Accurate black oil reservoir simulation is important for the understanding of underground resources in hydrology and petroleum reservoir engineering. The success of fast prediction relies on a robust and scalable black oil simulator, which can handle the complex subsurface fluid dynamics with coupling several different physical processes, and meanwhile run efficiently on distributed memory parallel computers. In this work, we introduce a highly parallel simulator to accurately compute the reservoir flow coupling with wells, including some adaptive fully implicit schemes for the temporal discretization, the improved active-set reduced-space algorithm for the nonlinear algebraic system, and several types of field-split methods for preconditioning. This parallel simulator is applied on the domain decomposition framework, which is designed to overcome the computational issues of traditional simulators implemented for personal computers or small workstations. High-resolution reservoir simulation results on the Society of Petroleum Engineers (SPE) comparative solution project or real-field cases are obtained and analyzed, and the parallel performance of the algorithm is studied on a supercomputer with scaling up to 27440 processor cores. The numerical experiments indicate that the proposed black oil simulator is capable of accurately predicting the highly complex physical processes and interactions between wells and the reservoir for full field scale simulation.