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Physics-Guided Diffusion Models for Production Forecasting with Limited Well Data
Proceedings of the The 39th Canadian Conference on Artificial Intelligence, PMLR 318:332-341, 2026.
Abstract
Accurate forecasting of oil and gas well production from limited early-time data is critical for reservoir management and timely land cleanup. We present Physics-SIMS-TS, a novel framework that adapts Self-Improving Diffusion Models with Synthetic Data (SIMS) for time series forecasting and integrates physics-based decline-curve constraints. Given only the first 20% of a well’s production history, our model predicts the remaining 80%. We first adapt the SIMS methodology, originally developed for image generation, to time series by training a conditional diffusion model with negative guidance that steers generation away from synthetic artifacts. Experiments show that domain-aware data augmentation (Inverse Distance Weighting) outperforms generic generative approaches (TimeGAN, TimeVAE) by 1.7x, demonstrating that incorporating domain-specific knowledge improves forecasting performance. Building on this insight, we introduce Physics-SIMS-TS, which integrates Arps decline-curve dynamics through gradient guidance during sampling and monotonicity projection via isotonic regression. Experiments on 16,216 gas wells from British Columbia, Canada, spanning multiple geological formations, demonstrate that Physics-SIMS-TS achieves 1.9-6.2x lower prediction error than traditional machine learning baselines across all dataset sizes, with the largest improvements on small datasets where physics constraints most effectively regularize the learning problem.