ABSTRACT This paper presents a field proven analytical method of evaluating submersible electric pumping equipment and well performance jointly. A computerized mathematical model is described which considers the effects of free gas, pump speed (variable frequency drives) and pump tapering. The method allows accurate calculations of important downhole parameters including pump intake pressure, pump intake volume (including free gas), pump pressure and fluid density profile. Lifting cost parameters such as power requirements of pump and motor, monthly power consumption, pump and motor performance and overall system efficiency are also determined. Once operating conditions are known, decisions can be made on ways to increase production (if additional potential exists) or to reduce operating costs. Thus, the same basic goals that often justify frequent analysis of rod pumping systems8 can be applied to submersible pumping.