Exploring options for carbon abatement in the petroleum sector: a supply chain optimization-based approach

Abstract

This work aims to address the problem of green supply chain planning in the petroleum industry. Our primary objective is to minimize the total cost of crude, refinery, and petrochemical sectors and meet environmental regulations. It presents an optimization model for planning the supply chain. Furthermore, the study examines the impact of incorporating investment decisions in different carbon emission reduction options and evaluating the supply chain performance based on the economic and environmental dimensions. A novel mixed-integer linear programming model is developed to assess the impact of introducing a stringent environmental regulation limiting greenhouse gas emissions. Experimental results based on the Libyan petroleum industry are analyzed and demonstrate model capabilities to deal with the trade-off between the total cost and environmental issues. A sensitivity analysis is carried out on some parameters to design a mitigation plan to manage the environmental risks. This study shows that it is possible to reduce carbon emissions by up to 32% if the carbon capture and storage projects are implemented in the petroleum sector. However, if the reduction objective is more than 32% for the next 20 years, it is necessary to implement green (solar) energies in extraction, refineries, and petrochemical plants.

KEYWORDS:

• Green supply chain management
• uncertainty
• sustainable supply chain
• planning
• multi-objective optimization
• petroleum supply chain
• CO₂ emissions

Data availability statement

The authors confirm that most of the data supporting this study's findings are available within the article and its supplementary materials. Also, due to the nature of this research, participants of this study did not agree that confidential data to be shared publicly, so some supporting data is not available.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Otman Abdussalam

Dr. Otman Abdussalam is a research associate in the Department of Systems Engineering at École de Technologie Supérieure (ÉTS, Montreal). He received his Ph.D. degree in Engineering from ÉTS in 2021. His research focuses on strategic and tactical supply chain planning in the petroleum industry, where he proposes decision-making models to reduce environmental impacts. His research interests include linear and integer optimization, multi-objective optimization, supply chain planning, and sustainable/green logistics.

Nuri Fello

Dr. Nuri Fello is currently working as the Geosciences Department Manager at Nafusah Oil Operations B. V. in Tripoli, Libya. During the last 35 years of experience. Moreover, he is teaching at Libyan Universities to utilize and expand his knowledge by using the research skills in both academic and applied field geology in the Oil business and industry. In addition to that, Dr. Fello focuses on the Lower Silurian “Hot Shales” in Ghat area, Murzuq Basin, SW Libya a joint with North Africa Research Group (NARG), to produce training film (January 2005) on DVD under the title “Hunting Hot Shale in Wadi Tanezzuft.” The essential objective is to develop a reliable method to reconstruct the original organic richness of shales in weathered outcrop sections. These techniques are crucial to frontier exploration in the southern Libyan Palaeozoic Basins. Finally, the major recent project is Petroleum, Geology of Southern Libya, featured in a new training film series (December, 20007) titled “Petroleum Geology of Southern Libya.”

Amin Chaabane

Dr. Amin Chaabane is an associate professor in the Department of Systems Engineering at École de Technologie Supérieure (ÉTS, Montreal). He teaches courses in operations and logistics engineering and automated engineering manufacturing engineering programs. His research interests include supply chain engineering, sustainable logistics issues, and system performance improvements through analytical and technological solutions. Professor Chaabane has contributed to multiple research areas, particularly operations and supply chain management, with practical applications across various industries (food, logistics, retail, energy, oil and gas, energy, construction logistics, and Forestry).