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Chapter 15



                Fundamentals of Reservoir Simulation



             Previous chapters describe much of the data that is needed by a reservoir
        simulator. Our goal here is to outline the physical, mathematical  and computa-
        tional basis of reservoir flow simulation. For a more detailed technical presenta-
        tion, consult one of the many sources available in the literature  [for example,
        see Aziz and Settari,  1979; Bear,  1972; Mattax and Dalton,  1990;  Peaceman,
        1977; and Thomas,  1982]. The set of equations used in WINB4D is derived in
        Chapter 32.



                              15.1 Conservation Laws

             The basic conservation laws of reservoir simulation are the conservation
        of mass, energy, and momentum. Mass balance in a representative elementary
        volume (REV) or gridblock is achieved by equating the accumulation of mass
        in the block with the difference between the mass leaving the block and the mass
        entering the block. The set of equations used in WINB4D are derived from the
        mass conservation principle in Chapter 4. A material balance is performed for
        each  block.  What  makes  a  simulator  different  from  a reservoir  engineering
        material  balance program  is the  ability of  the  simulator to account  for flow
        between blocks.
             A material balance calculation is actually a subset of the simulator cap-
        ability. This is an important point because it means a reservoir simulator can be
        used  to perform  material  balance  work.  The advantage  of using a  simulator
        instead  of  a  material  balance  program  is  that  the  simulation model  can  be

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