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ROUNDTABLE: RESERVOIR SIMULATION Exploring the Role of Reserv Manfred Wittmann (moderator) Schlumberger Overseas S.A Jakarta, Indonesia Reservoir simulation isthe fool engineers use to model the possible flow behaviors of the reservoir over fime—from pessimistic, 1 optimistic, to probable. Here are the views of six simulation experts on the scope of reservoir simulation, its proper inputs, quality control, and trends forthe Future. ‘Abdul Karim AL-Rabah Kuwait Oi Company Almac, Kuwait Pramod P. Bansal Mobil Exploration ana Producing Services In. Dallas, Texas, USA ‘THE FUNCTION AND SCOPE OF RESERVOIR SIMULATION MODERATOR Manfred Wittmann Al, since you area builder of reservoir simulation models, lot's start wth you. What does a reservoir simulation do! AL BREITENBACH The function of reservoir simulation isto solve the fundamental flow equations insufficient detail so that you can predict the consecences of changes in operating practice. Successful reser voir simulation, therefore, requires solving those equations as precisely as possible, This means two things. First it means developing a numerical simulator that will give accurate solu tions for the data input. Second, it means being able to describe the reservoir with suficient accuracy so that the numerical solu: tions give an accurate basis on which to make predictions. MODERATOR ‘You used “Suficient” twice. What is suficient detail and sufi cient accuracy? NANSEN SALERI Sufficiency is reservoirspecific, dependi nosily on reservoir size and complexity. You may have close to sufficient data in small, simple reservoirs, and may never approach it in large or ‘complex ones, no matter how hard you ty, Because data about reservoirs almost always lack a degree of detail and accuracy, reservoir simulation cannot be considered a deterministic tool. is more probabilistic, along the lines of weather forecasting mod: cls, if we accept reservoie simulation as such, then I think itcan be put to optimal use Oilfield Review oir Simulation EA. Breitenbach Scientific Softwae-ntecomp, tn: Denver, Colorado, USA Larry D. Hallenbeck Philips Petroleum Cornoany Tananger, Norway MODERATOR ‘What is optimal use—why undertake a reservoir simulation? PRAMOD BANSAL ‘We typically use simulation studies in two settings: In develop- ment ofa new field, a simulation can help us decide how many ‘ells we need and where they should be. In an established field that has unexpectedly poor performance, a simulation can tell us, why and help us find ways to improve performance. In ether setting, itis important atthe outset to define the purpose ofthe simulation and do the necessary homework before undertaking, the simulation. This homework involves use of simple reservoir engineering tools, such as material balance calculations and boundary conditions and aquifer size. In the case of poor performance of an established field, material balance equations may not tll you why you have poor perfor: ‘mance; you may need more description and simulation ABDUL KARIM AL-RABAH | question the value of simulation studies atthe development stage. Without the benefit of production history, think results of simulations during the development stage are doubsful SALERI (On the contrary, reservoir simulation may be at its best when data are sparse. Itis an effective tool for comparing different probabilities influencing flow—pressure-volume-temperature (PVD variations or variations in the continuity of shales or faults, ‘rin the connectivity of compartments ofthe reservoir. Simula lion studies are the most effective way to develop a sensible ‘engineering solution to the different possible scenarios. Volume 2 Number 2 Nansen G. Saleri (Chevron Exploration and Production Services Company Houston, Texas, USA D. Nathan Meehan Union Pacific Resources Company. Fort Wont, Texas, USA AL-RABAH | agree that when data are sparse you need to run some basic simulation for planning. But | don’t think you should develop a field based solely on simulation studies if production history is lacking, Ifyou have some wells, with atleast a minimum of pro: duction history, then you can go back and modify your mode! But without that, I don't feel that | can decide how to develop a field of 100 wells SALERI Unfortunately we dont always have time to gather all that infor mation. In some exploration projects we have only 4 to 12 Weeks to make the best technical evaluation we can, on which large investments will be based. In this setting, reservoir simula- tion plays a key role BREITENBACH | think perhaps Nansen (Saler and Abdul Karim [Al-Rabah] are talking about two different things. When you're considering, ‘major investment decisions like location of offshore platforms ‘and pipelines, you may not have a great deal of information, but ‘you still have to decicle where and how many wells to drill. Even, if you might not be able to produce fora year or several years, reservoir simulation isa useul sensitivity tool. It gives you devel- ‘opment strategies for a range of possible reservoir conditions — the presence or absence of faults, whether they are sealing oF ‘er contains to his atc, thank alo to Luis Ayetaran, Schlumberger Technical Seren Dut UAE Tom Gul Siti Son tacone, fe, Deve Ol ‘alo USA’ and kia Sh Seino, Katt Ol Conny Aras ew Roundubl candace i San Amoi, Teas, USA, Oxi 1, 1989. Repeat Formation Tee (FT fa atk of Schaberge Cray tea wademarcof Cay Reseach e ROUNDTABLE: RESERVOIR SIMULATION Exploring the Role of Reserv oir Simulation ‘Manfred Wittmann, (moderator) Schlumberger Overseas S.A Jakarta, Indonesia Reservoir simulation is the tool engineers use to model the possible flow behaviors of the reservoir over fime—from istic, to optimistic, to probable. Here are the views of wlation experts on the scope of reservoir simulation, ‘proper inputs, quality control, and trends forthe future. Abdul Karim AL-Rabah Pramod P. Bansal Kuwait Of Company Mobil Exploration and Producing Abad, Kunvait Services Inc Dallas, Texas, USA ‘THE FUNCTION AND SCOPE OF RESERVOIR SIMULATION MODERATOR ‘Manfred Wittmann, AN, since you are a builder of reservoir simulation models, let's start with you. What does a reservoir simulation do? AL BREITENBACH ‘The function of reservoir simulation isto solve the fundamental flow equations in suificient detail so that you can predict the consequences of changes in operating practice. Successful reser voir simulation, therefore, requires solving those equations as precisely as possible, This means two things. First it means developing a numerical simulator that will give accurate solu tions for the data input. Second, it means being able to describe the reservoir with sufficient accuracy so that the numerical sou tions give an accurate basis on which to make predictions MODERATOR ‘You used “slficient” twice. What is sufficient detail and su cient accuracy? NANSEN SALERI Sufficiency is reservoirspecific, depending mostly on reservoir size and complexity, You may have close to sufficient data in small, simple reservoir, and may never approach itn large or ‘complex ones, no matter how hard you ty. Because data about reservoirs almost always lack a degree of detail and accuracy, reservoir simulation cannot be considered a deterministic tool. is more probabilistic, along the lines of weather forecasting mod cls we accept reservoir simulation as such, then I think itcan be put to optimal use, Oilfield Review EA. Breitenbach Larry D. Hallenbeck Scientific Software-intercomp, Inc. Philips Petroleum Company Denver, Colorado, USA Tananger, Norway MODERATOR What is optimal use—why undertake a reservoir simulation? PRAMOD BANSAL ‘We typically use simulation studies in two settings: In develop ment ofa new field, a simulation can help us decide how many ‘wells we need and where they should be. In an established field that has unexpectedly poor performance, a simulation can tel us ‘why and help us find ways to improve performance. in either setting, itis important atthe outset to define the purpose ofthe simulation and do the necessary homework before undertaking the simulation. This homework involves use of simple reservoir engineering tools, such as material balance calculations and boundary conditions and aquifer siz. In the case of poor performance ofan established field, material balance equations may not tell you why you have poor perfor: ‘mance; you may need more description and simulation ABDUL KARIM AL-RABAH | question the value of simulation studies atthe development stage. Without the benefit of production history, | think results of simulations during the development stage are doubsful SALERI (On the contrary, reservoir simulation may be ati best when data are sparse. Its an effective tol for comparing different probabilities influencing flow—pressure-volume-temperature {PVD variations or variations in the continuity of shales o fault, or in the connectivity of compartments ofthe reservoir. Simula- lion studies are the most effective way to develop a sensible engineering solution to the different possible scenarios Volume 2 Number 2 D. Nathan Meehan Nansen G. Saleti Union Pacific Resources Company Chevron Exploration and Fort Worth, Texas, USA Prod ton Seices Company Houston, Texas, AL-RABAH | agree that when data are sparse you need to un some basic simulation for planning. But I don't think you should develop a field based solely on simulation studies if production history is lacking, If you have some wells, wth atleast a minimum of pro- dluction history, then you can go back and modify your model But without that, I don’t feel that | can decide how to develop a field of 100 wells SALERI Unfortunately we don’t always have time to gather all that infor mation. In some exploration projects we have only 4 to 12 ‘weeks to make the best technical evaluation we can, on which large investments willbe based. In this setting, reservoir simula: tion plays a key role BREITENBACH I think perhaps Nansen [Salei} and Abdul Karim [Al-Rabab) are talking about two citferent things. When you're considering, _major investment decisions, like location of offshore platforms and pipelines, you may not have a great deal of information, but you still have to decide where and how many wells to drill. Even if you might not be able to produce for a year or several years, reservoir simulation isa useful sensitivity tool. It gives you devel- ‘opment strategies for a range of possible reservoir condlons— the presence or absence of faults, whether they are sealing or or conbutons to his aril tok aloo Luis Ayestan, Schnee Teil Senvics, Dus, UAE Ta oul, Seni Sowarhacom, ey Deve Cob ‘ao, USA; an kha Singh shea, Kawa Ca Company, Aes, Kaw Rourcable conducted in San Antonio, Tes, USA, Octobe 1, 198, 19 Donte andansone Limesione se) ese - Bee. ronsealing, whether there are aquifers and if they are large or small above). In many places, simulation has been done with a paucity of data and the results were taken, unfortunately, as gospel. In at least one instance, this turned into disaster because hundreds of millions of dollars were spent on pipeline facilities and the reservoir in realty was inno way close tothe simulation description. In this case, people missed the objective ofthe study. The simulation could have been used correct if, as [Nansen sad, they took it asa sensitivity study, and eecognized, for example, that they did not know the stratigraphy and had not ‘examined all the possible solutions for boundary conditions of the reservoir, MODERATOR If we accept, then, that reservoir simulations fulfil these two functions, when do such studies become economic? Is eco- nomics related to field size? SALERI Economics is based more on what you're tying to find out than (on reservoir size. And you don’t need complex reservoir models to answer complex reservoir questions. Simple, tank-type ‘models can often answer many questions about the reservoir. BREITENBACH ‘More generally, reservoir simulation becomes economic if you think itis going to change your production practices. BANSAL But you can't know a prior that simulation is going to change ‘production practices. TA ankaype mode conde he reso angle, ple tak conaining ld ‘ate hana srs of ano astm fnrconnected pares Kemgheszes te ‘ternal boundaties ofthese abd gts eral ese heleropenees. 20 BREITENBACH, In many cases you do. When a company comes to us and ‘expresses an interest in doing reservoir simlation, we ask, “What exacly do you want to get out ofthis? What is your goal" What we want to ear is, “We want to increase produe- tion" or "We're looking fr alternatives to enhanced ol recow- ry," oF "We're trying to find zones for more recovery.” In these inslances, there i an opportunity to take some action. But ithe person says, “We'd like to understand the reservoir beter,” we 28k: "I this gong to have any eflect on production o develop ‘ment practice? And if they say *No, our production is con- trolled and we won't be able to change ifr several yeas," then "suggest that we do the simulation in several years SALERL ‘We canals take a ifferent approach. When people say they re ‘operating in a dosnothing mode, tl them that a do-nothing mode is actually doing something that could be detrimental to the reservoir and their careers—maybe inthe reverse order. The value of doing a study is that it forces people to consider options tat they otherwise might have overlooked or ignored NATHAN MEEHAN How do you quantify the value of sucha study? SALERI In Chevron, every study has a dollar value associated with it. The study is done ifthe given operating company thinks it’s a good investment. The decision i ently upto the operating company. LARRY HALLENBECK ‘Who determines priority? You cant do every study for every ‘operating company: Oilfield Review SALERI ‘We have a price structure for eservoir simulation studies that maintains a eeasonable balance between our resources fr doing stutlies and the needs ofthe operating companies. We would have a problem if we dropped the price to an artificially low level, offering basically free engineering. Even in a large company like Chevron, computer ancl manpower resources are limited MEEHAN | view the economics of resewvoir characterization asthe pat= ‘chase of uncertain information, the value of which should be estimated. Enhanced oil recovery (EOR) projecs are so hopelessly aud to quantify dificult to optimize that their information value is Bur sometimes value can be easily evaluated. ve recently worked in tight gas heterogeneous systems, where economies are con- tolled by facture length and well spacing, There were only a couple of things you could vary inthe simulation, soit was easy to determine whether the simulation was worthwhile, ‘BREITENBACH think the decis based mostly on cost-benefit analysis. As a manager you have to ask: “If did a ester ob of simulating this reservoir, what would | save? Manpower? Addltional wells? Am | making rote oil? Pr: dlucing at a greater rate?” You need to identify the specific payof. MEEHAN So the use of reservoir simulation is to specifically address some. decision you're likely to make inthe future BREITENBACH Exactly about whether to do a simulation study is Volume 2 Number 2 SIMULATOR INPUTS MODERATOR Lets take the case of reservar simulation for early characteriza tion of a prospect. What are the inpuls you use? SALERI ‘The most impegant input in early prospects isthe boundary con: ditions of the reservoir. As AI [Breitenbach] said eatie, his includes the extent of the reservoir, the size of the aquifer, the prese 1 of high permeabilty streaks, the nature of faults (if presen, sealing or nonsealing, etc. (See “Key Steps in Reservoir Simulation,” pages 22-23) Is OK if we can't describe al hese features, as lang as we come forward and say, for exam: pile, “We don't know the sealing or nonsealing nature of the reservoir” We must recognize the possibilty of either. ‘The other major point to keep in mind isthe scale of data, Descriptions of fine-scale heterogeneities are important in some systems, such as in EOR. But for most two-phase systems, like simple waterlooding, we're finding out that mexa-and giga scale heterogeneities are of overwhelming importance (see page 24}, By mega we mean data obtained on the scale of well tests—150 to 600 meters [500 to 2,000 feet from the wellbore. The giga scale is thousands of meters In the early phases of a reservoir’ life, properties onthe giga- and mega-scales really dictate what goes on. Macro scale data—logs and cores—and microscale data thin sections -tend to become important later. HALLENBECK ‘Most of my experience concerns this later stage, since my inter ‘est is how simulation studies can assist reservoir management 2 oF aber The development of relative permeability curves ina simu- lation study should be based ‘on the objective of the study cand on the amount of field performance data availabe, I believe that calibration of fetd performance data, such as oil ‘and gas production and pres- sure performance, with simu- lator prediction is the ultimate ‘method for obtaining reliable simulator forecasts. ‘i i: a a 8) General description of reserve rom: “Seismic *Study of other reservoirs inthe same formation and outcrops. ) Correlate major depositional unt. *Use log and core data to identty low k or om layers that may fact as batters. Divide reservok into layers, (C} Determina directonal permoabliy and pay coninuty ‘assess directional permeabilty, facture of channel conto of Fuk flow with pressure Vansient toss ‘Assess degree of stratfcation. ‘assess vertical communication between ayes. ‘Evaluate pay continuity betweon inocors and producers, D) Determine lw characterises. “Obiaincelatve permeabilty and caplary pressure relationships from natve stato cores, I poceibo, oF rostord stato cores, ‘Assess effect of irjcted us on cor characteristics, ) Determine gard k distibuton in each layer ‘Uso cote data and statistical analysis to map areal itrbution of ard kin each layer. ‘Determine whether ¢and kcan be correlated ‘Determine i ateral continuity ots “Dive reservorino Bock, Key Steps i ‘Divide reservoir nto sections. if appropriate. *Soloct numberof dimonclone, layors and aroal Docks. Coosa moda rd so that block boundaries coincide wit changes in reservoir characteristics determined from geolale stud (or ‘example, 20 that boundaries coincide wih barriers Yo ow) “Study effect of atc block size on reservoir sensitivity. ‘Use pseudo funetons to account fr layering within each model layer and numerical ippersion, ‘Determine optimal gid sz. “Verily and refne reservoir description by history matching the fla pressure production performance, “Consult geologst before making major changes in description, ‘Spek the most reasonable ofthe muple solutions. “Evaluate sonsity of reservokr performance to changes In barr sterath ‘Choose tho baso case that bost maiches etd performance. +Evalatealtemative operating plans against the base case using the model. This includes changes in injection rate, management of (985 cap voidago (gs injections or blowdown), nfl cling, Calizing locaton of injectors and preducers, and changes in Production rate ‘Schedule dling of adcitonal wos “Plan itu evaluation ofthe progrem, ‘Determine when and how injection and production wos should be adjusted, Repeat steps 4 trough 6 Oilfield Review _ Reservoir Simulation : ( (Choose the right. ‘model z neuro conlatoney | Model constuction |2nong geooge, : i | simulation, lab, and) { eld data -Avoi arbiaioss | i = FR istry rata | Not Vaiton fey ita IN oc | Predetons [ESS -eoanze | reser properties, 1 Peeters Intrprt,negrate and cocoate, rvaly and vertically : RESERVOIR DESCRIPTION | Rock Characterization || Fluld Cheractertzstion Geologie Model | Residual of -Aceal and verical variation |J_|-Volumetic maps Relative poemoabity Sratication ) capita pressure Barer maps Oil and water tingereinting +Reservor continuity 8 qualiy maps. ty key Identity main drive J] Determine volumes (OOP, | rs ‘mecharisms ‘OaiP, OwIP) Volume 2 Number 2 ) 2 |) General description of reservoir rom: ‘Selemic ‘Study of other reservoirs in he same formation and outcrops. ') Cortelata major depostional unit “Use log and core data to ently low k o low @ layers that may ‘ct as barriers. Divide roservolr nt ayers. (C} Determine dectonal permeability and pay conn. ‘Assess decional permeabity, facture or channel conto of fhid flow vith prossure varsiont tests, ‘Assess degre of satiation. “Assess verical communication botwoon layers. “Evaluate pay continu between injectors and producers. ) Determine fow charactors. “Optaln lave permeabiily ard caplary pressure relationships {rom nalvestate cores, I poss, or restored stato cores. “/Asg0ss affect of injactod uid on core characteristics, ) Dotermine ¢and k istibution in each layer. “Use core data and statistical anelyss to map areal distribution ot ‘and kin each ler *Datormine whether 4 and kcan bo corelated *Datorring if ateral continuity exists “Divide reservor into blocks. “Divide reserva ino sections it appropiato. “Select numbor of dimensions, layore an area block. ‘Choose mode gid go that block boundaries coincide with changes | in reseroic characteristics determined from gocloge stu (or ‘2xamle, 6 thal Boundaries coincide with baits to fo). Study effect of ord block size on reservar sensitiv, Use neous functions to account fr layering within each model layer and numerical cspersion Determine opimal grid size “Verily and roine reservoir description by history matching the leis pressure production performance. “Consult gelogists before making mejor changes in desertion. ‘Seek the most reasonable ofthe multiple solutions. -EvaluateSanstvly of reservolr performance o changes in bain strength sCho0se the base casa that best matches felé performance ‘Evaluate aerative operating plans against the base caso using the model. Th includes changes in injection rate, management of (2s cap voidage (ga injocions or blondon), inl illng, Dptimizing locaton of irjectors and producers and changes in production rate ‘Schedule cling f addtional wall “Plan future evaluation ofthe program. ‘Determine when and how ijpcton and production wells should be agus, Repeal stops 4 through 6 Oilfield Review Key Steps in Reservoir Simulation [Sot clear objecives | and protize Tater Sat [ Recenol tion ING and Toronyi chafacterizaion RM “Engineering Control in Reser- ‘vol Simulation " paper SPE 18305, ‘Presented at the 63rd SPE Annual oe ‘Technical Conference and Exhibi- ‘Chose te ht ton, Houston, Texas, USA, October 26, 1988; and attr Meohan DN: ‘personal communication, 1989) a Ensure consistency =e! Mocel construction among goologic, Eis | simulation ab, and Model Validation [a= uy Predictions — [age ¥ Documentation eS interpre. nterate and correlate, aeally and voricaly ee cies Residual i -Roiatve permesbilty -Capitary pressure soll and water fingerprinting dently main deve ‘mechanisms Ident key reserve feats Volume 2 Number 2 ‘Avid arirainass in history matching *Apaly engineering ‘contol Recognize ‘ncaraines In resent properties, ‘geology, boundary ‘condbons, et. Determine volumes (OO, ‘OGiP, OwIP) 2B Microscopic (meron) Macroscope (ches ee) Pore throat Elements of Data Scale Megascono, (00 000 ee) Drainage Area of Well Seales of date at Which a reservotr is Gigaecopie (> 1,000 ee) Reservoir ‘Our frst criteria is: Does the physics make sense? Is the flow or recovery mechanism in the model plausible? A case in point is the Fkotisk field in which we performed a pilot waterflood study in a part of the reservoir that, according to our laboratory data, had poor imbibition characteristics.) By matching perior- _mance data of the offset producers, we began to see immediately that input data for imbibition would have o be revised to account for the favorable behavior that was observed, As more performance data were obtained, a final interpretation utilizing the simulator was accepted. MODERATOR ‘Nansen, in your paper you describe a reservoir with a transition zone of 325 feet, based on capillary pressures obtained from Core analysis. Closely spaced drillsem tests, however, proved that in reality the transition zone was shorter. | have had a similar experience in which, according to capillary pressure measure ‘ments, an entire field would have been inthe transition zone when it actually produced clean oil. How do you account for this discrepancy? SALERI Its mainly due to differences in scale—macro versus mega- oF Biga-scale. Also, discrepancy arises when you don't have repre: sentative samples-—if you have a 10 millidarcy im) sample from, a reservoir that averages 500 md. 2: hth a acted hak fld inthe Nomen scar ofthe Non Se, with 7 Dilionbaeset on pace 2. Spf Hee LD srl Thomas LX: thas Formation Pilot Watelons,” paper SPC 10376, pews athe GS SPE Annual Telia Cenftence ard Exim Heuston ens SA, Oca 5,198 allesseck LD, Sy sD] and Thomas LK: nplerenation of te Ek Feld Wael” paper SPE 1983, peste athe th SP Al Techni Confer si ation San Asn, Fes, USA, Oct 6-1, 1989. 4. Sales NG an! orn Rie “trgering Cont nese Silat” paper SP Ta, preeed he SPE Ara Tf Cnlerece a ato, Houston, Tors, USA, Octobe 25, 1988 Slack“ a cl ayesha ierchangeshle tems forthe uns sed 0 Grideihe reer The rsewoirefpcly da i go blocks at ‘lored scl nthe srs del Whlope nd perphysical poper {hs are apne on x ely bs cal sro ceisler ‘which saluion sane rate ef cites equations The fne e {the fe soliton othe flentlesne,Calls ae anlagou pace {ona compat sermon the more py, he smoother te ce thal an be daw, 24 MEEHAN Even worse than that if your sample is 10 md and the reservoir averages 10 md but has a large standard deviation. A homoge- neous 10-md core plug will have a relative permeability and capillary pressure substantially diflecent from the reservoir. A lot ‘of properties that are critical for reservoir simulation are scale= dependent MODERATOR What can you do to overcome this uncertainty in order to make 8 good model? [BREITENBACH First we must recognize that rock formations are not made up of ‘one, two or three rack types, but 20, 30 or 40 rock types that can have widely diferent pore geometries and therefore clilferent ‘capillary pressures and relative pecmeabilies. You can define these properties by careful well log analysis and subdivide the rocks 50 that you can take a paucity of data and make a better thanveducated guess, But, as Nathan (Meehan) said, you run into problems if you ty to apply an average of the data tothe reser- voir. When we examined the accuracy of predictions of simula- tions we did 10 oF 20 years ago, we found that the averaging problem was best solved by breaking out the rock types as finely 8 possible. Then we went back tothe well logs and foot by foot divided the well into types A, B, , D, and so on. Then we applied the appropriate rock properties for each type. AL-RABAH Do you construct the rock tables before or afte the history ‘match? BREITENBACH ‘Before. We start with the kind of cossplotting common to log interpretation. We look for patterns and clusters in how, say, sonic and density logs compare, and how different capillary Pressure curves compare. In most cases, we come up with 10- plus rock types. Sometimes we have 40 oF 50 rock types. In the Middle East, we've seen rock types in the hundreds. AS see it, this isthe only way to solve the kind of questions such as where the transition zone is in a carbonate, For example, it’ the only way that you can say with certainty I have a transition zone at 60 percent water saturation that goes all the way to the top of the steveture.”| Also, diserepaney arises when you don’t have repre- sentative samples — ifyou have a 10 milidarey (md) sample froma reservoir that aver- ages 500 md. Water font Layer Tanks Modoiwih Goning Layer Tanktype Mode! Layer Station cn Lidentiication of the main encroachment mechantsms of the ‘reservoir. This isan important objective in simulation because encroachment affects how the reservolr ls medled—as essentially ‘strated or tank type model. Thorough characterization of usd ow would indicate which encroachment scheme is right; this in turn simplifies model selection. Nansen Salori observed that "seservolr models must not be expected fo impart this under- standing, only to retina it.” (Alter Sater! NG and Torony Re, 1988.) Even worse than ‘hat, i your sample is 10 md and the reservoir averages 10 ma but has a large standard deviation. HALLENBECK The development of relative permeability curves in a simulation study should be based on the objective ofthe study and on the amount of field performance data available. | believe that cali- bration o field performance data, such as oil and gas production and pressure performance, with simulator prediction isthe ult: mate method for obtaining reliable simulator forecasts. OF cours, the relative permeability curves are not the only parameters that, can be adjusted but are generally the most difficult to aban ‘experimentally. I there are no field performance data, and rela tive permeability curves from the laboratory must be used, then the study should include a range of relative permeability values—pessimistic, optimistic and the most probable, MODERATOR ‘Another problem is how you constrain the simulator. Normally, a simulator has an average pressure per block,? which may or may ‘not be what the RFT tool measures. How do you deal with these potential differences? SALERI These differences are generally significant only in stratified reser: voirs the RFT tool indicates a stratified reservoir with six or seven pressure regimes, but the simulator says you have vertical equilibrium, then there's something wrong with the model (Je We saw ths in West Africa, A reservoie study concluded that the reservoir was in vertical equilibrium, Yet, several RFT measure: mens indicated pressure differences of 500 to 700 pounds between different zones. Just on the basis ofthe RFT measure ments, one could have recommended peripherally flooding each layer separately SIMULATOR QUALITY CONTROL | MODERATOR ‘What are the steps you take to ensure simulator quality? SALERI In every model, we try to identify the key items that are critical to that reservoir—whether its PVT relationships or the geology or the aquifer—and test them for physical reasonableness. We also identity key areas of uncertainty to see that the model adresses them properly. ‘More generally, I don't think we as an industry pay enough attention o production logging below). Flowmeters and spinner surveys and temperature logs give the engineer a valuable three- dimensional view of both pressure and saturations. Reservoir engineering is often relegated to interpretation of production data taken atthe surface, which severely constrains the perspective of the reservoir. Production logging allows you to monitor the advance of fronts, profile the pressure vertically ancl compare it with simulator values. Often, production logs are available but no one makes the effort to compare them with the simulator pre- diction, There are two reasons for this. Firs, a general methodol- ‘oy is often lacking. In Chevron, we've come a long way toward developing and enforcing a methodology, so that critical data are always examined. Second, comparing production log data and simulator predictions requires extra labor and computer time. It aft 0g 00 E100 & 26 -may also require a longer elfortat history matching than simply #8 field-observed production with model-predicted pro- MODERATOR ‘Ave there standards you can apply belore you say “I'm happy with this simulation,” or do you rely on intuition? [BREITENBACH ‘As Nansen said, there are no real standards. We've looked at ‘mechanizing standard, even arificial intelligence (Al) programs, bbut with the diversity of problems in reservoir description, we have been able to come up with litle more than loose standards. Quality control is necessary today because so much is done by Intuition, for example, regarding the depositional environment. Inthe nest decade or so, we will have much finer-scale data that will dramatically change how we work. We might be working with 100 million grid coll, allowing us to use a more determin. istic approach than now possible, BANSAL like to mention one practical detail conceming the comparison ‘of predicted and measured data, Iris important to match predict ‘ed pressure against both the shut-in and bottomhole flowing, pressures. People sometimes ignore the bottomhole flowing pres- sure, which is very important in determining the outflow perfor- mance ofthe wel. Performance predicted by the model when ‘both types of pressures have been matched! will be more reliable. Oilfield Review ‘CONTRIBUTORS TO A SIMULATION STUDY MODERATOR | sometimes find inconsistencies in how different people within the same organization approach reservoir characterization I this Intentional or something to be avoided? BANSAL In Mobil, we emphasize multdisciplinary cooperation at every level ofa simulation, whether large or small, What we mean by interdisciplinary cooperation is making sure geologists and seis: ‘mic people and reservoir engineers sit down together and rank the reservoir parameters by importance. The group | am in con: sults with people from 14 division offices worldwide who are doing simulation studies. When they solicit our help, the first thing laskis whether they are working with the geologists. we are visting them in their ofice, we make sure that the geologists are sitting with the reservoir engineers. We won't do any consul ing unless they are sitting together SALERI | agzee about the importance of collaboration, but you've got 10 10 beyond just having the reservoir engineer talk to the geo physicist, the setsmic people, the production engineers, etc Often those in formation evaluation or seismics aren’ familie with wh controls reservoir behavior. I's upto the reservoir engineers to define the most important aspects ofthe data. And unless you identify what is atthe top of your data heirarhy, you face the most common pitfall in reservoir simulation today: too much data that requires too much analysis and in the process of, that analysis, alos vision ofthe objective of the study. HALLENBECK ‘We've been somewhat successul in cross-departmental commu: nications with geologists. When we embarked on the full-field Ekofsk waterflood in 1986, we integrated the recommendations cof the geologists and geophysics into our implementation phi. losophy. Intaly, the geologists were somewhat eluctant to ded. icate suicien time, since exploration normally takes priority, We believe, however, that we have made progress toward more effective communication MEEHAN "had something funny happen to me recently. | gave a talk about, Union Pacific Resources o engineering students at the University (of Texas and Texas A&M University. Itold the students at each gathering that their work would requite clase collaboration with ‘geologists and geophyscists. | wasnt too surprised when a nun ber of them hissed (ater which I said that at least some of them can save their bid points and not worry about interviewing with tus), That type of reaction is part ofthe long-standing cfference in the kinds of attitudes and behaviors that are rewarded, But the truth is, we engineers can use a lot of information that geolo- Bists provide. Geologists do a great service in explaining the nature ofthe racks, the depositional envionment, the petrology — informatio hat we don't use. Conversely, a number of things ve really do want to know, geologists can't or don't routinely provide. So our job is to educate them, We need to make sure Volume 2 Number 2 that the earth scientists we work with know enough about reser: voir simulation inputs, operations and outputs—not in tremen- ddous detail—to know which oftheir tools will be most helpful This cooperation is especially important in geostatistical mode! ing in which you generate maps that honor variograms or some ‘other model of spatial heterogeneity. You need input from your geologists to reduce the numberof possible scenario in your reservoir description, which you then plu into your simulation ‘model. I is impossible to do a simulation for each scenario that, the geostatisticians develop, What we mean by interdisciplinary cooperation is making sure geologists and seismic people and reservoir engineers sit down together and rank the reservoir parameters byimportance, 27 | PREPARING FOR TOMORROW: RESERVOIR SIMULATION IN THE NEXT DECADE MODERATOR ‘What critical developments do we need today to advance reser vpoie simulation into the next century? BREITENBACH | see the need for wo key developments: improvements in field ‘measurement technique to allow us to becorne more de tic and less stochastic and the evolution of computer tools to ‘make these measurements availabe tothe occasional user. Let ‘me elaborate on the second point, then Ill come back to the firs. IFEOR, for example, is going to advance, then we have to ‘make the technology available to people who don't have access toa first-class team of geologists, statigraphers, petrophysicist, ‘geophysicists and reservoir engineers. The technology needs to evolve to the point where the production engineer responsible for a five-well field, who has a background in reservoir engineer ing, can do a good job—not just a passable job—solving EOR problems with reservoir simulation. Now, to give the occasional ser nearexpert results on a desktop system would require qual ty controls that could be accomplished only through tremendous. advances in computer systems and software programs—we'd ‘need something like a desktop Cray 1. Such systems are just now becoming availabe. In the near future, software systems will also become available to aid the occasional user. An example ofthis is software for adaptive history matching, which uses statistical processes and the user's existing knowledge to help him or her ‘overcome a lack of experience and do better history matching (below and next page) Nowy to return ta my first point: What do | mean by “becom ing moce deterministic"? A deterministic system is one in which 1Plem viow of simulated pressure distibu- ton in one layer of reservoir, produced by a Sctontise Software Intorcomp, Inc. (SD program on @ microcomputer. The Color barat the bottom gives simulated reservoir pressure in pounds per square Inch: grid cell numbers appear on the ver- tical ands. The swirling ‘potential flow lunes" ropresont the pressure profile ct steady state, and show the direction of ‘ow ttom injectors (open circles with ‘atrows) fo producers open circles). The Color boxes (gr cols) show transient pres- Sure during preduction. The main value of {his representation is that it shows areas not swept and shows which Injectors are supplying flow fo which producing wells. For example, flow to the well atthe top lett {s being suppiled by the injector atthe far right, A more effective injection schome wold have been to activate the injector Just below the producer, which was not ‘active inthis simulation 28 you could, for example, follow a three-dimensional saturation profile in time, IF you could do this, you would have a detesmin istic system for reservoir simulation for that litle swath of area that has been swept. You may nat have a precise reservoir description, but you have something that allows you to precisely, occurred inthe reservoir, giving you a suficient duplicate basis for prediction, Ta allow this to happen, we need research efforts fr better well-to-well tomography and seismic reservoir ‘monitoring —for all the measurements that allow us to become move deteeministic SALERI ' ‘generalizing o the gigascale and integrating diverse types of information will require even more expertise than exists today. Actifcial intelligence systems were discussed ata recent SPE forum.® The thrust ofthe talks was that, despite al the work that has taken place, lobal Al packages today are no more advanced than they were ten years ago. For the immediate future, | would like to see more quality control, specifically, using more produc- tion engineering data, For the longer term—on my wish list for ‘Christmas 2000—cross-well tomography would give you the siga-scale picture ofthe reservoir with actual measurements ‘And, of couse, we need harcwvare and software that can handle the tremendous data volume involved in such a characterization. BANSAL ‘What will be helpful in the next few years, | hope, is the devel ‘opment of three-dimensional projections of reservoir simulation ‘outputs, Now we have two-dimensional outputs, but to really tundestand things like steam fronts and temperature fronts in EOR, we need three-cimensional views, MEEHAN ‘On my wish lst are more comprehensive models of how natural fractures influence reservoir flaw. We now live with very simple see the nonexpert handling very specific problems, But 00) 2160 5A). 278) 204). 1800 si Oilfield Review 15501450 psi Pio Pie Whee Wier i 1880 itwodimonsional cross section of simulated pressure distribution citer water injection, produced by an SSI program (on a microcomputer. By comparing several such simulations, the reservoir enginoer ca plan whore ami wher {0 Max- ‘mize pressure support in tho zosorvor. In this caso, injector well WI20 was placed high in the stricture fo maintain. ‘pressure in producing well P3.A T4Jayer simulation ite thls would typically be redkiced to threo or four layers fo make ‘@ manageable input for tee dimensional modeling. _models of fracture spacing, orientation, roughness, aperture, per ‘meabilty, capillary pressures and so on. There are many reset= voirs known fo be naturally fractured that do not show dual porosity behavior on buildup, drawdowns or fluid displace: ‘ment. We need more fundamental physis research before we can say why this sso. [think the applications of ractaP” and geostatistical modeling for characterizing reservoir heterogeneity show some promise, Conventionally, specific data poins for permeability, poresty and saturation are sampled and used to produce a smooth contour ‘map. This technique generally leads to an optimistic fluid dis placement prediction and does not aecount for reservoir hetero: ‘geneity. Geostatistical methods seek to capture reservoir hetero: ‘geneity and model flow simulations using mace realistic distributions ‘0 permeability, porosity, etc. Chevron’s fractal work shows that as long as heterogeneity is retained, the flow simulation results more closely match the actual performance.® Volume 2 Number 2 SALERI But even when you're 100 percent successful with fractal or eo: statistical modeling, you have the problem of putting those data into a reservoir simulator, limited mostly by computer capabil lies. At Chevion, we're good at coming up with fractal model, but we haven't yet had the same success in applying the fractal ‘model to the simulator. We succeed best in smal ields—1,000 {0 2,000 acres. Modeling larger fields would require tens of mil lions of cells, which is beyond anyone's capability. That may be another 10 years away. (“Advances i Resevol Managenent an ik Applic,” SPE Forum See, 7m Fatal ad Rocks,” The Tenia Bee 3600.1 uty 1988; 32-26, £8. Hen TA: "Pratl Diststior f Revo Heterogeneity an The nice on Fu aro per 15380, reset the at SPE Atl Teche Cam ference ad Edits, New Ores, Lotuans, USA, Orober 186 Hewat TA are Bivens RA “Condional unulaton esen0 Hesrogenesy ith Fats" paper SPE TAS2, preset the teh SP Ara cteea Confrence ted Ehibiton Howton, lets USA, October 5, 188 29 HALLENBECK ‘We've done a lot of modeling with both single and dual porosity simulators and found that dual porosity simulations require ‘much reservoir characterization that is cutently not availabe. They also requite many impractical assumptions related, for ‘example, to fractureto-matrx interactions, matrix block height land capillary continuity. We have been quite satisfied with the results of single porosity simulations when directly compared to

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