Heriot-Watt University

INSTITUTE OF PETROLEUM ENGINEERING

MATERIAL BALANCE EQUATION

APPLICATION
Adrian C Todd

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Material Balance Application

No one universal solution to the MB equation.

Recently the computing power behind modern
reservoir situation has cast a shadow of
confidence in the material balance approach
To quote the late Professor Laurie Dake a
proponent of the MB equation.

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Laurie Dake quote from the Practise of

Reservoir Engineering-Elsevier.

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to oilfields, the belief that it is now superceded by the application of modern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.
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..
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
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.

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Material Balance as an Equation of a

Straight Line

Material balance not a difficult concept.

Difficult in applying it to real reservoirs

There is often inadequate understanding of drive mechanisms.

Odeh & Havlena (1963) rearranged MB equation into different linear

forms.
Their method requires the plotting of a variable group against
another variable group selected depending on the drive mechanism.
If linear relationship does not exist, then this deviation suggests that
reservoir is not performing as anticipated and other mechanisms are
involved.

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Material Balance as Straight Line

Once linearity has been achieved, based on

matching pressure and production data then a
mathematical model has been achieved.
The technique is referred to as history
matching.
The application of the model to the future
enables predictions of the future reservoir
performance.
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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

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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
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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.

1 m NBoi c wSs cf p
E fw
We ...bbl / STB
1 Swc
The expansion of the free gas

Bg

E g mNBoi
1 ...bbl / STB
B
gi
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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

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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.

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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.

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Gas Drive Reservoirs, No Water Drive

and N & G unknown
F NE o NmE g NE fw We
Eg
F
NG
Eo
Eo

E
F
NG g
Eo
Eo

Plot of F/Eo vs.

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

Covered in Chapter 17

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Depletion drive or other?

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

We
F
N
...STB
E o E fw
E o E ew
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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

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Gas Field Application of MB Equarion

In earlier chapter introduced p/z plot for a gas

reservoir without water drive.
Many have warned about the application of
this approach since it neglects another
possible energy support.
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.

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Beware of the p/z plot.

Craft & Hawkins

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MB Approach to Gas Reservoirs

Fluid production = gas expansion + water expansion & pore
compaction and water influx

c wSwc cf
.
G p Bg Wp Bw G Bg Bgi GBgi
p We
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

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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
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MB Approach to Gas Reservoirs

F
We
G
Eg
Eg

Plot F/Eg vs. Gp, time or p

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MB Approach to Gas Reservoirs

Plot gives initial gas

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

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p/z approach

Long established in gas reservoir engineering to

determine gas in place
Gas produced = gas initially in place gas remaining
in reservoir

cf c wcSwc

c c S
G p G GBi G GB
G GBg GB
p W B /
B p We B w / Bg
1

1 Swc

wc wc

wc

We is the net water influx (includes Wp)

Compressibility terms small for water & pores

We Bw
1
1

G
Bg
GBgi

Gp

Bgi

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p/z approach

Replacing gas formation factor with z/p gives

p pi

z zi

G p
1
G

We Bw / Bgi
1

WeBw/GBgi water invaded

volume
Higher this term the
higher the pressure and
vice versa

With no water drive becomes

G p
p pi
1
z zi
G

Well known p/z plot

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p/z approach

The equation enables gas in place to be

determined when p/z=0

If any pressure
support curve will
deviate from
linear.
In early time
periods pressure
support may not
be felt.

Depletion drive gas reservoirs will exhibit straight p/z plot well
established. A straight line plot however does not prove
existence of depletion drive.

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p/z approach rate effect

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.
If however gas extraction rate
low then water drive will give
pressure support.
This effect can distort p/z plot
for water drive reservoirs.
Varying rates are common in
relation to winter and summer
rates.

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Material Balance Equation Applied to

Oil
Reservoirs
two
Depletion
Drive
Solution
gas drive has
stages of depletion

First stage above bubble point pressure

Second stage below bubble point pressure

Above the Bubble Point

Production due to compressibility of the total system.

Although appears complex MB equation is

v =C x V x p

Production = Expansion of reservoir fluids

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Solution gas drive above bubble point.

MB equation above bubble point simplifies to:-

Bo Boi c w Swc cf
N p Bo NBoi

p
Boi
1 Swc

Bo Boi c w Swc c f

p
Boi
1 Swc

No gas cap

Aquifer small in volume We = Wp =0

N p Bo NBoi

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

reservoir

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Solution gas drive above bubble point.

Oil compressibility -

co

Bo Boi

Boi p

Replacing oil term in MB equation gives

N B NB c

B cBS c
N p Bo NB
cooi c o o w oiwc f p
p o
oiSwc o
Boi p1

c w Swc cf

1 Swc

coSo c w Swc cf
So + Swc = 1 N p Bo NBoi
p
1 Swc

or
N p Bo NBoi ce p
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Solution gas drive above bubble point.

coSo c w Swc cf
p
1 Swc

N p Bo NBoi
or

N p Bo NBoi ce p

1
ce
coSo c wSwc cf
1 Swc
ce

1
coSo c w Swc cf
1 Swc

ce is the effective saturation weighted compressibility of the

reservoir system
Recovery at bubble point

Np

Boi

ce p
N Bob

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Solution Gas Drive

Reservoir pressure drops below bubble point solution gas drive

effective.

More complex as gas comes out of solution.

Most common reservoir drive mechanism.

However also very inefficient.

Often associated with other drive mechanisms.

In order to use MB equation to predict production versus

pressure need other independent equations.
Instantaneous producing gas-oil ratio equation.
Saturation equation

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Instantaneous Gas- Oil Ratio

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.
Instantaneous producing GOR is:

Gas producing
rate, SCF/day
Gas producing rate, SCF/day
R=
R=
Oil producing rate, STB/day
Oil producing
rate, STB/day

Gas production comes from gas in solution in reservoir

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

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Instantaneous Gas- Oil Ratio

Where:

qg = free gas flow rate, res.bbls/day

qo = oil producing rate, res.bbls/day

Bg =gas formation volume factor, bbls/SCF

Bo = oil formation volume factor, bbls/STB

Qo = oil flow rate,STB/day

Qg = total gas producing rate, SCF/day

Rs = gas solubility, SCF/STB

Free Gas=

qg

Bg

Solution Gas=Q o R s

Total gas production rate: Q g

qg
Bg

QoR s
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Instantaneous Gas- Oil Ratio

qo
Oil producing rate is: Q o
Bo
Oil producing rate is: Q o

qo
Bo
qg
Qo R s
Bg

Combining equations gives: R

q / B
Combining equations
gives: R
o

q
Since: Qo o
Bo

qo
B
R o Rs
qg

qg
Qo R s
Bg

q o / Bo

qo
Bo
R
Rs
qg
Bg
Bg

qo
Since: Q o
Bo

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Instantaneous Gas- Oil Ratio

qg

2k eg hp
g ln re / rw

2k eo hp
and q o
o ln re / rw

Therefore in previous equation:

Bo k eg o
Bg k eog

Rs

2k eg hp
Bg g ln re / rw
R
Rs
2k eo hp
Bo o ln re / rw

Instantaneous Gas- Oil

Ratio Equation
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Instantaneous Gas- Oil Ratio

1. Above Pb, no free gas. Keg is
zero, R=Rs=Rsi.
Bo k eg o
R
Rs
2. Short time when gas saturation
below critical value, keg still zero
Bg k eo g
but R=Rs<Rsi
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.
3. Maximum GOR value
4. Bg is increasing with
decreasing pressure.

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Instantaneous Gas- Oil Ratio

Instantaneous GOR is not the same as cumulative

GOR.
Instantaneous GOR,R, is ratio at particular moment in
time.
Cumulative GOR, Rp, is ratio of total oil and gas
produced up to a particular moment.
Two GORs related as follows.
Np

Rp

RdN p

Rp

R N

pi

Np

where R i is the average GOR over period that N pi produced.

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Oil Saturation Equation

Oil saturation equation provides an average

oil saturation for a reservoir at any time.

oil volume remaining

So
total pore volume

So

NN B
p

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
N Bob

The Oil Saturation

Equation
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History Matching

History matching if your model cannot predict the past its

value in predicting the future is in question.
Instantaneous GOR can be used to history match relative
permeabilities.
Rearranged takes the form.

k eg

k eo

R Rs

Bo g

Bg o

Production data provides R and Np as a function of pressure.

Rs, B and values from PVT report.

Np values provide So from oil saturation equation.

Can generate therefore keg/keo vs. So

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Solution Gas Drive Characteristics

Rapid pressure decline

Water free production

Rapidly increasing gas-oil ratio

Low ultimate oil recovery

Prediction methods
Schilthuis, Tarner and Tracy & Tarner

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Solution Gas Drive-Tarners Method

Similar approach to Schilthuis procedure

Above Pb use effective compressibility
equation

Np

Boi

ce p
N Bob

Below bubble point pressure use MB,

Instantaneous GOR and Oil Saturation equations

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Solution Gas Drive-Tarners Method

Assemble data

Production data

Field data and rock

Field data

Rock data
Laboratory relative
permeabilities
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

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Solution Gas Drive-Tarners Method

Tarners method uses MB equation rearranged to calculate

gas production Gp.
Procedure is a trial & error approach using independently
MB and Instantaneous GOR eqns.

NpR p

N Bo R si R s Bg Bob N p Bo R s Bg
Bg

Step1

1. Start at bubble point pressure

Gp

2. Select a future pressure and assume a value of Np at

that pressure. Sometimes express Np as a function of N.
3. Solve MB eqn. For NpRp, ie. Gp.

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Solution Gas Drive-Tarners Method

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

5. Calculate instantaneous GOR.

Bo k eg o
Bg k eo g

Rs

6. Calculate gas produced during pressure drop over

period.
R i R i 1

N p1

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
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Solution Gas Drive-Tarners Method

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.

Step 2

1 Second pressure selected and new Np assummed.

2. Solve MB for Np2. This is cumulative gas at end of

second pressure.

G 2 N p2 R p2 N p1R p1

N Bo R si R s Bg Bob N p2 Bo R s Bg
Bg

N p1R p1

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

cumulative gas from step 1.

4. With assumed value of Np2 from satn eqn.determine So.

5. Calculate IGOR

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Solution Gas Drive-Tarners Method

6. Calculate gas produced during second step

R i1 R i 2
2

p2

N p1 G 2

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

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

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Tracys Form of Tarners Method

Tracy took MB equation and generated a shorthand version

N p Bo R s Bg G p Bg We Wp

Bo Boi R si R s Bg mBoi Bg Bgi / Bgi

B R B
o

N p Bo R s Bg G p Bg We Wp

Bo Boi RNsi B R Bs B
R mB
B mB
B
B gi / Bgi
R g
oi B
g B /B
o

g
w

oi

si

oi

gi

gi

Bg

Bo Boi R si R s Bg mBoi Bg Bgi / Bgi

1
Bo Boi R si R s Bg mBoi Bg Bgi / Bgi

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Tracys Form of Tarners Method

n
g

For simplicity assume no gas cap. Then:

R s Bg

Bo Boi R si R s Bg
Bg

Bo Boi R si R s Bg

1
w
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.

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Tracys Form of Tarners Method

Using this shorthand system MB equation can be
written:

N N p n G p g We Wp w

If we assume no water encroachment or production

N N p n G p g

Tracy considered two pressure conditions Pj & Pk and

the oil production Np during this pressure interval.
Tracy estimates producing GOR Rk at the lower
pressure rather than Np.
For kth pressure.

N N pk nk G pk gk
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Tracys Form of Tarners Method

If N=1 then equation takes on fractional recovery form

1 N pk nk G pk

and

1 N pj N pk nk G pj N pk gk

also

'
1 N pj N pk nk G pj R avg
N pk gk

where

1 N pj N pk nk G pj N pk gk

'
avg

R j R 'k
2

rearranging

1 N pjnk G pjgk N pk nk R gk
'
avg

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Tracys Form of Tarners Method

1 N pjnk G pjgk N pk nk R gk
'
avg

Solving for Npk

N pk

1 N pjnk G pjgk
nk R gk
'
avg

Only unknown is Ravg all the rest from PVT data or

calculated at previous step
Rk can also be estimated from liquid saturation known
using IGOR eqn.

Rk

Bo k eg o

Bg k eo g

Rs
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Tracys Form of Tarners Method

So obtained from oil saturation equation

N p Bo
So 1
1 Swc
N Bob

Tracys Procedure

Set pressure step below Pb.

1. Estimate Rk

At bubble point = Rsi

From extrapolation of trend

2. Estimate Ravg

R 'avg

R j R 'k
2
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Tracys Procedure continued.

3. Determine PVT functions n and g.

4. Determine Npk and Np.

N pk

1 N pjnk G pjgk
'
nk R avg
gk

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

5. Using Np determine So using saturation

eqn.and thereby keg/keo from So vs. keg/keo data.

6. Calculate Rk from IGOR equation.

7. Compare Rk with Rk. According to tolerance for

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Tracys Procedure continued.

8. Estimate Gp and Gp. Gp =Np x R avg

Set next pressure step and repeat steps 1 to 8.

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Gas Cap Drive Reservoirs

Tarners method can also be used for gas cap

drive reservoirs

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Average Reservoir Pressure

MB equation sometimes considered as a tank model.

If there is uniform pressure decline in all wells then this
decline gives confidence in using MB eqn.
Dake suggests if equilibrium is not achieved then can still
use MB eqn.
He suggests an average pressure.

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Average Reservoir Pressure

In figure wells have their own pressure
declines.
Dake presents a volume weighting for
each drainage area.
Pj, Vj and qj are the pressure, volume
and reservoir rate for the area j.
The volume weighted average pressure
is therefore.

Equilibrium

Well positions and

drainage boundaries

Non Equilibrium

p p jVj / Vj
j

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Average Reservoir Pressure

Dake suggests an alternative method based on

production rate, based on the time derivative of the
compressibility equation

dV cVp
dV
cVp
dVj
dp
j
'
dV
q j cV dt q cVdpdtcV
cVj p
p j
dt
dt
j

For constant compressibility

'
j

Vj q j / p 'j

p q / p
p
q / p
j

'
j

'
j

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Average Reservoir Pressure

Material balance often applied at regular intervals .

Change in underground withdrawl,UWj can be used
over a pressure drop pj.
Then:

p UW / p
p
UW / p
j

Dake suggested that the MB approach be used prior

to numerical simulation approach .

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Predictions as a function of time

None of the terms in the MB equation include

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

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