Pipeline Optimization Project

This report contains the cost to run a pipeline from the oil well shown below, to the refinery
using several different pipeline paths; with minimal cost as the goal. The cost of four different
paths was calculated using basic mathematics, while another was found using Calculus.
The cost for materials, labor and fees to run the pipeline across BLM ground is $500,000 per
mile. For any pipeline run across private ground, an additional $350,000 per mile cost for rightof-way fee is added (Total cost over private ground is $850,000 per mile).
The cost of drilling through the existing mountain would be a one-time cost of $2,500,000 on top
of the normal costs ($500,000 per mile) of the pipeline itself. Also, the BLM will require an
environmental impact study before drilling through the mountain. The cost for the study is
estimated to be $1,000,000, and will delay the project by 6 months; resulting in delay costs equal
to $100,000 per month.

BLM Ground

BLM Ground
20 miles

12 miles

Private Ground

50 miles - BLM Ground

Patrick Zitting

Pipeline Cost Using Basic Math

Shown below is a diagram showing several possible paths that the pipeline could follow without the use
of calculus optimization techniques.

38 miles

BLM Ground
($500,000/mile)

12 miles

Private Ground
($850,000/mile)

20 miles

BLM Ground

A2

B1

B2
A1

50 miles - BLM Ground

Shown below is the cost to run each of the pipelines shown in the diagram above (A1, A2, B1,
B2).
() = $850,000/
() = $500,000/mile

Length A1 = 12 + 20 + 50 = 82
A1 = 82 $500,000
Total Cost A1 = $41,000,000

Length A2 = 38 + 20 = 58 +
A2 = (58 $500,000) + $2,500,000 + $1,000,000 + (6 $100,000)
Total Cost A2 = $33,100,000

Length B1 = 382 + 202 1844

Total Cost B1 = 1844 $850,000
Total Cost B1 = $36,500,547.94

Length B2 = (20 ) + (38 )

B2 = (20 $850,0000) + (38 $500,000)
Total Cost B2 = $36,000,000

Cost of possible pipeline paths, with path A2 being the least expensive.
Total Cost A1 = $41,000,000
Total Cost A2 = $, ,
Total Cost B1 = $36,500,547.94
Total Cost B2 = $36,000,000

Pipeline Cost Using Calculus

12 miles

38 miles

BLM Ground

BLM Ground
20 miles

12 miles

Private Ground

50 miles - BLM Ground

= +
() = $850,000/
() = $500,000/mile
Using Trigonometry, we can find a relationship between the side lengths (h, y, x) and the angle
theta
20
20
=
=

= 20
20

= 38 = 38 (20)
Plug in the values found for h and x into the total cost equation (C).
= +
( = ) =

20
(850,000) + [38 (20)](500,000)

Take to derivative of both sides of the equation to get an equation for the rate (C) of change of C

17,000,000

( ) () =
+ (19,000,000 10,000,000) ( )

() = 17,000,000 10,000,000 2
4

 () = (17,000,000 10,000,000)
1
= (
)0

Set the equation equal to zero to find where = 0. Since sec cannot be equal to zero
(undefined), we set the other equation equal to zero.
17,000,000 10,000,000 = 0
1
(
) (17,000,000 10,000,000) = 0

17,000,000 10,000,000 = 0
17,000,000 = 10,000,000
17 = 10,
=
(1 ) =

10
17
10
(1 )
17

= . 6389 36.03
= .
Combine the information gained so far into the equation for total cost
= $850,000, = $500,000)
=

20
,

= 38 (20),

= 36.03

= +
20
= (
) (850,000) + [38 (20)](500,000)

= (

20
) (850,000) + [38 (20 tan(36.03))](500,000)
cos(36.03)
= $32,747,727.1

Least expensive cost without using calculus = $33,100,000

$33,100,000 $32,747,727.1 = $352,272.90
= $, .
5

$32,747,727.10 is the minimum cost that the pipeline could be built with using the given
criteria. Shown below is a graph demonstrating the cost of the pipeline as a function of the angle
, or the angle from South at which the pipeline leaves the oil well. As shown in the graph,
36.032 is the optimal angle for the pipeline to leave the well, and 32.748 106 is the
approximate cost that corresponds with that angle ($32,747,727.1).

Graph of ()

Pipeline Project Reflection

While most people agree that math can be useful in increasing cognitive ability, a lot of people
have this idea that math not very useful as a real world application. The pipeline optimization project was
a great way for me to finally put that idea to rest. In the short time that Ive been doing Calculus, Ive seen
numerous ways that it can be used in engineering, physics, business applications, and many more. The
more I learn about math in general, the more I realize I have barely skimmed the surface. Ive started to
see math as a huge world that many people are oblivious to. It is one of the most complex languages that
humans have created, and is responsible for many of the comforts we enjoy today.
Math is the foundation of Engineering, and Calculus in particular has numerous applications. Ive
seen how math is used to obtain information about electrical circuits including: resistance, amperage, and
voltage. Many engineering programs such as Matlab require a working knowledge of Calculus in order to
write programs and build circuit simulations for robotics. Ive used my knowledge of trig functions,
complex operations, and infinite limits to produce many computer programs, simulations, and graphs in
Matlab. Engineers also use Calculus to determine velocity, acceleration, and location using derivatives
and integrals.
In physics, Calculus has been used for many hundreds of years to explain, and predict the
behavior of bodies of mass in space. Many of these predictions and explanations require the use of
differentiation in order to determine the amount of force exerted by one mass onto another. Integrals and
derivatives can be used to produce equations for the path an object is traveling, the position of that object
at any given moment, as well as other interesting information, such as velocity and acceleration.
In business, everybody knows basic math is useful. However, the usefulness of Calculus is
somewhat less known. Financial institutions such as banks or credit card companies can use Calculus to
compile massive amounts of information about their customers. They can take this information and use it
to improve their marketing campaigns or customer experience. The rate at which money is growing and
minimum/maximum payments can be determined using differentiation. Companies can use differentiation
to minimize costs, maximize profits, or optimize the relationship between one thing and another in order
to create the most favorable outcome. In the pipeline project, 30 minutes of Calculus application saved the
project over $350,000! This is a great example of how a small detail, such as the angle that a pipe travels,
can have a huge affect on a companys profits.
Calculus has been used, and developed, for hundreds of years. Its application in modern society
plays a significant role in creating many of the comfortable, and useful, things that make modern life
possible. The simple, yet complex application of concepts such as the derivative, has helped to improve at
least some part of almost every profession. Without Calculus, many of the critical contributions made by
engineering, physics, and business, would not be possible.