Reservoir fluid flow is a fundamentally complex process.

Fluid movement depends not only

on the fluids themselves, but also on how the fluids interact with the porous medium, which
in effect is a huge capillary network. Then, there is the pore structure itself to worry about.
On a scientific level, understanding these microscopic properties is a must if we are to
capture the essence of the system. However, engineers thrive on approximation, and
reservoir simulation engineers are no exception. Using global properties such as
permeability, porosity, relative permeability, and capillary pressure, one attempts to procure
the best information possible. As research progresses into reservoir characterization,
improvement in the modeling approach is inevitable. Meanwhile, we must learn all we can
through approximate models.