Comparative Analysis of Life Cycle Cost and CO₂ Emissions in Offshore Oil Transport Systems

Abstract

This study evaluates the optimal offshore oil transportation system by comparing three alternatives: oil barge leasing, oil barge purchasing, and a pipeline-based permanent facility. An integrated analytical framework combining Life Cycle Cost (LCC), CO₂ emissions, and Multi-Criteria Decision Analysis (MCDA) was applied to assess economic, environmental, safety, and social performance. Cost estimation for the permanent facility was supported using QUE$TOR software. The results show that although the permanent facility requires higher initial capital expenditure (CAPEX), it generates substantially lower operational expenditure (OPEX), leading to superior long-term cost efficiency. Quantitatively, the pipeline-based system reduces total LCC by approximately 30–35% compared with oil barging systems. In contrast, barging alternatives offer lower upfront costs but incur higher recurring expenses due to fuel consumption, vessel rental, and operational complexity. From an environmental perspective, the permanent facility significantly lowers CO₂ emissions by approximately 95–98%, mainly through reduced dependence on fossil fuel-based marine transportation. Safety analysis indicates that pipeline systems achieve up to 75% lower risk levels by eliminating hazardous offshore activities such as mooring, anchoring, and vessel transfer operations. In addition, the permanent facility creates lower social disturbance to coastal communities because of reduced operational intensity. The MCDA results consistently rank the permanent facility as the best-performing alternative across all evaluation criteria. These findings demonstrate that pipeline-based permanent facilities provide a more sustainable, safe, and economically viable solution for long-term offshore oil transportation, highlighting the importance of integrated decision-making frameworks in offshore infrastructure planning.