Why Do We Need Reservoir Simulation?

The information we obtain from a newly discovered field is scanty at best. It is also
disjointed to a certain extent, because bits and pieces of information are emanating from
different parts of the field. Our first task is to integrate these pieces of information as
accurately as possible in order to construct a global picture of the system. A reservoir
simulation study is the most effective means of achieving this end. As field development
progresses, more information becomes available, enabling us to continually refine the
reservoir description.

Once we establish a good level of confidence in our reservoir description, we can use the
simulator to perform a variety of numerical exercises, with the goal of optimizing field
development and operation strategies. We are often confronted with questions such as

what is the most efficient well spacing?

what are the optimum production strategies?

where are the external boundaries located?

what are the intrinsic reservoir properties?

what is the predominant recovery mechanism?

when and how should we employ infill drilling?

when and which improved recovery technique should we implement?

These are but a few of the critical questions we may need to answer. A reservoir simulation study is the
only practical laboratory in which we can design and conduct tests to adequately address these
questions. From this perspective, reservoir simulation is a powerful screening tool.

What are the Simulation Approaches?

The complexity of the problem at hand, the amount of data available, and the study’s
objectives invariably dictate the choice of reservoir simulation approach, granted that we
have already taken into account the appropriate computational environment (both in terms
of hardware and software).

Broadly classified, there are two simulation approaches we can take: analytical and
numerical.

The analytical approach, as is the case in classical well test analysis, involves a great
deal of assumptions—in essence, it renders an exact solution to an approximate
problem.
 The numerical approach, on the other hand, attempts to solve the more
realistic problem with less stringent assumptions—in other words, it provides
an approximate solution to an exact problem.

From here on, we use the term simulation rather loosely to refer only to the numerical approach.

The domain of interest can form another level of categorization for simulation approach and
model selection. For instance, a study may focus on a single well and its interaction with the
reservoir within its drainage area (i.e., single-well simulation in radial-cylindrical coordinate
system). The other extreme case may be the study of an entire field (field-scale simulation
in rectangular coordinate system) in which the overall performance analysis of the field is
called for. In between these two extremes comes the case where only a section of the
reservoir is targeted (window-study).