This paper describes a new and more flexible approach of dynamic local grid refinement, which can also be used to subdivide the grid block fixedly in any desired parts of reservoir. The amount of fundamental blocks and subblocks can be minimized by using a step-by-step scheme of subdivision almost without any restriction.

Moreover, it is shown that the specially developed system of ordering scheme and data management of this method is very simple and effective. Especially in dynamic grid refinement, no inactive grid block is produced in the process of ordering, and just a little of additional running time is needed to execute this system in computer.

This paper reports that the results produced by using the dynamic grid refinement is very close to those obtained with the conventional fine grid system, and the running time are much lower.

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