Salt

Lake CC, Math 1210-003, Fall 2015

Nick Pollock
Pipeline Project
A new pipeline is to be built running from a well to a refinery. This presentation will
evaluate the costs of a 5 different pipeline routes to determine the most cost
effective path. All options considered are viable. We have found that it will cost
$475,000 per mile of pipeline on BLM land with an additional $350,000 on private
land. Going through the mountain will generate other costs but those will be
discussed in option 2.
Option 1
Running west, south, and then east to the refinery.

Private Land

BLM Ground
14 miles

9 miles

38 miles, BLM Ground

The cost for materials, labor and fees to run the pipeline across BLM ground is
$475,000 per mile so we can represent this path as the function:
9x+14x+38x
Where x is the cost of pipeline per mile.
The total cost for option 1 is $28,975,000.

Option 2
Running East through the mountain then South to the refinery.


BLM Ground
14 miles

Private Land

29 miles, BLM Ground

To run through the mountain our company must first wait six months
costing $115,000 per month while we have an environmental impact
study done costing $500,000 along with the cost for each mile of
pipeline at $475,000 on top of the cost to drill through the mountain at
$4,600,000. The cost can be represented as the function:
C=29x+14x+6y+z+w
C= 43x+6y+z+w
Where x is the cost of pipeline per mile, y is the cost per month while
the impact studying is being conducted, z is the cost of the impact study
and, w is the cost to drill through the mountain.
The total cost for option 2 is $26,215,000.

Option 3
Running straight from the well across the private land to the refinery.

BLM Ground
14 miles

Private Land

29 miles, BLM Ground

Using the Pythagorean theorem we know the distance across the private
ground straight to the private land can be represented as
a2+b2=c2
The distance is then 32.2 miles. Running through the private land incurs
a right-of-way fee of $350,000 per mile. The cost of option 3 can be
represented by the function:
C=32.2x+32.2y
Where x is the cost of pipeline per mile and y is the right-of-way cost per
mile.
The total cost of option 3 is $26,565,000.

Option 4
Running South through the private land then East to the refinery.

BLM Ground
14 miles

Private Land





29 miles, BLM Ground


The distance South through the private land is 14 miles so the cost for
option 4 can be represented by the function:

C=29x+14x+14y
C=43x+14y

Where x is the cost of pipeline per mile and y is the right-of-way cost
through the private land.

The total cost for option 4 is $25,325,000.



Option 5
The optimal angle through the private land then East to the refinery.

BLM Ground
14 miles

Private Land
A

29 miles, BLM Ground

To find the optimal angle with the least cost for the pipeline to run at an
angle through the private ground we can use calculus. First lets find a
function that will show us the total cost using variables.

C(a)=Ay+Bx

Where
A is the length through private land
B is the length through BLM land
y is the cost of pipeline plus the cost of right-of-way fees
x is the cost of pipeline through BLM land
a is the area under A
b is 14 miles
is the angle at which the optimal pipeline leaves the oil well based off
cardinal directions.

Now lets find some equations for our variables:

A= ! + !
B=29-a
y=$825,000
x=$475,000
=tan-1(a/b)

So then C(a)=825,000( 14! + ! )+475,000(29-a)

And then the calculations are as follows:

Find the derivative of the cost function using the chain rule.
C (a)= 825,000( 14! + ! )+475,000(29-a)
C(a)= 825,000(196 +a2)
C(a)=-475,000+825,000a(196+a2)-1/2

Set the derivative equal to 0.

0=-475,000+825,000a(196+a2)-1/2

And solve.
0=-475,000+825,000a(196+a2) -1/2 Add 475,000 to each side
475,000=825,000a(196+a2)-1/2 Divide both sides by 825,000
19/33=a(196+a2)-1/2 Multiply both sides by (196+a2)
19/33(196+a2)1/2=a Square both sides
361/1089(196+a2)=a2 Distribute
70756/1089+361/1089a2=a2 Subtract 361/1089a2 from both
sides
70756/1089=728/1089a2 Divide both sides by 728/1089
a2=2527/26 Take the square root of each side
and
a= 2527/26

This answer is the optimal length of a, so we can now substitute in this
answer to find the distance through private land, BLM land, and the
angle at which the pipeline leaves the well.



B=29- 2527/26= 19.14 miles through BLM land.
A= 14 ! +

2527/26 = 17.12 miles through private land.

Which is lower than any other option so option 5 is the optimal route
for the pipeline.

In doing this report I hope youve seen all viable options and have come
to a conclusion that will keep pipeline costs to a minimum in order to
maximize profits.
















Length of distance a
25

Cost of pipeline
( in millions)

= tan-1( 2527/26/14) = 35.15 degrees South by South West.

Now we know the optimal distance of A and B we can substitute those
into our original cost function.

C(x)=17.12($825,000)+19.14($475,000)
And so the total cost for option 5 will be

C(x)= $23,215,500

( in miles)

We can see the use of calculus when finding the optimal cost of
something is very useful but this is only a small area of real world
problems that can be solved with the help of calculus. I will hopefully be
an engineer one day and I will need to optimize the route taken by a
drone or the optimal design for wind resistance on a car. Calculus is not
only helpful in Engineering but in physics and computer design. Even
Chemistry has some bits of calculus wrapped up in it. Ive learned a lot
this last semester about limits and derivatives, which I feel are the real
base level of calc. We use derivatives to find the integrals. Sigma
notation is very useful. Im in a computer coding class and the same day
I learned sigma notation was the day that I had to write a line of code
adding up the first n integers that a user defines. It was incredibly
helpful to already have that knowledge and Im seeing that math is all
about problem solving. Knowing the equations is only half of math, the
other half is knowing when to apply it. But towards the end of the
semester were getting into word problems and Im having some
difficulty with compacting a paragraph into an equation but Im still
having fun doing what I love and I still have a lot to learn and hopefully
Ill learn a couple tricks to help my formula forming skills become
better.