This paper presents a new approach to automated history matching. Instead of the usual, "mathematically-oriented" approach in which the strongly non-linear reservoir responses are locally linearized, this paper describes a "reservoir engineering-oriented" approach which attempts instead to use a combination of reservoir responses that is truly linear.

Two accurate linear models of a numerical reservoir simulator's pressure and production response to permeability changes are presented. These models, which are derived from the general hyperbolic decline curve relationship, are used in a history matching scheme to estimate the permeability distribution from historical production and pressure information. Three cases are presented which test the methods presented in matching for isotropic and anisotropic permeability distributions. The cases are based upon history generated from a 72 block 7 well model, and include both anisotropic and isotropic history matching problems.

A method of simultaneous determination of absolute and relative permeabilities is. also presented. The method is based upon the isotropic linear permeability model developed and tested in the paper.

The history matching technique presented requires only two or three simulation experiments to accomplish the match. This is approximately one-tenth the CPU cost required for the optimal control theory automatic history matching methods described in the literature.

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