Geostatistics and Reservoir

Simulation

Dmitry Koroteev, PhD, Professor, Skoltech

Dmitry Koroteev
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Research Associate Research Scientist Senior Research Scientist Research Program Manager
Schlumberger R&E Schlumberger R&E Schlumberger R&E Schlumberger R&E

PhD, Chemical Physics

Lomonosov Moscow State University

Founder and CEO

Digital Petroleum

2014 2015 2016 2017 2018 2019 2020 2021 2022

Department Head Acting Research Assistant Professor Associate Professor Professor

Gazpromneft STC Director Skoltech Skoltech Skoltech
Schlumberger R&E

2 CEUs, Big Data

Massachusetts Institute of
Technology
The course
Originally developed in 2017 by Ebrahim Fathi, assistant professor, West Virginia University
Re-developed after student feedback session in 2018 by Dmitry Koroteev, Stanislav Ursegov and
Denis Orlov
Re-developed after student feedback session in 2019 by Dmitry Koroteev, Denis Orlov and
Mohammad Ebadi

Instructors Teaching assistant

Dmitry Koroteev Denis Orlov Marsel Ishimbaev

The course: Schedule
Date Time Lecturer Subject
1 31 Mar 2025 9:00 - 12:00 Dmitry Koroteev Intro to Reservoir Simulations
2 02 Apr 2025 9:00 - 12:00 Dmitry Koroteev Intro to Reservoir Simulations
3 04 Apr 2025 9:00 - 12:00 Denis Orlov PVT
4 07 Apr 2025 9:00 - 12:00 Denis Orlov PVT
5 09 Apr 2025 9:00 - 12:00 Dmitry Koroteev Reservoir Simulations on Practice
6 11 Apr 2025 9:00 - 12:00 Dmitry Koroteev Reservoir Simulations on Practice
7 14 Apr 2025 9:00 - 12:00 Denis Orlov PVT
8 16 Apr 2025 9:00 - 12:00 Denis Orlov PVT
9 18 Apr 2025 9:00 - 12:00 Denis Orlov History Matching
10 21 Apr 2025 9:00 - 12:00 Denis Orlov History Matching
11 23 Apr 2025 9:00 - 12:00 Dmitry Koroteev Fundamentals of statistics
12 25 Apr 2025 9:00 - 12:00 Dmitry Koroteev Sequential Gaussian Simulations
13 5 May 2025 9:00 - 12:00 Dmitry Koroteev Sequential Gaussian Simulations
14 7 May 2025 9:00 - 12:00 Dmitry Koroteev Fundamentals of Geostatistics
15 12 May 2025 9:00 - 12:00 Dmitry Koroteev Kriging
16 14 May 2025 9:00 - 12:00 Denis Orlov Uncertainty Modelling
17 16 May 2025 9:00 - 12:00 Denis Orlov Uncertainty Modeling
18 19 May 2025 9:00 - 12:00
Project Preparation
19 21 May 2025 9:00 - 12:00
20 23 May 2025 9:00 - 12:00
21 26 May 2025 9:00 - 12:00
Project Presentations
22 28 May 2025 9:00 - 12:00
23 30 May 2025
 Reference Books & Materials
Course Notes and Technical Papers

Inverse Theory for Petroleum Reservoir Characterization and History Matching (Dean S. Oliver;
Albert C. Reynolds; Ning Liu)

Pyrcz, M.J., and Deutsch, C.V., Geostatistical Reservoir Modeling, Oxford University Press, New
York, second edition, 2014, 433 pages

Basic Applied Reservoir Simulation, T. Ertekin, J.H. Abou-Kassem and G.R. King. SPE Textbook
Series Vol. 7, 2001

5
 Homework Assignment Policy:

Homework's are due at the beginning of the class on due date

Homework is to be submitted in soft copy to canvas and
[Link]@[Link]
Each homework assignment must include:
• Statement of the problem
• Solution with sample calculations and conclusions

6
 Mark Distribution
Homework Assignments 60%
Project/Exam 40%
Homework Assignments & Project (individual work/individual report)

86–100 → A
71–85 → B
61–70 → C
56–60 → D
51–55 → E
≤ 50 → F

7
Intro to Reservoir Modeling
Application of Geostatistics in Petroleum Engineering

Generating high resolution rock property maps for reservoir simulation purposes

Uncertainty analysis and risk management for economic decisions

Upscaling reservoir properties

What is Reservoir Simulation?

Reservoir Engineers use different means to study and analyze reservoir performance
(History matching) and predict future production.
Reservoir performance is a function of its behavior with pressure and time.
Reservoir Simulation is a blend of:
• Engineering
• Physics
• Chemistry
• Mathematics
• Numerical analysis
• Computer programming, and engineering experience and practice
What is Reservoir Simulation?

Reservoir Simulation is a powerful technique for reservoir management and

refers to the construction and operation of a model whose (hopefully)
approaches that of a reservoir under actual reservoir condition.

It allows the engineer to predict reservoir performance – provided it is used

correctly – under different scenarios.

The kind of reservoir simulators that are used today on digital computers are
not the only tools an engineer has used to mimic the behavior of real
reservoirs.
Type of Simulators

Physical: involves building a prototype in the laboratory and reproduce the

physical and chemical processes
Mathematical:
• Analytical
• Well Testing Equations (Diffusivity Equation)
• Decline Curves
• Material Balance Equations
• Numerical
• Data Driven
• Hybrid
Numerical Reservoir Flow Simulation
Physical Models:
useful in visualizing the flow processes and develop mathematical models
for the flow.
• problem: lack generality – we need to modify the physical model for each reservoir
under study.
very expensive to build and run.
Physical vs Numerical Models:
Numerical models must describe what physically takes place in the
reservoir.
In cases where we cannot model the reservoir physically
Analytical Models

Material Balance Equation (MBE)

Tank Model
Isotropic -> Kx = Ky = Kz
Homogeneous Reservoir -> φ, Kro, Krw, Krg, So, Sw, Sg, Bo, Bg, Rso, μo, μg are same
throughout the tank

MBE is a powerful tool for reservoir performance analysis, particularly when there is
negligible pressure difference (i.e. pressure gradient) in the reservoir.
Analytical Models
Numerical Simulators
Conceptually, a reservoir numerical simulator model consists a series of
tanks, which are connected with one another.

Reservoir being water flooded

Sw increases to the right with time

 Numerical Simulators

The tanks still obey physical laws (specially the conservation of mass);

…
Tank 1 Tank 2 Tank 3 Tank 4 Tank N

What it is different from the tank model for MBE, is that now is possible to allow for fluid
to flow from one part of the reservoir (for example, “Tank 1”) to another point (for
example “Tank 2”).
There is pressure difference in each tank and consequently there is fluid flow.
Reservoir Simulators: computer programs that solve the equations for heat and mass
flow in porous media, subject to appropriate initial and boundary conditions

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Mathematical Models

Mathematically, a reservoir numerical model consists of equations describing the

physical laws, including conservation of mass and momentum & energy, as well as laws
governing the behavior (i.e. flow of fluids in our case)
A complete set of PDE and auxiliary conditions, which describe the flow pressures in the
reservoir.
PDE’s are derived from:
• Conservation laws
• Physical principles (Darcy’s Law)

The number and type of equations to be solved depends on:

• Geological characteristics of the reservoir (single or double porosity)
• Characteristics of the oil, and Rock and Fluid interactions
• Oil recovery process to be modeled.
 Mathematical Models

Solution of the mathematical system of equations requires knowledge of reservoir

properties (i.e., permeability, porosity), fluid PVT properties, rock and fluid interactions
and reservoir well geometry.

Reservoir PDE with Numerical Computer Applicatio

auxiliary
system equations scheme program n
Mathematical Computer model =
model reservoir simulator

Reservoir description is seldom known with any degree of accuracy -

usually obtained from geological and geophysical data as well as well test data and
geostatistical description.

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 Mathematical Models
Mathematical Models contain three main sources of error:
Inaccuracy of input data;
Truncation error – introduced when we approximate our original PDE’s using a Finite
Difference or Finite Element Scheme;
Round off error of the machine on which we solve our equations.

Note:
The main advantage of a reservoir simulator is the ability to inexpensively produce the
reservoir and a variety of different operating conditions.
Thus the optimum strategy for producing the reservoir can be
determined without equipment investment and without actually
producing any oil.

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Historical Developments - Reservoir Simulators – “Timeline”
Traditional Reservoir Engineering (1930 - …)
Modern Reservoir Simulation (1970 - …)
Computations with slide rules and mechanical
High level of confidence in technology;
calculators;
Steady decrease in hardware cost;
Representation of reservoir by a single block;
Large number of blocks with local grid
1-D analytical solutions for linear two-phase flow
refinement and irregular shape;
and radial single-phase flow.
Efficient methods for solving nonlinear
Early Reservoir Simulation (1955 – 1970)
equations;
Computations with digital computers;
Robust methods for solving large systems of
Primarily developed and used in research labs; linear equations;
Primary limitation was computer speed and Multicomponent fluid description and
storage; improvements in the handling of wells;
Limited ability to handle large systems of Improvements in the understanding of
nonlinear equations; complicated processes;
Poor reliability and lack of confidence in Use of graphics and workstations and availability
technology; of supercomputers.
High cost of development and use.
Different Reservoir Models (Simulators)
Singe-phase vs multi-phase simulators
Multiphase can also be subdivided into black oil, compositional and thermal simulators. Using
one-phase or multi-phase depends on which flow process(es) is taking place in the reservoir
being studied.

Mostly 3-D. Linear predominates in fractured reservoirs while radial predominates near the
wellbore. Hence, we can setup equations combining both linear and radial geometry. No single
flow model occurs in the reservoir. What occurs in the reservoir is a combination of several
geometrical simulator models
Currently, many reservoir simulators are developed with incorporation of “fractures” describing
the interaction of the reservoir with its surroundings structures (such as subsidence, leakage of
fluids from reservoir to ground water zones)
How the Simulators are Used

Forecasting of reservoir performance

• Sensitivity studies for evaluating reservoir development options (EOR process selection)
• Evaluation of field pilots and scale-up
• Full field studies for depletion planning at various stages of field development (number and
location of wells, injection/production rates, composition of producing fluids, etc.)
• Reservoir management
• Assessment of uncertainty in forecasting reservoir performance
Improving reservoir description through history matching
• Identification of major flow units and barriers
• Identification of near well rock properties
How the Simulators are Used
Analysis of experiments
• Relative permeability
• Minimum miscibility pressure
• Core displacement tests
Understanding of flow mechanisms
• Unstable displacements
• Flow in heterogeneous media
• Block effective properties
• Matrix/fracture transfer
Development of simple models and correlations
• Coning
• Cyclic steam injection
• Steam displacement
• Inflow performance relationships (IPR’s)
Modeling Concepts
The basic steps required for a reservoir simulation study are:
Select one or more Select grid and Input to simulator
images for average data to
simulation get block
Images
Images of properties
Imagesofof Input Output Analysis of
reservoir
reservoir
reservoir Data Data Results

Data
History matching
Geostatistics
In carrying out a simulation study of a reservoir, the usual
procedure involves

• Definition of a geological model for the reservoir, and the aquifer if present, in terms of: geometry, depth, zonation, spatial
distribution of reservoir rock properties,
• Configuration of the most appropriate gridding for subdivision of the reservoir into blocks
• Specifications of thermodynamic properties of reservoir fluids
• Rock and fluid interactions including the definition of relative permeabilities and capillary pressure curves
• Initialization of the model with the assignment of real initial values of reservoir pressure, temperature, water-oil and gas
contacts
• Introduction of production and injection wells and their operational constraints
• “History Matching” or replication of the production history of the reservoir, if it has one
• The model is run, with each well being assigned its actual record of production or injection, the calculated pressures,
WORs, GORs at each well are compared with measured data where available;
• The reservoir description and model parameters can be verified within reasonable limits and the model is re-run as
measuring until a satisfactory match with actual production is obtained.
• Prediction of reservoir behavior under future development programs could then be performed
 Why Use Simulators?

• No other way to solve the problem

• Cheaper or more reliable than other methods
• Complement other more traditional techniques
• Increase profitability through improved reservoir management
• Assess economic and technical risks through sensitivity studies
• Enhance credibility with third parties
• Predict consequences of reservoir development and management decisions
• Establish relative merits of alternative operating strategies
• Resolve arbitration and utilization disputes
• Monitor reservoir performance
• Respond to safety, environmental and regulatory concerns

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 Why Use Simulators?

• Improve communication among interested parties

• Train engineers and operators
• Choose the optimum EOR scheme for a given reservoir
• Assess the impact on ultimate recovery of changing to a different EOR scheme
• Establish data needs during various stages of field development
• Assess the impact of assumptions on the analysis of well tests
• Optimize well location and well completion
• Assess possible advantages of horizontal wells over vertical wells
• Troubleshooting

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Options and Features of Modern Reservoir Simulators
Preprocessors Cross flow between zones
Postprocessors Non-Darcy effects
Phase and component Initialization
Gridding options Aquifer models
Solution Techniques Pseudo-functions
Well control Control of simulator
Group control performance
Injection control
Shale gas production control
The development of a reservoir simulator broadly follows the following steps

1. Define the problem with partial differential equations and appropriate initial and
boundary conditions

2. Convert the PDEs to (algebraic) finite difference equations

3. Apply the finite-difference equations to the “discretized” reservoir

4. Solve the equations to determine the behavior of the reservoir

5. The partial differential equations are derived using Darcy’s Equation, Equation of
Conservation of Mass, Momentum, energy and the Equation of State.
Mathematical Model – Discretization Concept
 Mathematical Model – Discretization Concept

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 Mathematical Model – Discretization Concept

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Mathematical Model – Internal Grid Representation
Properties and Variables vs. Nodes and Connections
 Software Available
Builder EarthVision FloGrid
GeoSim Geolink Geostat
Gocad Grid Gridgenr
Gridstat Gviz Heresim
Irap RMS Isatis Mapper
Open-GL Petrel Property 3D
ResMod ResScale ResView
Shapes SigmaView SimGrid
SimUp SolidGeo StatMod
Storm Stratmodel SureGrid
TNav

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 Reservoir Simulation
Evolution Theory

36
 Introduction - Two Remarking Trends:

In Reservoir Characterization:
• Migration from 2D to 3D
• Methodologies

In Simulation:
• Use of more Flexible Grids

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 Grid Formats Objectives

• Adequate Strategies to the Specification of Volumetric Grids in

Integrated Studies

• Strategies to the transference of information between Characterization

Grids and Simulation Grids (Geometrical Approach x Topological
Approach)

• Better Representation of the Fault Geometry in Reservoir Simulation

Models

• Development of Upscaling Techniques

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 Base Map to Simulation Grid Examples [Hales, 96]

39
 Cartesian Grid Example [Hales, 96]

40
 Orthogonal Curvilinear Grid Example [Hales, 96]

41
 Corner Point Grid Example [Hales, 96]

42
 Grids to Flow Simulation

43