for generating predictions for various parameters in a reservoir the invention includes receiving input data characterizing the reservoir and determining transient areas the transient areas are determined by receiving data from the reservoir transforming the data using discrete wavelet transformation to produce transformed data removing outliers from the transformed data identifying and reducing noise from in the transformed data and then detecting transient areas in the transformed data a computer model is produced in response to the transient data and predictions for parameters in the reservoir are determined these predictions are verified by comparing predictive values with a reservoir model and then the predictions for the various parameters can be used application_number US 33067308 A description measurement channels from current permanent downhole gauges pdg may include pressures and temperatures the large volume of data requires significant bandwidth to transmit and to analyze fig2 shows how the invention deals with the pdg data automatically from reservoir 10 from production data acquisition process pdap 21 to production data interpretation process pdip 22 the difference lies in pdip 22 first wavelet based transient detection 30 is introduced to implement automatic transient detection the transients are interpreted 23 and a fast simulator is applied to.