SAGD (Steam-Assisted Gravity Drainage)

MEG Energy uses steam-assisted gravity drainage, or SAGD, technology to recover bitumen.

In steam-assisted gravity drainage (SAGD) operations, pairs of stacked horizontal wells are drilled into the reservoir about 400 metres beneath the surface.

The top well injects steam to heat the bitumen, which separates from the sand and collects with the produced water in the lower well, approximately five metres below. The bitumen is then pumped to the surface, where it is separated from the water. The water is treated and recycled into the system. 

In 2021, greater than 95% of the water used for steam generation in our thermal recovery was recycled water.

The steam-oil ratio, or SOR, is an indicator of the efficiency of a SAGD operation. Generally, an SOR of less than 3 is considered to be an efficient operation. MEG achieved an SOR of 2.4 in 2021 at its Christina Lake project. The eMSAGP process has been shown to significantly reduce the overall steam-oil ratio relative to SAGD. Lower SORs equate to improved efficiencies and cost per barrel of bitumen produced.

Additional requirements are found from deep water sources that are not suitable for consumption or agricultural uses. No surface water is used in the process.

SAGD has several advantages over oil sands mining

Access to Resources

More than 80% of Canada’s oil sands can only be accessed by drilling technologies, like SAGD.

Reduced Footprint

With horizontal wells stretching more than a kilometre beneath the surface, a large area can be developed with minimal impact to the land. SAGD operations typically disturb only 10% to 15% of the surface of the development area.

Manageable Growth

SAGD allows development in stages, helping to manage costs and workforce peaks. MEG's current operations and future plans are based on multi-stage brownfield expansions.

Technology Upside

While SAGD is a proven technology, it is still relatively young and holds the potential for improved recovery rates, greater energy efficiency and lower costs as we continue to research and test potential enhancements.

Incident Notification

Incident notification – April 30, 2016 – Meg Energy announces that today, at approximately 08:15 hrs, during work carried out on a natural gas well near the village of Edmonton in Alberta.