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Pipeline Project
The U.S. Interior Secretary recently approved drilling of natural gas wells near Vernal, Utah. Your
company has begun drilling and established a high-producing well on BLM ground. They now need to
build a pipeline to get the natural gas to their refinery.
While running the line directly to the refinery will be the least amount of pipe and shortest distance, it
would require running the line across private ground and paying a right-of-way fee. There is a mountain
directly east of the well that must be drilled through in order to run the pipeline due east. Your company
can build the pipeline around the private ground by going 8 miles directly west and then 15 miles south
and finally 32 miles east to the refinery. Cost for materials, labor and fees to run the pipeline across BLM
ground is $350,000 per mile.
Cost of drilling through the existing mountain would be a one-time cost of $4,500,000 on top of the
normal costs ($350,000 per mile) of the pipeline itself. Also, the BLM will require an environmental
impact study before allowing you to drill through the mountain. Cost for the study is estimated to be
$180,000 and will delay the project by 5 months costing the company another $75,000 per month.
For any pipeline run across private ground, your company incurs an additional $90,000 per mile cost for
right-of-way fees.
My Report
Costs
pipeline: $350,000 per mile
There is a cost function for the pipeline configuration involving running from the well across the private
ground at some angle and intersecting the BLM ground to the south and then running east to the
refinery. Using this function, we can find the optimal way to run the pipeline at minimal cost.
To determine this cost function, we can see that = (350,000 + 90,000) + 350,000 we know
that 152 + 2 = 2 , = 24 , therefore = 2 + 225 = ( 2 + 225)1/2 .
We can write the cost function as () = 350,000(24 ) + 440,000( 2 + 225)1/2 .
To find the optimal path first find the derivative of the cost function then set it equal to zero.
1 1
1
(350,000(24 )) = 350,000, and (440,0002 ) = 440,000 (2) 2 (), and = ( 2 +
440,000x
225) = 48 + 801, so = 2, therefore () = 350,000 +
2
, set equal to 0 and
2 +225
440,000x 350,000
add the constant to both sides, 350,000 = , divide from both sides = , square
2 +225 440,000 2 +225
352 2
both sides 442 = 2 +152, cross multiply 35 2 + 7875 = 44 2 , then add like terms and divide
352 152 30625
2 352 + 352 152 = 2 442 , 352 152 = 711 2 , 711
= 2, 79
= 19.689038
Now that we know our critical points = 0, = 24, = 19.689038 we can calculate them in the
original equation to find the minimum. We already know x = 0 and x = 24 so we can calculate 19.68 and
verify that its a minimum.
1
2 2
30625 30625
() = 350,000 (24 ) + 440,000 ( + 225) = 12399687.49
79 79
1
() = 350,000(24 19.6) + 440,000(19.62 + 225)2 = 12399713.44
1
() = 350,000(24 19.7) + 440,000(19.72 + 225)2 = 12399687.88
12399687.49 < 12399713.44, 12399687.49 < 12399687.88
Whats left is to determine the values of y and z, then use the law of cosines to find the angle at which the
pipe leaves the well.
= 24 = 4.311
= 2 + 225 = 24.7519
152 + 2 2
cos = 2(15)()
= 0.606013, cos1 0. 606013 = 52.6982
90 52.6982 = 37.3018
The length of pipe that runs across private land is 24.75 miles long, and it starts running on BLM land
4.311 miles before the refinery. The pipe leaves the well and goes through private land at a 37.3 angle.
() = 350000 + 440000 2 + 225
19.689, 17781987.4878
(
that way before. The biggest part is thinking of how to relate to things
) to each other to create the initial
function. %
AC
My second favorite thing about derivatives is using them7 as rates of change. Finding velocity is
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important for many reasons, I work with cars so my initial thought 9 of velocity is always miles per hour.
What really intrigued me, was finding a second derivative to determine the acceleration. Its so simple,
4 its incredible.
but as I said before, its just thinking of math in a different way, and
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