Chapter 6: Reservoir Simulation

The practice of dynamic reservoir simulation dates back to the first analytical models of the late 1940s and early 1950s, but widespread use did not occur until the advent of commercial simulation packages in the late 1980s. Detractors of the use of reservoir simulation refer to the process as a “black box,” but, in the hands of an experienced petroleum engineer working with an experienced geoscience team, reservoir simulation can materially help to evaluate the uncertainties associated with investment decisions and consider development planning scenarios. It is a tool that can be used to improve the understanding of reservoirs and their performance data, facilitate the decision-making process, aid in the selection (in conjunction with economic analysis) of the optimal development scenario, assess the range of resource potential, and so on. Nevertheless, there are limitations to reservoir simulation and the reliability of its results that need to be clearly conveyed to end users and decision makers.