System and methods for optimizing multistage hydraulic fracturing design based on three-dimensional (3D) continuum damage mechanics are provided. A 3D global model of a field of hydrocarbon reservoirs is generated. A finite element analysis of the 3D global model is performed to calculate values of one or more mechanical variables for the field. A smaller-scale 3D sub-model of a selected portion of the field is generated from the 3D global model based on the calculated values of the mechanical variables. The hydraulic fracturing effects of fluid injection stimulation within the targeted reservoir formation are simulated by applying one or more numerical damage models to the sub-model. Optimal design parameters for multistage hydraulic fracturing of the targeted formation with a plurality of horizontal wells are determined based on numerical results of the simulation.
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