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Estimating future well producing rates is one of the most-important tasks when evaluating an oil reservoir. Hydrostatic head controls the relationship between the backpressure at the wellhead and the bottomhole flowing pressure in the production tubing. Gas or water phases introduced into the flow stream can change the hydrostatic head while chokes control backpressure, both of which affect the surface producing rate.

Water entering the flow stream increases the weight of the hydrostatic head, which must exceed the differential between the bottom and surface flowing pressure. Chokes are used to limit the flow rates at the surface and subsurface. Excessive quantities of commingled gas with the produced oil can dramatically reduce the oil production rate because of the ability of the gas phase to flow in preference to the oil phase. Equations describing the relation between the bottomhole flowing pressure and the oil producing rate are defined as inflow performance relationships. Differences between the bottom and surface flowing pressure caused by changes in the hydrostatic head and the effects of turbulence in the tubing are classified as well performance characteristics.

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