The dynamic oil and natural gas grid production system includes a plurality of “mini” or localized gathering centers for receiving crude oil from a plurality of remote oil wells. Each of the plurality of localized gathering centers includes a heat exchanger for receiving and heating the crude oil, an oil-gas separator in communication with the heat exchanger for separating the crude oil into natural gas and secondary oil, and a three-way separator in communication with the oil-gas separator for receiving the secondary oil and separating the secondary oil into tertiary oil and effluent water. First, second and third flow lines are in communication with each of the plurality of gathering centers for receiving and transporting the natural gas, effluent water and tertiary oil to a centralized gathering center.