For nearly half a century, reservoir simulation has been an integrated part of oil-reservoir management. Today, simulations are used to estimate production characteristics, calibrate reservoir parameters, visualize reservoir flow patterns, etc. The main purpose is to provide an information database that can help the oil companies to position and manage wells and well trajectories in order to maximize the oil and gas recovery. Unfortunately, obtaining an accurate prediction of reservoir flow scenarios is a difficult task. One of the reasons is that one can not run simulations that exploit all information available in the geostatistical reservoir description (the geomodel).
In this talk I will present a simulation framework that attempts to honor the fine scale geological details in an optimal way. A multiscale mixed finite element method is employed to compute pressure and velocity whereas a special non-uniform coarsening strategy for generating grids that resolve dominant flow patterns is used for modeling the transport. The methodology handles both structured and unstructured grids, and applies, in principle, to arbitrary grid formats.