Artificial lift is a method used to lower the producing bottom-hole pressure (BHP) on the formation to obtain a higher production rate from the well.
A lower bottom-hole flowing pressure and higher flow rate can be achieved with gas lift in which the density of the fluid in the tubing is lowered and expanding gas helps to lift the fluids.
Artificial lift can be used to generate flow from a well in which no flow is occurring or used to increase the flow from a well to produce at a higher rate. Most oil wells require artificial lift at some point in the life of the field, and many gas wells benefit from artificial lift to take liquids off the formation so gas can flow at a higher rate.
Out of all the producing wells in the world around 5% wells are on natural flow and rest all are on artificial lift. With depleting reservoirs and high production demands, Artificial Lift has become an industry mandate.