Using simulation to manage project supply chain in the offshore oil and gas industry

Abstract

This paper is aimed at comparing simulation against spreadsheets as decision support tools to properly manage project supply chain in the offshore oil and gas industry. The paper presents a case study related to the problem of sizing a chain for pipeline laying from an offshore field in the Barents sea to the Russian coast. Results obtained through a spreadsheet developed by an oil and gas company have been compared to the ones gathered from an ad hoc simulation model. A simulation model with no stochastic variable has been introduced: results are quite similar to the ones of the spreadsheet, which allowed to validate the simulation model. However, the spreadsheet cannot take into account the continuous move of the pipe-lay vessel while laying the pipes and it does not consider stochastic variables whose effect in real life is not negligible. Both weaknesses above are discussed.

Keywords:

• simulation
• project supply chain
• oil and gas
• offshore