This paper presents the theory and application to modify the conventional simulator to describe the effects of gas adsorption and gas slippage flow in shale gas. Because of the local desorption of gas and the assumptions of gas desorption instantaneously with the decrease in pore pressure, we define one fictitious immobile ''pseudo'' oil with dissolved gas. The dissolved gas-oil ratio is calculated from the Langmuir adsorption isotherm constants and shale gas properties. Additional modifications required in the input data are the porosity and relative permeability curves to account for the existence of ''pseudo'' oil. The input rock table considers the changes of rock permeability versus pressure to describe the gas slippage flow effects. In addition, dual-porosity dual-permeability models coupled with local grid refinement method are used to distinguish the impacts of natural fractures and hydraulic fractures on shale gas production with the comparison of vertical well, fractured vertical well, horizontal well, and multistage fractured horizontal well production. This proposed simulation approach shows enough accuracy and outstanding time efficiency. Results show that ignoring gas desorption and slippage flow effects would bring significant error in shale gas simulation The existence of natural fractures also imposes great effects on the productivity of shale gas.
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