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The effects of adding iron oxide NPs on the rheological and filtration properties of aqueous bentonite suspensions have been studied by several researchers. This paper presents an investigation into the effect of catalytic nanoparticles on the efficiency of recovery from continuous steam injection. A number of ongoing industry research projects are developing nanoparticles that work at the reservoir level and for fluid treatment. Though they may be a few years away from finalization, these efforts highlight nanotechnology’s increasingly sophisticated and growing application scope. This work focuses on the laboratory techniques for developing, assessing, and analyzing innovative water-based drilling fluids containing iron oxide (Fe2O3) and silica (SiO2) nanoparticles.