Fig, 1.14—Data configuration of sampled data. 1.4.2 Advantages. Geostatistical methods have several ad- vantages over conventional methods, ‘© Most estimation methods used for interpolation and ex- ‘rapolation purposes are highly empirical in nature. Although ‘based on sound mathematical principles, these methods may not provide a physical reasoning for using sample values in certain ways to estimate values at unsampled locations. For example, an inverse-square-distance method assumes thatthe influence of a sample point on an estimated value at an un- sampled location is inversely proportional to the distance squared between those two points. No physical basis exists for this particular assumption, In contrast, methods that use ‘geostatistics are based on spatial relationships that are estab- ished by use ofthe sampled data. Depending on the available sample data and their configuration, the relationships change. Inessence, spatial relationships are customized for a parti Jar data set, unlike when a generalized relationship is used for all the data sets. This way, the influence of the surrounding sample data onthe unsampled location is calibrated proper! * Most estimation methods do not provide the estimation errors along ivth the estimated value, However, itis impor- tant that the uncertainties associated with the estimation be established properly. Depending on the availability of the sampled data, the uncertainties with respect to the estimate can vary significantly. In addition to providing the estimated values, geostatistical procedures also provide associated un- certainties inthe estimation. * Most estimation methods estimate only the point values ‘at unsampled locations. In contrast, geostatistical methods can account for the supportor volume of the location at which, the variable needs to be estimated. This may be especially useful in estimating simulator gridblock values. Although certain limitations exist with respect to area-or volume-based, estimates of a variable, in principle, geostatistical methods can account for the volume or area of a location in estimating, a Variable value at that location. * Geostatistical techniques honor sampled data. This ‘means that values calculated by these methods are identical to sampled values at sampled locations. * Many estimation techniques do not account for data re- ddundancy. Although the same amount of information is avail able, depending on the data configuration, some data may be ‘more valuable in the estimation procedure than others. Fig. 1.14 shows two possible configurations of three sampled points to illustrate this. Configuration A shows thatthe three sample points (Xs) are uniformly distributed surrounding the tunsampled point (O). Estimation of a value at Location O is, influenced equally by all three sampled points. In contrast, for Configuration B, Sample Point 1 is on one side of the un- sampled location and Sample Points 2 and 3 are so close to INTRODUCTION : ceach other such that, individually, they would not provide the same amount of information as Peint 1. Ths intuitive conclu- sion isbomne out by geostatistical methods, where, in Config- uration A, equal weights are assigned to all three sampled points in estimating the value atthe unsampled location and, in Configuration B, Sample Point 1 is assigned a higher ‘weight than Sample Points 2 and3. In addition, the uncertain ty estimate under Configuration Ais less than thatunder Con- figuration B. This is consistent with the fact thatthe three sample points are uniformly distributed for Configuration A, thereby providing more information than the three sample points in Configuration B. : * Most estimation techniques do not allow the use of quali- tative information in estimation of a variable at unsampled locations. If proper procedures are used to quantify the quali- tative information, some geostatistical techniques do allow the use of qualitative information to estimate Values at un- sampled locations, * As described in the previous section, some geostatistical ‘methods allow the use of extensively sampled variables toes- timate the values of other sparsely sampled variables. 1.4.3 Disadvantages. Although the geostatistical procedure offers several advantages over conventional methods, one must be aware of certain disadvantages. Additional Data, Geostatistical techniques allow manipu- lation of only available data. The data are analyzed ina physi- cally reasonable manner, and the variable values are esti- ‘mated at unknown locations. Just because estimates have been obtained at every unsampled location should not give a falsc sense of security because all the estimated values are associated with uncertainties. These uncertainties can be re~ ‘duced by collecting additional data. In addition, the spatial relationship model can also be improved if additional data are collected. Massaging of available data never replaces the val- ue of additional data. Therefore, any additional data should alwaysbe included in the analysis, although this may involve ‘modifying spatial relationships and estimating values gain, In collecting addtional data, more time should be spent on data that have a greater effect on the quality ofthe solution 8 Data hierarchy in termsof datacollecton is extremely impor- tant in terms of cost/benefit analysis. It seems logical that additional data that represent large-scale heterogeneities will havea bigger impact on reducing uncertainties in overall per- formance than data collected on small-scale heterogeneities. ‘Subjective Decision Making. Similar to any other statisti cal procedure, geostatistical techniques involve subjective decision making. During the analysis, each step requires a certain amount of subjective decision making. Depending on the decision made, the results are consistent with that deci sion. Considering the importance of each decision, these dec sions should be made in a consistent manner and on art in- formed basis; i.e. they should be consistent withthe available information and should be made by an expert in that area, Hard Work. Geostatistical methods allow alot more flexi- bility in adopting various sources of datain deseribing.theres- ervoir. Using these various sources of information in aconsis- tent manner requires the user to work harder than with a conventional method. Inconsistent data sets can no longer be reconciled by favoring one data set overthe other; instead, the data sets should be reconciled by accounting forthe different supports over which the samples are collected. In addition, precision ina data set should also be taken into account, Qual- itative information submitted by the geologist in creating the reservoir description can no longer be ignored; instead, the B na i ~ SE ETdescription has to be consistent with the qualitative constraints. Other, similar constraints make geostatistical methods more difficult and time-consuming to use than con- ventional methods. 1.4.4 Procedure. Application of geostatistics isa three-step procedure: (1) assumption of stationarity, (2) spatial model- ing of sample data, and (3) estimation of a variable value at unsampled locations. Assumption of Stationarity. The assumption of stationarity is probably the most important assumption in geostatistical analysis. Itrequires that the model developed on the basis of the sampled data is applicable over the region of interest; this region defines the region of stationarity. ‘Any statistical analysis requiresan assumption of stationar- ity; geostatistics is no exception, Any statistical process re- ‘quires that the inference made on the basis of the sample data, is applicable to the population of interest. In most instances, the assumption of stationarity can be made intuitively. Forex ample, calculating the average age of all children going to a single elementary School and stating that this average repre~ sents the average age of all children going to elementary ‘school in that particular city may give a reasonable assump~ tion of stationarity. The assumption is that the data from one elementary school sample can be extended to the population, of all the elementary schools in the city. As the population is extended, however, the assumption of stationarity may get, ‘weaker. IF we state that this average represents the average of all children going to the elementary school within the entire state, we may not be inferring correctly because of, for exam- ple, differences in rural and city populations or differences in inner-city vs. suburban populations. The point is, the narrow- cr the definition of the region of stationarity, the closer itis to the assumption of stationarity. As the region of stationarity is broadened with the same number of samples, the assumption of stationarity may be violated. Inthis example, defining the region of interest is relatively easy. Inthe case of reservoir description, it may be difficult In many instances, the region over which the model based on the wellbore data is applicable has to be defined from limited wellbore data, We can never be certain about this region; the decision is necessarily subjective. Because of the scarcity of samples, the region of stationarity isextensive during the ear- ly stages of E&P. As more information is collected, the region of stationarity can be defined more narrowly. ‘The uncertainty in the definition of the region of stationar- ity does not minimize its importance. The decision must be ‘made carefully and has to be based on available data. The re gion of stationarity cannot be proved or disproved in the ab- sence of additional data, The only thing we can stat is that our analysis is consistent with the assumption of stationarity. ‘Modeling of Spatial Relationship. The second step in a geostatistical process is modeling of a spatial relationship on the basis of the sampled data, In essence, we evaluate the spa- tially collected sampled data fora given variable and estimate the extent of a spatial relationship between the sample data, As the distance between the sampled data increases, the simi- larity between the data decreases. This similarity or lack thereof is mathematically defined with a statistical function calledthe variogram, and the estimated values of this similari- ty is modeled with analytical functions. The variogram quan- tifies how closely neighboring sample values are related to each other, and the technique can be extended to establish a spatial relationship between two variables. Other functions, can be used to quantify spatial relationships; however, the va- 4 riogram is the one most commonly used in geostatistics for this purpose. Estimation. The third and last step in a geostatistical process is estimation of values at unsampled locations. In conventional ‘geostatistics, the estimation procedure is called kriging. Differ- cnt kriging procedures are used, depending on the type of es- timation procedure. For example, if point estimates are re- quired, punctual or point kriging is used; if estimates of block values are required, block kriging is used. Several other meth- cds have been proposed to estimate values at unsampled loca- tions, depending on the specific type of application. In addition to conventional kriging techniques. the conai- tional-simulation method, which holds greater promise in the. area of reservoir description. This method allows creation of alternative reservoir images, each having an equal probability of existence. By creating several possible images of a reser- voir description, conditional simulation allows the uncertain- lies in the estimation to be accounted for appropriately. 1.5 Outline This section is a brief outline of the chapters included in this book, Chap. 2, “Principles of Statistics,” introduces the basic principles of conventional statistics tha are necessary for un- derstanding geostatistical procedures and analysis. Starting with frequency distribution, it covers summary statistics, probability definitions, cumalative distribution and probat ity density functions, expected values, inference techniques, and covariance and variogram definitions. Chap. 3, “Spatial Relationships and Modeling,” discusses the procedures used to estimate and to quantify spatial relax tionships. Although the emphasis is on estimation of the va~ riogram, the chapter also discusses other methods (e.g. the covariance and the two-point histogram) and other unconven- tional methods (e.g, the madogram and the radogram). The chapter also covers modifications used for estimating con- ventional variograms to obtain more robust estimates. It fur- ther discusses Various nonlinear transformations commonly used to transform sample data. These transformations include Jog, Gaussian, and indicator transformations. The second part cof Chap. 3 deals with modeling spatial relationships. Differ- ent models, including fractal models, that allow modeling of these relationships are discussed along with ways of model- ing the estimated values. In addition, modeling of relation- ships that exhibit anisotropy and relationships between tWo attributes (cross variograms) are presented. Chap. 4, “Conventional Estimation Techniques,” address- es conventional geostatistical techniques used for estima-* tion purposes. The type of procedure used depends on the type of estimation required, and different procedures have been developed for this purpose. The chapter covers simple kriging, point or ordinary kriging, block kriging, cokriging, universal kriging, and nonlinear kriging. The utility and I mitations of these various techniques are presented along ‘with applications. Chap. 5, “Simulation Methods,” introduces the reader to simulation methods, which allow 2 user to create alternative images of the reservoir, each equally likely. The chapter dis- cusses the advantages of simulation methods and presents @ preview of various simulation techniques. Chap. 6, "Grid-Based Conditional-Simulation Methods,” discusses various techniques that have’ been recently introduced in the literature to generate reservoir properties at the grid scale, Thisis the scale that isdefined by grids (prefer- APPLIED GEOSTATISTICS FOR RESERVOIR CHARACTERIZATION5 ? 2 2 5 . 5 . . 5 > > > > > > = > > > » . ° > . > > > > > > » . . > > > , > > > > » > > . ably orthogonal) and that can be used as direct input to reser- voirflow simulators. The first section of he chapter discusses sequential-simulation techniques; these include sequential Gaussian simulation, sequential indicator simulation, and probability simulation. The second section discusses co: mulation of multiple attributes, accounting for interelation- ships among Various atribvtes. The last section discusses use of simulated annealing to describe reservoir properties. Chap. 7,“Object-Based Conditional Simulation Methods, presents conditional simulation techniques based on honor- ing the shapes of various objects rather than grid scales. Typi- cally, these shapes include geological sand bodies (such as channel fill) and other large-and small-scale features (such as faults and fractures) The methods discussed include Boolean methods and Markov point processes. Chap. 8, "Scaling of Reservoir Properties,” introduces methods used to scale up reservoir properties generated on a very fine scale. Conditional-simulation methods discussed in Chaps.6 and 7 are relatively fastand can generate millions of gridblock values ina relatively short period. To use them as inputin low simulation, these properties needto be scaledup, ‘This chapter covers various methods used for, upscaling permeability, relative permeability, and capillary pressure Chap. 9, “Looking Ahead,” summarizes accomplishments in the area of geostatistical applications to reservoir deserip- tion, discusses the advantages and limitations ofthese tech- niques, and concludes with potential areas of future research interest and applications. ‘The chapters all contain several examples to illustrate the concepts. Two types of examples are provided: numerical ex- amples show the calculation procedure fr a particular meth- cod with limited, synthetic data sets, and field examples show application ofthe same procedure toa field dataset. To maintain consistency and avoid repetition of explaining the background of the field data a single field data se illus- trates all the field examples. Appendix A provides the details about the field data." Briefly, the data are collected from the Burbank field, located 90 miles northwest of Tulsa. total of 168 wells, either cored or logged, were used to evaluate the 12,320-acre study area. On the basis of 30 cross sections across the study area the reservoir was divided vertically into 10 low units. In most field examples, data are used from indi- vidual wells orindividval flow units. Although altemative de- scriptions of flow units may be possible, we assume that our ficld-unit description i correct forthe examples in this book. ‘The rationale for choosing these field data is that, in prac~ tice, thisis the approach one might follow. Starting withthe individual well data, the data can be divided vertically ac- cording to geological units, and each unit (which need not be areally continuous) can be described to capture the areal variability. The division of individual geological units is Subjective. Because itis not the purpose ofthis book to de- scribe methods for drawing isochronal lines to divide the xescrvoir in subregions, we assume that the division into 10 units is correct description for our field data. We realize that alternative ways exist by which the same field can be geologically described; however, we believe that the geosta- tistical techniques discussed inthe subsequent chapters are Valid even if the geological interpretation changes. The de- scriptions we create throughout the subsequent chapters are consistent with the individual-unit characterization we have assumed to be correct, If that description is modified, the same techniques can be used to create consistent deserip- tions with a modified unit characterization INTRODUCTION Many of the programs we used to analyze the field data are from Ref. 18. This reference contains a wealth of geostatsti- cal programs as well as many utility programs, Most impor- tant, these programs are in the public domain and can be mo- dified to suit any specific purpose. Ref. 18 also provides brief descriptions of many of the geostatistical tools, Before we explain the various geostatistical tols, we want to emphasize the importance of understanding the use- fulness and the limitations of these tools before applying them. Geostatistical applications, without a doubt, are one of the most promising areas in the reservoir characterization process. We hope that thisbook helps the readerevaluate and weigh different applications carefully before choosing the ‘most appropriate technique, Nomenclature = fractional flow of water k = permeability, L2, md &, = relative permeability N, = cumulative oil produced, L3, bbl P. = capillary pressure, m/Lt2, psi = porosity ferences 1, “Trends in Reservoir Management, 1992) 8 2. Ahmed, U., Crary, .F, and Coates, G.R.: “Permeability E: timation: The Various Sources and Their Intertlationship JPT (May 1991) 578; Trans., AIME, 291. Enderlin, M.B., Hansen, D.K-T, and Hoyt, B.R.: “Rock Vol- ‘umes: Considerations for Relating Well Log aad Core Data,” Reservoir Characterization Il,L.W. Lake, H.B. Carroll and ‘TC, Wesson (eds.), Academic Press, San Diego, Califor (1991) 277-88, 4, Weber, KJ. and van Geuns, L.C.: “Framework for Construct- ing Clastic Reservoir Simulation Models," JPT (October 1990) 1248; Trans., AIME, 289, Journel, A.G: “Use of Geostatistcs for Reservoir Character- ization,” course notes, Stanford U., Stanford, California (De- ccember 1987). Lucia, FJ: “Petrophysical Parameters Estimated From Visual Descriptions of Carbonate Rocks: A Field Classification of Carbonate Pore Space," JPT (March 1983) 629, 7, Sater, N.G., Toronyi, RM., and Snyder, D.E.: “Data and Data IPT (December 1992) 1286; Trans,, AME, 293. "Data Acquisition and Analysis for Efficient Res- ctvoir Management,” JPT (April 1992) 466, 9. Lake, L-W: "Predicting vs Interpreting: A Survey of Oil Re- covery Modeling,” paper presented atthe 1993 SIAM Conter- ‘ence on Math and Computational Isues in Geosciences, Hous- ton, 19-21 April, 10, Mattax, C.C. and Dalton, R.L.: “Reservoir Simulation,” JPT (une 1990) 692-95, 11. Adiz, K-: “Reservoir Simulation Problems,” JPT (July 1993) 658 12, Saler, NG: “Reservoir Performance Forecasting: Accelera- tion by Parallel Planning,” JPT (July 1993) 652, 13, Hazlet, WG. etal: “The Integrated Approach to Performing Reservoir Simulation Studies,” paper SPE 26224 available from SPE, Richardson, Texas (1993), 14, Lasseter, TJ., Waggoner, IR., and Lake, L.W.: “Reservoir Heterogencities and Their Influence on Utimate Recovery, Reservoir Characterization, L.W. Lake and HB, Carroll Jr (cds), Academic Press, Orlando, Florida (1986) 545-60. Oilfield Review (anvary is: “Opportunities and