Heriot -Watt University

Heriot-Watt
INSTITUTE OF PETROLEUM ENGINEERING

MATERIAL BALANCE EQUATION

APPLICATION

Adrian C Todd

c ACTODD
 Material Balance Application
z No one universal solution to the MB equation.
z Recently the computing power behind modern
reservoir situation has cast a shadow of
confidence in the material balance approach
z To quote the late Professor Laurie Dake a
proponent of the MB equation.

c ACTODD
 Laurie Dake quote from the Practise of
Reservoir Engineering-Elsevier.
z “It seems no longer fashionable to apply the concept of the
material balance to oilfields, the belief that it is now
superceded by the application of modern numerical simulation.
z Acceptance of this idea is a tragedy and has robbed engineers
of their most powerful tool for investigating reservoirs and
understanding their performance rather than imposing their
wills upon them, as is often the case when applying numerical
simulation directly in history matching…..
z There should be no competition between MB and simulation
instead they must be supportive of one another: the former
defining the system which is used as input to the model
z Material balance is excellent at history matching production
performance but has considerable disadvantages when it
comes to prediction, which is the domain of numerical
simulation.”
c ACTODD
 Material Balance as an Equation of a
Straight Line
z Material balance not a difficult concept.
z Difficult in applying it to real reservoirs
z There is often inadequate understanding of drive
mechanisms.
z Odeh & Havlena (1963) rearranged MB equation into
different linear forms.
z Their method requires the plotting of a variable group
against another variable group selected depending on
the drive mechanism.
z If linear relationship does not exist, then this deviation
suggests that reservoir is not performing as
anticipated and other mechanisms are involved. c ACTODD
Material Balance as Straight Line

z Once linearity has been achieved, based on

matching pressure and production data then a
mathematical model has been achieved.

z The technique is referred to as history

matching.
z The application of the model to the future
enables predictions of the future reservoir
performance.

c ACTODD
 Material Balance Equation
The material balance equation can be written as

N p [Bo + (R p − R s )Bg ] + Wp Bw − Winj

= N[(Bo − Boi ) + (R si − R s )Bg ]
⎛ Bg ⎞
+ mNBoi ⎜⎜ − 1⎟⎟
⎝ Bgi ⎠

+
(1 + m )NBoi (c wSs + cf )∆p
+ We
(1 − Swc )
c ACTODD
Wp, Winj and We are sometimes not included

Havlena and Odeh simplified equation to:-

F = NE o + NmE g + NE fw + We
Left hand side are production terms in
reservoir volumes

F = N p [Bo + (R p − R s )Bg ]

c ACTODD
 The right hand side includes oil and its
originally dissolved gas, Eo, where

E o = (Bo − Boi ) + (R si − R s )Bg ....bbl/STB

The expansion of the pores and connate water, Efw.

Efw =
(1+ m)NBoi (cwSs + cf )∆p
+ We ...bbl/ STB
(1− Swc )
The expansion of the free gas

⎛ Bg ⎞
E g = mNBoi ⎜⎜ − 1⎟⎟...bbl / STB
B
⎝ gi ⎠
c ACTODD
The material balance in this simplified form can be written

F = NE o + NmE g + NE fw + We

Using this equation Havlena and Odeh

manipulated the equation for different
drive types to produce a linear equation

c ACTODD
 No Water Drive and No Gas Cap
F = NE o + NmE g + NE fw + We
A plot of F vs. Eo should produce a straight line through the
origin.
Slope of line gives oil in place.

c ACTODD
Gas Drive Reservoirs, No Water Drive
and Known Gas Cap
(
F = N E + mE
o g )
Plot of F vs. (Eo +
mEg) should
produce a straight
line slope N.

If m is not known
then m can be
adjusted to
generate linear
form at correct
value for m.

c ACTODD
Gas Drive Reservoirs, No Water Drive
and N & G unknown
F = NE o + NmE g + NE fw + We

F Eg
= N+G
Eo Eo F E
= N+G g
Eo Eo

Plot of F/Eo vs.

Eo/Eg should be
linear with a slope
of G=mN and
intercept N.

c ACTODD
Water Drive Reservoirs

z Covered in Chapter 17

c ACTODD
 Depletion drive or other?
z Material Balance can be used in short hand
form to get an indication of whether field is
depleting volumetrically ( depletion drive ) or
there is other energy support, eg. Water drive

F = N ( E o + E fw ) + We ...bbl
Divide by Eo +Efw

F We
= N+ ...STB
E o + E fw E o + E ew
c ACTODD
 Depletion drive or other?
Two unkowns, N & We. Dake suggests plot of F/(Eo+Efw)
vs. Np, or time or pressure drop

Pressure support probably

from infinite aquifer.
Could be abnormal
compaction Finite aquifer, less
support later.

Energy from oil and dissolved gas.

Intercept oil in place
We = 0, no aquifer

c ACTODD
 Gas Field Application of MB Equarion
z In earlier chapter introduced p/z plot for a gas
reservoir without water drive.
z Many have warned about the application of
this approach since it neglects another
possible energy support.
z Plots of Gp vs. p or p/z can give wrong
indications of gas in place. Under estimate
when Gp vs. p and over estimate when water
drive ignored.

Beware of the “p/z plot”.

c ACTODD
Beware of the “p/z plot”.

Craft & Hawkins

c ACTODD
 MB Approach to Gas Reservoirs
Fluid production = gas expansion + water expansion & pore
compaction and water influx

GpBg + WpBw = G(B − B ”.

) + GB (cwSwc + cf )
∆p + W
g gi gi e
1−Swc
Havlena and Odeh approach gives:

F = G p Bg + Wp Bw ....res.cu.ft
E g = (Bg − Bgi )...rcf / scf

E fw = Bgi
(c wSwc + cf ) ∆p....rcf / scf
1 − Swc
c ACTODD
MB Approach to Gas Reservoirs
Short hand MB equation for gas reservoirs

F = G (E g + E fw ) + We
With gas reservoirs the pore and water compressibility can
be ignored

F = GE g + We
F We
=G+
Eg Eg
c ACTODD
MB Approach to Gas Reservoirs
F We
=G+ Plot F/Eg vs. Gp, time or ∆p
Eg Eg

c ACTODD
 MB Approach to Gas Reservoirs

z Plot gives initial gas

in place
z Advancing water only
evident when gas
water contact arrives
z Mobility ratio of water
displacing gas as low
as 0.1
z Gas moving 100
times faster than
water

c ACTODD
 p/z approach
z Long established in gas reservoir engineering to
determine gas in place
z Gas produced = gas initially in place – gas remaining
in reservoir
⎛ c f + c wcS wc ⎞
G p = G − ⎜ GBi G−= GB ⎛
G − ⎜ GBg− GB
c +c S
∆p − W B ⎟ / ∆
⎞
B p − We B w ⎟ / B g
1 − S wc ⎠
f wc wc

⎝ ⎠
p i g e w g
⎝ 1 − S wc

z We is the net water influx (includes Wp)

z Compressibility terms small for water & pores

Gp Bgi ⎛ We Bw ⎞
= 1− ⎜⎜1 − ⎟⎟
G Bg ⎝ GBgi ⎠
c ACTODD
 p/z approach
z Replacing gas formation factor with z/p gives
⎛ Gp ⎞ WeBw/GBgi water invaded
⎜1 − ⎟ volume
p pi ⎝ G ⎠
=
z zi ⎛ We Bw / Bgi ⎞ Higher this term the
⎜1 − ⎟ higher the pressure and
⎝ G ⎠ vice versa

With no water drive becomes

p pi ⎛ G p ⎞ Well known p/z plot

= ⎜1 − ⎟
z zi ⎝ G ⎠
c ACTODD
 p/z approach
z The equation enables gas in place to be
determined when p/z=0
z If any pressure
support curve will
deviate from
linear.
z In early time
periods pressure
support may not
be felt.

z Depletion drive gas reservoirs will exhibit straight p/z plot well
established. A straight line plot however does not prove
existence of depletion drive. c ACTODD
 p/z approach rate effect
z Because of the high
mobility of gas then if gas
extracted at a high rate
then pressure decline
faster since water
mobility cannot keep up.
z If however gas extraction
rate low then water drive
will give pressure
support.
z This effect can distort p/z
plot for water drive
reservoirs.
z Varying rates are
common in relation to
winter and summer rates. c ACTODD
Material Balance Equation Applied to
Oil Reservoirs – Depletion Drive
z Solution gas drive has two stages of depletion
– First stage above bubble point pressure
– Second stage below bubble point pressure
z Above the Bubble Point
z Production due to compressibility of the total system.
z Although appears complex MB equation is

z ∆v =C x V x ∆p
z Production = Expansion of reservoir fluids

c ACTODD
Solution gas drive above bubble point.
z MB equation above bubble point simplifies to:-
⎡ ( Bo − Boi ) ( c w Swc + cf ) ⎤
N p Bo = NBoi ⎢ + ∆p ⎥
⎣ Boi 1 − Swc ⎦
⎡ ( B − Boi ) ( c w Swc + cf ) ⎤
z No gas cap N p Bo = NBoi ⎢ o
⎣ Boi
+
1 − Swc
∆p ⎥
⎦

z Aquifer small in volume We = Wp =0

z Rs=Rsi=Rp all gas at surface dissolved in oil in
reservoir

c ACTODD
Solution gas drive above bubble point.
z Oil compressibility -
co =
( Bo − Boi )
Boi ∆p
z Replacing oil term in MB equation gives
⎡
N B = NB ⎢c +
( c w Swc + cf ) ⎤
⎥ ∆p
⎡ ( B (−cBS ) + c ) ⎤
cooi =⎢co +o w oiwc f ⎥ ∆p
N p Bo = NB
p o oiSwc ⎦ o
⎣ 1 − Swc ⎦
⎣ Boi ∆p1 −

⎡ coSo + c w Swc + cf ⎤
So + Swc = 1 N p Bo = NBoi ⎢ ⎥ ∆p
⎣ 1 − Swc ⎦
or
N p Bo = NBoi ce ∆p
c ACTODD
 Solution gas drive above bubble point.
⎡c S + c S + c ⎤
N p Bo = NBoi ⎢ o o w wc f ⎥ ∆p
⎣ 1 − Swc ⎦
or
N p Bo = NBoi ce ∆p

1
( coSo + c wSwc + cf )
1
( coSo + c wSwc + cf )
ce =
ce =
1 − Swc

1 − Swc

ce is the effective saturation weighted compressibility of the

reservoir system
Np Boi
Recovery at bubble point = ce ∆p
N Bob
c ACTODD
 Solution Gas Drive
z Reservoir pressure drops below bubble point solution gas
drive effective.
z More complex as gas comes out of solution.
z Most common reservoir drive mechanism.
z However also very inefficient.
z Often associated with other drive mechanisms.
z In order to use MB equation to predict production versus
pressure need other independent equations.
– Instantaneous producing gas-oil ratio equation.
– Saturation equation

c ACTODD
 Instantaneous Gas- Oil Ratio
z Instantaneous Gas- Oil Ratio, R, is the ratio of gas
production to oil production at a particular point in
production time, at a particular reservoir pressure.
z Instantaneous producing GOR is:
Gas producing rate, SCF/day
R= R=
Gas producing rate, SCF/day

Oil producing rate, STB/day

Oil producing rate, STB/day

z Gas production comes from gas in solution in reservoir

and from free gas in reservoir which has come out of
solution.

c ACTODD
 Instantaneous Gas- Oil Ratio
z Where:
z qg = free gas flow rate, res.bbls/day
z qo = oil producing rate, res.bbls/day
z Bg =gas formation volume factor, bbls/SCF
z Bo = oil formation volume factor, bbls/STB
z Qo = oil flow rate,STB/day
z Qg = total gas producing rate, SCF/day
z Rs = gas solubility, SCF/STB
qg
Free Gas= Solution Gas=Q o R s
Bg
qg
Total gas production rate: Qg = + Qo R s
Bg
c ACTODD
Instantaneous Gas- Oil Ratio

qo
Oil producing rate is: Q o =
Bo
Oil producing rate is: Qo =
qo
qg
Bo
qg + Qo R s
Bg
+ Qo R s
Bg
q / B=
Combining equations gives: R
Combining equations gives: R =
o o

q
qo
B
q o / Bo
Since: Qo = o R = o + Rs
Bo qg
qo Bg

qo Bo
Since: Qo = R= + Rs
Bo qg
Bg

c ACTODD
Instantaneous Gas- Oil Ratio
2πk eg h∆p 2πk eo h∆p
qg = and q o =
µ g ln re / rw µ o ln re / rw

2πk eg h∆p
Therefore in previous equation:
Bg µ g ln re / rw
R= + Rs
2πk eo h∆p
Boµ o ln re / rw

Bo k eg µ o
R= + Rs Instantaneous Gas- Oil
Bg k eoµ g Ratio Equation

c ACTODD
 Instantaneous Gas- Oil Ratio
1. Above Pb, no free gas.
z

Keg is zero, R=Rs=Rsi. Bo k eg µ o

R= + Rs
z 2. Short time when gas
saturation below critical
B g k eo µ g
value, keg still zero but
R=Rs<Rsi
z 2-3. Gas reached critical
saturation, keg increases
as keo decreases. Gas
very mobile compared to
oil. Free gas produced
from oil still in reservoir.
z 3. Maximum GOR value
z 4. Bg is increasing with
decreasing pressure.
c ACTODD
 Instantaneous Gas- Oil Ratio
z Instantaneous GOR is not the same as cumulative
GOR.
z Instantaneous GOR,R, is ratio at particular moment in
time.
z Cumulative GOR, Rp, is ratio of total oil and gas
produced up to a particular moment.
z Two GOR’s related as follows.

∑
Np
R ∆N
∫
i pi
Rp = RdN p Rp =
0
Np
where R i is the average GOR over period that ∆N pi produced.

c ACTODD
 Oil Saturation Equation
z Oil saturation equation provides an average
oil saturation for a reservoir at any time.

So =
oil volume remaining
So =
(N − N )B p o

total pore volume NBob / (1 − Swc )

So - oil saturation at any time, Swc - connate water sat'n
N - oil in place at bubble point, N p -cumulative oil production below Pb .

Equation can be rearranged as:

⎛ N p ⎞ Bo
So = ⎜1 − ⎟ (1 − Swc ) The Oil Saturation
⎝ N ⎠ Bob Equation
c ACTODD
 History Matching
z History matching – if your model cannot predict the past its
value in predicting the future is in question.
z Instantaneous GOR can be used to history match relative
permeabilities.
k eg Bo µ g
= (R − Rs )
z Rearranged takes the form.

k eo Bg µ o
z Production data provides R and Np as a function of pressure.
z Rs, B and µ values from PVT report.
z Np values provide So from oil saturation equation.
z Can generate therefore keg/keo vs. So
c ACTODD
Solution Gas Drive Characteristics

z Rapid pressure decline

z Water free production
z Rapidly increasing gas-oil ratio
z Low ultimate oil recovery
z Prediction methods
– Schilthuis, Tarner and Tracy & Tarner

c ACTODD
 Solution Gas Drive-Tarner’s Method
z Similar approach to Schilthuis procedure
z Above Pb use effective compressibility
equation

Np Boi
= ce ∆p
N Bob

z Below bubble point pressure use MB,

Instantaneous GOR and Oil Saturation equations

c ACTODD
 Solution Gas Drive-Tarner’s Method

z Assemble data z Rock data

z Production data z Laboratory relative
z Field data and rock permeabilities

z Field data z Past production data

– Formation volume factors – Oil production

– Gas solubility – Gas production

– Gas compressibility – Water production

– Gas and oil viscosities – New water influx

All presented as a function of pressure

c ACTODD
 Solution Gas Drive-Tarner’s Method
z Tarner’s method uses MB equation rearranged to calculate
gas production Gp.
z Procedure is a trial & error approach using independently
MB and Instantaneous GOR eqns.
N ( Bo + ( R si − R s ) Bg − Bob ) − N p ( Bo − R s Bg )
NpR p = = Gp
Bg

z Step1
z 1. Start at bubble point pressure
z 2. Select a future pressure and assume a value of Np at
that pressure. Sometimes express Np as a function of N.
z 3. Solve MB eqn. For NpRp, ie. Gp. c ACTODD
 Solution Gas Drive-Tarner’s Method
z 4. Using assumed Np solve oil saturation equation for
So. This enables keg/keo to be determined.

⎛ N p ⎞ Bo
So = ⎜1 − ⎟ (1 − Swc )
⎝ N ⎠ Bob
z 5. Calculate instantaneous GOR. Bo k eg µ o
R= + Rs
Bg k eoµ g
z 6. Calculate gas produced during pressure drop over
period. R i + R i +1
N p1
2
Ri = instantaneous GOR at start of period
Assumption R vs Np linear
Ri+1 = instantaneous GOR at end of period
Therefore use small
Np1= cumulative oil produced at end of period
pressure drops
c ACTODD
 Solution Gas Drive-Tarner’s Method
z 6. Total gas produced from MB eqn. and IGOR eqn.
Compared and assumed value of Np adjusted and steps 2
to 6 repeated until MB and IGOR values for Gp match.
z Step 2
z 1 Second pressure selected and new Np assummed.
z 2. Solve MB for Np2. This is cumulative gas at end of
second pressure.
N ( Bo + ( R si − R s ) Bg − Bob ) − N p2 ( Bo − R s Bg )
G 2 = N p2 R p2 − N p1R p1 = − N p1R p1
Bg

z 3. Calculate gas produced during 2nd step by removing from

cumulative gas from step 1.
z 4. With assumed value of Np2 from sat’n eqn.determine So.
z 5. Calculate IGOR c ACTODD
 Solution Gas Drive-Tarner’s Method
z 6. Calculate gas produced during second step

( R i+1 + R i+ 2 )
2
(N p2 − N p1 ) = G 2

z 7. G2 from MB compared with G2 from IGOR and new

assumed value of Np2 until convergence achieved.
z By plotting these two values vs Np a convergence point
can be determined.
z Further steps as for step 2.

c ACTODD
 Tracy’s Form of Tarner’s Method
z Tracy took MB equation and generated a shorthand version
N p ( Bo − R s Bg ) + G p Bg − ( We − Wp )
N=
Bo − Boi + ( R si − R s ) Bg + mBoi ( Bg − Bgi ) / Bgi

φn =
( B ( − R B) )
o s g
N p Bo − R s Bg + G p Bg − ( We − Wp )
Bo − Boi + ( RNsi =−B R
− Bs )+ B
o ( R g−+
oi R )mB
si soi (( B
B + mB g oi B gi ) / Bgi
g B−) /B
B − g gi gi

Bg
φg =
Bo − Boi + ( R si − R s ) Bg + mBoi ( Bg − Bgi ) / Bgi

1
φw =
Bo − Boi + ( R si − R s ) Bg + mBoi ( Bg − Bgi ) / Bgi

c ACTODD
 Tracy’s Form of Tarner’s Method
z For simplicity assume no gas cap. Then:

φn =
(B o − R s Bg )
Bo − Boi + ( R si − R s ) Bg
Bg
φg =
Bo − Boi + ( R si − R s ) Bg
1
φw =
Bo − Boi + ( R si − R s ) Bg
These functions are only dependent on
reservoir pressure and oil properties.

They can all be obtained from PVT data. c ACTODD

Tracy’s Form of Tarner’s Method
z Using this shorthand system MB equation can be
written:
N = N p φn + G p φg − ( We − Wp ) φ w
z If we assume no water encroachment or production
N = N p φ n + G p φg
z Tracy considered two pressure conditions Pj & Pk and
the oil production ∆Np during this pressure interval.
z Tracy estimates producing GOR Rk at the lower
pressure rather than ∆Np.
z For kth pressure.
N = N pk φnk + G pk φgk
c ACTODD
 Tracy’s Form of Tarner’s Method
z If N=1 then equation takes on fractional recovery form
1 = N pk φnk + G pk

1 = ( N pj + ∆N pk ) φnk + ( G pj + ∆G pk ) φgk
z also

z and 1 = ( N pj + ∆N pk ) φnk + ( G pj + R ∆N pk ) φgk

'
avg

z where Rj + R '
k
R '
avg = rearranging
2 z

1 = N pjφnk + G pjφgk + ∆N pk ( φnk + R φgk ) '

avg

c ACTODD
 Tracy’s Form of Tarner’s Method
1 = N pjφnk + G pjφgk + ∆N pk ( φnk + R φgk ) '
avg

z Solving for ∆Npk 1 − N pjφnk − G pjφgk

∆N pk =
φnk + R φgk
'
avg

z Only unknown is R’avg all the rest from PVT data or

calculated at previous step
z Rk can also be estimated from liquid saturation known
using IGOR eqn.
Bo k eg µ o
Rk = + Rs
Bg k eoµ g

c ACTODD
 Tracy’s Form of Tarner’s Method
z So obtained from oil saturation equation
⎛ N p ⎞ Bo
So = ⎜1 − ⎟ (1 − Swc )
⎝ N ⎠ Bob

Tracy’s Procedure
z Set pressure step below Pb.
z 1. Estimate R’k
z At bubble point = Rsi
z From extrapolation of trend
z 2. Estimate R’avg R j + R 'k
R 'avg =
2
c ACTODD
 Tracy’s Procedure continued.
z 3. Determine PVT functions φn and φg.
z 4. Determine ∆Npk and Σ∆Np.
1 − N pjφnk − G pjφgk
∆N pk =
φnk + R avg
'
φgk

At first pressure step, pj = pb, Npj =0, Gpj =0

z 5. Using Σ∆Np determine So using saturation
eqn.and thereby keg/keo from So vs. keg/keo data.
z 6. Calculate Rk from IGOR equation.
z 7. Compare Rk with R’k. According to tolerance for
Rk = R’k. If not repeat steps 1 to 6 c ACTODD
 Tracy’s Procedure continued.
z 8. Estimate ∆Gp and Σ∆Gp. ∆Gp =∆Np x R avg
z Set next pressure step and repeat steps 1 to 8.

c ACTODD
Gas Cap Drive Reservoirs

z Tarner’s method can also be used for gas cap

drive reservoirs

c ACTODD
 Average Reservoir Pressure
z MB equation sometimes considered as a ‘tank model’.
z If there is uniform pressure decline in all wells then this
decline gives confidence in using MB eqn.
z Dake suggests if equilibrium is not achieved then can still
use MB eqn.
z He suggests an average pressure.

c ACTODD
Average Reservoir Pressure Equilibrium

In figure wells have their own pressure

declines.
Dake presents a volume weighting for
each drainage area.
Well positions and
drainage boundaries
Pj, Vj and qj are the pressure, volume
and reservoir rate for the area j.
The volume weighted average pressure
is therefore.
Non Equilibrium

p = ∑ p jVj / ∑ Vj
j j

c ACTODD
 Average Reservoir Pressure
z Dake suggests an alternative method based on
production rate, based on the time derivative of the
compressibility equation

dV = cV∆p
dVj dp j
dV = cV∆p

= q j = cV dt = q = cV= dtcV p
dVj dp j '
= cVj p j
'

dt dt
j j j

For constant compressibility

Vj ∝ q j / p 'j
∑ j j j
p
j
q / p '

∴p =
∑ j j
q / p
j
'

c ACTODD
 Average Reservoir Pressure
z Material balance often applied at regular intervals .
z Change in underground withdrawl,UWj can be used
over a pressure drop ∆pj.
Then:
∑ p ∆UW / ∆p
z

j j j
j
p=
∑ UW / ∆p
j
j j

z Dake suggested that the MB approach be used prior

to numerical simulation approach .

c ACTODD
 Predictions as a function of time

z None of the terms in the MB equation include

time.
z Only a pressure volume solution .
z Need to use another method which uses time
to work alongside MB solution.
z Productivity of wells for example.

c ACTODD