Detailed reservoir models routinely contain 10(6)-10(8) grid blocks. These
models often cannot be used directly in a reservoir simulation because of t
he time and memory required for solving the pressure grid on the fine grid.
We propose a nested gridding technique that efficiently obtains an approxi
mate solution for the pressure field. The domain is divided into a series o
f coarse blocks, each containing several fine cells. Effective mobilities a
re computed for each coarse grid block and the pressure is then found on th
e coarse scale. The pressure field within each coarse block is computed usi
ng flux boundary conditions obtained from the coarse pressure solution. Str
eamline-based simulation is used to move saturations forward in time. We te
st the method for a series of example waterflood problems and demonstrate t
hat the method can give accurate estimates of oil production for large 3D m
odels significantly faster than direct simulation using streamlines on the
fine grid, making the method overall approximately up to 1,000 times faster
than direct conventional simulation.