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Steam Assisted Gravity Drainage (SAGD)
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SAGD
technology allows bitumen to be recovered from oil sands deposits
impractical for surface mining and extraction methods, but not deep
enough for high-pressure steam techniques to work.
Only five per cent of oil sands can be recovered through surface mining,
and other in situ extraction techniques recover around another 15
per cent. The development of SAGD potentially doubles the economical
viability of oil sands reserves.
SAGD was developed between 1986 and 1998, and is the result of collaboration
between the Government of Alberta, through AOSTRA, and industry partners.
It was pilot-tested at the Underground Test Facility near Fort McMurray,
Alberta.
In 1999-2000, a number of the original development partners were licensed
to use SAGD technology and announced commercial ventures worth a total
of over $3.4 billion.
- Suncor - $750 million investment
- Gulf - $1.3 billion investment in Surmont
- PanCanadian - $370 million investment in Christina Lake
- Alberta Energy Company - $240 million investment in Foster Creek
- Amoco - $500 million at Primrose
- Japex - $200 million expansion at Hangingstone
- Projects are also proceeding with Northstar Energy at Dover
and Petro-Canada at McKay River.
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