Reducing the lifecycle cost of oil and gas facility by use of simulation

Reducing the lifecycle cost of oil and gas facility by use of simulation Essay example
Masters
Essay
Design & Technology
Pages 3 (753 words)
Download 0
During operations, oil and gas industries incur lifecycle costs that affects their production capacity and cost of production. Lifecycle costs include recurring and other nonrecurring costs incurred by a company during a certain operational period…

Introduction

During operations, oil and gas industries incur lifecycle costs that affects their production capacity and cost of production. Lifecycle costs include recurring and other nonrecurring costs incurred by a company during a certain operational period. Oil and gas companies incur lifecycle cost through installation of new facilities, maintenance, and upgrading of the existing facilities. Facilities in the companies have definite life span and therefore the companies experience an additional when closing them down With these costs to consider, the companies are concerned with the possible alternatives to cut or reduce the effects of the lifespan cost. In order to eliminate or minimize lifecycle cost, oil companies rely on planning making simulations a useful tool. Simulations are models applied by the companies to determine the viability of a facility before its inception (Gorski, 2006). This paper therefore analyzes the benefits achieved from application of simulations in the reduction of lifecycle cost in oil and gas companies. Some of the ways in which simulation is applied to reduce lifecycle cost Evaluation and comparison of different approaches for replacement Evaluation and comparison of alternative strategies for product use Evaluation and comparison of different designs Optimal allocation of available funds of activities in the process of product development During their lifespan, most companies are confronted with situations where they need to make important decisions on whether to close down a facility or to change a business strategy. ...
Download paper
Not exactly what you need?

Related papers

Electric Field Simulation
Through COMSOL Multiphysics we discovered the results after simulating an electric field by using 2D and 3D of the electrostatic module. These modules provided many kinds of movement in the electric field for the three electrodes, which were energised with +1V, 0V, and -1V electrical voltages. Also, the strong and weak points are posted between the three electrodes and show the electric potential…
Simulation Modeling In Oil And Gas Industries.
Additionally, there are many variables of operations and decision-making processes to ensure that costs are minimized, available resources are optimized, and maximum efficiency is achieved. Certainly, any course of action may be successful or disastrous to the company. Therefore, simulation becomes a very important tool of assessing viability of a given action before the same is put into practice…
How can interactive media encourage students from secondary schools to eat healthy and thus contribute to reducing the growing o
n.d.). Considering the cases of school children, the number of children suffering from overweight has been rising over the years. Records reflect that one out of three children is becoming obese or overweight. These children are also affected with heart diseases, high blood pressure and diabetes that are associated with the increase in weight. It is a matter of serious concern that lead to several…
How can interactive media encourage students from secondary schools to eat healthy and thus contribute to reducing the growing o
The present time reflects examples of advertising that make use of the persuasive technology with advertisers using words like ‘free’ and ‘hurry’ offering them with bargains on different products and services, and attracting greater number of consumers. This is reflected in the world of internet advertising as well. With the use of different software and applications, behavior and attitude…
Use of Composites in Aviation
Use of Composites in Aviation …
Strategic use of Design-Thinking
Design thinking is quickly emerging as the best method for strategizing on developing the future of a business or an organization and is gradually replacing the scientific method or analytical thinking or as a strategic method (Jones, 2008). Strategic design thinking as a method is emerging as one of the most influential techniques in the management and design of several programs that are geared…
Use of Computer based Technology in Engineering Design
Use of Computer based Technology in Engineering Design …