Abstract: Finite Element Method for reservoir simulation has itsunique advantages. Due to the particular flow behavior near wellbore, thecalculation accuracy of the flowrate is affected in the simulation. In thisstudy, the calculation errors of wellbore pressure gradientare analyzed, and a correction formula is proposed. It is shown that the pressure gradient correction formula cansignificantly increase the accuracy of the flowrate, and can effectivelyreduce the grid number near wellbore, thereby enhance the computationalefficiency.