Electric Submersible Pumps (ESPs) Successfully Replacing Gas Lift in Permian Basin Wells: Production Performance and Economic Comparison Case Study

Abstract Electric Submersible Pumps (ESPs) and Gas lift (GL) are well-known artificial lift techniques that can achieve a significant increase in production when properly designed and optimized. The discussion of whether choosing GL or ESP has generated numerous conflicting studies. The conversion of gas lifted wells to ESP or vice versa have been driven by the need for improved efficiency and increased production rate in mature fields. This work focuses on the successful application of ESPs to replace GL in numerous Permian Basin wells. The approach involved selecting an oilfield asset initially gas lifted and later was converted to ESP in the Permian Basin. The performance of wells under both artificial lift systems was carefully monitored, documented, and compared. Well models were built and matched followed by sensitivity analysis to determine GL and ESP lifting limits. A comparative assessment of CAPEX, OPEX, operational constraints, and oil recovery was performed to evaluate the economic and technical viability of each technique. Field data demonstrated the significant production gains achieved after the conversion from GL to ESPs. Pump stages were able to lower the Bottom Hole Pressure (BHP) by up to a 1000 psi in comparison to GL, which in return, allowed the operating companies to maximize production. The average oil rate increased by up to 70% in some wells. Based on the simulation results, gas lift capability in achieving high drawdown is limited making it ineffective in low reservoir pressure. In addition, the limited gas injection rate and gas injection pressure in the field prevented operating companies from optimizing the GL system. ESP achieved a net revenue incremental increase of approximately 20% and 250% rate of return of the initial capital investment (CAPEX) in two selected wells. To maximize production from mature assets, high drawdown is needed. With the advancement in gas handling and separation, ESPs have become more efficient and reliable. And despite the higher initial costs, ESPs can deliver improved operational performance and economic returns in the Permian Basin, making them a viable alternative to traditional gas lift methods.