Steam-Assisted Gravity Drainage - SAGD

AAA

DEFINITION of 'Steam-Assisted Gravity Drainage - SAGD'

Steam-assisted gravity drainage (SAGD) is a drilling technique that is used to extract heavy oil that is too deep or otherwise economically inefficient to mine using traditional methods. The process was originally developed by the Alberta, Canada Department of Energy as an efficient means of recovering oil reserves that are difficult to access.

INVESTOPEDIA EXPLAINS 'Steam-Assisted Gravity Drainage - SAGD'

SAGD requires a pair of horizontal wells drilled from a central well pad. Steam generators are used to produce steam, which travels through pipelines to the wells. The steam eventually heats the heavy oil to a temperature that reduces its viscosity, allowing it to flow by gravity to a bottom well. The oil is then transferred via pipe from the producing well at the bottom to a plant where it can be treated.

RELATED TERMS
  1. Crude Stockpiles

    Reserves of unrefined petroleum, measured in numbers of barrels. ...
  2. Oil Field

    A tract of land used for extracting petroleum, or crude oil, ...
  3. Oil Refinery

    An industrial plant that refines crude oil into petroleum products ...
  4. Crude Oil

    A naturally occurring, unrefined petroleum product composed of ...
  5. Enhanced Oil Recovery - EOR

    Enhanced oil recovery (EOR) is the process of obtaining stranded ...
  6. 1979 energy crisis

    The 1979 energy crisis in the U.S. was an event of widespread ...
Related Articles
  1. Getting A Grip On The Cost Of Gas
    Home & Auto

    Getting A Grip On The Cost Of Gas

  2. Oil: A Big Investment With Big Tax Breaks
    Investing Basics

    Oil: A Big Investment With Big Tax Breaks

  3. Oil And Gas Industry Primer
    Active Trading

    Oil And Gas Industry Primer

  4. Uncovering Oil And Gas Futures
    Active Trading

    Uncovering Oil And Gas Futures

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center