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The spaces between wells and the production rate from each well are
            determined with the objective of recovering the maximum volume of
            petroleum in the most economical way. This is not an easy task and
            requires extensive reservoir simulation studies. Such studies continue after
            the development stage and, as more data become available, there studies
            may result in having to drill additional wells (infill wells) for higher
            recovery.

            1.7.3  Reservoir Simulation

            The complexity of the reservoir structures and the large number of
            nonlinear equations governing the flow of fluids in the reservoir make it
            impossible to obtain analytical solutions to the fluid flow problem.
            Reservoir simulators implementing various numerical techniques are
            constructed for solving such a problem. Running a simulator requires
            inputting of many parameters that are related to the reservoir rock and
            fluids. The majority of these parameters may either be known with various
            degrees of certainty or may have to be assumed. Therefore, the accuracy of
            the simulation results depends, first, on the accuracy of the input data.
                 Simulation studies are first conducted during the development stage
            to predict and evaluate the performance of the reservoir for the life of the
            field. Once production starts, data are collected and the actual reservoir
            performance is checked against the simulation-predicted performance. In
            almost all cases, the actual and predicted results do not match. Therefore,
            reservoir (simulation) engineers modify the simulation by changing some
            or all of the input data using either newly acquired data or making new
            assumptions, or both. This is done until a match between the simulation
            results and the actual results, obtained from the producing field, is
            obtained. This process is known as history matching. The modified
            simulator is then used to predict the field performance and direct the
            production strategy for better management of the reservoir. The whole
            process is repeated on a continuous basis for every specified period of
            production.

            1.7.4  Reservoir Management
            The aspects of reservoir management are numerous and involve extensive
            and complicated studies. In simple terms, however, the role of reservoir
            management is to specify specific producing strategies that will control the
            movements of the various fluids within the reservoir in order to achieve
            maximum recovery of the hydrocarbon materials while minimizing the
            production of undesired fluids. The production strategies may include






 Copyright 2003 by Marcel Dekker, Inc. All Rights Reserved.
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