Abstract One of the real challenges facing the oil industry in Egypt now, is to keep up production and maximize reserves especially in mature oil fields. The application of artificial lift systems to improve the productivity, whilst ensuring the most effective use of the existing reserves, should optimize the petroleum resources. A total of 137 oil and gas fields were placed on production since the oil industry in Egypt started in 1910. Currently there are 122 oil and gas fields on stream, among which 9 are gas production fields and the other remaining 113 are producing oil from 1311 oil wells. The natural producing wells are representing 15%, while the gas lifted wells are 24% and the pumped wells are 61%. This paper presents the philosophy and the methodology of applying artificial lift system in the Egyptian oil fields. Pending on the production forecast and the expected well behavior and also the effects of applying the secondary recovery mechanism either by water flood or gas injection. Also the problems encountered on well behavior are analyzed and solutions are suggested. Special emphasis is given to the marginal oil fields artificial lifting systems, because of the economical limitation accompanied with such field's development costs. The concept is not only to equip a well with a cost effective means of artificial lift to be able to continue production, but also to manage the reservoir behavior for the maximum oil recovery.