The United States continues to rely heavily on petroleum fossil fuels as a primary energy source, while domestic reserves dwindle. However, so-called heavy oil (10 to 20(sup o)API) remains an underutilized resource of tremendous potential. Heavy oils are much more viscous than conventional oils. As a result, they are difficult to produce with conventional recovery methods such as pressure depletion and water injection. Thermal recovery is especially important for this class of reservoirs because adding heat, usually via steam injection, generally reduces oil viscosity dramatically. This improves displacement efficiency. The research described here was directed toward improved understanding of thermal and heavy-oil production mechanisms and is categorized into: (1) flow and rock properties; (2) in-situ combustion; (3) additives to improve mobility control; (4) reservoir definition; and (5) support services. The scope of activities extended over a three-year period. Significant work was accomplished in the area of flow properties of steam, water, and oil in consolidated and unconsolidated porous media, transport in fractured porous media, foam generation and flow in homogeneous and heterogeneous porous media, the effects of displacement pattern geometry and mobility ratio on oil recovery, and analytical representation of water influx. Significant results are described.