RESERVOIR MODELLING AND

ANALYSIS

S. O. Isehunwa
Professor of Petroleum Engineering
University of Ibadan

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Title of Module RESERVOIR MODELLING AND ANALYSIS

Number of Hours 15 Hrs Lectures 30 Hrs Practicals and Self Learning

Teaching Methods Lectures, Practical Class, Tutorials, Class exercises

Understanding the role of reservoir analysis in Oil

Aims and
production Engineering. Practical techniques to define
Objectives reservoir performance as well as analytical and numerical
methods used in reservoir description. Essence of
simulated predictions

 Understand basic concepts in reservoir Analysis

Learning Outcomes  Be able to describe what is meant by a simulation model, and
what analytical and numerical models are.
 Be familiar with what a reservoir simulation model is.
 Be able to describe the issues that arise in going from the
description of a real reservoir to a simulation model.
 Be able to describe why and in what circumstances simple or
complex reservoir models are required.
 Understand the nature of fluid flow in a porous medium and
the relation between time, position and saturation
 Understand the mathematical basis of reservoir modelling

Introduction and review of fundamental concepts, Types of reservoir

Indicative Content models. Material Balance Equation as a tank model. Reservoir flow
regimes. Mathematical basis of Reservoir modelling.
Introduction to Numerical Simulation.

Assessment Exercises, Tests, Examination

Method

Bibliography Modern Reservoir Engineering – A Simulation Approach –

Crichlow, H.B.
Applied Petroleum Reservoir Engineering – Craft & Hawkins
Fundamentals of Reservoir Engineering – L.P Dake

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 Review of Basic Concepts
RESERVOIR ENGINERING
Reservoir Engineering is the application of fundamental scientific intelligence to achieve
optimal recovery of hydrocarbons from the subsurface. The technical responsibilities of
reservoir engineers include the following:

• Contributing, with other geoscientists, to the estimation of hydrocarbons in place.

• Determining the fraction of discovered hydrocarbons that can be recovered.
• Attaching a time scale to the recovery.
• Day-to-day operational reservoir engineering throughout the project lifetime.

The activities of reservoir engineering therefore fall into the following three general
categories:
(i) Reserves Estimation
(ii) Development Planning
(iii) Production Operations Optimisation

PETROLEUM RESERVOIR
This is a porous and permeable formation containing an individual and separate natural
accumulation of producible hydrocarbons or other substances which is confined by
impermeable rock or water barriers and is characterized by a single natural pressure system.

ELEMENTS OF A PETROLEUM RESERVOIR

 Matrix
 Pore space
 Permeability
 Hydrocarbon Saturation
 Trap

RESERVOIR CHARACTERISTICS
1. External Features: Shape and Volume, Boundaries, Aquifer limit
2. Internal Features: Faults, Fractures, stratification, continuity and connectivity,
compartment
3. Habitat: Earth Stress, Pressure, Temperature
4. Rock: Lithology, Porosity, Permeability, Wettability, Mechanical properties
5. Fluid: Types and composition, Distribution, Contacts, Properties

SUBSURFACE RESERVOIR CONDITIONS

Petroleum reservoirs are normal found at high temperatures and pressures. Reservoir
pressures arise because of the overburden and the internal stress of the entrapped fluids.
Reservoir temperatures also arise due to closeness to the basement.
Reservoir temperatures and hydrostatic Pressures can normally be estimated respectively as:
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 T = Ts + αD
P = A + βD Psig
Where,
α= Geothermal gradient oF/ ft.
β= Hydrostatic gradient psi/ft.
A= Constant, psi
D= Depth, ft.ss.
Ts = Temperature at Surface, oF.
The differences between the reservoir and surface pressures and temperatures have a lot of
impact on petroleum production practices.

Fluid pressure regimes in hydrocarbon columns are dictated by the prevailing water pressure
in the vicinity of the reservoir. In a perfectly normal case the water pressure at any depth can
be calculated as:

Pw = βD + 14.7 Psia

Where β, the water pressure gradient, is dependent on the chemical composition (salinity),
and for pure water has the value of 0.4335 psi/ft.
However, in contrast to this normal situation, abnormal hydrostatic pressures can be
encountered and can be defined by the generalized equation:

P = A + βD + 14.7 Psia
Where the constant, A, is positive if the water is over-pressured and negative if under-
pressured.
For the water in any sand to be abnormally pressured, the sand must be effectively sealed off
from the surrounding strata so that hydrostatic pressure continuity to the surface cannot be
established. The conditions which can cause abnormal fluid pressures in enclosed water
bearing sands include:
- Temperature change; an increase in temperature of one degree-Fahrenheit can
cause an increase in pressure of 125 psi in a sealed fresh water system.

- Geological changes such as the uplifting of the reservoir, or the equivalent,

surface erosion, both of which result in the water pressure in the reservoir sand
being too high for its depth of burial; the opposite effect occurs in a downthrown
reservoir in which abnormally low fluid pressure can occur.

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 - Osmosis between waters having different salinity, the sealing shale acting as the
semi-permeable membrane in this ionic exchange; if the water within the seal is
more saline than the surrounding water the osmosis will cause an abnormally high
pressure and vice versa.

The pressure regimes in oil and gas sands are different from water sands in that the densities
of oil and gas are less than that of water and consequently, the pressure gradients are smaller,
typical figures being:
For water , β = 0.45 psi / ft
For Oil, β = 0.30 psi / ft
For Gas, β = 0.08 psi / ft
At the oil –water contact,
Pw = Po
While at the gas-oil contact,
Po = Pg
This understanding is very useful in defining fluid contacts from pressure measurements
during exploratory drilling, and in estimating the in-place hydrocarbon resource volumes.

INITIAL RESERVOIR FLUIDS DISTRIBUTION

Two forces determine the distribution of fluids in the reservoir under initial conditions:

Gravity forces: Cause the less dense fluid to locate higher in the reservoir.

 Gravity forces = f(density differential)

Capillary forces: Cause the wetting fluid to locate in smaller pores and the non-wetting fluid
in larger pores.

 Capillary forces = f(wettability)

DYNAMIC CONDITIONS
In addition to the above forces, movement of the fluids in reservoir pore space is affected by
viscous forces.

 Viscous forces = f(Pressure differential)

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 PHYSICAL PROPERTIES OF RESERVOIR ROCKS
The properties of a reservoir rock can be classified into primary and secondary physical
properties. The primary physical properties have direct relation to the quality of the rock and
hence are of major interest to the engineer and geologist. They include absolute and effective
porosity, absolute and relative permeability, rock density, saturation, connate water
saturation, compressibility, wettability, interfacial tension and capillary pressure.
The secondary physical properties include electrical properties (resistivity,
conductivity), radioactivity - natural or induced, elastic and acoustic properties and thermal
conductivity.
Usually, the secondary properties of the rocks are measured in-situ by logs. The
primary properties are then estimated from the measurements using established mathematical
relationships. This is the basis of well logging, their interpretation and applications to
reservoir characterization.

METHODS OF DETERMINATION OF ROCK PROPERTIES

Three methods are available for estimating the properties of reservoir rocks:
(1) From core analysis in the laboratory. The accuracy of an average parameter of a
reservoir derived from core analysis, depends upon the quality and quantity of the data
available, and upon the reservoir homogeneity. In general, core analysis results are regarded
as most accurate.
(2) From well logs.
(3) Use of field-derived or regional correlations.
The commonest method used in practice is the use of well logs- derived parameters.
Sometimes, calibration with some core data is essential. Well logs have the advantage of
averaging larger volumes of rock than in core analysis. When calibrated with core data, they
should provide average values in the same range of accuracy as core analysis.
Well logs must also be adequate and of good quality. Important logs for initial
geological modeling include Gamma Ray, SP, Resistivity logs, porosity logs and the
dipmeter. Beyond the use of well logs for correlation, they can be used for facies and
sedimentological analyses. These can be done through a detailed study of logs:
 Shape
 Curve characteristics
 The nature of the lower contact – weather abrupt or gradational
 The nature of the upper contact
 Abrupt breaks - study of both lithology related and non-lithology related changes
Core analysis reports, side-wall core descriptions, foraminiferal biofacies and other
biostratigraphic data are also important. The seismic interpretation data and geology reports
of nearby fields should be consulted.
In a fairly old field, additional sources of data for geological modeling include
produced water analysis reports, reservoir pressure data and reports of previous studies in the
field.
The first important steps to be undertaken must include review of seismic stratigraphy
interpretation and a general log correlation. From these, conclusions should be made on the
following:
 Geologic structure
 Fault Characteristics
 Hydrocarbon Traps and accumulation conditions
 Appraisal and development prospects

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 Production of appropriate geologic maps - Horizon, NOS, NGS, NHS, EHC, etc. maps.
 Construction of detailed sedimentological descriptions of the major hydrocarbon sands.

Hydraulic Flow Units (Flow Zone Indicators and Reservoir Quality Index)
Petroleum geologists and engineers have long recognized the need to define quasi-geological
/petrophysical units to formalize their descriptions of rock strata as reservoirs and conduits
for flow of fluids. One approach to zonation of a reservoir for modeling and prediction of
performance is the flow unit concept. The subdivision of a reservoir into flow units provides
a practical means for reservoir zonation that makes use of both geological and petrophysical
data representing heterogeneity observed at several scales

A flow unit is defined as a mappable portion of the total reservoir within which geological
and petrophysical properties that affect the flow of fluids are consistent and predictably
different from the properties of other reservoir rock volumes. Flow units have the following
characteristics in common:

1. Flow units are internally consistent, but not necessarily homogeneous, in terms of either
geological or petrophysical properties. They may contain more than one reservoir quality
lithology and they may include nonreservoir features such as shales and cemented layers

2. A flow unit is correlative and mappable at the interwell scale.

3. A flow unit zonation is recognizable on wireline logs.

4. A flow unit may be in communication with other flow units.

The distribution of petrophysical properties such as porosity and permeability can be mapped
within flow units using well control only or by applying geostatistical procedures to create
stochastic realizations of these distributions “conditioned” on the well data. Geostatistical
techniques that have a strong stochastic component are consistent with, and complementary
to, the flow unit concept, which is itself mostly deterministic.

RESERVOIR DRIVE AND DRIVE INDICES

A reservoir drive is the energy available within the reservoir to cause the flow of fluids to the
well bore and the surface. The main drive mechanisms during primary recovery can be
classified as: Water drive and Depletion drive. They may also be classified as:

 The displacing type of drive mechanisms.

This is so called because they involve the displacement of one fluid by another. These
drives comprise (i) water drive (ii) gas cap drive.

 Non-displacing type of drive mechanisms.

These include: solution gas drive, compaction drive, gravity segregation, etc.

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 Combination Drive: This is a combination of many drive mechanisms.

In gas reservoirs, the main drive mechanisms are:

 Gas depletion or expansion.
 Water drive.
 Combination drives.

From the general Material Balance Equation (MBE), expression for stock tank oil in place
can be obtained as:
N = Np (Bo + (Rp - Rs) Bg) + BwWp - We
(Bo -Boi) + (Rsi-Rs)Bg + mBoi(Bg/Bgi -1) + (1+m)NBoi (CwSwc +Cf)Dp/ (1-Swc)

This equation can be re-arranged into the form:

SDI + GDI + CDI + WDI = 1
Where:
SDI = Solution Drive Index
= N ((Bo -Boi) + (Rsi -Rs)Bg)
Np (Bo +(Rp -Rs))Bg

GDI = Gas Cap Drive Index

= mNBoi (Bg/Bgi - 1)
Np (Bo +(Rp -Rs))Bg

CDI = Compaction Drive Index

= (1+m)NBoi (CwSwc +Cf )DP/1-Swc
Np (Bo +(Rp -Rs))Bg

WDI = Water Drive Index

= We - Bw Wp
Np (Bo +(Rp -Rs))Bg

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These drive indices are very useful in reservoir analysis. They help the engineer to know the
relative contribution of each drive mechanism to the production. They also help in knowing
how the various drives vary with time. They have been found useful in history matching and
for detection of reservoirs that require pressure maintenance.

MECHANICS OF PRIMARY OIL RECOVERY

The two main categories of hydrocarbon recovery are called primary and supplementary.
Primary recovery is the volume of hydrocarbons which can be produced by virtue of utilizing
the natural energy available in the reservoir and its adjacent aquifer. In contrast,
supplementary recovery is the oil obtained by adding energy to the reservoir-fluid system.
The most common type of supplementary recovery is water flooding in which water is
injected into the reservoir and displaces oil towards the producing wells, thus increasing the
natural energy of the system.
The entire mechanics of primary recovery relies on the expansion of fluids in the reservoir
and can best be appreciated by considering the definition of isothermal compressibility.

When using the compressibility definition in isolation, to describe reservoir depletion, it is

more illustrative to express it in the form:

Where, dV is an expansion and dp a pressure drop, both of which are positive. This is the
very basic equation underlying all forms of primary recovery mechanism.
The skill in engineering a high primary recovery factor, utilizing the natural reservoir energy,
is to ensure that the dV, which is the production, is the most commercially valuable fluid in
the reservoir, namely, the oil.
It is fairly obvious fact that to produce an oil reservoir, wells should be drilled into the oil
zone. If the reservoir is in contact with a gascap and aquifer, the oil production due to a
uniform pressure drop, dp, in the entire system, will have components due to the separate
expansion of the oil, gas and water, thus

It is evident that the contribution to dVTOT supplied by the oil and water expansion will only
be significant if both Vo and Vw, the initial volumes of oil and water, are large. In contrast,
because of its very high compressibility, even a relatively small volume of gascap gas will
contribute significantly to the oil production.
Therefore, while it is obvious that one would not produce an aquifer, but rather, let the water
expand and displace the oil; so too, the gas in the gascap, although having commercial value,
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is frequently kept in the reservoir and allowed to play its very significant role in contributing
to the primary recovery through its expansion.

PRINCIPLES OF OIL DISPLACEMENT BY WATER OR GAS

If we neglect capillary forces, the fractional flow (cut) equation for water or gas displacing oil
during immiscible displacement can be expressed as:

Where,
f = water or gas

A large Ff implies low displacement efficiency.

The above equation shows that oil displacement is governed essentially by viscous and
gravitational forces. When gravitational forces are significant, oil recovery is rate sensitive.
However, when gravitational forces are neglected, recovery is not rate sensitive as we have:

When gas is displacing oil, if the gravitational term is sufficiently large, Ff becomes zero or
even negative, which indicates counter-current flow of gas up-dip and oil down-dip, resulting
in maximum displacement efficiency. Thus, in the case of a gascap which overlies most of
the oil zone, the drainage area is vertical and sinϴ = 1.0, and the cross-sectional area is large.
If the vertical permeability is not too low, gravitational drainage will substantially improve
recovery.

In general, water is more efficient than gas in displacing oil from reservoir rocks. This is
mainly due to: (a) water viscosity is several times higher than gas viscosity, (b) the
permeability ratio of oil to gas is usually lower than that of oil to water, and (c) water
occupies the less conductive portions of the pores whereas gas occupies the more conductive
portions.

Relationship between Reservoir Description, and Reservoir Behaviour

Reservoir development based on a thorough understanding of the reservoir allows production
in a controlled, optimized manner.

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In order to accomplish these objectives the Petroleum Reservoir Engineer should have a
broad fundamental background both theoretically and practically in the following areas:
(i) The properties of petroleum reservoir rocks, (ii) The properties of petroleum reservoir
fluids, (iii) The flow of reservoir fluids through reservoir rock and (iv) Petroleum reservoir
drive mechanisms

MODELLING
There are two broad categories of models:

Physical models: Scaled-down reproductions of the original e.g. pilot plants, prototypes, etc.

Mathematical models: Systems of mathematical equations describing the physical behaviour

of the process under review.

Integrated Reservoir Modelling

Reservoir modelling is the process of describing various reservoir properties using all of the
available data in order to predict the future performance. Whereas petrophysical
interpretation and reservoir characterization aims at obtaining the characteristic of reservoir
properties at controlled points, reservoir modelling aims to “describe” the reservoir properties
at locations outside the control points. The overall objective is Full-Field Development Plan
(FDP) and effective reservoir management for optimal recovery.

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The ability to determine the productivity of a reservoir and the optimum strategy to maximise
the recovery relies on an understanding of the flow characteristics of the reservoir and the
fluid it contains. The combination of the properties of the rocks, fluids and rock-fluid
interfacial interactions dictates the nature of the fluid flow and the changes in pressure with
time after a disturbance in the reservoir. The relationship between reservoir geology and the
flow processes increases progressively from the primary to enhanced recovery stage.

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PHASES IN RESERVOIR MODELING
 Structural Modelling
 Property Modelling
 Dynamic Modelling

Challenge with Data Integration

 Data are not available at the same time
 Quality of data from various sources may be different
 Information may not be measured at the same scale and resolution
 The interpretation may be qualitative
 Role of solving inverse problems where solutions are NOT unique and could require
multiple models

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Why Reservoir Modelling or Simulation

 To perform a variety of numerical exercises with the goal of optimizing

field development and operation strategies.

 Specifically to provide answers to questions such as:

 What are the original and current hydrocarbon resource volumes in place?
 What is the most efficient well spacing?
 What are the optimum production strategies?
 What are the intrinsic reservoir properties?
 Where the external boundaries are located and where are the fluid
contacts?
 What is the predominant recovery mechanism?
 When and how should we employ infill drilling?
 When and which improved recovery technique should we employ?

Approaches in Reservoir Simulation

 Single well study: to determine critical flow rates, maximum

efficient rates, effects of perforation intervals and fracture
penetration on well productivity, etc.
 Field scale study
 Window Study

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STEPS IN A RESERVOIR SIMULATION STUDY

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COMPONENTS OF RESERVOIR SIMULATION STUDY

 A good tool: Simulator

 A competent user
 The Pertinent information: Reservoir description

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RESERVOIR SIMULATION MODEL

A reservoir simulation model is one which shows the main features of a real system, or
resembles it in its behaviour. It should be simple enough for the purpose of deductive
calculations on. These calculations may be analytical or numerical . By analytical we mean
that the equations that represent the model can be solved using mathematical techniques such
as those used to solve algebraic or differential equations.
For example, consider the equation:

In some cases, we may be able to write down the equations for our model, but it may be
impossible to solve these analytically due to the complexity of the equations. Instead, it may
be possible to approximate these complicated equations by an equivalent numerical model.
This model would commonly involve carrying out a very large number of simple numerical
calculations using a computer. For example, consider the compressibility equation for a real
gas:

TYPES OF RESERVOIR MODELS

Reservoir models vary from simple to complex.

Tank models (material balance equations)we are just concerned with the gross fluid flows
into and out of the system. They may not be able to address questions about why the
pressures in two sectors of the reservoir are different (since a single average pressure in the
system is a core assumption).

Sector models are more complex in that they can recognise different regions of the
reservoir. A sector model can address the question of different regional pressures. However,

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they could be inadequate to if the question is quite detailed such as where to locate an infill
well and should it be vertical, slanted
or horizontal?

For such complicated questions, 1D, 2D or 3D grid simulation models would be more
appropriate since they are more detailed and contain more spatial information. A numerical
reservoir simulation model is a grid block model of a petroleum reservoir where each of the
blocks represents a local part of the reservoir. Within a grid block the properties are uniform
(porosity, permeability, relative permeability etc.) although they may change with time as the
reservoir process progresses.

Generally, the simplicity or complexity of the model should relate to the simplicity or
complexity of the question to be answered.

But there is another important factor: data. We require increasing amounts of data as we go
from simple tank models to fine grid models. We should think carefully before building a
very detailed model if we have almost no data.

Therefore, various levels of reservoir models may be used but the reservoir engineer must
choose the appropriate one for the task at hand.

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Cornerstones or Major Blocks of Reservoir Simulators

 Mathematical models
 Laboratory data
 Field Data
 Computer codes

Steps in running a reservoir simulation model

a. Gather and input the reservoir fluid and rock and production data
b. Choose certain numerical features of the grid (number of grid blocks, time steps,
sizes, etc)
c. Set up the correct field well controls (injection rates, bottom hole pressure constraints,
etc). These drive the model;
d. Define the desired output data and the format required

CASE STUDIES

TYPES OF RESERVOIR SIMULATION MODELS

 Black Oil Model
 Compositional Model
 Chemical Flood Models
 Thermal Models
 Dual Porosity Models

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Principles of Dynamic Modelling of Reservoir Flow Patterns
Reservoir flow systems are usually classed according to:
a. The type of fluid
b. The geometry of the reservoir
c. The rate at which the flow approaches a steady state condition following a disturbance

I. Type of Fluid

For the purpose of description under dynamic conditions, fluid types can be classified as:
 Compressible
 Slightly compressible
 Incompressible

Type of Phase
 Single-phase flow
 Two-Phase flow
 Three-Phase flow

Geometry
 Linear flow
 Radial flow
 Spherical flow

The actual flow patterns in producing reservoirs are usually complex due mainly to the
following factors:

(i) The shapes of oil bearing formations and aquifers are quite irregular
(ii) Most oil-bearing and water bearing formations are highly heterogeneous with
respect to permeability, porosity and connate water saturation. The saturations of
the hydrocarbon phases can vary throughout the reservoir leading to different
relative permeabilities and therefore flow patterns
(iii) The wellbore usually deviates resulting in an irregular well pattern through the
pay zone
(iv) The production rates usually differ from well to well. In general, a high rate well
drains a larger radius than a lower rate well
(v) Many wells do not fully penetrate the pay zone or are not fully perforated

There are essentially two possibilities available to cope with complexities of actual flow
properties.

(a) The drainage area of the well, reservoir or aquifer is modelled fairly closely by
subdividing the formation into small blocks. This results in a complex series of equations
describing the fluid flow which are solved by numerical or semi-numerical methods.

(b) The drained area is modelled by a single block to preserve the global features and
inhomogeneities in the rock and fluid properties are averaged out or substituted by a simple
relationship or pattern of features (such as a fracture set, for example). The simplifications
allow the equations of flow to be solved analytically.

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Idealized Flow Patterns
There are a number of idealised flow patterns representing fluid flow in a reservoir: linear,
radial, hemispherical, spherical. The most important cases are the linear and radial models
since both of them can be used to describe water encroachment from an aquifer into a
reservoir, and the radial model can be used to describe the flow of fluid around the wellbore.

In real life, none of these geometries is found precisely in petroleum reservoirs. However, for
engineering analysis purposes, the actual may be assumed represented by one of these
idealized geometries.

Linear Horizontal Model of a Single Phase Fluid

In linear flow, the flow lines are parallel and the cross-section exposed to flow is constant. In
the linear horizontal geometry, the flow is considered to be along the axis (in the x direction)
of a cuboid of porous rock. The total length of the cuboid is L and fluid flows into the rock at
the left end (x=0) and exits at the right end (x=L). There is no flow in the other directions at
any time i.e. Uy = Uz =0 for all values of x, y, z and time, t (in a real reservoir, there may be
flows in different directions in different parts of the reservoir and there may be cross flows
from different layers within the reservoir). The rock is 100% saturated with the fluid.

The flow equation is:

The Radial Model

In radial flow, the flow lines are straight and converge in two dimensions toward a common
center e,g. a well. The cross section exposed to flow decreases as the center is approached.
Figure 4 illustrates the geometry of this model in which the flow occurs in horizontal planes
perpendicular to the Z axis (i.e. in planes parallel to the XY plane) within a layer of constant
height, h. The flow is radial and is either towards the Z axis or away from it.

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Spherical Flow
The flow lines are straight and converge toward a common centre in three dimensions.

Characterisation of the Flow Regimes by their Dependence on Time

Flow systems in reservoir rocks are classified by their behaviour with respect to time after a
disturbance. To apply the diffusivity equation to real reservoirs requires careful consideration
of the boundary conditions. It will be shown that for most practical purposes, the solutions to
the diffusivity equation can be grouped according to the flow regime that they represent:
steady-state, semi-steady-state (pseudo steady state) or unsteady state (transient).

Steady-state refers to the situation in which the pressure and the rate distribution at every
point throughout a system adjust instantaneously to a change in pressure or flow rate in any
part of the system. Therefore, the pressure in the reservoir remains constant with time.

No real system can respond instantaneously, but when the dimensions of the system are not
too large, and the reservoir properties are favourable, the readjustment time is small and can
be assumed instantaneous for practical purposes. For example, in typical radial systems, the
readjustment time varies from about 0.5 days in gas wells, 2 days in oil wells And 430 days
in water aquifers. Hence most aquifers are not described by steady-state equations.

Unsteady state is the situation in which the pressure and/or the flow rate vary with time.

Semi-steady is a special case of unsteady state that resembles steady-state flow.

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These differences in the flow regimes have ramifications in practical reservoir engineering
since working solutions to the diffusivity equation are usually limited to a particular flow
regime. For instance, in a pressure build up test in a well, the determination of an accurate
average reservoir pressure will depend strongly on the flow regime the well is in and
therefore which working solution is used.

Initially, the pressure response can be described using a transient solution which assumes
that the pressure response at the wellbore during this period is not affected by the drainage
boundary of the well and vice versa. This is referred to as the infinite reservoir case, since
during the transient flow period, the reservoir appears to be infinite in extent with no limits to
the fluid available to expand and drive the system. The transient period is followed by the
late-transient when the boundaries start to affect the pressure response. This is analogous to
the pressure disturbance having moved along the line of tubes in the model in figure 1. The
nature of the boundaries affects the type of solution used to describe the pressure change
since a well may drain an irregularly shaped area where the boundaries are not symmetrical
or equidistant from the well.

The next phase in the pressure decline is the semi-steady state or pseudo steady state where
the shape of the pressure profile in the reservoir is not changing through time and the
wellbore pressure is declining at a constant rate. It is analogous to the model depicted in
figure 1 where the level of water in all of the tubes is falling and no additional water is being
added to tube 10 to maintain absolute pressure profile. If the pressure profile developed in the
reservoir around the well had remained constant, true steady state conditions would have
occurred and the steady state solutions as mentioned in the previous section would have
applied.

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MATHEMATICAL BASIS OF ANALYTICAL MODELING

By defining the physical laws that apply in a system, we can formulate mathematical
equations which govern the processes within the system. Therefore, the underlying physical
principles of flow in porous media can be better understood by considering the differential
equations and solutions of interest of various reservoir systems.

In general, the complete mathematical description can be obtained by combining the

following physical principles:

1. Governing equations
2. Boundary conditions
3. Initial conditions

Governing Equations
The basic equations are obtained by combining several physical principles, namely:

a. The law of conservation of mass (continuity equation)

b. Flow rate equations (e.g Darcy’s or Forcheimer equations)
c. Equations of state to describe the behaviour of fluid density with pressure
d. Conservation of momentum
e. Conservation of energy (in thermal processes)

For most simple flow processes, only the first three equations above are required to
adequately describe the systems.

Continuity Equation
The law of conservation of mass can be expressed mathematically as:

Mass in – Mass Out = Mass Accumulation

For linear horizontal flow in the x-direction, the continuity equation for fluid flow in porous
media can be expressed in the form:

Therefore, in x, y, and z directions we can write it as:

For radial flow, the continuity equation is given as:

Rate Equation
Darcy’s equation can be expressed for linear flow as:

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And for radial flow,

Equation of State
An equation of state is required to be able to describe the behaviour of the volume (or
density) of a fluid with changes in pressure and temperature. This behaviour is important not
only because of the presence of fluid viscosity in the rate equation but also because of fluid
compressibility. From the definition of compressibility,

or,

Alternatively,

and

For engineering purposes, c = 0 for incompressible fluids, while c is very small but not zero
for slightly compressible fluids. Water is normally assumed incompressible while reservoir
oil is slightly compressible. For compressible gases, c is relatively large and cannot be
neglected. These definitions simplify many flow equations.

Linear Flow Diffusivity Equation

Starting from the linear flow continuity equation:

We incorporate Darcy’s equation

To obtain

Finally, we incorporate the equation of state:

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and simplifying by assuming:

We obtain:

Radial Flow Diffusivity Equation

The continuity equation for radial flow is given as:

If we substitute Ur in the equation using Darcy’s equation for radial flow, we obtain:

Substituting the equation of state:

and expanding, we obtain:

If we assume constant permeability and porosity, small c and when is negligible,

the above equation becomes:

Note:

In field units, the equation can be expressed as:

The diffusivity equation is one of the most often used in reservoir engineering. It can be used
to establish the pressure-rate relationships and hence the performance of a well. However, it
is important to take note of the assumptions. is called diffusivity constant or
hydraulic diffusivity. The name comes from its application to the radial flow or diffusion of
heat. The diffusivity constant determines the rate at which fluid will readjust in response to a
pressure disturbance imposed on the system.

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The diffusivity equation includes time dependency through the right hand side term. Thus, it
can describe transient, or time dependent flow. If the flow reaches a state where it is no
longer time dependent, we denote the flow as steady state.

Two systems to which the radial diffusivity equation can easily be applied are water influx
and wellbore production.

(a) In the case of water encroachment from an aquifer into a reservoir, the inner boundary
corresponds to the mean radius of the reservoir, the outer boundary to the mean radius of the
aquifer.

(b) In the case of the pressure regime around a wellbore, the inner boundary corresponds
to the wellbore radius, rw, the outer boundary to the boundary of the drainage area.

Steady State Linear flow of Incompressible Fluids

From Darcy’s Law,

Therefore,

Or,

Or,

In field units, we have:

Steady State Linear Flow of Compressible a Gas

However, because gas expands as pressure drops,. The velocity is greater at the downstream
end than at the upstream. Using the gas law equation between the reservoir and surface
conditions, we have:

Or,

Substituting for Darcy’s equation, we have

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Therefore,

If the flow rate (qm) is determined at the mean pressure Pm = (P1+P2)/2 and reservoir
temperature and substituting into the above equation, we have:

or in field units, (cuft /day)

Thus, the law for linear flow of gases is the same for liquids, provided the gas flow rate is
expressed at the mean pressure and flowing Temperature

Steady State Radial Flow of Incompressible Fluid

A steady state solution does not exist for an infinite system, since the pressure will continue
to decrease as long as we produce from the center. However, if we use a different set of
boundary conditions, so that P(r = rw ) = Pw and P(r = re ) = Pe , we can solve the steady
state form of the diffusivity equation by integrating twice. Alternatively, we start from
Darcy’s equation for radial flow,

Therefore,

Or,

Therefore,

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In field units, we have:

and in surface units,

Where, re = external or drainage radius and rw = wellbore radius. The external or drainage
radius re is usually inferred from the well spacing.

Boundary conditions
There are basically two types of BC's; pressure conditions (Dirichlet conditions) and rate
conditions (Neumann conditions). The most common boundary conditions in reservoirs,
including sources/sinks, are discussed in the following.

Dirichlet conditions
When pressure conditions are specified, we normally would specify the pressures at the end
faces of the system in question. Applied to the simple linear system described above, we may
have the following two pressure BC's at the ends:

Neumann condition
Alternatively, we would specify the flow rates at the end faces of the system in question.
Using Darcy's equation at the ends of the simple system above, the conditions become:

For reservoir flow, a rate condition may be specified as a production or injection rate of a
well, at some position of the reservoir, or it is specified as a zero-rate across a sealed
boundary or fault, or between non-communicating layers.

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Initial condition (IC)
The initial condition specifies the initial state of the primary variables of the system. The
initial pressure may be a function of position. For non-horizontal systems, hydrostatic
pressure equilibrium is normally computed based on a reference pressure and fluid densities:

Common possible conditions in radial flow reservoir systems

1. Constant well bore pressure:

P(rw, t) = constant

2. Constant flow rate:

3. Shut in well

4. Variable well bore pressure

P(rw,t) = f(t)

5. Variable flow rate:

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Solutions to the Diffusivity Equation
For most practical purposes, the solutions to the diffusivity equation can be grouped
according to the flow regime that they represent: steady-state, semi-steady-state (pseudo
steady state) or unsteady state (transient).

For incompressible steady state fluid flow, c = 0 and

Therefore, the diffusivity equation reduces to

For semi-steady state flow of compressible fluids,

Therefore, the equation becomes:

Unsteady State Flow and Hurst and Van Everdingen Solution

The solution of the unsteady state radial flow diffusivity equation requires the initial
conditions and the boundary conditions.

(i) Initial Solution Condition.

At time t=0, the initial pressure, Pi, must be specified for every point of the range of the
equation i.e. in the reservoir or in the aquifer.

(ii) Boundary Conditions

The boundaries consist of the outer and inner boundaries. The number of solutions

36
depend on the number of boundary conditions, but in the main there are a few sensible
conditions representing the majority of reservoir performance.

Outer Boundary
(a) If there is no flow across the outer boundary it is a closed system and the flow velocity
will equal zero. The pressure gradient will also be zero.
(b) If there is flow across the outer boundary, the reservoir pressure will be maintained at a
constant value equal to the initial reservoir pressure, Pi.

Inner Boundary
There are two main cases for the inner boundary which represent either maintaining a
constant pressure or a constant flow rate. These are representative of possible flow regimes in
the reservoir during either water flooding or production from a well.

(a) Constant Terminal Rate Case (C.T.R.)

This can be applied to a wellbore in which the production rate of the well is held constant and
the pressure varies through time. It can also be applied to water encroachment in which the
influx rate of water from the aquifer into the reservoir across the initial oil-water contact is
constant.

(b) Constant Terminal Pressure Case (C.T.P.)

Applied to a wellbore, the flowrate is varied to maintain a constant bottom hole pressure in
the producing well. In the case of water influx, the pressure at the initial oil water contact of
the reservoir remains constant and the flow rate varies.

The constant terminal rate solution for all values of the flowing time was presented by Hurst
and van Everdingen in 1949. They solved the radial diffusivity equation using the Laplace
transform for both the constant terminal rate and constant terminal pressure cases. The full
equation contains, as one of its components, an infinite summation of Bessel functions which
are required to describe the complex wellbore pressure response during the late transient
period. Simple solutions can be obtained for the transient and semi-steady state flow. The
solution describes pressure drop as a function of time and radius for fixed values of external
radius, re, and wellbore radius, rw, rock and fluid properties

The Line Source Solution

This solution assumes that the radius of the wellbore is vanishingly small relative to the mean
radius of the reservoir. It allows the calculation of the pressure at any point in an unbounded
reservoir using the flow rate at the well. The benefits are clear in that no flow rates other than
those measured in the producing well are required and from which the pressure at any
location can be calculated.

The disadvantage is that the solution works for infinite acting reservoirs only and if barriers
are met, then the solution fails to represent the true flow regime. The technique of
superposition can be used to combine the effect of more than one well in an infinite acting
reservoir and this technique can represent the effect of a barrier. The barrier is equivalent to
the pressure disturbance produced by a second, imaginary well producing at the same rate
and having the same production history as the real well with both these wells in an infinite
acting reservoir. This solution has found a lot of use in well test analysis.

37
In constant terminal rate problems, the flow rate at the well was given by

38
Range of Application and Limitations to Use
The Ei function has limitations on its application: it cannot represent the initial flow into a
wellbore since the assumption that the wellbore is a line is obviously not the case and some
time has to elapse for the relative size of the wellbore to have a negligible effect on the flow
and expansion of the fluid in the majority of the reservoir.

The reservoir must also be infinite acting.

The Skin Factor

The analysis of fluid flow encountered thus far has assumed that a constant permeability
exists within the reservoir from the wellbore to the external boundary. In reality, the rock
around the wellbore can have higher or lower permeability than the rest of the reservoir. This
results from formation damage which may occur during drilling and completion (where the
wellbore fluids alter the wettability of the near wellbore formation as fluid leaks off into it, or
solids suspended in the drilling fluids are deposited in the pore spaces and become trapped
thereby physically hindering the flow of fluid and reducing the permeability) or during
production (where sand or precipitates from the hydrocarbon fluids or from formation brines
can alter wettability and plug pore spaces). Alternatively, wellbores intersecting fractures
may exhibit enhanced permeabilities as the fractures offer much greater conductive paths to
the fluids around the wellbore, thus enhancing the permeability. This situation may also be

39
required as part of the reservoir management: hydraulic fractures or acidizing workovers are
performed on wells to bypass zones of reduced permeability which have developed during
production.

In these cases, the Ei equation fails to model the pressure drop in these wells properly since it
uses the assumption of uniform permeability throughout the drainage area of the well up to
the wellbore. Figure 7 shows the effect of a reduction in permeability around a wellbore. The
skin zone does not affect the pressures in the rest of the formation remote from the wellbore,
i.e. it is a local effect on the pressure drop at the wellbore. It can be shown that if the skin
zone is considered equivalent to an altered zone of uniform permeability, ks, with an outer
radius, rs, the additional drop across this zone, can be modelled by the steady-state radial
flow equation. It is assumed that after the pressure perturbation caused by the start of
production has moved off into the rest of the formation, the skin zone can be thought of as
being in a steady state flow regime. The pressure drop associated with the presence of a skin
is therefore the difference in the bottomhole flowing pressures at the well when skin is
present and when skin is not present.

Flowing Equation under Semi-Steady State Conditions

The key aspect of the radial flow equation under semi-steady state conditions is that the
boundary of the reservoir has an effect on the flow regime. The pressure decline is influenced
by the fact that there is a finite limit to the amount of fluid present in the reservoir. The
equations developed have been for radial geometries. However, the semi-steady state flow
regime in non-radial reservoirs can be examined by the radial equation if the shape of the
reservoir can be attributed to a factor which encapsulates the relative position of a producing
well in a volume of reservoir fluid. This non-symmetrical geometry can be described by the
Dietz shape factor

Superposition
In the analyses so far, the well flow rate has been instantly altered from zero to some constant
value. In reality, the well flow rates may vary widely during normal production operations
and of course the wells may be shut in for testing or some other operational reason. The
reservoir may also have more than a single well draining it and consideration must be taken
of this fact. In short, there may be some combination of several wells in a reservoir and/or
several flowrates at which each produce. The calculation of reservoir pressures can still be
done using the previous simple analytical techniques if the solutions for each rate change, for
example, are superposed on each other. In other words, the total pressure drop at a wellbore
can be calculated as the sum of the effects of several flow rate changes within the well, or it
may be the sum of the effects caused by production from nearby wells.

There is also the possibility of using infinite acting solutions to mimic the effects of barriers
in the reservoir by using imaginary or image wells to produce a pressure response similar to
that caused by the barrier. Mathematically, all linear differential equations fulfill the
following conditions:

(i) if P is a solution, then C x P is also a solution, where C is a constant.

(ii) if both P1 and P2 are solutions, then P1 + P2 is also a solution.

These two properties form the basis for generating the constant terminal rate and constant
terminal pressure cases. The solutions may be added together to determine the total effect on

40
pressure, for example, from several applications of the equation. This is illustrated if a typical
problem is considered: that of multiple wells in a reservoir.

Effects of Multiple Wells

In a reservoir where more than one well is producing, the effect of each well’s pressure
perturbation on the reservoir is evaluated independently (i.e. as though the other wells and
their flow rate/ pressure history did not exist), then the pressure drop calculated at a particular
well at a particular time is the simple addition of all of the individual effects superimposed
one effect upon the other.
Superposition shows that:

(Pi-Pwf)Total at Well Y = (Pi -P)Due to well X + (Pi-P)Due to well Y + (Pi-P)Due to well Z

Assuming unsteady state flow conditions, the line source solution can be used to
determine the pressure in well Y. It is assumed here that the logarithm function can be used
for well Y itself and that there will be a skin around the well. The effects of wells X and Z
can be described by the Ei function. There is no skin factor associated with the calculation of
pressure drop caused by these wells, since the pressure drop of interest is at well Y (i.e. even
if wells X and Z have non-zero skin factors, their skin factors affect the pressure drop only
around wells X and Z).

41
INTRODUCTION TO NUMERICAL MODELING
Generally speaking, analytical solutions to reservoir flow equations are only obtainable after
making simplifying assumptions in regard to geometry, properties and boundary conditions
that severely restrict the applicability of the solution. For most real reservoir fluid flow
problems, such simplifications are not valid. Hence, we need to solve the equations
numerically.

Discretization
Flow equations can be solved numerically by using standard finite difference approximations
for the derivative terms. First, the x-coordinate must be subdivided into a number of discrete
grid blocks, and the time coordinate must be divided into discrete time steps. Then, the
pressure in each block can be solved for numerically for each time step.

Taylor series approximations

A so-called Taylor series approximation of a function f ( x+h) expressed in terms of f ( x) and
its derivatives f x) may be written as:

Applying Taylor series to our pressure function, we may write expansions in a variety of
ways in order to obtain approximations to the derivatives in the linear flow equation.

Approximation of the second order space derivative

At constant time, t, the pressure function may be expanded forward and backwards:

By adding these two expressions, and solving for the second derivative, we get the following
approximation:

or, by employing the grid index system, and using superscript to indicate time level:

This is called a central approximation of the second derivative. Here, the rest of the terms
from the Taylor series expansion are collectively denoted O x2 ) , thus denoting that they
x2 . This error term, sometimes called

42
discretization error, which in this case is of second order, is neglected in the numerical
solution. The smaller the grid blocks used, the smaller will be the error involved. Any time
level could be used in the expansions above. Thus, we may for instance write the following
approximations:

43
44
45
46
Discussion of the formulations
Obviously, the explicit formulation is simpler to use than the implicit formulation, as explicit
expressions for pressures are obtained directly. Discretization errors are the same for the two
formulations. The amount of work involved is less for the explicit case. In one-dimensional
solutions, this may not have any importance, however, in two and three dimensional cases
with large numbers of grid blocks, the difference in computational time per time step will
become large.

47
However, the explicit formulation is seldom used. As it turns out, it becomes unstable for
large time steps. It will
be shown below, using von Neumann stability analysis, that the explicit formulation has the
following stability requirement:

This requirement has the consequence that time step size is limited by both grid block size
and properties of the rock and fluid. This limitation may be severe, as it is the grid block with
the smallest value of

That determines the limiting time step size.

Application of von Neumann stability analysis to the implicit formulation, shows that it is
unconditionally stable
for all time step sizes. Practice shows that the additional computational work per time step
involved in the implicit method, generally is compensated for by permitting much larger time
step. Larger time steps lead to larger numerical errors, so it is important in any numerical
solution application to check that the errors are within acceptable limits.
The Crank-Nicholson formulation has less discretization error than the two others, since the
central approximation of the time derivative has a second order error term. The solution of
the set of equations is similar to the implicit case. However, the Crank-Nicholson method
often results in oscillations in the solved pressures, and is therefore seldom used.

48
49
DISCRETIZATION OF FLOW EQUATIONS

Finite difference approximations of the partial derivatives appearing in flow equations may
be obtained from Taylor series expansions. We shall now proceed to derive approximations
for all terms needed in reservoir simulation.

Spatial discretization

Constant grid block sizes

The approximation of the second derivative of pressure may be obtained by forward and
backward expansions of pressure:

Variable grid block sizes

A more realistic grid system is one of variable block lengths, which will be the case in most
simulations. Such a grid would enable finer description of geometry, and better accuracy in
areas of rapid changes in pressures and saturations, such as in the neighbourhood of

50
production and injection wells. For the simple one-dimensional system, a variable grid
system would be:

Time discretization
We showed earlier that by expansion backward in time:

the following backward difference approximation with first order error term is obtained:

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52