Abstract:
Ever increasing input material cost coupled with environmental concerns has put
pressure on profits of oil industry. There is a serious concern to plan, develop and
exploit the oil and gas reserves in an efficient and optimal way. Production forecasting
and reservoir modeling can provide vital inputs to efficient management of this hugely
important energy source. Building reliable numerical reservoir models that incorporate
all the geological, geophysical, geochemical, and petrophysical data of the reservoir
available through petroleum exploration process, can help mitigate this problem. Since
the reservoirs are highly heterogeneous and nonlinear in nature, it is often difficult to
obtain accurate estimates of the spatial distribution of rock properties representing the
reservoir and corresponding production profiles. Petroleum engineers always seek to
construct reservoir models which are capable of consistent production forecasts such
that further reservoir development in terms of locating new wells, recovery strategies
(primary, secondary and tertiary), and surface facilities can be optimally designed.
