A novel method for grid generation in reservoir simulation is presented. Grid generation can be simplified by decomposing the domain into a set of subdomains such that modular grid generation can be performed within each subdomain. Local modular grids can be generated according to the local geometry, geology and/or mean flow conditions. The focus here is on the development of three dimensional flow based modules that can be generated locally and independently. A single local flow response can be used to define mean flow streamlines that naturally cluster in high velocity regions of the module. Results computed with the new flow based grids demonstrate a significant improvement in accuracy when compared with conventional Cartesian grids of similar resolution.


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