Pillars of the Industry

Numerical Simulation of Complex Reservoir

Problems and the Need for a Different Line of Attack
Abbas Firoozabadi, Reservoir Engineering Research Institute and Yale University, and Hussein Hoteit, ConocoPhillips

We began a major research effort on production and recovery mechanisms in fractured

petroleum reservoirs in 1990. By 1998, the
research efforts gave us a clear understanding
of various processes including reinfiltration
and the effect of capillary pressure contrast. During the same period, we also made
efforts to simulate laboratory flow testing.
Firoozabadi
The senior author was also involved in the
study of several fractured reservoirs in different parts of the world. It was gradually recognized that the available numerical-simulation
models were not fit for the study of some of
the fractured reservoirs, nor can they be used
for some laboratory-scale problems. After an
extensive literature review in various disciplines, we embarked on reservoir simulation
Hoteit
research with the intention of developing
new models for simulation of fractured reservoirs. We were convinced that a new approach is needed. In this article, after a brief
review of the three approaches in reservoir simulation, results of

our recent efforts in the simulation of complex reservoir problems

are presented.
Classification of Reservoir Simulators
There are three broad classes of numerical approaches in reservoir
simulation. The predominant method is based on the finite-difference (FD) method. In this approach, the Taylor-series expansion is used to define the derivative functions in governing flow
equations. Most commercial models use the first order form of
the approximation of derivatives. As a result, state variables such
as saturation and composition are computed to be constant in a
computational grid cell. Pressure is calculated at a fixed point such
as the grid-cell center or as an average cell pressure. There are a
few inherent advantages of the FD method including (1) simplicity,
(2) ease of extension from 1D to 2D and 3D, and (3) compatibility with certain aspects of physics of two- and three-phase flow.
Disadvantages include (1) numerical dispersion, (2) grid depen-

Abbas Firoozabadi is director of the Reservoir Engineering Research

Institute (RERI) in Palo Alto, California, and teaches at Yale University
in New Haven, Connecticut. His main research interests are in bulkphase, irreversible, and interfacial thermodynamics and the physics and
mathematics of hydrocarbon reservoirs and production. Firoozabadi is
the author of the book Thermodynamics of Hydrocarbon Reservoirs
and is the author or coauthor of 60 SPE journal papers. His recent honors include the 2002 Distinguished Dodge Lecture at Yale University,
the 2002 SPE Anthony F. Lucas Gold Medal, and the 2004 SPE John
Franklin Carll Award.
Hussein Hoteit is a senior reservoir engineer at ConocoPhillips. He
worked with Firoozabadi as a researcher at RERI for 3 years. He earned
a BSc degree in pure mathematics and computer sciences from Lebanese
University and MSc and PhD degrees in applied mathematics from
Universit de Rennes, France. He has published more than 20 technical papers in the fields of multiphase flow in fractured media and fluid
phase behavior.

Fig. 1Meshes with different elements for a 3D tilted domain.

Individuals who have dedicated their careers to the advancement and improvement of the oil and gas industry and have made significant contributions to it are considered
Pillars of the Industry and are featured in this section.
In this issue, Abbas Firoozabadi of the Reservoir Engineering Research Institute and Yale University and Hussein Hoteit of ConocoPhillips engage in an interesting review
of traditional (old school) numerical-simulation approaches and explain the need to change (to new school) reservoir-simulation approaches. They seek to spark interest
among young professionals and the industry at large in embracing a new line of attack for complex reservoir-simulation problems.
In a second article, Ganesh Thakur of Chevron explains how technical professionals in our industry are being challenged to develop and apply innovative (new school)
solutions to emerging, complex, and multifaceted problems that typically require much more than the sometimes outdated (old school) industry-standard practices. Thakur
emphasizes the strategic importance of technical professionals to our industry and elaborates on what is required from industry to retain this much-needed talent.
It is our intention that TWA readers can find in these pillars of our industry a source of inspiration that can shape their own industry contributions. We thank our authors
for their lifetime contributions and hope that you benefit from their articles.
Luis F. Ayala, Editor, Pillars of the Industry

THEWAYAHEAD

17

dency, and (3) inaccuracy in flux calculations in heterogeneous

media with capillary pressure contrast. Another inherent limitation of the FD method is that it is difficult to adapt for unstructured gridding in a simple way, especially in 3D. The use of the
FD method for nonorthogonal corner-point-geometry grids may
introduce significant errors.
A second method is the finite-volume (FV) approach, which
can be described as an FD method applied to the integrated form
of the governing flow equations. The integrated form allows for
unstructured gridding. Issues of numerical dispersion, grid orientation, and, to a lesser extent, flux calculation can still be serious
for complex problems such as fractured reservoirs.
The finite-element (FE) method is an alternative approach. It has
some powerful features, provided attention is paid to the physics
of multiphase flow in porous media. In this method, the unknown
variables, such as saturation or concentration, are approximated
by using known test functions, which can be linear or higherorder polynomial expansions in terms of unknown variables at the
geometric locations (nodes) when the FE (or grid-cell) shapes are
defined. As a result, variables such as saturation can vary within a
given cell or element, which results in low numerical dispersion.
The FE method is also flexible for unstructured gridding.
Drawbacks of the FE method, or the FD and FV methods with
higher-order approximations, include unphysical oscillations
that require post-processing after each timestep, by methods
such as the slope limiters. Another drawback, as mentioned
above, may relate to the need for close attention to the physics
of multiphase flow. For example, if one uses the continuous
Galerkin method, a problem may arise because one does not
allow for discontinuous saturation at the nodes. As a result, the
continuous Galerkin method does not fit the two-phase flow in
heterogeneous media with capillary heterogeneity. The discontinuous Galerkin (DG) method, on the other hand, removes
the deficiency and provides an accurate solution because it also
allows for sharp changes in saturation.
The computation of the flux at the interface between grid cells
in two-phase flow with capillary pressure heterogeneity can be a
major source of inaccuracy. Let us consider a simple 1D domain
with permeability heterogeneity in which pressure data at the

grid-cell centers is available. In single-phase flow, one can use a

geometric permeability mean and calculate the flux between the
two cell centers at the interface. In two-phase flow with capillarity, such a method may not be accurate. In other words, when all
the pressures (or potentials) at the cell centers are available, one
does not know the pressure or potential gradients at the interfaces
to calculate the flux. When the pressure (or potential) at the
interfaces is available, then the flux can be calculated readily. The
mixed-finite-element (MFE) method overcomes the difficulties of
flux calculation in heterogeneous media in two-phase flow. In this
method, one calculates the cell average pressure (or potential) and

Non-wetting phase recovery (fraction)

1.0
Uniform hexahedrons
Distorted hexahedrons
Uniform prisms

0.8

Distorted prisms

0.6

0.4

0.2

0.0
0.0

0.2

0.4

0.6

PVI
Fig. 2 Cumulative oil production in the model.

18

0.8

1.0

Fig. 3 The 2D domain with heterogeneous permeability and

wetting-phase saturation profiles at 0.5 PVI with homogeneous and
heterogeneous capillary pressure functions.

SOCIETY OF PETROLEUM ENGINEERS

the interface average pressure (or potential) in the FE framework.

As a result, there is no need for special treatments in applications
to fractured media and complex domains with barriers. It also
allows inclusion of permeability anisotropy of very high degrees.
Reservoir Simulation of Complex Problems
Complex reservoir problems demand careful reservoir-simulation
studies. The complexity results either from reservoir characterization (e.g., heterogeneity and anisotropy in permeability) or from
the process for oil recovery (e.g. capillarity, gravity, and phase
behavior), or from the combination. Dual-porosity modeling has
been used in the industry to simulate fractured reservoirs. The
model has a sound basis in single-phase flow. It also may be useful in water injection for water-wet reservoirs where fractures are
uniform and orthogonal. Despite many useful features, the dualporosity model cannot provide reliable results in the simulation of
gas-injection processes or of reservoirs in which fractures do not
intersect. It also does not describe discrete fractures.
The combination of the MFE and DG methods and the use of
certain physical concepts may provide a powerful alternative in
simulating fractured reservoirs, as well as heterogeneous reservoirs. Inherent features of the MFE method allow major advances
in simulation of complex problems, provided the implementations
are based on physics. Here we present three examples to demonstrate powerful features from the use of advanced concepts.
Grid Dependency. Use of first-order methods may result in
significant grid orientation effects. Fig. 1 shows various mesh
elements used for a 3D tilted reservoir. In this example, water
is injected at one bottom corner, and oil and water (after breakthrough) are produced from the opposite top corner. Cumulative
oil production is shown in Fig. 2. The use of the combined MFE
and DG methods provides reliable results with very little grid
dependency, even for nonorthogonal grids of low quality.
Heterogeneous Reservoirs. Recently, we have formulated the
MFE method to account for capillary pressure contrast in a consistent way. Fig. 3a shows a 2D reservoir with random permeability
heterogeneity. Water is injected from the bottom left corner, and
oil (and water, after water breakthrough) is produced from the

upper right corner. The water-saturation profiles at 0.5 PVI are

shown in Figs. 3b (with an average Pc ) and 3c (with Pc effect).
Note that it is the contrast in capillary pressure, not an average
capillary pressure, that affects flow. There may be no meaning to
average capillary pressure.
Fractured Reservoirs. There are many problems in fractured
reservoirs that may require new methods based on advanced concepts. Some problems cannot be simplified beyond a certain limit.
In some fractured reservoirs, for example, diffusion can have a
dominant effect on recovery. One may not use binary diffusion
coefficients and still hope for accurate results. In this last example,
we present saturation profiles for the simple case of water injection
in discrete fractured media in 2D. Water is injected at the lower
left corner and production is from the opposite top corner. The
saturations are shown in Fig. 4. A dual-porosity model could not
be used in such a simulation. Results show that the media act as an
unfractured reservoir with matrix capillarity, because of capillary
crossflow, for the conditions of the example. Injection rate, wettability, and fracture spacing could alter the flow path significantly.
Conclusion
Sometimes in pursuing a solution to a problem, we may move away
from the conventional approaches and seek new methods in order
to come up with a definitive solution. Our efforts in numerical
simulation of fractured petroleum reservoirs not only have resulted in advances in that area but have advanced numerical solution
of other complex reservoir problems. That is the fun of research.
Such results are extremely rewarding after a period of hard work
and concentration, with some luck.
Acknowledgments
We would like to thank K. Ghoryeb, M. Karimi-Fard, and J.
Monteagudo, all former post-doctoral researchers at RERI associated with the senior author, who laid the foundation with their
research for the results presented in this paper. We also would
like to thank member companies of the RERI research consortium
and the US Department of Energy for long-term support of the
research at RERI.
TWA

Fig. 4 Effect of matrix capillary pressure on water saturation contours in fractured media with discrete fractures at PVI=0.25.

THEWAYAHEAD

19

Should a Technical Career Track/Ladder Be a

Preferred Option for Young Professionals?
Ganesh Thakur, Global AdviserReservoir Management and Fellow, Chevron Energy Technology

Ask a group of university engineering students

to name the most technology-driven companies in the US today, and the odds are against
any oil and gas businesses turning up on the
list. But while the energy industry is certainly a
mature business compared with, say, the electronics industry, there is no reason to believe
that the evolution of the underlying technoThakur
logical basis of our business has somehow
come to a halt. In fact, a close examination of current projects and
future trends in global energy markets paints a far different picture.
While some doomsday critics insist the world is running out of
oil and gas, many energy analysts believe that we have produced
only about one-fifth of our known resource base. That leaves 80%
of our global oil and gas resources yet to be developed. In reality, we
are likely to be closer to the start of the petroleum era than to its
conclusion. Of course, the caveat here is that the most easily accessible oil and gas deposits have, for the most part, been discovered
and extracted. More and more, producing the remaining portion of
the global energy resource base depends on returning to reservoirs
that were written off in the past as being not economically viable,
too remote, or too challenging technically.
As a result, the development and application of technological
breakthroughs have increasingly become the key to unlocking our
industrys future. This, however, cannot be accomplished without
energy companies coming to terms with two important challenges:
enlarging the pool of talented E&P technical professionals and creating effective organizational environments that allow these talented
people to thrive.
New Technical Challenges
To understand the kinds of technical challenges faced by the industry today, we have only to look at the Chevron Jack #2 test well,
which recently set new depth records for a well test in the US Gulf of
Mexico. This successful well would not have been possible without
engineers and scientists pushing the technological envelope at every
pointfrom state-of-the-art seismic processing to record-setting
Ganesh Thakur was appointed Global AdviserReservoir Management
for Chevron in 2005 and is currently responsible for championing
reservoir-management technologies and practices throughout the corporation. Additionally, he is responsible for mentoring professionals,
developing relationships with national oil companies, serving as a technology ambassador worldwide, and advancing International Company
of Choice initiatives. Thakur is a recognized leader in petroleum
engineering, including reservoir management, secondary recovery, reservoir and well productivity improvement, simulation, and enhanced oil
recovery. He was SPEs first Technical Director for Reservoir Description
and Dynamics on the Board of Directors. Thakur has been active
in professional societies including SPE, the American Association of
Petroleum Geologists, and the Society of Exploration Geophysicists. He
received SPEs Reservoir Engineer of the Year Award in 2005, is an SPE
Distinguished Member, and was an SPE Distinguished Lecturer.

20

Engineer
Sales and
Marketing

Management
Earth Science

R&D

$170,000
$160,000
$150,000
$140,000
$130,000
$120,000
$110,000
$100,000
$90,000
$80,000
$70,000
$60,000
$50,000
0 to 10

11 to 15

16 to 20

21 to 25

26+

Years of Experience

Fig. 1Compensation for E&P professionals. Amounts are in US dollars.

deepwater performance from perforating guns, test trees, and other

drillstem-test tools. In fact, more than a half dozen world records for
test-equipment pressure, depth, and duration in deep water were set
during the well test.
We are also seeing more and more examples of advanced technology being used to revive production in mature fields once thought
to be past their prime. Chevrons Kern River field in California is
a case in point. Discovered in 1899, this reservoir of more than
3 billion bbl of heavy (13API) oil would appear to be on its last
legs after more than 100 years of production. Today, however, Kern
River boasts 8,000 producer and 1,000 injector wells, along with
600 thermal observation wells. Using key technologies such as
steamflooding, the reclamation and reuse of produced water, and 3D
visualization to meet the challenges of producing the fields heavy
crude, Chevron engineers are setting new production records as
they pursue their goal of extracting as much as 80% of the crude oil
contained in the field.
A similar story can be found in the case of Indonesias Duri field,
a 1941 discovery that was judged to have reached peak production
in 1963 at 65,000 BOPD and then entered a period of steep decline.
Today, Duri is the largest steamflood field in the world. More than
75% of the field is under steam injection, and total production is
running at 200,000 B/D.
Steamflooding may also play a role in the revival of production in
the onshore Partitioned Neutral Zone (PNZ) between Saudi Arabia
and Kuwait. A precedent-setting application of steam injection into
a carbonate reservoir, this enhanced-oil-recovery method has the
potential of significantly increasing the recovery of heavy oil in the
PNZ reservoirs, as well as in other areas in the Middle East.
Jack#2. Kern River. Duri. PNZ. These examples of increasing production by raising the technological bar are increasingly
typical of an industry once characterized by the frantic search for
undrilled acreage.

SOCIETY OF PETROLEUM ENGINEERS

New Roles for Technical Professionals

Market-driven forces are pushing companies to make dramatic
increases in their technology investments, as well as to find innovative uses for existing technologies. At the same time, rising production costs and increased downside risks increase the penalty for poor
performance. In this new economic landscape, companies are looking for an integrated approach that links all engineering and Earthscience disciplines into large-scale, technologically sophisticated
solutions yielding above-average returns on investment. Far from
being limited to outdated industry-standard practices, E&P technical professionals are now expected to develop and apply innovative
solutions to complex, multifaceted problems, constantly pushing
the limits of existing capabilities.
Increasingly, technology specialists in the energy industry are
finding themselves working in a multidisciplinary-team environment, contrasting sharply with the technical silo approach that
formerly kept the different disciplines from interacting with one
another. Moreover, this new team-focused approach often takes
place in a multinational or multicultural setting that requires high
levels of technical, soft, and teamwork (TST) skills on the part of the
participants to make the project successful. For energy companies,
a diverse multiethnic technical workforce able to function at an
extremely high level across a wide range of business environments
around the globe remains not just a desirable goal, but a necessity.

engagement across a broad range of company interests to guarantee a

continuous pipeline of talent from which to construct a well-rounded
leadership team at the corporate level for promising young managers.
None of this is possible, however, without a rewards system that is
focused on aggressive pay progression and results-based incentives
for the top-flight technical talentone that removes the barriers to
a rewarding career for those who choose to stay working in their
scientific discipline. To understand the challenges our industry
faces when hiring and developing outstanding technical personnel,
we have only to look at industrywide compensation practices. For
example, in November 2006, SPE conducted a survey of more than
2,700 members that yielded the results indicated in Fig. 1.
As the information for new hires and experienced professionals
indicates, there is a strong financial incentive for technical people
to move to management ranks as quickly as possible. While the gap
between technical and nontechnical salaries narrows somewhat during
midcareer, managers see a hefty increase in earnings as their careers
come to a close, while technical professionals experience a gradual
flattening of pay increases during the final years of their careers. To
remedy this disincentive for skilled employees to remain in technical
fields, companies must establish technical career ladders that are similar to executive grades in terms of compensation and benefits and that
reduce the monetary gaps that increasingly differentiate managerial
and technical career paths as the employees gain experience.

A Changing World
Thanks to recent revolutions in the global information environment
such as the Internet and the emergence of 24/7 news media, world
public opinion of our industry can change with breathtaking speed.
For example, environmental concerns about energy production
are at the forefront of media attention, and E&P projects are now
under unprecedented public scrutiny. In many cases, the levels of
environmental protection provided by past practices are no longer
acceptable, and E&P professionals will be responsible for offering
new and more comprehensive solutions to some of the most complex technological problems ever faced by science.
Public concerns with energy industry are not limited to environmental concerns. Across the globe, E&P organizations are being
asked to address myriad pressing economic and social questions
arising from their host communities in politically sensitive areas
such as west Africa, the Middle East, and Southeast Asia. Technical
professionals must be willing to look beyond a narrow focus on their
E&P disciplines and help play a positive role in developing solutions
that benefit both their companies and their host communities.
None of these challenges can be overcome without our next
generation of technical leaders finding themselves in engaging,
employee-friendly working environments with a balanced approach
to job and family responsibilities. Only by addressing these issues
can our industry hope to keep talented people over the course of
productive and long-term careers.

Challenges for Technical Professionals

For technical professionals, the challenge we face is one of continuously expanding our TST skills, while taking an active role in our
own career development. This active ownership includes demonstrating a willingness to embrace the global nature of the modern
energy industry, as well as the ability to interact positively with
people of different cultures and backgrounds.
Networking and professional visibility are necessities in this environment. We also must be capable of communicating the economic
importance of our industry to a wider audience, educating the public about our business and its critical role in our society. Above all,
however, we must be able to demonstrate that we can deliver technological solutions that represent extraordinary increases in value
over current systems for our customers and our companies.

Career Ladders for Technical Professionals

To attract and retain the kind of world-class technical expertise needed
to succeed today, energy companies must be willing to invest in extensive training programs that focus not only on the hard technical
skills but on such soft skills as interpersonal communication. This
approach will allow a new generation of employees to flourish in a
fast-moving, team-driven workplace that technology solutions increasingly require. In this environment, energy companies must be willing
to create clearly defined career ladders for their top technical people.
These career ladders must provide challenging assignments and full

THEWAYAHEAD

Summary
Both E&P professionals and their employers face new challenges as
the economic and technological environment of the global energy
industry continues to evolve. For energy companies, success in hiring and maintaining teams of world-class technical experts depends
on ensuring that their organizational strategy allows for the development and advancement of their top-performing employees.
Provide an exceptional reward systemremove the perception
that technical professionals must switch over to a management
track to further their careers.
Invest in training and in long-term career development.
Provide technical experts with challenging assignments, and
fully engage them in the business.
Create a constant pipeline of new employeesuse top and
experienced employees to mentor new hires.
For individual employees
Continue to develop skills that encompass a wide range of
business solutions, including TST skills.
Adapt to the global nature of our business.
Create exceptional benefits for the business and its customersbecome invaluable to the company.
TWA

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