The second law of thermodynamics determines the practical limits of operating systems. However, within these limits, conditions leading to optimum performance can be found.

In reservoir analyses the conditions or variables which are controllable are somewhat limited. These include well head pressure, production or injection rate, number of wells and their locations and the recovery technique. The efficiency of reservoir exploitation decreases as the entropy generation increases. Since entropy generation translates into irreversible loss of fluid energy, the operating conditions of a reservoir should be selected to minimize the entropy generation over the productive life of the reservoir.

In this paper, it is shown how entropy generation function is calculated and used as a guideline for selecting the conditions leading to high ultimate recovery. This is accomplished by calculating the cumulative entropy generation over the reservoir volume and the production period and by determining the conditions minimizing the entropy generation.

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