GULF FIELD NATIONAL ADVANCED

SCHOOL OF PETROLEUM
MINISTRY OF HIGHER EDUCATION

********
REPUBLIQUE DU CAMEROUN
CAMEROON
Paix-Travail-Patrie

REPUBLIC OF
Peace-Work-Fatherland

*******

MINISTRY OF EMPLOYMENT AND

PROFESSIONAL TRAINING

********
MINISTERE DETUDES SUPERIEURES
********
MINISTERE DE LEMPLOI ET DE LA
FORMATION PROFESSIONEL
********

********

HND: PETROLEUM ENGINEERING

TERM PAPER ON

PRODUCTION ENGINEERING

TOPIC; THE SEQUENCIAL BASIC STEPS OF

SIMULATION

Course professor; Eng. Tambe Ayuk

PETROLEUM PRODUCTION ENGINEER

Faculty of Petroleum Engineering level 1

Facult d'ingnierie du ptrole

TERM PAPER PROJECT

GFNASP-LIMBE

It is possible

Done and presented by; CASSIEL OBI-AKO LIAMBA

ACKNOWLEDGEMENT

I like to extend my gratitude to the persons who helped me for the accomplishment of this
book and a sucesss to the entire work carried out;
OBI EMMERENCIA ( Mum.for all the finacial, social and moral support including the
ones i cant mention.
My friend/brother ESANGE BASILO LIFANGE for his encouragement and prayers.
Eng. NGALE BRUNO NGOMBA for the basic words of enpowerment to be what I seek to
achieve.

GFNASP

DEDICATION
I dedicate this book is dedicated to the Almighty God for His infinite love for me and to
bestow his wisdom and inspirations which lead me through to the success of this book. Also
to my Mum OBI EMMERENCIA and a friend engr. Ngale Bruno for their moral, social, and
financial support.

PREFACE
This book comprises the basic steps of simulation carried out in the petroleum industry and
the importance of the various procedures implemented.

TABLE OF CONTENTS
Acknowledgement
Dedication
Preface
1.Introduction of simulation/definition
1.1.Background/history

2.Sequential basic steps of simulation

2.1. Purpose of simulation

2.2. Uses and function of
simulation

4.Classification and characteristics of simulation.

5 .Importance of simulation 6
7. Conclusion
8. Reference

1.Introduction and definition of simulation

A simulation is the execution of a model, represented by a computer program that gives

information about the system being investigated. The simulation approach of analyzing a
model is opposed to the analytical approach, where the method of analyzing the system is
purely theoretical. As this approach is more reliable, the simulation approach gives more
flexibility and convenience. The activities of the model consist of events, which are activated
at certain points in time and in this way affect the overall state of the system. The points in
time that an event is activated are randomized, so no input from outside the system is
required. Events exist autonomously and they are discrete so between the execution of two
events nothing happens. The SIMSCRIPT provides a process-based approach of writing a
simulation program. With this approach, the components of the program consist of entities,
which combine several related events into one process.
In the field of simulation, the concept of "principle of computational equivalence" has
beneficial implications for the decision-maker. Simulated experimentation accelerates and
replaces effectively the "wait and see" anxieties in discovering new insight and explanations
of future behavior of the real system.
Consider the following scenario. You are the designer of a new switch for asynchronous
transfer mode (ATM) networks, a new switching technology that has appeared on the
marketplace in recent years. In order to help ensure the success of your product in this is a
highly competitive field, it is important that you design the switch to yield the highest
possible performance while maintaining a reasonable manufacturing cost. How much memory
should be built into the switch? Should the memory be associated with incoming
communication links to buffer messages as they arrive, or should it be associated with
outgoing links to hold messages competing to use the same link? Moreover, what is the best
organization of hardware components within the switch? These are but a few of the questions
that you must answer in coming up with a design.
With the integration of artificial intelligence, agents and other modeling techniques,
simulation has become an effective and appropriate decision support for the managers. By
combining the emerging science of complexity with newly popularized simulation
technology, the PricewaterhouseCoopers, Emergent Solutions Group builds a software that
allows senior management to safely play out "what if" scenarios in artificial worlds. For
example, in a consumer retail environment it can be used to find out how the roles of
consumers and employees can be simulated to achieve peak performance.

1.1. Background and history of simulation

The Information Age is synonymous with knowledge. If, however proper science is not used,
information alone cannot guarantee transparency, which is the pre-condition to Knowledge.
Proper science requires thinking or imagination with conscience, the very essence of
humanity Imagination is necessary for anyone wishing to make decisions based on science
and always begins with visualization -actually, another term for simulation.
Even though there is a commonly held misconception that physical experimentation precedes
scientific analysis, the truth is simulation is the first one that has to be worked out even before
designing an experiment. This is why the petroleum industry puts so much emphasis on
simulation studies. The petroleum industry is known to be the biggest user of computer
models. More importantly, unlike other big-scale simulations, such as space research and
weather models, petroleum models do not have an option of verifying with real data. Because
petroleum engineers do not have the luxury of launching a "reservoir shuttle" or a "petroleum
balloon" to roam around the reservoir, the task of modeling is the most daunting. Indeed, from
the advent of computer technology, the petroleum industry pioneered the use of computer
simulations in virtually all aspects of decision-making.
From the golden era of the petroleum industry, very significant amounts of research dollars
have been spent to develop some of the most sophisticated mathematical models ever used.
Even as the petroleum industry transits through its "middle age" in a business sense and the
industry no longer carries the reputation of being the "most aggressive investor in research,"
oil companies continue to spend liberally for reservoir simulation studies and even for
developing new simulators.

2.SEQUENTIAL STEPS OF SIMULATION

The Basic Steps of a Simulation Study
The application of simulation involves specific steps in order for the simulation study to be
successful. Regardless of the type of problem and the objective of the study, the process by
which the simulation is performed remains constant. The following briefly describes the basic
steps in the simulation process:
2.1. Problem Definition
The initial step involves defining the goals of the study and determine what needs to be
solved. The problem is further defined through objective observations of the process to be
studied. Care should be taken to determine if simulation is the appropriate tool for the
problem under investigation.
2.2. Project Planning
The tasks for completing the project are broken down into work packages with a
responsible party assigned to each package. Milestones are indicated for tracking progress.
This schedule is necessary to determine if sufficient time and resources are available for
completion.
2.3. System Definition
This step involves identifying the system components to be modeled and the performance
measures to be analyzed. Often the system is very complex, thus defining the system
requires an experienced simulator who can find the appropriate level of detail and
flexibility.
2.4. Model Formulation
Understanding how the actual system behaves and determining the basic requirements of
the model are necessary in developing the right model. Creating a flow chart of how the
system operates facilitates the understanding of what variables are involved and how these
variables interact.
2.5. Input Data Collection & Analysis
After formulating the model, the type of data to collect is determined. New data is
collected and/or existing data is gathered. Data is fitted to theoretical distributions. For
example, the

arrival rate of a specific part to the manufacturing plant may follow a normal distribution
curve.
2.6. Model Translation
The model is translated into programming language. Choices range from general
purpose languages such as fortran or simulation programs such as Arena.
2..7. Verification & Validation
Verification is the process of ensuring that the model behaves as intended, usually by
debugging or through animation. Verification is necessary but not sufficient for validation,
that is a model may be verified but not valid. Validation ensures that no significant
difference exists between the model and the real system and that the model reflects reality.
Validation can be achieved through statistical analysis. Additionally, face validity may be
obtained by having the model reviewed and supported by an expert.
2.8. Experimentation & Analysis
Experimentation involves developing the alternative model(s), executing the simulation
runs, and statistically comparing the alternative(s) system performance with that of the
real system.
2.9. Documentation & Implementation
Documentation consists of the written report and/or presentation. The results and
implications of the study are discussed. The best course of action is identified,
recommended, and justified.
Decisions for Simulating
Completing the required steps of a simulation study establishes the likelihood of the study's
success. Although knowing the basic steps in the simulation study is important, it is equally
important to realize that not every problem should be solved using simulation. In the past,
simulation required the specialized training of programmers and analysts dedicated to very
large and complex projects. Now, due to the large number of software available, simulation at
times is used inappropriately by individuals lacking the sufficient training and experience.

When simulation is applied inappropriately, the study will not produce meaningful results.
The failure

to achieve the desired goals of the simulation study may induce blaming the simulation
approach itself when in fact the cause of the failure lies in the inappropriate application of
simulation.
To recognize if simulation is the correct approach to solving a particular problem, four items
should be evaluated before deciding to conduct the study:
0 Type of Problem
0 Availability of Resources
0 Costs
0 Availability of Data

Type of Problem: If a problem can be solved by common sense or analytically, the use
of simulation is unnecessary. Additionally, using algorithms and mathematical equations may
be faster and less expensive than simulating. Also, if the problem can be solved by performing
direct experiments on the system to be evaluated, then conducting direct experiments may be
more desirable than simulating.
To illustrate, recently the UH Transportation Department conducted field studies on
expanding the campus shuttle system. The department used their own personnel and vehicles
to perform the experiment during the weekend. In contrast, developing the simulation model
for the shuttle system took one student several weeks to complete. However, one factor to
consider when performing directing experiments is the degree in which the real system will be
disturbed.
If a high degree of disruption to the real system will occur, then another approach may be
necessary. The real system itself plays another factor in deciding to simulate. If the system is
too complex, cannot be defined, and not understandable then simulation will not produce
meaningful results. This situation often occurs when human behavior is involved.

Availability of Resources: People and time are the determining resources for conducting
a simulation study. An experienced analyst is the most important resource since such a person

has the ability and experience to determine both the model's appropriate level of detail and
how to verify and validate the model. Without a trained simulator, the wrong model may be
developed which produces unreliable results. Additionally, the allocation of time should not
be so limited so as to force the simulator to take shortcuts in designing the model. The
schedule

should allow enough time for the implementation of any necessary changes and for
verification and validation to take place if the results are to be meaningful.
Costs: Cost considerations should be given for each step in the simulation process,
purchasing simulation software if not already available, and computer resources. Obviously if
these costs exceed the potential savings in altering the current system, then simulation should
not be pursued.
Availability of Data: The necessary data should be identified and located, and if the data does
not exist, then the data should be collectible. If the data does not exist and cannot be collected,
then continuing with the simulation study will eventually yield unreliable and useless results.
The simulation output cannot be compared to the real system's performance, which is vital for
verifying and validating the model.
The basic steps and decisions for a simulation study are incorporated into a flowchart as
shown below:
Steps and Decisions for Conducting a Simulation Study

Once simulation has been identified as the preferred approach to solving a particular problem,
the decision to implement the course of action suggested by the simulation study's results does
not necessarily signify the end of the study, as indicated in the flowchart above. The model
may be maintained to check the system's response to variabilities experienced by the real
system. However, the extent to which the model may be maintained largely depends on the
model's flexibility and what questions the model was originally designed to address.
2.1. Purpose of simulation
The purpose of simulation is estimation of field performance (e.g., oil recovery) under one or
more producing schemes. Whereas the field can be produced only once, at considerable
expense, a model can be produced or run many times at low expense over a short period of
time. Observation of model results that represent different producing conditions aids selection
of an optimal set of producing conditions for the reservoir.
2.2.Use and function of simulation
2.2.1. Uses of simulation

Reservoir simulation models are used by oil and gas companies in the development of new
fields. Also, models are used in developed fields where production forecasts are needed to
help make investment decisions. As building and maintaining a robust, reliable model of a
field is often time-consuming and expensive, models are typically only constructed where
large investment decisions are at stake. Improvements in simulation software have lowered
the time to develop a model. Also, models can be run on personal computers rather than more
expensive workstations. For new fields, models may help development by identifying the
number of wells required, the optimal completion of wells, the present and future needs for
artificial lift, and the expected production of oil, water and gas.
For ongoing reservoir management, models may help in improved oil recovery by hydraulic
fracturing. Highly deviated or horizontal wells can also be represented. Specialized software
may be used in the design of hydraulic fracturing, then the improvements in productivity can
be included in the field model. Also, future improvement in oil recovery with pressure
maintenance by re-injection of produced gas or by water injection into an aquifer can be
evaluated. Water flooding resulting in the improved displacement of oil is commonly
evaluated using reservoir simulation. The application of enhanced oil recovery (EOR)
processes requires that the field possesses the necessary characteristics to make application
successful. Model

studies can assist in this evaluation. EOR processes include miscible displacement by natural
gas, CO2, or nitrogen and chemical flooding (polymer, alkaline, surfactant, or a combination
of these). Special features in simulation software is needed to represent these processes. In
some miscible applications, the "smearing" of the flood front, also called numerical
dispersion, may be a problem. Reservoir simulation is used extensively to identify
opportunities to increase oil production in heavy oil deposits. Oil recovery is improved by
lowering the oil viscosity by injecting steam or hot water. Typical processes are steam soaks
(steam is injected, then oil produced from the same well) and steam flooding (separate steam
injectors and oil producers). These processes require simulators with special features to
account for heat transfer to the fluids present and the formation, the subsequent property
changes and heat losses outside of the formation. A recent application of reservoir simulation
is the modeling of coalbed methane (CBM) production. This application requires a specialized
CBM simulator. In addition to the normal fractured (fissured) formation data, CBM
simulation requires gas content data values at initial pressure, sorption isotherms, diffusion

coefficient, and parameters to estimate the changes in absolute permeability as a function of

pore-pressure depletion and gas desorption.
2.2.2. Function of simulation

3. Classification and characteristics of simulation

CLASSIFICATION OF SIMULATION MODELS

MONTE CARLO SIMULATION

o

describe systems which are both stochastic and static

CONTINUOUS SIMULATION
o

used to model systems which vary continually with time

the systems modeled are dynamic but may be either deterministic

or stochastic

DISCRETE(-EVENT) SIMULATION
o

used to model systems which are assumed to change only at

discrete set of points in time (correspond to state changes)

the systems modeled are dynamic and almost invariably, stochastic

COMBINED DISCRETE/CONTINUOUS SIMULATION (HYBRID)

o

combination of discrete and continuous variables

CHOICE OF SIMULATION MODEL IS A FUNCTION OF THE

CHARACTERISTICS OF THE SYSTEM AND THE OBJECTIVES OF
THE STUDY.
The term simulation, or more specifically computer simulation, refers to a method for
implementing a model over time (DoD 1998). The computer simulation includes the
analytical model which is represented in executable code, the input conditions and other input
data, and the computing infrastructure. The computing infrastructure includes the
computational engine needed to execute the model, as well as input and output devices. The
great variety of approaches to computer simulation is apparent from the choices that the
designer of computer simulation must make, which include
0 stochastic or deterministic;
0 steady-state or dynamic;
0 continuous or discrete; and
0 local or distributed.

Other classifications of a simulation may depend on the type of model that is being simulated.
One example is an agent-based simulation that simulates the interaction among autonomous
agents to predict complex emergent behavior (Barry 2009). They are many other types of
models that could be used to further classify simulations. In general, simulations provide a
means for analyzing complex dynamic behavior of systems, software, hardware, people, and
physical phenomena. Simulations are often integrated with the actual hardware, software, and

operators of the system to evaluate how actual components and users of the system perform in
a simulated environment. Within the United States defense community, it is common to refer
to simulations as live, virtual, or constructive, where live simulation refers to live operators
operating real systems, virtual simulation refers to live operators operating simulated systems,
and constructive simulations refers to simulated operators operating with simulated systems.
The virtual and constructive simulations may also include actual system hardware and
software in the loop as well as stimulus from a real systems environment. In addition to
representing the system and its environment, the simulation must provide efficient
computational methods for solving the equations. Simulations may be required to operate in
real time, particularly if there is an operator in the loop. Other simulations may be required to
operate much faster than real time and perform thousands of simulation runs to provide
statistically valid simulation results. Several computational and other simulation methods are
described in Simulation Modeling and Analysis (Law 2007).
This paper discusses the internal characteristics of simulations. The major part of it is
concerned with models and their relation with the domain. Some central concepts regarding
modelling and simulation are defined. These include concepts regarding:
0 the structure and characteristics of the model;
0 the relationship to the system that is being modelled;
0 the interaction of the learner or other agents with the model.
A classification of model types is presented, accompanied by a first idea on the representation
of the several types of models. The classification includes the distinction between qualitative
and quantitative models. Models can further be classified into dynamic and static models,
determined by the time dependency of the model. The basic elements of any simulation model
are the state of the model, describing the properties of the system that is modelled, and a set of
rules determining the possible development of the model state. State space is the collection of
all possible states. In quantitative models the basic elements of the state are variables, which

can be dependent or independent. Dependent variables are variables of which the value is
determined by the independent variables. The model rules are equations, determining the
development of the values of the variables. Quantitative models are classified into discrete
and continuous models, depending on the structure of the state space. Qualitative models have
a state space consisting of propositions about the modelled system. In this case, the model
rules have a more descriptive character.
A brief discussion of the relationship between the model and the corresponding real system is
given. Three types of real systems are distinguished: physical, artificial and abstract. The main
criterion for a distinction between these types of systems is the possibility of constructing a
model that describes the system completely (a base model).
The interaction of the learner with models and simulations is described by introducing the
concepts of interaction and scenario. The interaction describes the sequence of operations that
are performed upon the model, the scenario includes the interaction and the agents who take
part in the interaction.
Classifications of instructional simulation environments (often just called: instructional (or
educational) simulations) are discussed. The usefulness and features of these classifications
are investigated. Many of the existing classifications do not distinguish very well between
relevant aspects of simulation learning environment.
Three sections describe the relationship between the internal characteristics of simulations and
the four themes introduced in de Jong (this volume): domain models, learning goals, learning
processes and learner activity. Because simulation models are discussed extensively in the
first section of this paper, the section on domain and simulation models gives an overview of
domain aspects that are not explicitly referred to in the model. Here, an additional knowledge
base, called the cognitive model will be introduced. For each type of learning goal the relation
with the domain model or scenario is elaborated. The relationship between learning processes
and learner activity and domain models is discussed by relating the possible types of learner
activity with the model and scenario elements, resulting in demands for the structure of the
model or scenario.

Importance of simulation
Importance: It is not uncommon for a roadway corridor to experience increasing traffic
congestion and operational problems, due to rapid growth in traffic volumes associated with
major land use development.
This increase in traffic volumes, coupled with often short distances between
intersections/interchanges, heavy turning movements, numerous on/off ramps or driveway
locations, and increased cross street traffic demand, requires the transportation professional to
adopt a systems analysis approach to properly address traffic congestion. In doing so, the
impacts of potential design and traffic control improvements along the roadway corridor can
be better evaluated.
Excessive traffic demand along a corridor more often than not results in traffic congestion due
to effects of overlapping bottleneck locations. The spillover effect of traffic congestion from
one location to another negates the use of conventional traffic engineering measures of
effectiveness such as roadway capacity or levels of service analysis techniques.
Traditional capacity analysis methods can provide levels of service estimates at a given point
in space and time, but these methods do not provide an assessment of the impacts on the rest
of the roadway corridor. As a result, the effects of one bottleneck location on another location
are not recognized.
Simulation involves designing a model of a system and carrying out experiments on it as it
progresses through time. Models enable you to see how a real-world activity will perform
under different conditions and test various hypotheses at a fraction of the cost of performing
the actual activity.
One of the principal benefits of a model is that you can begin with a simple approximation of
a process and gradually refine the model as your understanding of the process improves. This
step- wise refinement enables you to achieve good approximations of very complex
problems surprisingly quickly. As you add refinements, the model more closely imitates the
real-life process.

CONCLUSION
In each of the scenarios above, we have demonstrated the functionality and utility of using
simulation as a tool for traffic management. In the two cases presented above, the application
of traffic simulation saved several million dollars (of tax revenues) in right of way and
construction costs. That does not even begin to account for the intangible savings of lost time
to travelers due to the congestion created during the construction period.
The simulation tools are also vital in exploring new traffic control techniques, systems and the
advanced traffic management centers of the future as seen in the research problem. Not
mentioned here is another effort that is now in the demonstration phase where a live
intersection controller has been integrated with TSIS and CORSIM, and the simulated
intersection is actually under the control of the actual intersection control hardware. This
demonstration can be used to assess the effects of different manufacturers intersection
controllers in a controlled environment, or can be an effective teaching aid.
Though the simulation model CORSIM has existed in various forms for many years, the
recent advances by the insertion of advanced computer techniques and software development
technology has allowed CORSIM to be taken to new levels of performance, new levels of
integration and ease of use. Practitioners and researchers around the world are using the
CORSIM micro-simulation model to problems, and new doors are being opened each day as
the computer technology moves forward.

9. REFERENCE
The Merriam-Webster Dictionary, New Revised Edition. 2004. New York City: MerriamWebster.
Coats, K.H. 1987. Reservoir Simulation. Petroleum Engineering Handbook, H.B.
Bradley ed., Chap. 48. Richardson, Texas: SPE.
Odeh, A.S. 1981. Comparison of Solutions to a Three-Dimensional Black-Oil
Reservoir Simulation Problem. J Pet Technol 33 (1): 1325. SPE-9723-PA.
http://dx.doi.org/10.2118/9723-PA
Weinstein, H.G., Chappelear, J.E., and Nolen, J.S. 1986. Second Comparative Solution
Project: A Three-Phase Coning Study. J Pet Technol 38 (3): 345-353. SPE-10489-PA.
http://dx.doi.org/10.2118/10489-PA
Kenyon, D. 1987. Third SPE Comparative Solution Project: Gas Cycling of
Retrograde Condensate Reservoirs. J Pet Technol 39 (8): 981-997. SPE-12278-PA.
http://dx.doi.org/10.2118/12278-PA
Aziz, K., Ramesh, A.B., and Woo, P.T. 1987. Fourth SPE Comparative Solution
Project: Comparison of Steam Injection Simulators. J Pet Technol 39 (12): 15761584. SPE13510-PA. http://dx.doi.org/10.2118/13510-PA
Killough, J.E. and Kossack, C.A. 1987. Fifth Comparative Solution Project:
Evaluation of Miscible Flood Simulators. Presented at the SPE Symposium on Reservoir
Simulation, San Antonio, Texas, 14 February. SPE-16000-MS.
http://dx.doi.org/10.2118/16000-MS
Firoozabadi, A. and Thomas, L.K. 1990. Sixth SPE Comparative Solution Project:
Dual-Porosity Simulators. J Pet Technol 42 (6): 710-715, 762-763. SPE-18741-PA.
http://dx.doi.org/10.2118/18741-PA
Nghiem, L., Collins, D.A., and Sharma, R. 1991. Seventh SPE Comparative Solution
Project: Modelling of Horizontal Wells in Reservoir Simulation. Presented at the SPE
Symposium on Reservoir Simulation, Anaheim, California, 17-20 February 1991. SPE21221-MS. http://dx.doi.org/10.2118/21221-MS
Quandalle, P. 1993. Eighth SPE Comparative Solution Project: Gridding Techniques in
Reservoir Simulation. Presented at the SPE Symposium on Reservoir Simulation, New
Orleans, Louisiana, 28 February-3 March 1993. SPE-25263-MS.
http://dx.doi.org/10.2118/25263-MS
Killough, J.E. 1995. Ninth SPE Comparative Solution Project: A Reexamination of
Black-Oil Simulation. Presented at the SPE Reservoir Simulation Symposium, San Antonio,
Texas, USA, 1215 February. SPE 29110. http://dx.doi.org/10.2118/29110-MS
Christie, M.A. and Blunt, M.J. 2001. Tenth SPE Comparative Solution Project: A
Comparison of Upscaling Techniques. SPE Res Eval & Eng 4 (4): 308317. SPE-72469-PA.
http://dx.doi.org/10.2118/72469-PA
Coats, K.H. 1980. An Equation of State Compositional Model. J Pet Technol 20 (5):
363376. SPE-8284-PA. http://dx.doi.org/10.2118/8284-PA
Young, L.C. and Stephenson, R.E. 1983. A Generalized Compositional Approach for
Reservoir Simulation. SPE J. 23 (4): 727742. SPE-10516-PA.
http://dx.doi.org/10.2118/10516-PA
cs, G., Doleschall, S., and Farkas, E. 1985. General Purpose Compositional Model.
SPE J. 25 (4): 543553. SPE-10515-PA. http://dx.doi.org/10.2118/10515-PA
Watts, J.W. 1986. A Compositional Formulation of the Pressure and Saturation
Equations. SPE Res Eng 1 (3): 243252. SPE-12244-PA. http://dx.doi.org/10.2118/12244-PA
Blair, P.M. and Weinaug, C.F. 1969. Solution of Two-Phase Flow Problems Using
Implicit Difference Equations. SPE J. 9 (4): 417-424. SPE-2185-PA.
http://dx.doi.org/10.2118/2185-PA
Stone, H. and Garder, A.O.J. 1961. Analysis of Gas-Cap or Dissolved-Gas Drive
Reservoirs. SPE J. 1 (2): 92104. SPE-1518-G. http://dx.doi.org/10.2118/1518-G