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

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center