Abstract: The distribution of residual hydrocarbon in high water cut period is characterized by high scatter in space,the advanced grid technology and fine reservoir numerical simulation are the most scientific and applicable technologic methods.Aiming at problems existed in oilfield high water cut period,such as multiple pay zones,long recovery history,significant well variation,small grid and big model of fine reservoir numerical simulation,the research illustrates that the application of streamline and parallel algorithm can significantly improve simulation speed and shorten simulation cycle.At the same time,the necessity and method of simulation by periods are provided,the meaning and features of dynamic tracing simulation technology summarized.

Key words: high water cut period, grid technology, parallel algorithm, simulation by periods, dynamic tracing