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90  Principles  of Applied  Reservoir Simulation


                                 10.2  Prerequisites


             Several prerequisites  should be satisfied before a model study is under-
        taken  [Coats,  1969]. The most important, from  a business perspective,  is the
        existence of a problem of economic importance. At the very least, the objectives
        of a model study should yield a solution to the economically important problem,
             Once the objectives of a study are specified, the modeler should gather
        all available data and reports relating to the field. The term "modeler" is used
        in the remainder of the text as a synonym for "modeling team" unless an explicit
        distinction must be made. If necessary data is not available, the modeler should
        determine if the data can be obtained, either by analogy with other  reservoirs
        or by correlation. Values for all model input data must be obtained because the
        simulator will not run without a complete set of data. In some cases, simplifying
        assumptions  about  the  reservoir  may  have  to  be  made  because  there  is not
        enough data available to quantitatively represent the system in greater detail,
             In addition to clearly defined  objectives, another prerequisite  that must
        be  satisfied  before  committing to a simulation study is to  determine that the
        objectives  of the  study  cannot be achieved using simpler  techniques.  If  less
        expensive techniques,  such as decline curve analysis or the Buckley-Leverett
        waterflood displacement algorithm [Collins,  1961; Craig,  1971; and Dake, 1978],
        do not provide adequate results, then more sophisticated and costly methods are
       justified.



                             10.3 Computer  Modeling

             A comprehensive reservoir management model can be thought of as four
        interacting models: the reservoir model, the well model, the wellbore model, and
        the surface model. The spatial relationship between these models is illustrated
        in Figure  10-1. The reservoir  model represents fluid flow within the reservoir.
       The reservoir is modeled by subdividing the reservoir volume into an array, or
       grid, of smaller volume elements (Figure  10-2). Many names are used to denote
       the individual volume elements:  for example, gridblock, cell, or node. The set
       of all volume elements is known by such names as grid or mesh.
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