In-situ production of heavy oil using steam-assisted methods such as SAGD requires considerable volumes of water. It also produces large amounts of waste water that must be treated then reinjected or safely disposed of.
In addition, to avoid potential contamination of nearby potable groundwater resources, it is necessary to monitor and control the flow of water within the hydrocarbon reservoir and wells.
Ensuring that water or steam is injected into the right zones requires an understanding of the multiphase flow and hydrogeology of the heavy oil reservoir and also the hydrogeology of surrounding strata. This is important not only to optimize oil recovery, but also to ensure containment of contaminated water in the long term; for example ensuring that water from the hydrocarbon reservoir does not flow into a potable groundwater aquifer or river system through connected compartments.
Saying there are no environmental challenges with SAGD is just not true, regardless of your contention. There are issues, just not as big as those associated with carving up the Earth and leaving great open sores in the Oil Sands fields.
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