Modern computing power has enabled very high accuracy and efficiency in complex calculations. Thus, it follows that reservoir engineering formulations need not be approximate solutions, as was sometimes historically the case. Being one of the most widely used techniques in reservoir engineering, the material balance equation (MBE) for gas is an excellent example of this. The MBE is used not only for estimating the original gas-in-place (OGIP), but also for calculating the decline in average reservoir pressure with depletion. In the majority of cases, the conventional p/Z formulation of the gas material balance is satisfactory. However, certain circumstances, which are sometimes unpredictable, demand formulations with greater accuracy. Although modifications to the standard approach have been presented, to the authors’ knowledge, there is no published gas material balance formulation that is completely rigorous. This study presents a new, rigorous MBE for gas flow in the presence of a compressible formation and residual fluid saturation. Examples will be presented to highlight the capabilities of the new MBE.

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