Thermal energy delivery and oil production arrangements and methods thereof

A method for upgrading crude oil contained within a subterranean formation, the method comprising:

• introducing a non-toxic heat transfer fluid and feedwater into a steam flooding or cyclic steam generation assembly that is placed within at least one wellbore to define an upper steam generation section and a lower section that is in fluid communication with the subterranean formation, the steam flooding or cyclic steam generation assembly comprising a casing that extends from a surface to the subterranean formation, whereby the downhole concentric tubing strings contained within the casing and a thermal packer situated between the upper steam generation section and the lower section such that a string configured to fluidly convey the feedwater extends between the upper steam generation section and the lower section through the thermal packer while a string configured to fluidly convey the non-toxic heat transfer fluid extends only within the upper steam generation section;
• exchanging heat within the upper steam generation section between the feedwater and the non-toxic heat transfer fluid such that the feedwater is flash converted into at least one of a high-quality steam or superheated steam;
• flowing the high-quality steam through its string from the upper steam generation section into the lower section and the subterranean formation;
• and
• chemically interacting the at least one of the high-quality steam or superheated steam in the presence of at least one catalyst in order to reduce the concentration of asphaltenes and increase the concentration of saturate and aromatic components contained within the crude oil.