Calibration of imperfect models to biased observations

The problem of assimilating biased and inaccurate observations into inadequate models of the physical systems from which the observations were taken is common in the petroleum and groundwater fields. When large amounts of data are assimilated without accounting for model error and observation bias, predictions tend to be both overconfident and incorrect. In this paper, we propose a workflow for calibration of imperfect models to biased observations that involves model construction, model calibration, model criticism and model improvement. Model criticism is based on computation of model diagnostics which provide an indication of the validity of assumptions. During the model improvement step, we advocate identification of additional physically motivated parameters based on examination of data mismatch after calibration and addition of bias correction terms. If model diagnostics indicates the presence of residual model error after parameters have been added, then we advocate estimation of a “total” observation error covariance matrix, whose purpose is to reduce weighting of observations that cannot be matched because of deficiency of the model. Although the target applications of this methodology are in the subsurface, we illustrate the approach with two simplified examples involving prediction of the future velocity of fall of a sphere from models calibrated to a short-time series of biased measurements with independent additive random noise. The models into which the data are assimilated contain model errors due to neglect of physical processes and neglect of uncertainty in parameters. In every case, the estimated total error covariance is larger than the true observation covariance implying that the observations need not be matched to the accuracy of the measuring instrument. Predictions are much improved when all model improvement steps were taken.