ARTIFICIAL LIFT

Most oil wells and even a few gas wells will probably require some sort of artificial lift
before abandonment. Reservoir pressure normally declines and/or watercut increases with
a decrease in gas- liquid ratio, which reduces the drawdown and the flow rate until the
well ceases to flow. In some cases, artificial lift is installed before the well dies in order
to increase drawdown and thus increase production.
SELECTION
Selection of the artificial lift method is very important to future profitability. In such a
selection, the three major economic factors in order of importance are :

Revenue due to oil and gas production

Opening cost

The initial capital cost

The lift should produce the reserves in a timely fashion with minimum operating costs.
An efficient system is normally worth some additional capital cost.
Making a bad selection will adversely effect the net income may even result in having
to change to a different type of artificial lift. Making a bad selection will adversely effect
the net income and may event result in having to change to a different type of artificial
lift.
The initial capital cost estimate should be easy and should be relatively accurate. A
production rate prediction over the well life for the specific lift method is required. A low
rate method such as sucker rod pumping may result in a flat production rate life for some
time period followed by an exponential decline. A good price estimate for future oil and
gas production is essential.
The most difficult part of the artificial lift analysis is obtaining good operating cost data
over the well life. Energy cost can be easily estimated, but repair and maintenance cost
very significantly. Analog data from similar wells should be used if at all possible. With
above data plus assumption on salvage values, inflation, and taxes - the profitability of
the specific artificial lift method can be estimated.