Simulating multi-dimensional flow with coupled one-dimensional flow paths

A formation flow simulation system that comprises:

• a data acquisition unit collecting measurements of horizontal and vertical permeability for at least one bed in a formation penetrated by a borehole;
• and
• a computer implementing a formation flow simulation method that includes:
• representing the borehole as a linear, discretized borehole flow path;
• representing the formation as a plurality of horizontal layers, each layer of the plurality of horizontal layers being represented as a linear, discretized layer flow path;
• constructing a current state vector having values of flow parameters for the discretized borehole flow path and each of the discretized layer flow paths;
• constructing a solution matrix embodying a set of flow equations that relate the current state vector to a subsequent state vector, the flow equations employing the measured horizontal permeability for flow along the discretized layer flow path for the each layer and employing the measured vertical permeability for cross-flow to or from the each layer, wherein the solution matrix, current state vector, and subsequent state vector form a linear system of equations;
• solving the linear system of equations to derive the subsequent state vector from the current state vector;
• and
• storing the subsequent state vector on a non-transitory information storage medium.