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. P5+1

    The P5+1 is a group of world powers who have been negotiating ...
RELATED FAQS
  1. Why is investing in oil and gas in emerging markets riskier than investing in developed ...

    Investments in oil and gas in emerging markets generally carry higher risks than similar investments in developed countries. ... Read Full Answer >>
  2. How does the long-term outlook of the aerospace sector compare to the broader economy?

    As of 2015, the long-term outlook of the aerospace and defense sector is uncertain, much like the broader economy. That said, ... Read Full Answer >>
  3. How do the costs of oil sands producers compare to traditional drillers?

    The oil sands of Canada are some of the most expensive crude oil assets in the world to produce. Each asset type, such as ... Read Full Answer >>
  4. How quickly can an oil and gas producer react to changing oil prices?

    Oil and gas producers can quickly react to changes in oil prices by taking actions to reduce production and to halt capital ... Read Full Answer >>
  5. Do all oil companies received the quoted price of West Texas Intermediate for their ...

    The quoted, or spot, price of West Texas Intermediate, or WTI, crude oil is just one of several benchmark oil prices. The ... Read Full Answer >>
  6. How strong are the barriers to entry in the oil and gas sector?

    The barriers to entry in the oil and gas sector are extremely strong and include high resource ownership, high startup costs, ... Read Full Answer >>
Related Articles
  1. Home & Auto

    Getting A Grip On The Cost Of Gas

    Feeling overwhelmed by rising oil prices? We offer some tips that will save you money.
  2. Investing Basics

    Oil: A Big Investment With Big Tax Breaks

    Oil and gas investments can provide unmatched deduction potential for accredited investors.
  3. Active Trading

    Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.
  4. Active Trading

    Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.
  5. Options & Futures

    Fueling Futures In The Energy Market

    The energy market influences every aspect of our lives, and these four options are its driving force.
  6. Active Trading

    Unearth Profits In Oil Exploration And Production

    Drill down into financial statements to tap into the right companies and let returns flow.
  7. Chart Advisor

    3 Ways To Trade The Bounce In Coal

    News from the Supreme Court has caused active traders to turn their attention to the coal markets. We'll take a look at how to trade the bounce.
  8. Savings

    Do Oil Prices Affect The Auto Industry?

    Based on an understanding of complementary and substitute goods, the American auto industry is exhibiting expected effects from the recent plunge in the price of oil.
  9. Professionals

    How Going Green Can Cut Your Taxes

    Investors looking to improve their bottom line via green investing without risk should take advantage of these tax credits.
  10. Entrepreneurship

    Three Steps Elon Musk Took To Become Successful

    What steps did Elon Musk take to become the person he is today? We explore three steps that are accessible to all of us.

You May Also Like

Hot Definitions
  1. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  2. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
  3. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  4. Current Account Deficit

    A measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services ...
  5. International Monetary Fund - IMF

    An international organization created for the purpose of: 1. Promoting global monetary and exchange stability. 2. Facilitating ...
  6. Risk-Return Tradeoff

    The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!