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[[Relative permeability]] and capillary pressures characterizing grid blocks may differ considerably from laboratory measurements. Laboratory measurements minimize the effects of gravity and heterogeneity. An example of these pseudo-relative permeabilities and capillary pressures is shown in Figure 2. The importance of gravity and heterogeneity effects is greater with larger layers. Pseudo-relative permeability and capillary pressure curves are often developed on small detailed studies for larger scale models. In some cases, pseudo-relative permeability and capillary pressure is developed during history matching. Pseudo-relative permeability and capillary pressure may be dependent on fluid and saturation history. Their ability to account correctly for gravity and heterogeneity is limited. Where these effects are significant, a smaller grid size should be used.
 
[[Relative permeability]] and capillary pressures characterizing grid blocks may differ considerably from laboratory measurements. Laboratory measurements minimize the effects of gravity and heterogeneity. An example of these pseudo-relative permeabilities and capillary pressures is shown in Figure 2. The importance of gravity and heterogeneity effects is greater with larger layers. Pseudo-relative permeability and capillary pressure curves are often developed on small detailed studies for larger scale models. In some cases, pseudo-relative permeability and capillary pressure is developed during history matching. Pseudo-relative permeability and capillary pressure may be dependent on fluid and saturation history. Their ability to account correctly for gravity and heterogeneity is limited. Where these effects are significant, a smaller grid size should be used.
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[[file:conducting-a-reservoir-simulation-study-an-overview_fig2.png|thumb|{{figure number|2}}(a) Pseudo-relative permeability and (b) capillary pressure curves calculated for two-layer thicknesses compared to laboratory measurements. (From <ref name=pt10r6>Coats, K. H., 1967, Simulation of three-dimensional, two-phase flow in oil and gas reservoirs: Society of Petroleum Engineers Journal, Dec., p. 377–388; Transactions, AIME, v. 240.</ref>; after <ref name=pt10r22 />; Copyright © 1967, 1990 Society of Petroleum Engineers.)]]
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[[file:conducting-a-reservoir-simulation-study-an-overview_fig2.png|thumb|{{figure number|2}}(a) Pseudo-relative permeability and (b) capillary pressure curves calculated for two-layer thicknesses compared to laboratory measurements. (From <ref name=pt10r6>Coats, K. H., 1967, Simulation of three-dimensional, two-phase flow in oil and gas reservoirs: Society of Petroleum Engineers Journal, Dec., p. 377–388; Transactions, AIME, v. 240.</ref>; after <ref name=pt10r22 />; © 1967, 1990 Society of Petroleum Engineers.)]]
    
==Preparing matrix properties==
 
==Preparing matrix properties==

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