15

Material Balance Equation

CONTENTS
1. INTRODUCTION
2. LIST OF SYMBOLS
3. MATERIAL BALANCE FOR GAS RESERVOIRS
3.1 Dry gas, no water drive
3.2 Dry gas reservoir with water drive
3.3 Graphical Material Balance
3.4 Wet Gas Reservoirs
3.5 Gas Cap Expansion
4. MATERIAL BALANCE FOR OIL EXPANSION
4.1 Above The Bubble Point
4.2 Gas Liberation Below the Bubble Point
4.3 Material Balance with Gas Cap and Water
Drive
4.4 Effect of Pore - Volume Changes
4.4.1Compressibility Effecys
4.4.2Overburden Pressure
4.4.3Connate Water
5. THE GENERAL MATERIAL BALANCE
EQUATION
6. MODIFICATIONS TO THE GENERAL
EQUATION
7. DERIVATION OF THE MATERIAL BALANCE
EQUATION BY EQUATING SUBSURFACE
VOLUME OF PRODUCED FLUIDS TO
EXPANSION OF ORIGINAL FLUIDS PLUS
PORE VOLUME REDUCTION
8

ASSUMPTIONS IN MATERIAL BALANCE

EQUATION

9. SIGNIFICANCE AND USAGE OF THE

MATERIAL BALANCE EQUATION
10. SOURCES OF DATA TO BE USED IN THE
MATERIAL BALANCE
11. LIMITATIONS OF THE MATERIAL BALANCE
12. CONCLUSION

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LEARNING OBJECTIVES
Having worked through this chapter the Student will be able to:

Present a material balance (MB) equation for a dry gas reservoir with and
without water drive.

Demonstrate the linear form of the MB equation for a gas reservoir with water
drive and comment on its application.

Be able to derive the material balance equation including gas cap expansion,
water influx and core and water compressibility.

Given the equation be able to identify the component parts of the MB equation,
eg. gas cap expansion etc.

Comment briefly on the assumptions, significance , use, data and limitations of

the MB equation.

15

Material Balance Equation

1. INTRODUCTION
In the chapter on Drive Mechanisms we reviewed qualitatively the various drive
energies responsible for hydrocarbon production from reservoirs. In this and
subsequent chapters we will introduce some reservoir engineering tools used in
calculating reservoir behaviour. The petroleum engineer must be able to make
dependable estimates of the initial hydrocarbons in place in a reservoir and predict the
future reservoir performance and the ultimate hydrocarbon recovery from the reservoir. In this chapter the material balance equation is presented.
The material balance equation is one of the basic tools in reservoir engineering.
Practically all reservoir engineering techniques involve some application of material
balance. Although the principle of conservation of mass underlies the material
balance equation, custom has established that the material balance be written on a
volumetric basis, because oilfield measurements are volumetric and significant
factors can only be expressed volumetrically.
The principle of conservation underpins the equation:
Mass of fluids originally in place = fluids produced + remaining reserves.
The equation was first presented by Schilthuis1 in 1936 and many reservoir engineering
methods involve the application of the material balance equation. Since the equation
is a volumetric balance, relating volumes to pressures, it is limited in its application
because of any time dependant terms. The equation provides a relationship with a
reservoirs cumulative production and its average pressure. However when combined
with fluid flow terms, we have a basis to carry out predictive reservoir modelling, for
example to put a time scale to production figures.
Over recent years, as increasingly powerful computers have enabled the application
of large numerical reservoir simulators, some have looked down on the simple
material balance equation and the tank model of the reservoir which it represents.
Reservoir simulators however apply the material balance approach within each of
their multi-dimensional cells. The value of this classical tool is that it enables the
engineer to get afeel of the reservoir and the contribution of the various processes
in fluid production. A danger of blind application of reservoir simulators is that the
awareness of the various components responsible for production might be lost to the
engineer using the simulation output in predictive forecasting.
The basic material balance equation is presented as a volumetric reservoir balance
as follows:
The reservoir volume of original fluids in place = reservoir volume of fluids produced
+ volume of remaining reserves.
When fluids (oil, gas, water) are produced from an oil reservoir, which may or may
not have a primary gas cap, the pressure in this reservoir will drop below the original
value. As a consequence of this pressure drop, a number of things will happen:
the pore volume of the reservoir will become smaller
the connate water will expand
Department of Petroleum Engineering, Heriot-Watt University

oil, if still undersaturated, will expand

oil, if at or already below bubble point, will shrink while gas will come out of solution
free gas, if present, will expand
water may start flowing into the reservoir, for instance, across the original oil/water
contact (OWC).

The question is now; if we start off with a given reservoir, and after some time we
have produced certain quantities of oil, gas and water, what can we say about the
average pressure in the reservoir, and what can we say about the average saturation
distribution? The answer to these questions can be obtained by considering our
reservoir at two stages:
(a) at the initial pressure pi,
(b) when we have produced certain amounts of oil, gas and water, by which time
the average pressure has declined to p (to be calculated).
Besides these natural phenomena the equation also has to be capable of handling other
factors affecting behaviour, for example injecting gas and or water.
There are a number of ways of developing the equation. We will look at two
approaches, the first examining the equation as applied to specific reservoir types and
then a simple volumetric expansion approach.
The nomenclature to be used for the various terms is given below:
NOTE:
In the following derivations, volumes at standard conditions will be converted into
subsurface volumes and vice versa. Remember that to convert a volume from standard
conditions to reservoir conditions, one must multiply by a formation volume factor (B)
and to convert from reservoir into standard conditions one must divide by a formation
volume factor.

2. LIST OF SYMBOLS
Symbols

Units

Units SI

Bg
Bo
Bt
Bw
cf
cw
G
Gp
Gps
Gpc
m

bbl/SCF
bbl/STB
bbl/STB
bbl/STB
vol/vol/psi
vol/vol/psi
SCF
SCF
SCF
SCF

M3/SCM
M3/SCM
M3/SCM
M3/SCM
vol/vol/Mpa
vol/vol/Mpa
SCM
SCM
SCM
SCM

bbl/bbl

M3/M3

Gas formation volume factor

Oil formation volume factor
Total formation volume factor
Water formation volume factor
Pore compressibility
Water compressibility
Initial gas-cap volume
Cumulative gas produced = Gps + Gpc
Cumulative solution gas produced
Cumulative gas cap produced
Ratio initial reservoir free gas volume to
initial reservoir oil volume

15

Material Balance Equation

N
Np
p
pi
Rp
Rs
Sw
We
Wp

Stock tank oil initially in place

Cumulative tank oil produced
Average reservoir pressure
Initial reservoir pressure
Cumulative gas/oil ratio
Solution gas/oil ratio
Average connate water saturation
Cumulative water influx
Cumulative water production

i
b

Other subscripts
at initial conditions
at bubble point

STM3
STM3
MPa
MPa
SCM/STM3
SCM/STM3
fraction
M3 or STM3
M3 or STM3

STB
STB
psi
psi
SCF/STB
SCF/STB
fraction
bbl or STB
bbl or STB

3. MATERIAL BALANCE FOR GAS RESERVOIRS

The simplest material balance equation is that applied to gas reservoirs. The
compressibility of gas is a very significant drive mechanism in gas reservoirs. Its
compressibility compared to that of the reservoir pore volume is considerable. If there
is no water drive and change in pore volume with pressure is negligible (which is the
case for a gas reservoir), we can write an equation for the volume of gas in the reservoir
which remains constant as a function of the reservoir pressure p, the volume of gas
produced SCF, the original volume of gas, SCF, and the gas formation volume factor.
A representation of the equation for a gas drive reservoir with no water drive is given
below.

3.1 For a dry gas reservoir - no water drive:

Figure 1
G.Bgi = (G-Gp) Bg

(1)

Bgi - based on zi, pi, Ti

Bg - based on z, p, T
Gp

Figure 1
Material Balance For a Dry
Gas Reservoirs no Water
Drive

G Bgi

=
Pi

(G - Gp)Bg
P

N.B:
pV = znRT
If the gas reservoir is supported by water drive then as gas is produced water will
encroach into the gas pore space, and some of this water may be also be produced.
Figure 2 below illustrates the contact with a supporting aquifer. Because the mobility

Department of Petroleum Engineering, Heriot-Watt University

1
of gas is far greater than water, evidence in the form of produced water may be delayed
as the water keeps to the gas water contact. The support from the water would be
evidenced however by the pressure support given to the reservoir. In earlier years this
may not be so easy to detect.

3.2 For a dry gas reservoir with water drive

With water drive water will enter pore volume originally occupied by gas and some
water may be produced. Figure 2
Gp
GBgi

(G - Gp) Bg
=

Water

Wp

Figure 2
Material Balance For a Dry
Gas With Water Drive

We - Wp
Water

GBgi = (G-Gp)Bg + We - Wp

(2)

EXERCISE 1
A gas reservoir without water drive contains 500 million standard cubic feet of gas
at an original pressure of 3,000psia. How much gas has been produced when the
reservoir pressure has declined to 2,900 psia. Use Bgi and Bg for the initial and
2,900psia pressure as 0.0010 and 0.0011 bbl/scf.

This simple example illustrates the significant amount of gas production associated
with a relatively small pressure decline.

3.3 Graphical Material Balance

One can use a graphical form of the material balance equation to analyse a gas
reservoir and predict its behaviour especially if no water drive is present.

G.Bgi = (G G p ) Bg

From equation 25 in Gas Pr operties chapter where Bg =

0.00504z i T
0.00504zT
G

= (G G p )
pi
p

0.00504z i T
p

15

Material Balance Equation

zi
z
= (G G p )
pi
p

p Gzi
Gp = G
z p i

(3)

hence plot of Gp vs p/z should give a straight line

G
X
X
Gp
Cumulative gas
production

Figure 3
Gp vs. p/z

p/z

Pi/Zi

If gas was ideal a plot of Gp vs p would be a straight line. It is often practice to do this
and get a relatively straight line, but caution has to be taken, since deviation from a
straight line could indicate additional energy support.
- when p/z = 0
- when Gp = 0

Gp = G the original gas in place

p/z = pi/zi

This procedure is often used in predicting gas reserves. Often the influence of water
drive is ignored resulting in a serious error in reserves.
This simple analysis method for gas reservoirs has gained wide acceptance in the
industry as a history matching tool, to determine for example an estimate of initial gas
reserves based on production data. This figure, (figure 3 ), can then be compared to
estimates from exploration methods. It can also give indications of gas to be produced
at abandonment pressures. The following example exercise from Sliders2 reservoir
engineering text illustrates the application of the method

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EXAMPLE
A dry gas reservoir has produced as follows:
Data

07-Jan-65
07-Jan-66
09-Jan-67
10-Jan-68
11-Jan-69

Data
Reservoir Temperature
Gas Gravity

Cumulative
production
MM SCF
0
1,800
3,900
5,850
9,450

Static Res.
Pressure
psia
3,461
3,370
3,209
3,029

T= 100F
SG= 0.68

1. Determine the original pressure and original gas in place.

2. What will be the average reservoir pressure at the completion of a contract calling
for delivery of 20 MM SCFD for 5 years (in addition to the 9,450 MM SCF
produced to 11-Jan-69?)

SOLUTION
To construct the graphical material balance plot we must first determine the P/Z
values.
Using figures 2 and 3 from the Gas Reservoir chapter for a gas gravity of:
SG=0.68
The pseudo-critical parameters are found to be:
Pseudo critical pressure (psia)
Ppc= 667.5 psia
Pseudo critical temperature (oR)
Tpc= 385.0 R
Graphical material balance
Cumulative
production
MM SCF
0
1,800
3,900
5,850
9,450

Reservoir
Pressure
psia

Pseudo reduced
Pressure
Temp.
Pr
Tr

Z
(From Fig. 2)

P/Z

3,461
3,370
3,209
3,029

5.19
5.05
4.81
4.54

0.796
0.790
0.778
0.765

4,348
4,266
4,125
3,959

1.45
1.45
1.45
1.45

The P/Z vs. G, plot is shown in the following figure:

15

Material Balance Equation

Graphical Material Balance

4500
y=-0.0522x + 4448.3
R2 = 0.9904

4400

P/Z (psia)

4300
4200
4100
4000
3900
3800
0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Cumulative gas production (MM scf)

Figure 4 (a)

Graphical Material Balance

4500
4000

y=-0.0522x + 4448.3
R2 = 0.9904

3500

P/Z (psia)

3000
2500
2000
1500
1000
500
0
0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Cumulative gas production (MM scf)

Figure 4 (b)

From the straight line of figure 1,

Slope
=
-0.0522
Intercept
=
4,448.3
Equation

P/Z= -0.0522 Gp + 4448.34

(1a)

Initial Pressure
From figure 4, at Gp = 0:
Pi/Zi=

4,448.3 psia

Now, dividing by Pc
i.e.

Pri/Zi =

( Pi / Z i ) Pr i
=
Pc
Zi

6.6642

From figure 5:
Zi= 0.81
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1
Therefore:
Pi= 3,603
Original Gas in Place "G"
G can be calculated directly from Eq. (1a), when P/Z = 0
G= 85,217 MM SCF
Pressure at the Completion of the Contract
Gas production rate (contract)
=
20 MMSCFD
Duration (contract)
t
=
5 Years
Cumulative volume (contract)
=
36,500 MM SCF
At the end of the contract:
Total cumulative production Gp =
45,950 MM SCF
P/Z =
2,050 psia
from equation 1a
Again, by dividing by Pc
Pr/Z =
3.07
Z

0.775

Finally,

1,589 psia

1.75
1.65
1.55

Used to obtain p and z when

analyses result in p/z answers.

1.45

(pr/z) = (p/z)/pc
z can be read from graph.

1.35

p = (pr/z) z pc

1.05
1.10
1.
1.2015
1.25
1.30
1.35
1.40
1.45
1
.
1 50
1 .60
1 .7
1.9.800
2
0
.
0
2.2.20 0
40

and from Figure 5

2.60
2.80
3.00

Gas deviation factor, z

1.25
1.15
Reduced temperature, Tr

1.05
0.95
0.85
0.75
0.65
0.55
0.45
0.35

3.00
2.80 2.60
2.40 20
2.
2.00
1.90
1.80
1.70
1.60
1.50
1.45
1.40
1.35
1.30
1.25

1.20
1.15

1.10
1.05

0.25
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0
(pr/z)

10

Figure 5
Gas Deviation Factor
z vs. Pr/z (Slider2)

15

Material Balance Equation

Great caution has to be taken when using this method. Water drive is considered to be
zero, that is the gas is being solely produced as a result of gas compressibility. If water
drive exists this will contribute to pressure support. If a plot of Gp vs p/z deviates from
linearity than that gives evidence of water drive support. Figure 6 from Dake
illustrates this deviation. If a straight line is fitted to this data assuming no pressure
support from water then gas reserves are enhanced, beyond what they are in actuality.
(b)

(a)
3500

3500

P/Z

P/Z

Figure 6
p/z Plots For A Water Drive
Gas Reservoir3.

2700

Gp

Gp

G'>G

We will consider this topic later If there is water drive then the equation;
GBgi=(G-Gp)Bg +We-WwBw

(4)

applies.

3.4 Wet Gas Reservoirs

Another aspect that needs to be considered with gas reservoirs is the treatment of wet
gas reservoirs. In these reservoirs production also includes liquids as well as gas,
although in the reservoir the liquids were in a gaseous state, figure 7. In the application
of the material balance equation to these reservoirs it is important to convert oil
production to gas equivalent figures to add to the gas production figures.
Pi, Ti

Liquid

Bubble point line

Single phase

P
2 phase

Figure 7
Phase Diagram For a Wet
Gas System

Sep.

Dew point line

Mixture
Gas

The equation already produced assumed that the formation of liquid condensate
causes insignificant error in the quality.
For condensate systems the Gp produced should include the produced condensate and
the produced water (originally dissolved in gas).
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11

1
The volume of 1 STB of condensate of molecular weight Mo and specific gravity o
follows from equation.

V=

znRT
P

z = 1.0 at p = 14.7 psia and T = 520R (Density of water = 62.4 lb/ft3)

V / STB = 10.73

V = 133,000

psia SCF
520R lb mole
lb
cu ft
x
x
x62.4 o
x5.615
lb moleR 14.7 psia M o lb
cu ft
STB

o SCF
M o STB

3.5 Gas Cap Expansion

If a gas reservoir is attached to an oil reservoir (figure 8 ), a similar equation to (2):
GBgi = (G-Gpc) Bg
can be written to describe the change in gas cap volume due to oil production and
production of gas. In this case it is suggested that some gas has been produced from
the gas cap, Gpc.
Gpc
GBgi

(G - Gpc) Bg
=

Oil

Gas cap exp.

Figure 8
Gas Cap Expansion

Oil

Change in gas cap volume is

(G - Gp)Bg - GBgi

(5)

4. MATERIAL BALANCE FOR OIL RESERVOIRS

4.1 Above the Bubble Point
Above the bubble point the production of the reservoir is due to the expansion of the
liquid (including water) in the reservoir as pressure declines, and the reduction in pore
volume due to the decrease in pressure. Assuming that the production is due entirely
to liquid oil expansion, a material balance for an oil reservoir is similar to that for a
gas reservoir.
NBoi = (N - Np)Bo

(6)

where N is the original oil volume in the reservoir and the Np is the volume of oil
produced both expressed in stock tank barrels.

12

15

Material Balance Equation

Clearly this is a poor assumption but is useful in illustrating the equation development.
Pore volume changes will be considered later in the context of pore space and connate
water.

4.2 Gas Liberation Below the Bubble Point

When the oil in the reservoir reaches the bubble point pressure, gas will be liberated
and will continue to be liberated as the pressure declines. This is the mechanism of
solution gas drive described previously.
As we observed in this mechanism, the produced fluids are now oil with its contained
solution gas and gas which has come out of solution from the oil. Not all of this
released free gas will be produced to the surface, some will remain in the reservoir.
The free gas in the reservoir can be written:
Free gas in reservoir = original gas in solution - remaining gas in solution - produced
gas(Gps).
= NRsi - (N - Np)Rs - Gps

SCF

= (NRsi - (N - Np)Rs - Gps)Bg

bbl

(7)

The volume of free gas and the remaining oil can now be added to the original oil
volume.
NBoi = (N - Np)Bo + (NRsi-(N - Np)Rs - Gps)Bg

(8)

The equation can be written in terms of the original stock-tank volume in the reservoir.

N=

N p Bo + Bg (G ps N p R s )
Bo Boi + (R si R s )Bg

(9)

Np

Figure 9
Material Balance For
Solution Gas Drive

NBoi

Gps

Free Gas
(NRsi-(N-Np)Rs-Gps)Bg
Oil
(N-Np)Bo

4.3 Material Balance with Gas Cap and Water Drive

The equation just developed assumes no change in reservoir volume. If fluid
encroaches into original oil bearing volume either from an expanding gas cap or an
encroaching water drive there will be loss to the reservoir volume.
Change in volume due to gas cap expansion.
= (G - Gpc)Bg - GBgi

Department of Petroleum Engineering, Heriot-Watt University

(10)

13

1
Change in volume due to water encroachment
= (We-Wp)

(11)

Total change in volume = original oil volume - (oil volume + free solution gas)

Np

NBoi

Gpc

Gps

Wp

Gas cap expansion

Oil volume and free
solution gas
Net water encroachment

Figure 10
Material balance with gas
cap and water drive

That is (We-Wp) + (G - Gpc)Bg - GBgi

= NBoi - (N - Np)Bo + (NRsi-(N - Np)Rs - Gps)Bg

N=

(12)

N p Bo + Bg (G ps N p R s ) (G G pc )Bg GBgi ) ( We Wp )
Bo Boi + ( R si R s )Bg

(13)

The gas production is separated into gas cap and solution gas, Gpc and Gps. However,
the two can be combined so that Gp=Gpc+Gps then:

N=

N p Bo + Bg (G p N p R s ) G(Bg Bgi ) ( We Wp )
Bo Boi + ( R si R s )Bg

(14)

4.4 Effect of Pore-Volume Changes

4.4.1 Compressibility Effects
The compressibility of water is about 10-6 psia-1 compared to oil at around 10-5 psia-1 and
although it is a low value it can contribute significantly to the hydrocarbon pore
volume change when pressure declines. Another contributing effect to reduction of
pore volume available to hydrocarbons is the compressibility of the pore volume itself.
The reduction in pore volume with decline in pressure is due to two factors..
reduction in the bulk volume of reservoir
increase in volume of the reservoir grains
Figure 11 below illustrates the impact of overburden stress

14

15

Material Balance Equation

Overburden pressure

Pore pressure

Figure 11
Cross Section of Sandstone
Influence of Overburden
and Pore Pressure2.

- sand grains
- pore space

4.4.2 Overburden Pressure

A reservoir is subjected to an overburden pressure caused by the weight of the
formation above the reservoir. It is equivalent to about 1 psi/ft of depth. These
pressures simply apply a compressive force to the reservoir rock. The pressure in the
pore space, the pore pressure, does not normally approach that of the overburden
pressure and is normally about 0.5 psi/ft. If the reservoir sands are highly unconsolidated
then this pressure could be higher as the overburden pressure is transmitted to the
fluids in the pore space.
When the pore pressure is reduced then the effective opposing pressure is increased
and the bulk volume is slightly reduced. At the same time since the rock grains are
compressible albeit only slightly the effect of a reduction in reservoir pressure will be
to expand the rock grains.
hence reduce Vb
and increase Vs

)
)
)

- decrease in porosity

1 Vpr

Compressibilty of rock cf = V .
p
p
Vpr = CfpVp

(15)

Where Vp is the volume of the pores.

4.4.3 Connate Water

Expansion of connate water can contribute to the reduction in pore volume for the
hydrocarbons.
The compressibility of the water can be expressed as

Department of Petroleum Engineering, Heriot-Watt University

15

1
cw =

1 Vpw
Vpw p

(16)

Where Vpw is the volume of water in the pores

Vpw = Vp x Swc
Vpw = cwpSwcVp

(17)

Total pore volume change:

Vp = Vpw + Vpr
Vp = (cf + cwSwc) p Vp

(18)

This term can be added to the material balance equation in the same way that water
encroachment can be considered.

Vp =

Pore volume:

NBoi
1 Swc

Compressibility effect of water and pores

Vpw + pores =

NBoi
(cw Swc + c f )p
1 Swc

(19)

If the original volume of pores also includes that associated with the gas cap, then the
pore volume is equal to

Vp = (1 + m )

NBoi
1 Swc

where m is the ratio of the original reservoir gas cap volume to the original reservoir
oil volume. Some choose not to add this m factor term since if free gas is present as
a gas cap then the compressibility associated with the gas is far greater than the pore
and water compressibility values.

5. THE GENERAL MATERIAL BALANCE EQUATION

Combining all the effects of gas cap expansion, water encroachment, pore volume
changes and equating these to the volume changes associated with the oil gives the
general material balance equation below.

16

15

Material Balance Equation

net water inf lux

pore volume reduction

(We Wp Bw ) + (G Gpc ) Bg GBgi +

(C f + Cw Swc )pNBoi
(1 Swc )

gas cap exp ansion

original oil

oil and free solution gas

= NBoi ( N N p ) Bo + ( NRsi ( N N p ) Rs Gp ) Bg

(20)

or
N=

N p Bo + Bg (Gp N p Rs ) G( Bg Bgi ) (We Wp )

Boi
Bo Boi + ( Rsi Rs ) Bg + (C f + Cw Swc )p
1 Swc

(21)

The above equation is the general material balance equation.

In some texts the pores connate water compressibility term includes a product with
(1+m). This includes pore volumes associated with a gas cap as mentioned above.
The equation can be rearranged for different applications. The following useful
rearrangement by Archer4 , figure 11, helps to identify the constituent parts of the
equation.

Present Oil Volume

(N-Np)Bo

Original Oil
Volume
NBoi

Free Solution Gas

[NRsi-(N-Np)Rs-Gps]Bg

Gas Cap Expansion

(G-Gpc)Bg-GBgi

Net Water Influx

We-WpBw

Rock(pore) and connate water expansion

NBoi (1+m)p

Figure 12
Elements of the MB
Equation

cwSwc+cf
1-swc

Injected volumes
WinjBw+GinjBg

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1
In the literature sometimes the equation is presented using the total formation volume
factor Bt and the ratio of the initial reservoir free gas volume to the initial reservoir oil
volume m, Gp, is also expressed as a function of produced gas - oil ratio Gp.

total formation volume factor Bt

where Bt= Bo + (Rsi-Rs)Bg

GBgi

m=

Gp = NpRp

NBoi

Substituting these factors the general material balance equation because:

N=

N p (Bt + ( R p R s )Bg ) ( We Wp )
Bt Bti + (c f + c wSwc ) p Bti / (1 Swc ) + mBti

(Bg Bgi )
Bgi

(21)

6 MODIFICATIONS TO THE GENERAL EQUATION

All the terms of the general equation as just presented may not be significant all the time.
For example above the bubble point a number of the parameters will be zero.
Above the bubble point the solution gas - oil ratio is constant and therefore
Gp-NpRs = 0 since only solution gas will be produced above the bubble point.
If we are operating above the bubble point then there will for the majority of reservoirs
be no gas cap, and therefore the gas in place term, G or m, will also be zero. (Some
reservoirs with a compositional gradient can have a gas cap and also at the lower part
of the formation a different com position with undersaturated fluid.) The term in the
denominator, Rsi - Rs, will also be zero.
The equation therefore above the bubble point reduces to a simple equation, associated
with compressibility terms of the oil ( the formation volume factors ) and those of the
connate water and pore space. We will consider this later when we examine some
applications of the equation.
When the reservoir is below the bubble point then, the terms described above being
zero in the undersaturated condition, have significance and are not zero. However the
term in relation to the compressibility of the connate water and pore space although
contributing to the overall balance is very small when compared to that from free gas
compressibility. It could be argued that the absolute changes in the water and pore
compressibility term is less than the errors associated with the free gas terms, when
the system is below the bubble point
The equation also includes a term with respect to water drive, We. Other terms can also
18

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Material Balance Equation

be added to include artificial drive, for example gas injection, Gi and water injection
Wi. Clearly when any of these three drive supports, natural or otherwise, are not active
then clearly they are zero. Although there may not be any water drive, We or Wi , there
still could be water production as a result of mobilisation of connate water.
We have developed the equation by considering the impact of the various elements
involved in fluid production. An alternative derivation is based on the perspective that
the equation is an expression of the total compressibility of the reservoir system.

7. DERIVATION OF THE MATERIAL BALANCE EQUATION BY

EQUATING SUBSURFACE VOLUME OF PRODUCED FLUIDS TO
EXPANSION OF ORIGINAL FLUIDS PLUS PORE VOLUME REDUCTION
The simple definition of compressibility,c , is

c=

1 dV
V dP

The individual expressions of the compressibility of the oil,gas, water and rocks are,
co, cg, cw and cf. These compressibilities depend on the nature of the fluids and rocks
and between them have significant variations Gas is the most compressible down to
water and rock depending on its compostion and nature.
Cg = 500x10-6
Co = 10x10-6
Cw = 3x10-6
Cf = 1x10-6

to
to
to
to

1500x10-6 psi-1
20x10-6 psi-1
5x10-6 psi-1
25x10-6 psi-1

It is better to consider rock compressibilities in the context of the reservoir behaviour

in terms of pore volume comressibility, since it is the pore volume which is available
for containing fluids. If the compressibility is in terms of the change in pore volume
per unit bulk volume, dividing it by the porosity changes the numeric value when
expressed as pore volume per pore volume. For example, at a porosity of 20%, a
compressibility of 1x10-6 pore volume per bulk volume is 5x10-6 pore volume per pore
volume per psi.
Even these pore compressibilties are small but their significance should not be
neglected particularly above the bubble point.
This compressibility perspective as an alternative way to derive the material balance
equation is based on the following philosophy. Visualise again a reservoir at initial
pressure pi containing oil plus dissolved gas, a primary gas cap and connate water
(Figure 15)

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FLUID VOLUMES
Prim. Gas cap

Initial volumes
at pressure Pi

Oil + originally
dissolved gas

Fluid expansions
down to pressure P

Connate water
Water influx We

PORE VOLUMES

New pore volume

at pressure p

Reduction in total
pore volume down to
pressure P

Total pore volume

at pressure Pi

Suppose that the pressure were reduced from pito p. Obviously this could not be done
without production, but let us see what effect such pressure reduction would have. The
volumes of the three phases will expand as shown in Figure 15. There may also have
been a water influx We. Also, the total available pore volume will become smaller,
through pore compressibility effects just described. Clearly, the new fluid volumes,
plus the water influx, do not fit any longer in the available pore space, there is a
shortage of space equivalent to the sum of the shaded areas in Figures 15. Consequently, an equal volume of fluids can no longer be present in the formation, and must
therefore be the same as the reservoir volume at pressure p of the produced fluids.
With this in mind, we can state the material balance as follows:
Reservoir volume at pressure p of the produced fluids = expansion of primary gas cap
+ expansion of oil plus originally dissolved gas + expansion of connate water + water
influx + reduction of total pore volume.
Or put in another way by Dake15
20

Figure 13
Material Balance By
Equating Sub Surface
Expansion To Fluid
Production

15

Material Balance Equation

Underground withdrawal = expansion of the system + cumulative water influx.

The individual components in this equation can be quantified as follows:

Reservoir Volume at p of Produced Fluids

Production consists of:
Np STB of oil, Gp or Np RpSCF of gas and

Wp STB of water.

The subsurface volume at pressure p of oil is Np Bo res. bbl. including an amount of

dissolved gas equivalent to Np Rs SCF.
We have produced Np Rp SCF, therefore the equivalent of Np Rp - Np Rs SCF must exist
as free gas in the reservoir at pressure p. Its subsurface volume is Np (Rp-Rs)Bg res.bbl.
Hence the reservoir volume at pressure of produced hydrocarbons ,HCPV is:
produced HCPV (p)
= Np Bo + Np (Rp-Rs)Bg (res.bbl.) = Np (Bo + (Rp-Rs) Bg) (res.bbl.)

(22)

Reservoir volume of produced water is about equal to WpBw barrels, hence:

Res. volume at p of produced fluids
=Np(Bo+(Rp-Rs)Bg) + Wp (res. bbl.)

(23)

Expansion oil + originally dissolved gas

The original volume of the oil is:NBoi, when the pressure is reduced the oil shrinks and
gas is liberated.
Volume change of oil is N(Bo-Boi).
During this process gas comes out of solution whose reservoir volume is:
N(Rsi-Rs)Bg.
Therefore the total change in volume is:
N[(Bo - Boi) + (Rsi- Rs)Bg]

(24)

Expansion of primary gas cap

The original hydrocarbon pore volume of the gas cap is:
mNBoi
The surface volume is;

mN

Boi scf
Bgi

At a lower pressure,p, the reservoir volume is:

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mNBoi

Bg
Bgi

The expansion of the gas cap is therefore:

mNBoi g 1
Bgi

(26)

Expansion of connate water

Connate water has a low compressibility but is significant in undersaturated conditions
The compressibility of the water is:

cw =

1 dVw
Vw dP

The expansion of the connate water with pressure decline is therefore:

dVw = cwVwp
Vw is the total volume of the water. This is a proportion Sw of the total pore volume.
The total pore volume is that associated with the oil and a gas cap. The pore volume
of the oil at a saturation of (1-Swc) or So is: NBoi, the pore volume including the water
is NBoi/(1-Swc).
For the gas cap, the hydrocarbon pore volume is mNBoi, and including water is
mNBoi/(1-Swc) .
The total pore volume associated with the gas cap and oil, including connate water, is:
(1+m)NBoi.
The pore volume of connate water is:

(1 + m) NBoi Swc
(1 Swc )
The expansion of the connate water is therefore:

(1 + m) NBoi Swc cw p
(1 Swc )

(27)

Pore Volume Changes

The impact of pressure reduction on the pore volume is to reduce volume available for
hydrocarbons and therefore can be treated as an expansion term alongside the
expansion terms associated with the oil, gas and connate water.
The change in volume of the pores associated with the total pore volume is therefore:

(1 + m) NBoi c f p
(1 Swc )
22

(28)

15

Material Balance Equation

Water influx
If there is an aquifer, then as pressure is reduced water influxes into the reservoir
volume. This water influx is We (res.bbl.)
We can now add all these expansion terms and make then equivalent to the reservoir
volume of produced fluids. This gives the full material balance equation.

reservoir volume of produced fluids (22)

N p Bo + ( R p R s )Bg + Wp Bw = N (Bo Boi ) + ( R si R s )Bg

Expansion of oil and dissolved gas (24)

exp ansion of gas cap (26)
B
(1 + m )NBoi (c wSw + c f )p
+ mNBoi g 1 +
+ We
(1 Swc )
Bgi
pore volume reduction (27 + 28)
This simplifies to:

N p ( Bo + ( Rp Rs ) Bg =
( B Boi ) + ( Rsi Rs ) Bg

Bg
c S + cf
NBoi o
1 + 1 + m w wc
+ m
p
Boi

1 Swc
Bgi

+(We Wp Bw )
(28)

Injection terms
If there is water injection Wi and or gas injection Gi these can also be added, to the
equation either as added to the expansion terms or subtracted from the production
terms.

8 ASSUMPTIONS IN MATERIAL BALANCE EQUATION

The MB equation has some basic assumptions and limitations which can cause some
erros when applied to some reservoirs.
Pressure
The MB equation is a tank model treating the reservoir as a large tank at which the
pressure is constant throughout the reservoir at a particular time. It clearly ignores
pressure changes which may arise across the reservoir. In the radial flow section it was
clear that there are large pressure variations around the producing and injection wells.
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In order to apply the equation at a particular time an average pressure has to be selected
being representative of the reservoir pressure at the particular time. All fluid properties
are evaluated at this pressure. In the next chapter we will discuss this topic further.
Temperature
Changes in a reservoir generally take place at isothermal, constant temperature,
conditions, unless major external temperatures are imposed thorough for example
thermal recovery processes and in some cases large cold water injection schemes.
Production Rate
When things happen is not part of the MB equation as there is no term present including
time, for this permeability would be required. Rate sensitivity is therefore not part of
the equation and for those situations, for example in water drive, which are dependant
on rate of production the material balance equation requires the application of other
equations.
Representative PVT data
The PVT measurments should be made in an attempt to reflect the behaviour in the
reservoir. Although this may not be totally possible conditions as near to the real
situation are used, for example in the differential test to reflect below bubble point
conditions.
Good production data
It is important in the application of the MB equation to have reliable production data
not only oil and gas but also water.

9. SIGNIFICANCE AND USAGE OF THE MATERIAL BALANCE

EQUATION
The material balance is roughly a relation between four quantities:
oil and gas in place (N, m or G)
production (Np, Rp, Wp)
water influx (We)
average reservoir pressure (pressure dependent PVT parameters and: p
in pore/water compressibility term).
This means that if three of these quantities are known, the fourth can be calculated.
Some examples illustrate this:
If production and pressure date are known as a function of time, and oil and gas in
place is available from a volumetric estimate, the water influx We can be
determined as function of time. Its magnitude has a direct bearing on secondary
recovery plans.
If there is no evidence of a natural water drive (We=0) the oil in place can be
calculated from production and pressure data. This may have an influence on the
geological interpretation (volumetric estimate) and thus on the further development
of the reservoir.

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Material Balance Equation

For a known oil in place, the pressure at future dates can be calculated for a
postulated production plan (making some assumptions regarding the future water
influx). The result of this calculation may help in:
(a)

deciding whether or when artificial lift facilities will be needed.

(b)

estimating the reserve of the reservoir down to a certain abandonment

pressure, also as function of the cumulative gas oil ratio Rp.

Dake3 has also examined the status of the various parameters of the equation with
respect to the application of the equation. He divides the parameters into should be
known and potential unknown.
Should be known
Np
Rp
Wp
cw
Swc
Bw

Potential unknown
N
We
p
Bo, Bg, Rs
m
cf

From this list there appears to be 6 knowns and 8 unknowns, demonstrating the
challenge facing reservoir engineering in needing sufficient independent equations to
solve to determine the number of unknowns. As Dake points out the situation in
reservoir simulation is even worse with more unknowns of reservoir geometry and
description in terms of porosity, and a variety of relative permeabilities.
In examining the knowns, he points out that although Np and Rp are generally the best
known, in old and remote fields good records may be such that oil, gas and water
production figures may not be so readily available. He points out that petrophysical
evaluation is always correct. So for example the connate water saturation Swc is
obtained by averaging its values over all intervals and wells associated with the
analysis.
In relation to the unknowns, the material balance, once production and pressure
information is available, provides a useful route to upgrading the original estimate of
in place, STOIIP, N, which has previously been estimated from a combination of
petrophysical related information. The material balance generated result provides a
more effective value since it would not include volumes in undrained or low
permeability areas of the reservoir.
Waterdrive as was discussed in the drive mechanism chapter is a very effective drive
mechanism. In reservoir development it provides a major challenge in predicting its
role. To predict the influx of water from an aquifer requires a good characterisation
of the aquifer, its geometry and the important flow related properties. To determine
such for what is compared to the associated oil reservoir a very large system is very
costly and is difficult to justify, for something which only produces water! The nature
of waterdrive is best determined when its impact on actual reservoir performace is
observed. Clearly if water underlays the hydrocarbon formation as a bottom water
drive system, then the advancing water oil contact can be logged in the well. However
if edge water drive is occurring then actual well observations may not be possible.
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Material balance provides an opportunity to determine the support from water drive,
but translating this information into specific aquifer characteristics is not straightforward.
The size of gas cap although more accessible is not always easy to determine, since
it may be preferred for development reasons during drilling to drill through the gas
cap.
Up until recently, water and rock compressibility terms of cw and cf have largely been
assumed to be of little importance and their value if not readily available obtained
from text book type sources. Such assumptions can be very costly particularly for
those fields where compaction drive is very significant.
The material balance equation, a zero dimensional model, or tank model, requires an
average pressure and this average pressure is reflected implicitly in relation to PVT
parameters and explicity in relation to compressiblity of water and rock. This
average pressure determination may be obtained from a range of pressures from
wells within the drainage area. We will discuss this in the next chapter.
The material balance is also a backbone in all mathematical reservoir simulators,
where pressures in individual grid blocks are calculated (apart from production data)
on the basis of influxes from or effluxes to adjacent grid blocks. Over recent years
there has developed an perception by some that the simple material balance
approach has been superceded by the more comprehensive reservoir numerical
simulation, with its potential of analysis at small dimension levels compared to the
full field tank size of the MB equation . Until his recent death, Dake and others have
recognised the value of the MB in 'feeling' the reservoir and also providing useful
input to the many uncertainties associated with implementing a full reservoir
simulation study.

10. SOURCES OF DATA TO BE USED IN THE MATERIAL

BALANCE
A range of sources provide the key data for the application of the MB equation. These
sources are also the source for other simulation tools.
PVT Data
From PVT reports of individual wells. Averaging and correcting PVT data prior to
use in and M.B. may also be required
Production Data
From well and reservoir records (data banks) or the subject of calculation.
Oil and Gas in Place
From volumetric estimates or subject of the calculation.
Connate Water Saturation
Sw : from petrophysics

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Material Balance Equation

Water Compressibility
cw : at oilfield temperatures and pressures: Should be determined.
4 to 5 x 10-5 atm-1 = about 3 x 10-6 psi-1
Pore Compressibility
In the past has often been assumed from texts. Should be measured.
Reservoir Pressures
From pressure surveys in the field, or subject of the calculation. In the next chapter
we will see how an average pressure can be obtained from a reservoir where there are
different drainage zones.
Water Influx
The subject of water influx, We is covered in a subsequent chapter.

11. LIMITATIONS OF THE MATERIAL BALANCE

A material balance is a zero dimensional mathematical model, in which fluid
properties and pressures are averaged over the entire reservoir. Variations in initial
fluid properties, for instance, a change in bubble point either laterally or as function
of depth, as a result of compositional variations, cannot be handled adequately. The
degree to which the results of an M.B. calculation are invalidated depends on the
magnitude of such variations.
With the MB, the average saturation distribution (So, Sg, Sw with So + Sg + Sw = 1) can
be calculated. However, no conclusion may be inferred how a calculated gas
saturation is distributed, i.e. whether this free gas is spread more or less evenly over
the entire reservoir, or whether the gas is concentrated in some localised areas.
The most significant aspect of MB is that it does not contain time as a parameter. This
means that although an M.B. calculation may tell us what will happen, it cannot say
when it will happen. We can, for instance, calculate that the average pressure of a
given reservoir will drop by 1973 psi for an oil and gas production of 88 MM STB
and 59 MMM SCF respectively, but the material balance will not tell us whether this
situation will be achieved in 1, 10 or 100 years. By combining the material balance
results with other methods for example well productivity equations time information
can be added to the production / pressure predictions from MB methods.

12. CONCLUSION
Summarising: the material balance is an important and indispensable reservoir
engineering tool. As with other reservoir engineering tools it has its limitations of
which the user should be aware. Viewed against a somewhat wider background the
following quotation from Muskat (Reservoir Engineering News Letter September
1947). is still applicable:

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The materials balance method is by no means a universal tool for estimating
reserves. In some cases it is excellent. In others it may be grossly misleading. It is
always instructive to try it, if only to find out that it does not work, and why. It should
be a part of the stock in trade of all reservoir engineers. It will boomerang if applied
blindly as a mystic hocus-pocus to evade the admission of ignorance. The algebraic
symbolism may impress the old timer and help convince a Corporation Commission,
but it will not fool the reservoir. Reservoirs pay little heed to either wishful thinking
or libellous misinterpretation. Reservoirs always do what they ought to do. They
continually unfold a past which inevitably defies all man-made laws. To predict this
past while it is still the future is the business of the reservoir engineer. But whether
the engineer is clever or stupid, honest or dishonest, right or wrong, the reservoir is
always right.

Solutions to Exercises
EXERCISE 1
A gas reservoir without water drive contains 500 million standard cubic feet of gas at
an original pressure of 3,000psia. How much gas has been produced when the
reservoir pressure has declined to 2,900 psia. Use Bgi and Bg for the initial and
2,900psia pressure as 0.0010 and 0.0011 bbl/scf.
SOLUTION 1
Gas Material Balance with no water drive
GBgi = ( G-Gp)Bg
equation 1
(5x108x0.001)=(5x108 -Gp)x0.0011
Gp = 4.55E+07 scf

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Material Balance Equation

REFERENCES
1. Schilthuis, R.J. Active Oil and Reservoir Energy, Trans AIME, 118:33-52, 1936.
2. Slider, H.C., Petroleum Reservoir Engineering Methods, Petroleum Publishing
Co. Tulsa, 1976.
3. Dake,L.P. The Practise of Reservoir Engineering. Elsevier Ams. 1994
4. Archer,J.S and Wall,C.G. Petroleum Engineering , Principles and Practise,
Graham&Trotman .Ldn 1986
5. Drake L.P Principles of Reservoir Engineering. Elsevier 1978

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