Stress changes within and around a depleting petroleum reservoir can lead to reservoir compaction and surface subsidence, affect drilling and productivity of oil wells, and influence seismic waves used for monitoring of reservoir performance. Currently modeling efforts are split into more or less coupled geomechanical (normally linearly elastic), fluid flow, and geophysical simulations. There is evidence (from e.g. induced seismicity) that faults may be triggered or generated as a result of reservoir depletion. The numerical technique that most adequately incorporates fracture formation is the DEM (Discrete Element Method). This paper demonstrates the feasibility of the DEM (here PFC; Particle Flow Code) to handle this problem. Using an element size of 20 m, 2-D and 3-D simulations have been performed of stress and strain evolution within and around a depleting reservoir. Within limits of elasticity, the simulations largely reproduce analytical predictions; the accuracy is however limited by the element size. When the elastic limit is exceeded, faulting is predicted, particularly near the edge of the reservoir. Simulations have also been performed to study the activation of a pre-existing fault near a depleting reservoir.