This paper describes an integrated geomechanics analysis of well casing damage induced by compaction of the diatomite reservoir at the Belridge Field, California. Historical data from the five field operators were compiled and analyzed to determine correlations between production, injection, subsidence, and well failures. The results of this analysis were used to develop a three-dimensional geomechanical model of South Belridge, Section 33 to examine the diatomite reservoir and overburden response to production and injection at the interwell scale and to evaluate potential well failure mechanisms. The time-dependent reservoir pressure field was derived from a three-dimensional finite difference reservoir simulation and used as input to three-dimensional non-linear finite element geomechanical simulations. The reservoir simulation included -200 wells and covered 18 years of production and injection. The geomechanical simulation contained 437,100 nodes and 374,130 elements with the overburden and reservoir discretized into 13 layers with independent material properties. The results reveal the evolution of the subsurface stress and displacement fields with production and injection and suggest strategies for reducing the occurrence of well casing damage.