The two-point-flux finite-volume method is the most widely used technique for discretizing Darcy's law in commercial reservoir simulators. The prevalence of that method within the oil-and-gas industry mostly stems from its simple implementation, intuitive understanding, and high execution speed. However, the method is known to suffer from severe inaccuracies when using non-$K$-orthogonal meshes, which reservoir engineers may need to discretize complex heterogeneous reservoirs. In these cases, the simulation inaccuracies may trigger costly business decisions about facilities and well management based on the erroneous prediction of flow streams. The moving least-squares method, with some novel enhancements presented in this paper to specifically handle discontinuous and anisotropic permeability fields, offers an attractive alternative for two main reasons. First, the reconstruction scheme relies on neighborhoods of points located at cell centers and, therefore, does not directly rely on the mesh topology or whether the mesh is $K$-orthogonal. Second, higher-order approximations can be obtained by increasing the size of neighborhoods. In particular, transported fields can be approximated using a second-order basis, which together with the use of limiters enables a much more accurate resolution of sharp fronts than the resolution obtained with a first-order scheme, as typically encountered in commercial simulators. Numerical experiments are shown that support these claims. Solving Poisson's equation highlights the ability of the new method to use non-$K$-orthogonal meshes and discontinuous tensors. Next, two oil-water problems underline the importance of obtaining an accurate pressure-gradient approximation to drive the flow. Finally, simulations in a complex, anisotropic reservoir focus on the robustness of the new method to several meshes.
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