The electronic explosion that we have been witnessing over the past two decades has transformed reservoir simulation from a some what esoteric approach to a practical toolbox of immense importance. With the use of the tools from this toolbox, today’s engineering community has an opportunity to better understand not only the intricacies offluid-flow dynamics in increasingly complex reservoirs, but also the characteristics of fluid-flow dynamics in wellbores, flow patterns developing within the immediate vicinity of perforations, the interaction of vertical, slanted, horizontal, and multilateral wells and the reservoir, and the complexities of reservoir characterization. These areas represent only a small portion of a list that includes some challenging issues playing critical roles in the optimum development of hydrocarbon reservoirs, and in the optimized implementation of capital-intensive projects that can be investigated with numerical simulation.
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