This second edition of the original volume adds significant new innovations for revolutionizing the processes and methods used in petroleum reservoir simulations. With the advent of shale drilling, hydraulic fracturing, and underbalanced drilling has come a virtual renaissance of scientific methodologies in the oil and gas industry. New ways of thinking are being pioneered, and Dr. Islam and his team have, for years now, been at the forefront of these important changes.  This book clarifies the underlying mathematics and physics behind reservoir simulation and makes it easy to have a range of simulation results along with their respective probability.  This makes the risk analysis based on knowledge rather than guess work. The book offers by far the strongest tool for engineers and managers to back up reservoir simulation predictions with real science. The book adds transparency and ease to the process of reservoir simulation in way never witnessed before. Finally, No other book provides readers complete access to the 3D, 3-phase reservoir simulation software that is available with this text. A must-have for any reservoir engineer or petroleum engineer working upstream, whether in exploration, drilling, or production, this text is also a valuable textbook for advanced students and graduate students in petroleum or chemical engineering departments.