Title: Energy asset management with data: Storage, transportation and trading
Date: June 21, 2017 13:30-15:00
Venue: 3rd Teaching Building
Lecturer: Guoming Lai Ph.D. Associate Professor, University of Texas at Austin
The energy industry is an important sector of the economy, which provides input for nearly all goods and services in our daily life. In the United States, the energy industry accounted more than 4% of GDP and is projected to expand substantially in the future. The energy industry requires heavy capital investment for extraction, refinery, storage/conversion, and transportation. Optimally managing such assets is crucial. In this talk, I will discuss several studies on the storage, transportation and trading operations for energy assets (with applications, for instance, to natural gas). Data is critical in this procedure. We calibrate the price model of the energy product based on the historical spot and futures price data and characterize the operating features of the assets. The prices often represent high-dimensional dynamics, which makes it challenging to derive the optimal policies. We develop and analyze several heuristic methods, some based on options and linear programming and some based on stochastic dynamic programming, to handle these problems. We also evaluate the effects of model error with certain approximations of the price model. The findings are very useful for guiding the practice.
Guoming Lai is Associate Professor at the University of Texas at Austin. He is Senior editor for Production and Operations Management, Associate editor for Operations Research Letters and Track chair for POMS 2015, DSI 2016, INFORMS International 2016. He won Supply Chain Department Outstanding Senior Editor (POM, 2016), Wickham Skinner Early-Career Research Accomplishments Award (POMS, 2015), William Cooper Dissertation Award and many other rewards. His current research interests focus on Supply Chain Management, OM-Finance Interface, OM-Marketing Interface, Energy and Sustainable Operations. His publications appear in Management Science, Operations Research, Production and Operations Management, Manufacturing & Service Operations Management and etc. Dr. Lai received his Ph.D. from Carnegie Mellon University in 2009.