Abstract
There is a need to bridge theory and practice for incorporating parameter uncertainty in geostatistical simulation modeling workflows. Simulation workflows are a standard practice in natural resource and recovery modeling, but the incorporation of multivariate parameter uncertainty into those workflows is challenging. However, the objectives can be met without considerable extra effort and programming. The sampling distributions of statistics comprise the core theoretical notion with the addition of the spatial degrees of freedom to account for the redundancy in the spatially correlated data. Prior parameter uncertainty is estimated from multivariate spatial resampling. Simulation-based transfer of prior parameter uncertainty results in posterior distributions which are updated by data conditioning and the model domain extents and configuration. The results are theoretically tractable and practical to achieve, providing realistic assessments of uncertainty by accounting for large-scale parameter uncertainty, which is often the most important component impacting a project. A simulation-based multivariate workflow demonstrates joint modeling of intrinsic shale properties and uncertainty in estimated ultimate recovery in a shale gas project. The multivariate workflow accounts for joint prior parameter uncertainty given the current well locations and results in posterior estimates on global distributions of all modeled properties. This is achieved by transferring the joint prior parameter uncertainty through conditional simulations.
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Khan, K.D., Deutsch, C.V. Practical Incorporation of Multivariate Parameter Uncertainty in Geostatistical Resource Modeling. Nat Resour Res 25, 51–70 (2016). https://doi.org/10.1007/s11053-015-9267-y
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DOI: https://doi.org/10.1007/s11053-015-9267-y