eportfolic http: \\myeportfolicemilyn. weebly. comy Signature ~project. htm) Ro ee or http: /myeportfolioemilyn. weebly. com/ math-page htm! Emily Nguyen Cale 1210-Pipetine Project Spring 2017 ‘De3t CEO, In response to your request for providing a cost ecient method in constructing pipeline 9m the natural gas wells to the refinery near Vernal, Utah, | have formulated the following analysis. In this report, you will find five different scenarios that address the pipeline project, and a recommendation of the most cost efficient method will be provided, Scenario 1 BLM Land: The pipeline would run west 8 miles, turn south 16 miles, and east 40 miles to the refinery. The total mileage for the route would be 64 miles. The pipeline would be constructed strictly on BLM land and would cost $480K/mile to construct, The total cost for Scenario 1 Is $30.7M. lx) = 64($480, 000) = $30, 720, 000 & ‘Te 40 =I ‘Scenario 2 Mountain Corridor: The pipeline would run 40 miles directly east through mountains, and 16 miles south to refinery, totaling 56 miles. The pipeline would be built on BLM land and would cost $480K/ mile. The cost of driling through the mountain would result in a one-time cost of $4.5M. The mountain pipeline would also require an environmental study that would cost $600k, and will delay the project for 8 months resulting in $100K/month in additional costs, The total cost for Scenario 2 Is $32.7M. C(x) = 56($480, 000) + $4,500,000 + $600,000 + 8($100, 000) = $32, 780, 000 a Ww em) Scenario 3 Cross Private Ground: The pipeline would directly cross private property for 42.7 miles from wells to the refinery. The cost of construction is $480K per mile plus an additional $360K per mile for right-of-way fees. ‘Although this may the shortest route the cost forthe project is projected to be $36.3M. C(x) = 42.72($840, 000) = $35, 868, 000Seenario 4 BLM and Private Land: The pipeline would run 16 south through private land, and 40 miles ast on BLM land. Construction costs would be $480K per mile on BLM land and $840K per mile on private land. The total cost for Scenario 4 is $32.64M, Ctx) \o 16($840, 000) + 40($480, 000) = $32,640,000 Scenario 5 Optimization: The optimal cost is described as illustrated in the picture below, shows the pipeline cutting through private land for 18.5 miles ina southeast direction. Once reaching BLM land the pipeline would head due east for 29.1 miles to the refinery. The total cost for this scenario is $30.3M, making tthe most efficient pipeline scenario for the project. To prove that this is the most cost efficient scenario: Ctx) = $840, o00tvx"2+ 225}4500, 000(40-x) 2 Yo. ‘ 0¢-225) i x qo 1 To identify the most cost efficient path for the pipeline, the derivative of the cost function must be ‘taken. The steps of the finding the derivative are shown below. (x)= 840k (x"24225)4(%4) + 480k (40x) = 840k (x*2+225)"() + 2,000k-480k) C’(x)= 840k (%4)(x42+225)4(%4) (2x)-480k =(840k{x)/(Vx*2 + 225 )- 480 After taking the derivative, the equation is set equal to zero to find the x-intercept. This will pinpoint the value of x, and determine construction costs on the pipeline. C{x) = 840x /(vx2+225) - 480 850x /vx"2+225) ~480= 0->850x /(Vx"2+225)= 480-> 705600x"2/ x'2+225= 230,000 7056x"2/x%2+225 = 2300 -> 7056x"2= 2300x"2+ 562,500 19.0476 > x= 10.9109 4725x"2=562,500 -> x"2=Figure 2: First Derivative Test of C(x) 4 $ (000's) $500—— In closing, it is recommended that Scenario 5 will provide the most cost efficient method in constructing the pipeline. By constructing Scenario 5, Natural Gas, Inc. will save more than $2.2M in construction costs, and will complete the pipeline in a timely manner. This will ultimately result in generating cash flow to Natural Gas, Inc. and expedite the return on investment for the construction of the pipeline.Reflections Essay: Calculus is avery useful subject that can =ngiiiaieimas 3 be applied to many different fields of study and lication isto engineers. Whether i wile ngineers. Whether it is constructing a pipeline as ; ing the most efficient gas mileage for a new car, calculus is key. Physics is another area where calculus can be applied. y finding derivatives the velocity and acceleration ofan object canbe found to pinpoint critical points in time. Final, economic and business s another area where calculus can be applied. Derivatives canbe used to find profit ‘maximization points, identify areas to minimize costs, and overall help business leaders make ‘800d business decisions. ‘One area that calculus can very useful is in business. Ths field is becoming more important as the business world becomes more complex. Calculus can help solve problems that many companies are facing, Whether it be finding the optimal payroll level for store employees, or {identify how many units of a certain product to buy, calculus is useful. Another group member is. interested in forestry and environmental studies. As climates and weather patterns change, calculus can be used to determine the rate of change in habitats and ecosystems. This can help identify how many trees to plant a year to replenish forests, the optimal level of hunting licenses to be issued, etc. In closing, the big take away from taking this course is the way that calculus makes you think. It changes the way that you look at the world. This is the true value of calculus. It challenges the way you think and solve real life problems. Unfortunately, this is a concept that is not taught in many courses on campus.