Detailed description of the heterogeneity of oil/gas reservoirs is needed t
o make performance predictions of oil/gas recovery. However, only limited m
easurements at a few locations are usually available, This combination of s
ignificant spatial heterogeneity with incomplete information about it leads
to uncertainty about the values of reservoir properties and thus, to uncer
tainty in estimates of production potential. The theory of stochastic proce
sses provides a natural method for evaluating these uncertainties. In this
study, we present a stochastic analysis of transient, single phase flow in
heterogeneous reservoirs. We derive general equations governing the statist
ical moments of flow quantities by perturbation expansions. These moments c
an be used to construct confidence intervals for the flow quantities (e.g.,
pressure and flow rate). The moment equations are deterministic and can be
solved numerically with existing solvers. The proposed moment equation app
roach has certain advantages over the commonly used Monte Carlo approach. (
C) 1999 Elsevier Science B.V. All rights reserved.