This document discusses material balance equations used to relate fluid movement and production from a reservoir to the amount of fluids contained. It provides an equation that accounts for: 1) remaining oil, 2) free gas remaining, 3) change in gas cap volume, and 4) net water influx. The equation is based on conservation of mass as production causes pore volume contraction and fluid expansion/contraction. Applications of the material balance equation include calculating stock tank oil originally in place and gas originally in place.