This paper investigates the effects of inflating a reservoir via carbon sequestration or water flooding on the state of stresses in surrounding ductile formations. A better control is needed on the assessment of stresses in the caprock and how would they change due to the inflation process in order to avoid geomechanical problems such as seal integrity and induced seismicity. An important factor in analyzing the reservoir-caprock interaction is the compression-inflation model used to estimate reservoir behavior. A finite elements model of a simple circular disc is created to study the stress redistribution around an inflating reservoir using the commercial software ABAQUS. The paper analyzes the results using well known methods, namely; the Ellipsoidal Inclusion Approach and the Deformation Analysis in Reservoir Space Approach. The analysis verified the results of the Finite Elements Simulation and gave insight to generic redistribution of stresses around an inflating reservoir. The paper also compared two different compression-inflation models; the Modified Cam Clay Model (MCC) and the MIT-E3 model. The MIT-E3 model utilizes a non-linear elastic inflation model and estimates larger redistribution of stresses around the inflating reservoir.

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