Steam-assisted gravity drainage
15
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10
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9
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Search complete. 15 mentions across 10 episodes found for "Steam-assisted gravity drainage".
Oct 1, 2026
Grant SpragueGUEST
At the same time as you're watching that, you're watching incremental production increases from all of the producers and they've got their own plans on how they want to develop the resources they've got.
Grant SpragueGUEST
A reminder, more than half of our bitumen is being produced through that SAGD process, which there's lots of technical elements to it.
Grant SpragueGUEST
It's not simple by any stretch, but it's not the same as those big mines.
Grant SpragueGUEST
So you can see developments in a bit of a different way and query whether that makes life easier or not for those kind of proponents.
Jamie HeardGUEST
If you look at what the play is doing this fall relative to last fall, the numbers are up meaningfully.
Jamie HeardGUEST
And I think the capital allocated to both SAGD and potential of mine expansions in the next five years ahead will help them basically backstop these egress commitments they're making on their own oil takeaway side.
Jamie HeardGUEST
What remains to be seen is exactly how the oil sands is able to consume this new gas, the NGTL system.
Jamie HeardGUEST
after being expanded by tc in the last decade successfully um through and finished in the call the 2020 2019 2020 season uh has started to congest again a bit and the congestion this time is different uh the first air period of ingestion congestion was all upstream james river or call it the left hand side of your ngtl pool and the congestion now is moved slightly downstream and it's also a feature in the osda region which is the oil sands uh basically consumption arm the pipe that goes up into the oil sands region and so if they want to consume this additional billion cubic feet a day of gas they will need an ngtl expansion to access that molecule or potentially a linear pipe that's built from you know the wcsb by another player right into the region.
Adam WaterousGUEST
Um, and so you mean you need huge economies in a thin margin business.
Adam WaterousGUEST
Um, con-conversely, in the thermal SAGD business, it has a, a, a very attractive profile in being, as you identified, Paul, long life, low decline, um, and importantly, high free cash flow.
Adam WaterousGUEST
And how you measure that is what percent of your EBITDA, say it's $70, do you have to spend on capital expenditures to hold production flat? What, uh ...
Adam WaterousGUEST
It's not, not just our business, but the thermal oil business, the SAGD business, that might be in the 35, 40% range.
Adam WaterousGUEST
It'd be not uncommon in the shale business for instead of it being 35 to 40, it'd be double that, 70 to 80.
Adam WaterousGUEST
So you get ...
Adam WaterousGUEST
Now, it was asked a little bit earlier, um, geez, you know, there's gonna be ...
Adam WaterousGUEST
Uh, it's a very, it's a very concentrated business.
Joseph SchachterGUEST
And then when Venezuela shut down and Mexico couldn't do it, we had heavy crude.
Joseph SchachterGUEST
So our oil sands and our SAGD companies all of a sudden, you know, saw their market share double because those others, Venezuela and Mexico, lost 2 million barrels.
Joseph SchachterGUEST
And we gained those 2 million barrels.
Joseph SchachterGUEST
So today... you know, Canada is exporting to the United States, you know, I think the number is, you know, almost 4 million barrels.
Geoff ClarkGUEST
So similar to steam thermal, but we produce that heat right in the reservoir in situ with great efficiency.
Geoff ClarkGUEST
So where SAGD works really well, that's not our target market.
Geoff ClarkGUEST
Our target market is reservoirs that are maybe too small or too thin for SAGD, but where there's a lot of oil and it just won't be produced on primary production.
Geoff ClarkGUEST
So lots of that oil in Saskatchewan, lots of that oil in Alberta, and we think we have the right technology for it.
Kurt PriceHOST
So obviously the pilot went well.
Gerald AalbersGUEST
Sure.
Gerald AalbersGUEST
Um, you know, SAGD has been around for some time, but certainly we've seen some people reach out, some new players enter the market, some, uh, mergers, acquisitions that have happened that have created some opportunities for other companies.
Gerald AalbersGUEST
So I think that, you know, seeing those small SAGD at, uh, 10,000 barrels, 6,000 barrel a day, and they're delivering over nameplate, as it's referred to.
Gerald AalbersGUEST
So, uh, if they can produce 6,700 barrels with a design of 6,000, that's 700 more barrels than th- that was originally planned.
Gerald AalbersGUEST
So it's good to see, uh, several players h- discussing it in the marketplace.
Brian ZinchukGUEST
So, on Monday, you and I are gonna be going out to Strathcona.
Brian ZinchukGUEST
They're opening another SAGD plant.
Brian ZinchukGUEST
Uh, you know, if we're gonna see that growth of a third of our production, and eventually beyond that is what he's talking about.
Brian ZinchukGUEST
What the Premier-
10 MINS LATER
Brian ZinchukGUEST
When the, uh, Ukraine war started and oil hit $100 a barrel, we didn't see the bounce.
Brian ZinchukGUEST
We saw a little bit of improvement, but we didn't see the bounce.
Brian ZinchukGUEST
Now, I'm not s- so sure about North, uh, Northwest because a lot of this stuff is on much longer time horizons, the SAGD projects and stuff like that.
Brian ZinchukGUEST
But, you know, now the, the time is good when price is good, but we need to s- figure out why Saskatchewan is not getting the investment that maybe we should.
Trevor RixGUEST
Okay.
Trevor RixGUEST
Certainly by the 2030s, if the inflection that we have in our forecast is true, where you really start to accelerate the rate of, of SAGD development, we're going to see a pretty rapid deficit in, in diluent barrels here.
Trevor RixGUEST
Yeah.
Dane GregorisHOST
I guess it makes sense if you think about like the long-term like really long-term, like next 20, 30, 40 years, you have way more oil sands resource than you have condensate resource.
Ryan ShayGUEST
Headwater trades at 7.8. There's another larger company called Cardinal.
Ryan ShayGUEST
They have a SAGD steam-assisted heavy oil project that they brought online, which give them the very significant asset duration expansion that we talked about.
Ryan ShayGUEST
They're trading at 6.4 times.
Ryan ShayGUEST
So as we continue to grow, get bigger in size, scale, liquidity, and demonstrate that asset duration, there's a substantial increase movement in multiples from the 3.3 into that 6 plus range.
Eric NuttallGUEST
We think it's a very well-run, small-cap, I'm going to say heavy oil producer.
Eric NuttallGUEST
They were really the first to pursue small-scale SAG-D at Reeford.
Eric NuttallGUEST
Unmistakably Canadian.
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