The analytical equations for calculating two-phase flow, including local capillary pressures, are developed for the bundle of parallel capillary tubes model. The flow equations that are derived were used to calculate dynamic immiscible displacements of oil by water under the constraint of a constant overall pressure drop across the tube bundle. Expressions for averaged fluid pressure gradients and total flow rates are developed, and relative permeabilities are calculated directly from the two-phase form of Darcy's law. The effects of pressure drop and viscosity ratio on the relative permeabilities are discussed. Capillary pressure as a function of water saturation was delineated for several cases and compared to a steady-state mercury-injection drainage type of capillary pressure profile. The bundle of serial tubes model (a model containing tubes whose diameters change randomly at periodic intervals along the direction of flow), including local Young-Laplace capillary pressures, was analyzed with respect to obtaining relative permeabilities and macroscopic capillary pressures. Relative permeabilities for the bundle of parallel tubes model were seen to be significantly affected by altering the overall pressure drop and the viscosity ratio; relative permeabilities for the bundle of serial tubes were seen to be relatively insensitive to viscosity ratio and pressure, and were consistently X-like in profile. This work also considers the standard Leverett (1941) type of capillary pressure versus saturation profile, where drainage of a wetting phase is completed in a step-wise steady fashion; it was delineated for both tube bundle models. Although the expected increase in capillary pressure at low wetting-phase saturation was produced, comparison of the primary-drainage capillary pressure curves with the pseudo-capillary pressure profiles, that are computed directly using the averaged pressures during the displacements, revealed inconsistencies between the two definitions of capillary pressure.