Material Balance Equation

We can apply this method only after some production. The most common
range of compressibilities are:

Formation Rock: 3-10 x 10-6 psi-1

Water : 2-4 x 10-6 psi-1

Unsaturated oil: 5-100 x 10-6 psi-1

Gas at 1000 psi: 900-1300 x 10-6 psi-1

Gas at 5000 psi: 50-200 x 10-6 psi-1

For calculation of volumetric of the reservoir, the following production,

reservoir, and laboratory data are involved:

1. The initial reservoir pressure and the average reservoir pressure at

successive intervals after the start of production.
2. Stock tank barrels of oil produced measured at 1 atm and 60ᵒF at any
time during the production interval.
3. The total scf of gas produced when the gas is injected into the reservoir
then this will be the difference between the total gas produced and that
returned to the reservoir.
𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝑟𝑒𝑠𝑒𝑟𝑣𝑜𝑖𝑟 𝑓𝑟𝑒𝑒 𝑔𝑎𝑠 𝑣𝑜𝑙𝑢𝑚𝑒
4. 𝑚 =
𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝑟𝑒𝑠𝑒𝑟𝑣𝑜𝑖𝑟 𝑜𝑖𝑙 𝑣𝑜𝑙𝑢𝑚𝑒
5. Oil and Gas formation volume factors (Bo, Bg) and solution gas oil ratio
(Rs) are to be calculated.
6. The quantity of the water that is produced.
7. The quantity of the water that has been encroached into the reservoir.

Terms used for MBE

N – Initial reservoir oil, STB

Boi – Initial oil formation volume factor, RB/STB

Np – Cumulative oil produced, STB

G – Initial reservoir gas, SCF

Bgi – Initial gas formation volume factor, BBL/SCF

Gf – Amount of free gas in the reservoir, SCF

Rsoi – Initial solution gas-oil ratio, SCF/STB

Bg – Gas formation volume factor, BBL/SCF

W – Initial reservoir water, RB

Wp – Cumulative produces water, STB

Bw – Water formation volume factor, BBL/STB

We – Water influx into the reservoir

Cw – Water compressibility (isothermal), psi-1

ΔP – Change in average reservoir pressure, psia

Swi – Initial water saturation

Cf – Formation isothemal compressibility, psi-1

Derivation of MBE
Change in oil volume:

Initial reservoir oil volume = N Boi

Oil volume at time ‘t’ and pressure ‘p’ = (N-Np) Bo

Change in oil volume = N Boi - (N-Np) Bo --------------------------------------------- (1)

Change in free gas volume:

𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝑟𝑒𝑠𝑒𝑟𝑣𝑜𝑖𝑟 𝑓𝑟𝑒𝑒 𝑔𝑎𝑠 𝑣𝑜𝑙𝑢𝑚𝑒 𝐺𝐵𝑔𝑖

𝑚= =
𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝑟𝑒𝑠𝑒𝑟𝑣𝑜𝑖𝑟 𝑜𝑖𝑙 𝑣𝑜𝑙𝑢𝑚𝑒 𝑁𝐵𝑜𝑖

Initial free gas volume = G Bgi = N m Boi

[SCF free gas at t] = [SCF initial gas free + dissolved] – [SCF gas produced] – [SCF
gas remaining]
 𝑁𝑚𝐵𝑜𝑖
Gf = [ + N Rsoi ] – [Np Rp] – [(N - Np) Rso]
𝐵𝑔𝑖

𝑁𝑚𝐵𝑜𝑖
Reservoir free gas volume at t = {[ + N Rsoi ] – [Np Rp] – [(N - Np) Rso]} Bg
𝐵𝑔𝑖

𝑁𝑚𝐵𝑜𝑖
[Change in free gas volume] = N m Boi - {[ + N Rsoi ] – [Np Rp] – [(N - Np)
𝐵𝑔𝑖
Rso]} Bg----------------------------------------------------------------------------------------(2)

Change in water volume:

Initial reservoir water volume = W

Cumulative water production at ‘t’ = Wp

Reservoir volume of cumulative production water = Wp Bw

Volume of water encroached at ‘t’ = We

[Change in water volume] = W – (W + We - Wp Bw + W Cw ΔP)

= -We + Wp Bw – W Cw ΔP ----------------------------- (3)

Change in the void space volume:

Initial void space volume = Vf

[Change in void space volume] = Vf Cf ΔP

Or, Change in rock volume = - Vf Cf ΔP----------------------------------------------- (4)

Combining the changes in rock and water volume changes:

= -We + Wp Bw – W Cw ΔP - Vf Cf ΔP

We may write, W = Vf Swi

𝑁𝐵𝑜𝑖 + 𝑁𝑚𝐵𝑜𝑖
And Vf =
1−𝑆𝑤𝑖

So, putting these values in above equation,

𝑁𝐵𝑜𝑖 + 𝑁𝑚𝐵𝑜𝑖
= -We + Wp Bw –(1 + m) N Boi[ ](Cw Swi + Cf)
1−𝑆𝑤𝑖

𝐶𝑤𝑆𝑤𝑖+𝐶𝑓
= -We + Wp Bw –(1 + m) N Boi [ ] ΔP ---------------(5)
1−𝑆𝑤𝑖
Now, Equating the changes in the oil and free gas volumes to the negative of
the changes in the water and rock volumes and expanding all terms,
𝑁𝑚𝐵𝑜𝑖𝐵𝑔
N Boi - N Bo + Np Bo + N m Boi -[ ] - N Rsoi Bg + Np Rp Bg + N Bg Rso – Np Bg Rso
𝐵𝑔𝑖

𝐶𝑤𝑆𝑤𝑖+𝐶𝑓
= We - Wp Bw +(1 + m) N Boi [ ] ΔP
1−𝑆𝑤𝑖

Now adding and subtracting Np Bg Rsoi ,

𝑁𝑚𝐵𝑜𝑖𝐵𝑔
N Boi – N Bo + Np Bo + N m Boi - [ ] – N Rsoi Bg + Np Rp Bg + N Bg Rso –
𝐵𝑔𝑖
Np Bg Rso + Np Bg Rsoi - Np Bg Rsoi
𝐶𝑤𝑆𝑤𝑖+𝐶𝑓
= We - Wp Bw +(1 + m) N Boi [ ] ΔP
1−𝑆𝑤𝑖

Grouping the terms,

N Boi + N m Boi – N [Bo + (Rsoi – Rso) Bg] + Np [Bo + (Rsoi – Rso) Bg] + (Rp - Rsoi) Bg Np -
𝑁𝑚𝐵𝑜𝑖𝐵𝑔
[ ]
𝐵𝑔𝑖

𝐶𝑤𝑆𝑤𝑖+𝐶𝑓
= We - Wp Bw +(1 + m) N Boi [ ] ΔP
1−𝑆𝑤𝑖

Bt is the two phase formation volume factor.

Bt = Bo + (Rsoi – Rso) Bg

and Bti = Boi

So, putting these values in the above equation,

𝐵𝑔
N (Bti – Bt) + Np [ Bt + (Rp – Rsoi) Bg ] + N m Bti (1 - )
𝐵𝑔𝑖

𝐶𝑤𝑆𝑤𝑖+𝐶𝑓
= We - Wp Bw + (1 + m) N Bti [ ] ΔP ------------------------------------------(6)
1−𝑆𝑤𝑖

This is general volumetric material balance equation.

It can be rearranged as :
𝑩𝒈
N (Bt – Bti) + N m Bti (1 - )
𝑩𝒈𝒊

{Oil Expansion} {Gas expansion}

𝑪𝒘𝑺𝒘𝒊+𝑪𝒇
+ (1 + m) N Bti [ ] ΔP + We
𝟏−𝑺𝒘𝒊

{Change in the void space volume {Volume of the

due to the formation and connate encroached water}

water volume change}

= Np [ Bt + (Rp – Rsoi) Bg ] + W p Bw

{Total oil and gas production} {Water production}

------------------------------- (7)

This equation (7) is the general equation for saturated reservoir where gas cap
is present.

Modify the equation for Under saturated gas reservoir :

𝐶𝑤𝑆𝑤𝑖+𝐶𝑓
N (Bt – Bti) + N Bti [ ] ΔP + We = Np [ Bt + (Rp – Rsoi) Bg ] + Wp Bw -----(8)
1−𝑆𝑤𝑖

(for undersaturated reservoir , m= 0)

Gas reservoir :

Np Rp = Gp and N m Bti = G Bgi

𝐶𝑤𝑆𝑤𝑖+𝐶𝑓
N (Bt – Bti) + G (Bg – Bgi) + ( N Bti + G Bgi) [ ] ΔP + We
1−𝑆𝑤𝑖

= Np Bt + (Gp – Np Rsoi) Bg + Wp Bw ------------------------------------------------------ (9)

N and Np = 0
𝐶𝑤𝑆𝑤𝑖+𝐶𝑓
G (Bg – Bgi) + G Bgi [ ] ΔP + We = Gp Bg + Wp Bw ------------------------ (10)
1−𝑆𝑤𝑖
 Drive Indices
1. Depletion Drive (DDI)
2. Segregation Drive (SDI)
3. Water Drive (WDI)

Equation (7) may be written as,

𝐵𝑔
N (Bt – Bti) + N m Bti (1 - ) + We - Wp Bw = Np [ Bt + (Rp – Rsoi) Bg ]
𝐵𝑔𝑖

3rd term is neglected because the compressibility of fluids and the formation in
comparison with the driving forces can be neglected.

Dividing through by the term on the Right Hand Side ,

𝐵𝑔
N (Bt – Bti) N m Bti (1 − ) We − Wp Bw
𝐵𝑔𝑖
+ + =1
𝑁𝑝∗[𝐵𝑡+(𝑅𝑝−𝑅𝑠𝑜𝑖)∗𝐵𝑔] 𝑁𝑝∗[𝐵𝑡+(𝑅𝑝−𝑅𝑠𝑜𝑖)∗𝐵𝑔] 𝑁𝑝∗[𝐵𝑡+(𝑅𝑝−𝑅𝑠𝑜𝑖)∗𝐵𝑔]

Or, DDI + SDI + WDI = 1

Gas Reservoir
Gas in place by volumetric method:
43560∗∅∗(1−𝑆𝑤𝑖)∗ℎ∗𝐴
G= SCF
𝐵𝑔

Unit recovery from volumetric gas reservoir:

43560∗∅∗(1−𝑆𝑤𝑖)
Gi = SCF/acre-ft
𝐵𝑔𝑖

Abandonment Pressure:

 The pressure above which we are going to produce gas or oil.

 It depends on economy.
 Generally, it is 500 psi.
𝐵𝑔𝑎 = 𝐺𝑎𝑠 𝑓𝑜𝑟𝑚𝑎𝑡𝑖𝑜𝑛 𝑣𝑜𝑙𝑢𝑚𝑒 𝑓𝑎𝑐𝑡𝑜𝑟 𝑎𝑡 𝑎𝑏𝑎𝑛𝑑𝑜𝑛𝑚𝑒𝑛𝑡

43560∗∅∗(1−𝑆𝑤𝑖)
Ga = SCF/acre-ft
𝐵𝑔𝑎
 1 1
Unit recovery = 43560 * ∅ ∗ (1 − 𝑆𝑤𝑖)*[ − ] SCF/acre-ft
𝐵𝑔𝑖 𝐵𝑔𝑎

𝐺−𝐺𝑎
Recovery factor = 100*[ ]
𝐺

1 1
[ − ]
𝐵𝑔𝑖 𝐵𝑔𝑎
= 100* 1 %
[ ]
𝐵𝑔𝑖

𝑩𝒈𝒊
R.F. = 100*[1 – ]%
𝑩𝒈𝒂

Unit Recovery from Gas reservoirs under active water drive:

Connate water = 43560 * ∅ ∗ 𝑆𝑤𝑖 SCF/acre-ft

Reservoir gas volume = 43560 * ∅ ∗ (1 − 𝑆𝑤𝑖) cu ft

43560 ∗ ∅∗(1−𝑆𝑤𝑖)
Surface unit of gas = SCF
𝐵𝑔𝑖

Under the abandonment condition water volume:

Water volume = 43560 * ∅ ∗ (1 − 𝑆𝑔𝑟) cu ft

43560∗∅∗(1−𝑆𝑔𝑟)
Surface unit of gas =
𝐵𝑔𝑎

Unit recovery in SCF/acre-ft:

1−𝑆𝑤𝑖 𝑆𝑔𝑟
= 43560 * ∅*[ − ]
𝐵𝑔𝑖 𝐵𝑔𝑎

𝟏−𝑺𝒘𝒊 𝑺𝒈𝒓
[ 𝑩𝒈𝒊 −𝑩𝒈𝒂]
Recovery factor = 100* 𝟏−𝑺𝒘𝒊 %
[ 𝑩𝒈𝒊 ]
 Gas Material Balance Equation
From equation (7), we may write
𝐶𝑤𝑆𝑤𝑖+𝐶𝑓
G (Bg – Bgi) + G Bgi [ ] ΔP + We = Gp Bg + Wp Bw ------------------------ (10)
1−𝑆𝑤𝑖

 As the gas compressibility is very high, in comparison with Cw , Cf ,the

second term in Left hand side of equation (10) may be neglected.

G (Bg – Bgi) + We = Gp Bg + Wp Bw ------------------------------------------------ (11)

 When the reservoir pressure is abnormally high, the second term is not
negligible and hence cannot be ignored.
 When no water production or encroachment, we may neglect We and
Wp Bw and this type of reservoir is known as Volumetric gas reservoir.

G (Bg – Bgi) = Gp Bg ------------------------------ (12)

In terms of Bg and Bgi ,

𝑃𝑠𝑐 𝑇 𝑧 𝑃𝑠𝑐 𝑇𝑖 𝑧𝑖 𝑃𝑠𝑐 𝑇 𝑧
G( )–G( ) = Gp ( ) ------------------------------------------------- (13)
𝑇𝑠𝑐 𝑃 𝑇𝑠𝑐 𝑃𝑖 𝑇𝑠𝑐 𝑃

Z factor calculation:

 First calculate Partial critical temperature (Tpc) and Partial critical

pressure (Ppc) from the individual critical properties and mole fraction.
 Then calculate Pseudo reduced pressure (Ppr) and Pseudo reduced
temperature (Tpr).
 Then from Standing – Katz correlation, we can find the z value.

Now, for isothermal production of gas,

𝑧 𝑧𝑖 𝑧
G( ) - G( ) = Gp( )---------------------------(14)
𝑝 𝑝𝑖 𝑝

Rearranging,
𝑝 𝑝𝑖 𝐺𝑝 𝑝𝑖
=− + ------------------------ (15)
𝑧 𝑧𝑖 𝐺 𝑧𝑖

𝑝𝑖 1 𝑝𝑖
Where, − = slope, = intercept
𝑧𝑖 𝐺 𝑧𝑖
AOFP: It is the maximum gas produced without any secondary or tertiary
recovery.(at atmospheric pressure)

Limitations of the volumetric method estimation:

1) The precision of the reserve estimation by volumetric methods depends

on the accuracy of the data that are incorporated into computation.
2) Probable errors in the determination of porosity, connate water,
pressure, gas deviation factor and the determination of bulk production
volume.
3) If the base of core data in rather uniform reservoirs, it is doubtful that
the initial gas in place can be calculated more accurately than about 5%
and the figure will range upward to 100% or higher depending on the
uniformity of the reservoir and the quantity and quality of the data
available.
4) Recovery factor of any reservoir (gas/oil) depends on the abandonment
pressure.
5) If permeability stratification exist, then more complexity in the
estimation.
6) In general, reservoir calculation are more accurate for volumetric than
for water drive reservoirs.

Limitations of Material Balance Equation:

1) In Material Balance method calculation, the errors in gas production

arise in gas meter, the estimate of the lease and leakage.
2) Underground leakage from casing failure, casing corrosion. In case of
dual completions chances of leakage is more.
3) If the production is comingled, then again the complexity arises and
hence periodic well testing is required.
4) Pressure gauge errors are also there which should be taken care of while
using Material Balance Equation particularly for Big oilfield.
5) Under the best of circumstances the Material Balance estimation og the
gas in place are seldom more accurate than 5% and may range much
higher.
 Gas Condensate Reservoir
Gas-condensate production may be thought of as being intermediate
between oil and gas. Oil reservoirs have a dissolved gas content in the
range of zero (dead oil) to a few thousand cubic feet per barrel, whereas in
gas reservoirs 1 bbl of liquid (condensate) is vaporized in 100,000 SCF of
gas or more, and from which, therefore, a small or negligible amount of
hydrocarbon liquid is obtained in surface separators. Gas-condensate
reservoirs may be approximately defined as those that produce light-
colored or colourless stock tank liquids with gravities above 45ᵒ API at gas-
oil ratios in the range of 5000 to 100,000 SCF/bbl.

Calculation of Initial Gas and Oil:

Considering a two stage separation and then the average specific gravity of
the well fluid is given by,
𝐑𝟏 𝛄𝟏 + 𝟒𝟔𝟎𝟐 𝛄𝐨 + 𝐑𝟑 𝛄𝟑
γw = 𝟏𝟑𝟑𝟑𝟏𝟔 𝛄𝐨
𝐑𝟏 + + 𝐑𝟑
𝑴𝒘𝒐

where, γw = Average specific gravity of well fluid

R1 = producing GOR from the separator 1

R3 = producing GOR from the stock tank

γ1 , γ3 = Specific gravities of separator and stock tank gases

141.5
γo = Specific gravities of stock tank oil =
ᵒ𝐴𝑃𝐼+131.5

5954
Mwo = Molecular weight of stock tank oil =
ᵒ𝐴𝑃𝐼−8.811