Equation (2.6) is considered a general material balance equation because it can be applied to an oil reservoir with a gas cap and an aquifer. The derivation of the material balance equation is based on several assumptions: the system is in pressure equilibrium; the system is isothermal; available fluid property data are representative of reservoir fluids; production data is reliable; and gravity segregation of phases can be neglected.
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The general material balance equation for an oil reservoir is the Schilthuis material balance equation expressed in a form given by Guerrero:
The terms in Eq. (2.8) have a physical significance. The terms on the right hand side of Eq. (2.8) represent fluid production and injection, while the terms on the left hand side represent volume changes.
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