As the name implies, this analysis revolves around "materials" flowing in and out of box. The reservoir is assumed to be a box or tank and the oil, water & gas or any other fluids entering (e.g. due to water influx, injection etc) and leaving the tank (e.g. production) are modeled. Expansion or shrinkage of these fluids and compaction of rocks in response to change in pressure are also considered. The pressure response produced by the model is compared to the actual / observed pressure responses. The model parameters are adjusted till a satisfactory response is obtained. Some very significant understanding of the reservoir like STOIIP, Aquifer Strength etc can be obtained from this analysis.
If the case demands, multiple connected tanks are also assumed. In some analysis, wells are added.
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