Reservoir Engineering 2

Petroleum Engineering Department

Reservoir Engineering II
REE0320802

THE MATERIAL BALANCE EQUATION

(OIL RESERVOIRS)
Semester 8th (Spring 2024)

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MATERIAL BALANCE FOR OIL RESERVOIRS

MBE can be written on a volumetric basis as:
Initial volume = volume remaining + volume removed
Since oil, gas, and water are present in petroleum reservoirs, the material balance
equation can be expressed for the total fluids or for any one of the fluids present.
Before deriving the material balance, it is convenient to denote certain terms by
symbols for brevity. The symbols used are adopted by the Society of Petroleum
Engineers.
𝑝𝑖 Initial reservoir pressure, psi
p Volumetric average reservoir pressure
Δp Change in reservoir pressure = 𝑝𝑖 − p, psi
𝑝𝑏 Bubble point pressure, psi
N Initial (original) oil-in-place, STB
𝑁𝑝 Cumulative oil produced, STB
𝐺𝑝 Cumulative gas produced, scf
𝑊𝑝 Cumulative water produced, bbl
𝑅𝑝 Cumulative gas-oil ratio, scf/STB
GOR Instantaneous gas-oil ratio, scf/STB
𝑅𝑠𝑖 Initial gas solubility, scf/STB
𝑅𝑠 Gas solubility, scf/STB
𝐵𝑜𝑖 Initial oil formation volume factor, bbl/STB
𝐵𝑜 Oil formation volume factor, bbl/STB
𝐵𝑔𝑖 Initial gas formation volume factor, bbl/scf
𝐵𝑔 Gas formation volume factor, bbl/scf
𝑊𝑖𝑛𝑗 Cumulative water injected, STB
𝐺𝑖𝑛𝑗 Cumulative gas injected, scf
𝑊𝑒 Cumulative water influx, bbl
m Ratio of initial gas-cap gas reservoir volume to initial reservoir oil volume,
bbl/bbl
G Initial gas-cap gas, scf
P.V Pore volume, bbl
𝐶𝑤 Water compressibility, psi−1
𝐶𝑓 Formation (rock) compressibility, psi−1

Material balance calculations require the total pore volume (P.V) in terms of the
initial oil volume N and the volume of the gas cap. The expression for the total pore
volume can be derived by introducing m into the relationship as follows:

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Defining the ratio m as:

Solving for the volume of the gas cap gives:

Initial volume of the gas cap gas = G Bgi = m N
Boi The total volume of the hydrocarbon system is:
Initial oil volume + initial gas cap volume =(P.V) (1 − Swi)
N Boi + m N Boi = (P.V) (1 − Swi)
or

where 𝑆𝑤𝑖 = initial water saturation

Treating the reservoir pore as an idealized container as illustrated in the figure,
The MBE can be written in a generalized form as follows:

Pore volume occupied by the oil initially in place at pi

+
Pore volume occupied by the gas in the gas cap at pi
=
Pore volume occupied by the remaining oil at p
+
Pore volume occupied by the gas in the gas cap at p
+
Pore volume occupied by the evolved solution gas at p
+
Pore volume occupied by the net water influx at p
+
Change in pore volume due to connate-water expansion and pore volume
reduction due to rock expansion
+
Pore volume occupied by the injected gas at p
+
Pore volume occupied by the injected water at p ..................................... (1)

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The above nine terms composing the MBE can be separately determined from the
hydrocarbon PVT and rock properties, as follows:

Pore Volume Occupied by the Oil Initially in Place

Volume occupied by initial oil-in-place = 𝑁𝐵𝑜𝑖............................................. (2)
Pore Volume Occupied by the Gas in the Gas Cap
Volume of gas cap = m 𝑁𝐵𝑜𝑖......................................................... (3)
Pore Volume Occupied by the Remaining Oil
Volume of the remaining oil = (N − Np) Bo .................................. (4)
Pore Volume Occupied by the Gas Cap at Reservoir Pressure p
As the reservoir pressure drops to a new level p, the gas in the gas cap expands and
occupies a larger volume. Assuming no gas is produced from the gas cap during the
pressure decline, the new volume of the gas cap can be determined as:

. ........................... (5)
Pore Volume Occupied by the Evolved Solution Gas
This volumetric term can be determined by applying the following material
balance on the solution gas:

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volume of the evolved solution gas = [NRsi − NpRp − (N − Np )Rs ]Bg............... (6)

Pore Volume Occupied by the Net Water Influx

net water influx =We −Wp Bw ......................... (7)

Change in Pore Volume Due to Initial Water and Rock Expansion:

The component describing the reduction in the hydrocarbon pore volume due to the
expansion of initial (connate) water and the reservoir rock cannot be neglected for an
undersaturated-oil reservoir. The water compressibility 𝑐𝑤 and rock compressibility
𝑐𝑓 are generally of the same order of magnitude as the compressibility of the oil. The
effect of these two components, however, can be generally neglected for the gas-
cap-drive reservoir or when the reservoir pressure drops below the bubble-point
pressure.
The compressibility coefficient c, which describes the changes in the volume
(expansion) of the fluid or material with changing pressure, is given by:

or;
∆ 𝑉 = 𝑉 𝑐 ∆𝑝
where ∆𝑉 represents the net changes or expansion of the material as a result of
changes in the pressure. Therefore, the reduction in the pore volume due to the
expansion of the connate-water in the oil zone and the gas cap is given by:
𝑐𝑜𝑛𝑛𝑎𝑡𝑒 − 𝑤𝑎𝑡𝑒𝑟 𝑒𝑥𝑝𝑎𝑛𝑠𝑖𝑜𝑛 = [(𝑝𝑜𝑟𝑒 𝑣𝑜𝑙𝑢𝑚𝑒)𝑆𝑤𝑖]𝑐𝑤 ∆𝑝

. ....................... (8)
Similarly, the reduction in the pore volume due to the expansion of the reservoir
rock is given by:

. ......................... (9)

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Combining the above expressions, total change in pore volume is:

. .............................. (10)
Pore Volume Occupied by the Injection Gas and Water
Assuming that Ginj volumes of gas and Winj volumes of water have been injected for
pressure maintenance, the total pore volume occupied by the two injected fluids is
given by:
Total volume = Ginj Bginj +Winj Bw.............................. (11)
Combining Equations 2 through 11 with Equation 1 and rearranging gives:

. . (12)
where N = initial oil-in-place, STB
Gp = cumulative gas produced, scf
Np = cumulative oil produced, STB
Rsi = gas solubility at initial pressure, scf/STB
m = ratio of gas-cap gas volume to oil volume, bbl/bbl Bgi
= gas formation volume factor at pi, bbl/scf
Bginj = gas formation volume factor of the injected gas, bbl/scf
The cumulative gas produced Gp can be expressed in terms of the cumulative
gas-oil ratio Rp and cumulative oil produced Np by:
𝐺𝑝 = 𝑅𝑝 𝑁𝑝 .................................... (13)

Combining Equation 12 with Equation 13 gives:

. ...........(14)
The above relationship is referred to as the material balance equation (MBE). A more
convenient form of the MBE can be determined by introducing the concept of the
total (two-phase) formation volume factor Bt into the equation as:
𝐵𝑡 = 𝐵𝑜+ (𝑅𝑠𝑖 − 𝑅𝑠) 𝐵𝑔 ...................................... (15)
Introducing 𝐵𝑡 into Equation 14 and assuming, no water or gas injection gives:

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. ............. (16)
where Swi = initial water saturation
Rp = cumulative produced gas-oil ratio, scf/STB
Δp = change in the volumetric average reservoir pressure, psi
In a combination-drive reservoir where all the driving mechanisms are present, it is
of practical interest to determine the relative magnitude of each of the driving
mechanisms and its contribution to the production.
Rearranging Equation 16 gives:

. .................... (17)
with the parameter A as defined by:
A = Np [Bt + (Rp − Rsi) Bg] ......................... (18)
Equation 17 can be abbreviated and expressed as:
DDI + SDI + WDI + EDI = 1.0 ................... (19)
where DDI = depletion-drive index
SDI = segregation (gas-cap)-drive index
WDI = water-drive index
EDI = expansion (rock and liquid)-drive index
The four terms of the left-hand side of Equation 19 represent the major primary
driving mechanisms by which oil may be recovered from oil reservoirs. These
driving forces are:
a. Depletion Drive. Depletion drive is the oil recovery mechanism wherein the
production of the oil from its reservoir rock is achieved by the expansion of the
original oil volume with all its original dissolved gas. This driving mechanism is
represented mathematically by the first term of Equation 17 or:
DDI = N (Bt − Bti)/A .............................. (20)
where DDI is termed the depletion-drive index.

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b. Segregation Drive. Segregation drive (gas-cap drive) is the mechanism wherein

the displacement of oil from the formation is accomplished by the expansion of the
original free gas cap. This driving force is described by the second term of Equation
17, or:
SDI = [N m Bti (Bg − Bgi)/Bgi]/A......................... (21)
where SDI is termed the segregation-drive index.
c. Water Drive. Water drive is the mechanism wherein the displacement of the oil
is accomplished by the net encroachment of water into the oil zone. This mechanism
is represented by the third term of Equation 17 or:
WDI = (We −Wp Bw)/A ............................... (22)
where WDI is termed the water-drive index.
d. Expansion Drive. For undersaturated-oil reservoirs with no water influx, the
principal source of energy is a result of the rock and fluid expansion. Where all the
other three driving mechanisms are contributing to the production of oil and gas from
the reservoir, the contribution of the rock and fluid expansion to the oil recovery is
too small and essentially negligible and can be ignored.
Since the sum of the driving indexes is equal to one, it follows that if the magnitude
of one of the index terms is reduced, then one or both of the remaining terms must be
increased. An effective water drive will result in maximum recovery. Therefore, if
possible, the reservoir should be operated to yield a maximum water-drive index and
minimum values for the depletion-drive index and the gas-cap-drive index.
Maximum advantage should be taken of the most efficient drive available, if the
water drive is too weak, it may be possible to use the displacing energy of the gas
cap. In any event, the depletion-drive index should be maintained as low as possible
at all times, since it is the most inefficient driving force.
The forces displacing the oil and gas change from time to time due to changes in
fluid withdrawal rates, therefore Equation (19) should be solved periodically to
determine whether there has been any change in the driving indexes. For example,
reducing the oil-producing rate could result in an increased water-drive index and a
correspondingly reduced depletion-drive index in a reservoir containing a weak
water drive. Also, by shutting in wells producing large quantities of water, the water-
drive index could be increased, as the net water influx (We - Wp) is the important
factor.

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When the reservoir has a very weak water drive but a fairly large gas cap, the most
efficient mechanism may be the gas cap, in which case a large gas-cap-drive index
is desirable. Theoretically, recovery by gas-cap drive is independent of producing
rate, as the gas is readily expansible. Low vertical permeability could limit the rate
of expansion of the gas cap, in which case the gas-cap-drive index would be rate
sensitive. Also, gas coning into producing wells will reduce the effectiveness of the
gas-cap expansion due to the production of free gas. Gas coning is rate sensitive; the
higher the producing rates, the greater the amount of coning.
An important factor in determining the effectiveness of a gas-cap drive is the degree
of conservation of the gas-cap gas. The gas-cap-drive index can often be increased
by shutting in high gas-oil ratio wells.
The various driving indexes for a combination-drive reservoir are shown in figure
below. At point A, some of the structurally low wells are reworked to reduce water
production. This resulted in an effective increase in the water-drive index. At point
B, workover operations are complete; water-, gas-, and oil-producing rates are
relatively stable; and the driving indexes show no change. At point C, some of the
wells which have been producing relatively large volumes of water are shut-in,
which results in an increase in the water-drive index. At the same time, some of the
upstructure, high gas-oil ratio wells have been shut-in. At point D, gas is being
returned to the reservoir, and the gas-cap-drive index is increased.
The water-drive index is relatively constant, although it is decreasing somewhat, and
the depletion-drive index is showing a marked decline. This is indicative of efficient
reservoir operation, if the depletion- drive index can be reduced to zero (by complete
maintenance of reservoir pressure), good recovery can be expected from the
reservoir. It can be noted from Figure that the sum of the various indexes of drive is
always equal to one.

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Example 1
A combination-drive reservoir contains 10 MMSTB of oil initially in place. The ratio
of the original gas-cap volume to the original oil volume, i.e., m, is estimated as
0.25. The initial reservoir pressure is 3,000 psia at 150°F. The reservoir produced 1
MMSTB of oil, 1,100 MMscf of 0.8 specific gravity gas, and 50,000 STB of water
by the time the reservoir pressure dropped to 2,800 psi. The following PVT is
available:

The following data are also available:

Swi = 0.20 cw = 1.5 × 10−6 psi−1 cf = 1 × 10−6 psi−1
Calculate:
a. Cumulative water influx
b. Net water influx
c. Primary driving indexes at 2,800 psi

Solution
Because the reservoir contains a gas cap, the rock and fluid expansion can be
neglected, i.e., set cf and cw = 0. For illustration purposes, however, the rock and
fluid expansion term will be included in the calculations.
Part A. Cumulative water influx
Step 1: Calculate cumulative gas-oil ratio Rp:

Step 2: Arrange Equation 16 to solve for We:

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Neglecting the rock and fluid expansion term, the cumulative water influx is
417,700 bbl.

Part B. Net water influx

Net water influx =We −Wp Bw = 411,281 − 50,000 = 361,281 bbl

Part C. Primary recovery indexes

Step 1: Calculate the parameter A by using Equation 18:
A = 106 [1.655 + (1100 − 1040) 0.00092] = 1,710,000
Step 2: Calculate DDI, SDI, and WDI by applying Equations 21 through 23,
respectively:

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where EDI is termed the expansion-drive index.

These calculations show that the 43.85% of the recovery was obtained by depletion
drive, 34.65% by gas-cap drive, 21.12% by water drive, and only 0.38% by connate-
water and rock expansion. The results suggest that the expansion-drive index (EDI)
term can be neglected in the presence of a gas cap or when the reservoir pressure
drops below the bubble point pressure. In high pore volume compressibility
reservoirs, such as chalks and unconsolidated sands, however, the energy
contribution of the rock and water expansion cannot be ignored even at high gas
saturations.

Example 2
In a combination-drive reservoir the current reservoir pressure is estimated at
2,500 psi. The reservoir production data and PVT information are given below:
Initial Reservoir Current
Condition Reservoir
Condition
p, psi 3000 2500
Bo, bbl/STB 1.35 1.33
Rs, scf/STB 600 500
Np, MMSTB 0 5
Gp, MMMscf 0 5.5
Bw, bbl/STB 1.00 1.00
We, MMbbl 0 3
Wp, MMbbl 0 0.2
Bg, bbl/scf 0.0011 0.0015
cf, cw 0 0

The following additional information is available:

Volume of bulk oil zone = 100,000 ac-ft
Volume of bulk gas zone = 20,000 ac-ft
Calculate the initial oil-in-place.

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Solution
Step 1. Assuming the same porosity and connate-water for the oil and gas zones,
calculate m:

Step 2. Calculate the cumulative gas-oil ratio Rp:

Step 3. Solve for the initial oil-in-place by applying Equation 14:

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