Editor's Note: Part 1 of this article (TLE, May 2000) defined geostatistics, examined its origins, and reviewed the concepts of the spatial model and the kriging interpolation algorithm. This article describes geostatistical conditional simulation, also known as stochastic modeling, and its use for generating realistic maps of reservoir heterogeneity, uncertainty analysis, and economic risk analysis. The Geologic Column, which appears monthly in TLE, is (1) produced cooperatively by the SEG Interpretation Committee and the AAPG Geophysical Integration Committee and (2) coordinated by M. Ray Thomasson and Lee Lawyer.

For more than a decade, stochastic, or geostatistical, modeling...

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