ABSTRACT of Presentation

This presentation will highlight some of the important facets one should consider when applying numerical simulation methods to use for, or augment, oil and gas reserve estimates.  The main 'take away' will be an appreciation of the areas in which to focus so as to arrive at meaningful and defendable estimates of oil and gas reserves that are based on reservoir models.

Reservoir simulation is a sophisticated technique of forecasting future recoverable volumes and production rates that is becoming commonplace in the management and development of oil and gas reservoirs, small and large. 

Calculation and estimation of reserves continues to be a necessary process to properly assess the value and manage the development of an oil and gas producer’s assets.  These methods of analysis, while generally done for different purposes, require knowledge and expertise by the analyst (typically a reservoir engineer) to arrive at meaningful and reliable results. 

Increasingly, the simulation tool is being incorporated into the reserves process.  However, as with any reservoir engineering technique, certain precautions must be taken when relying on reservoir simulation as the means for estimating reserves.