PSEL Follow-up Article in Energy Provided with Free Access

Thu, 02/04/2016

Using the Bakken shale play as a case study, the previous part of this two-part series demonstrated how small-scale mobile plants could be used to monetize associated or stranded gas effectively. In the follow-up (free access provided until March 25, 2016), the issue of uncertainty in future supply, demand and price conditions is addressed. The multi-period optimization framework is modified to a stochastic programming framework to account for various scenarios with different parameter realizations in the future. The maximum ENPV (expected net present value) obtained was $2.01 billion, higher than the NPV obtained in the previous part.