Abstract
The petrochemical industry is an integral component of the global today. The petrochemical supply chain itself is a worldwide undertaking, and the final products that are offered to consumers will often travel thousands of miles from oil well to gas station pump. In the crude oil supply chain, there are three main stages: crude oil extraction, oil separation and refinement, and final product delivery. Within this supply chain, various companies will compete and attempt to maximize their profits by exploiting the demands and needs of the other companies within the supply chain. Each company or player in the crude oil industry has its own objective, and it will compete against other companies trying to pursue their individual objectives. In this work, the crude oil supply chain from oil well to refinery is modelled as a mixed-integer bilevel linear program (MIBLP) which accounts for conflicting objectives and interactions between different stakeholders. The composition, pricing, transportation distances, and environmental impacts of the different oils are taken into consideration when constructing the model. The resulting model is then applied to a U.S.-based refinery that purchases oil from various countries surrounding the Persian Gulf. The case study produces a pareto-optimal curve that displays the trade-off between environmental impact and profit. One intermediate point on the curve is selected to show how a 4.4 % decrease in profit can lead to a 3.0 % decrease in total kg CO2-eq produced.
