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In this paper, for the first time, a comprehensive methodology for the application of a generalized lattice Boltzmann model towards simulation of fluid flow within a hydrocarbon fractured reservoir is presented to validate its use as a reservoir simulation tool. The lattice Boltzmann method simulates fluid flow by defining a system with microscopic flow characteristics. In this method, the fluid consists of fictitious particles (mass fractions). These particles propagate (stream) and collide. The method assumes discretization of the physical system in both space and time. In space, the particles are allowed to move on lattice nodes. Interaction (possible collision) of particles is evaluated at these time steps. The interaction step is designed in such a way that the generalized Navier-Stokes equation is valid for the time-average motion of the particles.The focus of this work is the formulation of precise boundary conditions on the surface of fractures and the wellbore. In addition, the set of dimensionless parameters that govern the evolution of the pressure profile is redefined. Pressure profiles are presented visually throughout this paper to provide the reader insight how such a product would be utilized by the petroleum engineer.Most importantly, the methodology is tested against commercial software and results show excellent agree-ment for both homogenous and heterogenous reservoir cases. This strong agreement provides motivation for the oil and gas community to expand this model towards more complex subsurface conditions.

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The economic success of the shale boom worldwide is intimately connected to the effective stimulation of the tight (or very low) permeability rock through multistage hydraulic fracturing of horizontal wells. However, the complete understanding of the production mechanisms in shale reservoirs (micro to macro scales) and the closely interaction between natural fractures and the overall production profile at reservoir scales are in the infancy stages of their developments. In this paper we are particularly interested in extending the robustness and computational effectiveness of the Lattice Boltzman Method (LBM) applied to fractured porous media simulation. In this paper we propose a novel approach for modeling of shale reservoirs can seamless integrate rock-fluid behavior at small scales with the well-reservoir interaction at macro scales. This is done by exploring further the advantages of physical-based premises of the LBM by including the recent developed non-uniform induced permeability field concept in order to simulate fracture media, which model variation of permeabiliry around hydraulic fracrures by a function of the distance away from the fracture. In our numerical studies, based on a single well reservoir with a planar fracture, we indicate that this approach is more consistent with the physics of shale production, as it does not rely on such formulas as Langmuir isotherm and Klinkenberg's formula, which have been originally derived for low-density gases.