Chapter 3

The General Material Balance Equation

1
• The concept of material balance is a fundamental physical concept that is widely used
in many branches of engineering. In reservoir engineering, it is a powerful method of
estimating original oil in place (OOIP) and original gas in place (OGIP) or aquifer
influx (We). The method is completely independent of the volumetric method and
therefore serves to verify volumetric determinations. Which method is more accurate
depends on the quality and quantity of the data; nevertheless, it is always advisable to
use both methods if sufficient data are available. The advantage of the material-
balance method is that, in permeable reservoirs, it can see the effects of OOIP and
OGIP in areas that have not been drilled yet. The disadvantage is that it cannot be
applied until after production has begun. An inherent practical requirement for the
success of material balance is the necessity, for the long term, to monitor reservoir
pressure to measure all fluid withdrawals, and to obtain accurate
pressure/volume/temperature (PVT) data. It is very important that PVT relationships
be measured before the reservoir is put into productions. Oil and gas are sold in terms
of volumes measures at standard conditions. This means the material balance is more
convenient to derive in terms of standard volumes rather than in terms of a mass
balance, which is particularly common in chemical engineering. Volumes can be
related to pressures quite easily by use of measured PVT relationships.
• When a reservoir is tapped with wells, oil and gas, and frequently some water, are
produced, thereby reducing the reservoir pressure and causing reservoir rock and fluid
to expand to fill the space vacated by the fluid produced. When the reservoir is
hydraulically connected with water-bearing strata (aquifer), water encroaches into the
reservoir as the pressure drops owing to production. This water encroachment
decreases the extent to which the remaining oil and gas expand and accordingly
retards the decline in reservoir pressure. Inasmuch as the temperature in oil and gas
reservoirs remains constant during the production, reservoir rock and fluid expansion
depends only on the pressure. By taking samples of the reservoir fluids and
measuring their relative volumes in the laboratory at reservoir temperature and under
various pressures, it is possible to predict how these fluids behave in the reservoir as
reservoir pressure declines. The following table shows the ranges of formation and
fluid compressibilities.

2
 Range of Compressibilities

Formation Rock 3 – 10X10-6 psi-1

Water 2 – 4X10-6 psi-1
Undersaturated Oil 5 – 100X10-6 psi-1
Gas at 1000 psi 900 – 1300X10-6 psi-1
Gas at 5000 psi 50 – 200X10-6 psi-1

Water and formation compressibilities are generally neglected except in

undersaturated reservoirs producing above the bubble point.

• The general material balance equation is simply a volumetric balance, which states
that since the volume of a reservoir (as defined by its initial limits) is constant, the
algebraic sum of the volume changes of the oil, free gas, water, and rock volumes in
the reservoir must be zero. In deriving the material balance equations, the following
assumptions are made:
1- The reservoir may have an initial vapor phase and an initial liquid phase.
2- The gas is allowed to dissolve in the liquid phase.
3- The oil can be volatile in the vapor phase.
4- Water is allowed to invade the reservoir from the aquifer during production.
5- The water and rock are compressible

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• For simplicity, the derivation is divided into the changes in oil, gas, water, and rock
volumes that occur between the start of production and any time t. in the development
of the general material balance equation, the following terminology is used:
bbl
Bg = gas formation volume factor (FVF) at time t,
SCF
bbl
Bgi = initial gas FVF,
SCF
bbl
Bo = oil FVF at time t,
STB
bbl
Boi = initial oil FVF,
STB
bbl
Btg = total gas FVF at time t,
SCF
bbl
Bto = total oil FVF at time t,
STB
bbl
Bw = water FVF at time t,
STB
Cf = isothermal formation compressibility, psia-1
Ct = isothermal total compressibility, psia-1
Cw = isothermal water compressibility, psia-1
Efw = formation-water expansion factor
bbl
Eg = gas expansion factor,
SCF
bbl
Eo = oil expansion factor,
STB
F = reservoir voidage from production, bbl
G = initial total gas in reservoir, SCF
GI = cumulative gas injected at time t, SCF
Gfg = gas in the free gas phase at time t, SCF
Gfgi = initial gas in the free gas phase, SCF
Gp = cumulative gas produced at time t, SCF
Gpg = cumulative gas produced from the vapor phase at time t, SCF
N = Initial total oil in the reservoir, STB

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 Nfo = oil in the free oil phase at time t, STB
Nfoi = initial oil in the free oil phase, STB
Np = cumulative oil produced at time t, STB
p = current reservoir pressure, psia
pi = initial reservoir pressure, psia
Δp = initial reservoir pressure minus current reservoir pressure, psia
r = ratio of vapor phase reservoir to liquid phase reservoir volumes
STB
Rp = cumulative produced gas-oil ratio,
SCF
SCF
Rs = solution gas-oil ratio at time t,
STB
SCF
Rsi = initial solution gas-oil ratio,
STB
STB
Rv = volatile oil-gas ratio at time t,
SCF
STB
Rvi = initial volatile oil-gas ratio at time t,
SCF
Swi = initial water saturation
t = time, t
V = current phase volume in the reservoir, bbl
Vθ = total volume of void space in the reservoir, bbl
W = initial water volume in the reservoir, bbl
We = water encroachment (influx) from aquifer, bbl
Wp = cumulative water produced at time t, STB
ΔW = We – BwWp

Subscripts:
g = gas
i = initial
I = injected
o = oil
w = water

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• Derivation of the Material Balance Equation:

For a control volume element (reservoir), the summation of the net changes in oil,
gas, water, and pores volumes, from the initial conditions to the conditions of interest,
is equal to zero

Vo + Vg + Vw + Vr = 0

The Original Gas in Place (OGIP) is divided into two parts: (free gas and Dissolved
Gas)

G = G fgi + N foi Rsi (1)

and the Original Oil in Place (OOIP) is similarly divided into two parts, (free oil and
volatile oil)

N = G fgi Rvi + N foi (2)

At some time, t, after Np of oil (in STB) and Gp of gas (in SCF) are produced, the
remaining oil and gas in place, respectively, are given by

N fo + G fg Rv = N − N p (3)
and

N fo Rs + G fg = G − Gp
(4)
Rearranging the previous two equation gives:

N fo = N − N p − G fg Rv (5)
and

G fg = G − Gp − N fo Rs (6)

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Solving these two simultaneous equations gives

G fg =
G − G − (N − N )R 
p p s

(1 − Rs Rv ) (7)
and

N fo =
N − N − (G − G )R 
p p v (8)
(1 − Rs Rv )
Substituting Eqs. 1 and 2 into Eqs. 7 and 8 gives

G fg =
G fgi + N foi Rsi − G p − (N foi + G fgi Rvi − N p )Rs 
(1 − Rs Rv ) (9)

and

N fo =
N foi + G fgi Rvi − N p − (G fgi + N foi Rsi − G p )Rv  (10)
(1 − Rs Rv )
The previous two equations express the current standard volumes of oil and gas in the
reservoir in terms of initial standard volume and produced standard volumes. The
reservoir control volume is now balanced.

The change in volumes of all phases in the control volume during the production must
balance. The control volume is the original volume of the reservoir; therefore,

Vo + Vg + Vw + Vr = 0 (11)

To determine ΔVo, the volume occupied by the oil phase before and after production
must be calculated. The initial reservoir volume of the oil phase, Voi, is
Voi = N foi Boi .

Current reservoir volume of the oil phase, Vo, is

Vo = ( N foi + G fgi Rvi − G fg Rv − N p )Bo

(12)
Therefore,

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 Vo = N foi Boi − ( N foi + G fgi Rvi − G fg Rv − N p ) Bo
(13)

Similarly, to determine ΔVg, the volume occupied by the gas phase before and after
production must be calculated. Initial reservoir volume of gas phase, Vgi, is
Vgi = G fgi Bgi .

Current reservoir volume of the gas phase, Vg, is

Vg = (G fgi + N foi Rsi − N fo Rs − G p ) Bg + GI BgI (14)

Where (GI*BgI) is the volume of injected gas. Therefore,

Vg = G fgi Bgi − (G fgi + N foi Rsi − N fo Rs − G p ) Bg − GI * BgI (15)

The change in the water phase volume, ΔVw, is the results of water compressibility,
the water influx from the aquifer, and the water production. If W is the initial
reservoir water volume and Vθ is the initial void space volume, then

VWi = V S wi (16)

Current (final) reservoir volume of the water phase, Vw, is

Vw = V S wi + We − Wp Bw + WI * BwI + V S wi cw P (17)

Where (WI*BwI) is the volume of injected water. Therefore,

Vw = −We + BwWp − WI BwI − V S wi Cw p

(18)
Where Δp = pi – p.

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The change in the rock volume is the negative of the change in the void space
volume, therefore,

Vr = −V C f p (19)

Because Vθ is the total initial void space, it can be expressed as:

N foi Boi + G fgi Bgi

V = (20)
1 − S wi

Substituting Eq 20 into Eqs 18 and 19 and then substitute Eqs 13, 15, 18, and 19 into
Eq 11 gives

N foi Boi − (N foi + G fgi Rvi − G fg Rv − N p )Bo + G fgi B gi − (G fgi + N foi Rsi − N fo Rs − G p )B g
− G I B gI − We + BwW p − WI BwI − (N foi Boi + G fgi B gi )Ct P = 0

(21)

Where
C f + Cw S wi
Ct =
1 − S wi (22)

Substituting Eqs. 9 and 10 into Eq 21 and rearranging gives the general material
balance equation

 Bo − Rs B g   B − Rv Bo 
N p   + G p  g  − G I B gI − WI BwI =
 1 − Rv s 
R  1 − R v s 
R

N foi 

 Bo − Boi + B g (Rsi − Rs ) + Rv (Boi Rs − Bo Rsi )  

 1 − Rv Rs  

+ G fgi 

 B g − B gi + Bo (Rvi − Rv ) + Rs (B gi Rv − B g Rvi )  

 1 − Rv Rs  
 S wi C w + C f 
+ We − BwW p + (N foi Boi + G fgi B gi )  p (23)
 1 − S w 

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Equation 23 can be written as a compact form of the general material balance
equation as:

F − GI BgI − WI BwI = N foi Eo + G fgi Eg + W + (N foi Boi + G fgi Bgi )E fw

(24)
where

 Bo − Rs Bg   B − Rv Bo 
F = N p   + G p  g  (25)
 1 − Rv Rs   1 − Rv Rs 

Eo = Bto − Boi (26)

Eg = Btg − Bgi
(27)

 C f + Cw S wi 
E fw =  p
 1 − S wi 
(28)
and

W = We − BwWp
(29)
where

 Bo (1 − Rv Rsi ) + (Rsi − Rs )Bg 

Bto =  
 1 − Rv Rs 
(30)
and

 Bg (1 − Rs Rvi ) + (Rvi − Rv )Bo 

Btg =   (31)
 1 − Rv Rs 

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Frequently, it is more convenient to express gas production in terms of a cumulative
produced gas-oil ratio, Rp. In this case, Eq 25, which defines reservoir voidage,
becomes

 Bo (1 − Rv R p ) + (R p − Rs )Bg 
F = Np  (32)
 1 − Rv Rs 

The gas cap volume sometimes is expressed in terms of r, the ratio of the gas cap
reservoir volume to the reservoir volume of the oil zone. The equation of r is

G fgi Bgi
r=
N foi Boi (33)

In this case, the material balance equation, Eq 24, can be written as:

N foi Boi rE g
F − GI BgI − WI BwI = N foi Eo + + W + N foi Boi (1 + r )E fw (34)
Bgi

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• Equation of state as a straight line:
Havlena and Odeh proposed a series of plots that use the material-balance equation as
a linear plot. Their plots allow determination of the OOIP and OGIP from all
measured pressure and production data rather than calculating them from individual
data points. The plots can be applied to volumetric (i.e. no water influx) reservoirs to
determine OOIP and OGIP and to waterdrive reservoirs to determine aquifer
parameters. Havlena and Odeh presented the material balance in the following form:

N foi Boi rE g
F − WI − GI BIg = N foi Eo + + W + N foi Boi (1 + r )E fw
Bgi

The terms WI, cumulative water injection, GI, cumulative gas injection, and BIg,
formation volume factor of the injected gas have been added to the equation. In
Havlena and Odeh’s original development, they chose to neglect the effect of the
compressibilities of the formation and connate water in the gas cap portion of the
reservoir. Havlena and Odeh rewrote the previous equation as (with no injection):

N foi Boi rE g
F = N foi Eo + + W + N foi Boi (1 + r )E fw
Bgi

F represents the net production from the reservoir. Eo, Ef,w, and Eg represent the
expansion of oil, formation and water, and gas, respectively. The application of the
previous equations varies. Material balance equations also can be used to derive some
indices that can be used to compare the relative strengths of various drive
mechanisms.

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Pirson Drive Indices:
Pirson proposed three drive indices for oil reservoirs, the depletion drive index,
IDD; the segregation drive index, ISD, and the waterdrive index, IWD. IDD measures the
effect of oil phase expansion, ISD measures the effect of gas cap expansion, and IWD
measures the effect of aquifer expansion. While Pirson did not allow for a rock and
water compressibility drive, the material balance equation becomes:

With no water and gas injections, Pirson indices are defined as:

N foi E o
I DD =
F
G fgi E g
I SD =
F
and
W
IWD =
F

If Efw is neglected then it is trivial to show that

I DD + I SD + I WD = 1

If Efw is included then a formation drive index, IFD can be defined as:

(N Boi + G fgi B gi )E fw
I FD =
foi

Then, it can be shown that:

I DD + I SD + I WD + I FD = 1

These are cumulative drive indices and change as the reservoir is produced.

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