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The Merriam-Webster Dictionary defines simulate as assuming the appearance of without the reality. Simulation of petroleum reservoir performance refers to the construction and operation of a model whose behavior assumes the appearance of actual reservoir behavior. The model itself is either physical (for example, a laboratory sandpack) or mathematical. A mathematical model is a set of equations that, subject to certain assumptions, describes the physical processes active in the reservoir. Although the model itself obviously lacks the reality of the reservoir, the behavior of a valid model simulates—assumes the appearance of—the actual reservoir.

The purpose of simulation is estimation of field performance (e.g., oil recovery) under one or more producing schemes. Whereas the field can be produced only once, at considerable expense, a model can be produced or run many times at low expense over a short period of time. Observation of model results that represent different producing conditions aids selection of an optimal set of producing conditions for the reservoir.

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