This paper addresses the problem of hydrogen generation from hydrocarbon gases using Steam Methane Reforming (SMR) with byproduct CO2 injected into and stored in a partially depleted oil reservoir. It focuses on the reservoir aspects of the problem using numerical simulation of the processes. To this aim, a numerical model of a real oil reservoir was constructed and calibrated based on its 30-year production history. An algorithm was developed to quantify the CO2 amount from the SMR process as well as from the produced fluids, and optionally, from external sources. Multiple simulation forecasts were performed for oil and gas production from the reservoir, hydrogen generation, and concomitant injection of the byproduct CO2 back to the same reservoir. EOR from miscible oil displacement was found to occur in the reservoir. Various scenarios of the forecasts confirmed the effectiveness of the adopted strategy for the same source of hydrocarbons and CO2 sink. Detailed simulation results are discussed, and both the advantages and drawbacks of the proposed approach for blue hydrogen generation are concluded. In particular, the question of reservoir fluid balance was emphasized, and its consequences were presented. The presented technology, using CO2 from hydrogen production and other sources to increase oil production, also has a significant impact on the protection of the natural environment via the elimination of CO2 emission to the atmosphere with concomitant production of H2.