Electrical submersible pumps (ESPs) are the backbone of artificial lift operations, enabling the extraction of hydrocarbons from challenging reservoirs. However, their effectiveness is often compromised by the extreme downhole environment, characterized by soaring temperatures, high pressures, and exposure to aggressive fluids.

While WACC is frequently used as the base discount rate for corporate-level decision-making, using it as a universal discount rate for projects can result in inaccurate project valuations. Incorporating the opportunity cost of capital provides a more nuanced and accurate approach to project evaluation.

Testing new drilling technology in a controlled and monitored environment before it is launched to its full extent in the field—that is what the Rijswijk Center for Sustainable Geo-energy is all about.

This article explores the intricacies of this age-old problem, outlining the causes, consequences, and costs of gas locking, as well as highlighting a novel approach to mitigation that has recently been validated by computational fluid dynamics research.