A new grid generation technique based on streamlines and equi-potentials is developed for reservoir simulation. The natural property of streamlines provides a grid that has a concentration of grid lines in high \'clocity regions of the flow field thereby optimizing nodal placement. Results computed with the new streamline-potential grids demonstrate a significant improvement in accuracy when compared with conventional Cartesian grids of similar resolution. Streamlines and equi-potentials are shown to be K-Orthogonal, This fundamental observation has major implications for reservoir simulation. A comparison between a two point flux approximation and a full tensor flux approximation is presented for the K-Orthogonal streamline-potential grid systems.
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