Computational costs limit large scale reservoir simulations to coarse grid systems.
Determination of an effective permeability for a simulation grid block requires a proper scale-up of small scale permeability heterogeneities within that grid block. Conventional scale-up techniques are limited to a diagonal tensor representation of effective permeability. An analytical method is developed to calculate an effective permeability tensor for a grid block by accounting for small scale heterogeneities within the grid block. The method honors both the location and the orientation of the small scale heterogeneities. Most commercially available reservoir simulators are not equipped to handle general permeability anisotropy.