t i9QS, S'acW of Petrobum EngbIwrs, h-m. This paper was prepmd k+ pfosaotdim d SPEKiRM Eurcc4t98 held in Trontielm, Norway, S-10 Juiv 199S. 7his paper w selected for pmsentdion by qn SW Program Ccxnmftfea following rewiew of inforrndii contained in qn qbstmd submiffti by fho author(s). Ccmlents of tfte parer, as presented, havo not boon reviewed by tfw scciuy of Pelrckum Engineers and are subjec! to emacfii by tfw author(s). TIW material, q8 presented, &es not necessarily rdkct any positico of the Swiety of Petrc4eum Engineers, ifs ofkers, or members PafMrs presented d SPE mWtlngs are subjecf 10 pubIicdicm rwkw by Edilorial Cmnmfttees of the society of Petroleum Sngineers. Elecfrcmicr~mducflcm, distribut!-sm, or dorage of any part of this parer fcf ccmmerc!d purposes withou! the wiften ccmsent of the Soaety of Petroleum Engineers is prohibited Permbskm 10 mprcduca in prim u reatmcted to an abstract of not more than X0 wow, ilfuslralkas may not M copfed. 7he abstract must ccmtatn conspicuous ackmwwgm~t of wlwrc and by wIIcm M paper W8S presented. Write Librarian, SPE. P.O. E!QXSS3336. Ftich@sc4% TX 7S0S3SS35. U.S.A. fax 01 -972-952.94S5 AbstractThe paper presents a discussion on the issues related to the interaction between gcomechanics and reservoir simulation in deformable hydrocarbon reservoirs. Geomechanics is important in order to account for rock deformations due to pore pressure and temperature changes resulting from production and fluid injection. Rock deformation can affect the permeability and pore compressibility of the rock. In turn, the pore pressures will be vary due to changes in the pore volume. Geomechanics is also required in order to account for the effect of the non-pay rock surrounding the reservoir on the overalI reservoir compressibility and the loads transmitted to the reservoir by the weight of the overburden rock.The paper gives the formulation and finite element discretization of Biot's equations for multi-phase fluid flow in deformable porous media. Based on this formulation, it is rewed that geomechanical response and multi-phase fluid fIOW are fully-coupled processes in that pore pressure changes affect rock mechanical response and vice-versa, and that the two processes occur simtdtaneously.By contrasting Biot's equations and its discretization to the corresponding mukiphase flttiif Now equations used in reservoir simulations, it is shown that reservoir simulators neglect or simplify important geomechanical aspects that can have impact on reservoir productivity. This is attributed to the fact that the only rock mechanicrd parameter involved in reservoir sirrtuIations is pore compressibility. This parameter is not sufficient in representing aspects of rock behaviour such as stress path dependency and dilatartcy, which require a fill constitutive relation. Furthermore, the pore pressure changes due to the applied loads from the non-pay rock cannot be accounted for by simply adjusting the pore compressibility. Example probiems are shown in order to illustrate the value of coupling geomec...