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When most people hear the term reservoir simulators, they generally think of the commercial products available from vendors. But, there are many different types of simulators and many different assumptions that must be made during the development or even during the application of the simulator. Confidence in the simulator results depends on what we have built into it (physics), how we decide to solve it (mathematical approximations), and how good the data are that go into it. In addition to the data that go into the simulators, the users of the simulators must provide many of the decisions on the approximations for physics [e.g., black-oil vs. compositional pressure-volume-temperature (PVT)] and solution accuracy (e.g., grid size and orientation). This chapter will briefly cover some important aspects of the physics and solution approximations used in reservoir simulators.

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