In this study, we propose and develop a streamline approach for inferring f
ield-scale effective permeability distributions based on dynamic production
data including producer water-cut curve, well pressures, and rates. The st
reamline-based inverse approach simplifies the history-matching process sig
nificantly. The basic idea is to relate the water-cut curve at a producer t
o the water breakthrough of individual streamlines. By adjusting the effect
ive permeability along streamlines, the breakthrough time of each streamlin
e that reproduces the reference producer fractional-flow curve is found. Th
en the permeability modification along each streamline is mapped onto cells
of the simulation grid. Modifying effective permeability at the streamline
level greatly reduces the size of the inverse problem compared to modifica
tions at the grid block level. The approach outlined here is relatively dir
ect and rapid. Limitations include that the forward how problem must be sol
vable with streamlines, streamline locations do not evolve radically during
displacement, no new wells are included, and relatively noise-foe producti
on data are available. It works well for reservoirs where heterogeneity det
ermines flow patterns. Example cases illustrate computational efficiency ge
nerality, and robustness of the proposed procedure. Advantages and limitati
ons of this work, and the scope of future study, are also discussed.