERI technology - CybersecurityIntroduction to CHERI technology - Cybersecurity
Introduction to CHERI technology - Cybersecurity
 
GraphSummit Singapore | Graphing Success: Revolutionising Organisational Stru...
GraphSummit Singapore | Graphing Success: Revolutionising Organisational Stru...GraphSummit Singapore | Graphing Success: Revolutionising Organisational Stru...
GraphSummit Singapore | Graphing Success: Revolutionising Organisational Stru...
 

Strategic and Investment Planning in the Oil-Refining Industry

  • 1. Quantitative Methods for Strategic and Investment Planning in the Oil-Refining Industry Brenno C. Menezes1, Ignacio E. Grossmann2, Jeffrey D. Kelly3, Lincoln F. Moro1 1Refining Optimization, PETROBRAS, Rio de Janeiro, Brazil. 2Department of Chemical Engineering, Carnegie Mellon University, Pittsburgh, United States. 3IndustrIALgorithms, Toronto, Canada. Mixed-Integer Problem: Kerosene C3 +C3= Capital Cost Constraint: Refining Modeling: Logic Constraints for Expansions and Installations: Logic Constraints for Unit Type Investments (structural precedence): Blending Equations: MINLP Case: 30 bi U$ to invest. Net Present Value (NPV) for 12 years without demand Crude Choice and Processing Equations: Conclusion: Trendy into invest in gasoline with CDU and RFCC structure