Future scenario of China's downstream oil reform: Improving the energy-environmental efficiency of the pipeline networks through interconnectivity

Improving energy supply efficiency and quality is regarded as a key pathway to shifting towards a fully sustainable energy system. To address the low efficiency and high emissions in the downstream oil industry caused by the problem of vertically integrated monopoly, the Chinese government is making...

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Bibliographic Details
Published in:Energy Policy Vol. 140; p. 111403
Main Authors: Yuan, Meng, Zhang, Haoran, Wang, Bohong, Zhang, Yang, Zhou, Xingyuan, Liang, Yongtu
Format: Journal Article
Language:English
Published: Kidlington Elsevier Ltd 01.05.2020
Elsevier BV
Elsevier Science Ltd
Subjects:
Carbon dioxide
Carbon dioxide emissions
China
Demand
Downstream oil supply chain
Economic forecasting
Efficiency
Emission reduction
Energy
Energy consumption
Energy efficiency
Energy policy
Energy reform
Environmental assessment
Environmental impact
Environmental performance
Forecasting
greenhouse gas emissions
guidelines
industry
Infrastructure
Integer programming
issues and policy
Linear programming
Mixed integer
Monopolies
monopoly
Networks
Oil and gas industry
oils
Petroleum
Petroleum industry
Pipeline network interconnectivity
Pipelines
planning
Policy making
Reforms
renewable energy sources
Supply
supply chain
Supply chains
Sustainable energy
Uncertainty
China
Pipeline network interconnectivity sub-scenario
Emission reduction
Pipeline network interconnectivity
China National Offshore Oil Corporation
Reference sub-scenario
Energy reform
China
Downstream oil supply chain
Energy efficiency
Low carbon main scenario
Mixed integer linear programming
Business as usual main scenario
China Petroleum and Chemical Corporation
China National Petroleum Corporation
ISSN:0301-4215, 1873-6777
Online Access:Get full text
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Summary:Improving energy supply efficiency and quality is regarded as a key pathway to shifting towards a fully sustainable energy system. To address the low efficiency and high emissions in the downstream oil industry caused by the problem of vertically integrated monopoly, the Chinese government is making an effort to promote a multiproduct pipeline network reform. The fundamental and indispensable step for this goal is the pipeline network interconnectivity. This paper quantifies the energy-environmental impacts of the pipeline network interconnectivity reform on China's downstream oil supply chain to 2030. An integrated framework is developed to obtain the detailed design-scale information required for assessment, introducing demand forecasting and demand reallocation into a pipeline network optimal planning model. The model is formulated as a fuzzy mixed integer linear programming that optimizes the infrastructure development scheme and supply chain operation plan simultaneously while taking into account demand uncertainty. The results show that, compared with the baseline, the pipeline interconnectivity reform could reduce yearly energy consumption and CO2 emissions by 9.7–19.8% and 12.5–17.9%, respectively. It is shown that this reform policy could overcome infrastructure constraints, increase pipeline utilization, and improve both energy and environmental performance. The proposed framework can be a theoretical guideline for policymakers within and beyond China. •We quantify the benefits of pipeline network interconnectivity reform in China's DOSC.•We propose an integrated framework to evaluate the energy-environmental efficiency.•Energy saving and CO2 reduction will respectively reach 9.7% and 12.5% at least.•The reform breaks the infrastructure bottleneck and improves oil supply efficiency.•Detailed policy implications are recommended for policy makers in China.
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ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2020.111403