Rod Pumping Overview Artificial lift is required when a well will not flow or won’t produce at a satisfactory rate Rod pumping is one of several forms of artificial lift

Rod Pumping Overview Most popular method of artificial lift in the United States Relatively low cost Capable of a wide range of operation High volumes at shallow depths Limited rates to 12,000+ feet Familiar system Good support infrastructure

Rod Pumping Overview Most understood method of lift Design has been standardized API Standards and RP’s Commercial computer programs available Advanced surveillance techniques Significant advancement in reducing failures Alliances with suppliers RCFA implementation

Rod Pumping Overview Operating challenges High stress Corrosion Gear box, beam and rods (cyclic) Corrosion Erosion Sand Gas CO2 H2S High temperatures Wellbore deviation

Rod Pumping Overview Opportunities for improvement Wide variance in how technology is implemented New technology not readily or widely accepted Many producing companies consider artificial lift a commodity with little upside potential for savings

Rod Pumping Overview Opportunities for improvement (cont.) Number of technical staff focused on AL in operating companies is shrinking Alliance suppliers will have influence on implementing new technology