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The aim of this project is to investigate how an artificial lift method in the oil industry works,and to compare its performance with other pump systems. Jet pumps are initially used in the oil industry for artificial lift and thus in order to do so one needs a good understanding of themechanics to predict the jet pumps’ performance. The project will begin with a review of how the jet pump operates, aiming to give the reader an insight and overview into the field of an artificial lift method. Primary literature was gathered by searching the SPE online library whereby the jet pump has received much attention in the literature. The project will first focus on the theoretical functioning of the jet pump and show how an optimum design can be achieved by changing different parameters. The second section involves case studies where the jet pump has been used as an artificial lift method. First when it is used in an inaccessible location, offshore and finally lifting heavy oils. In the case studies the design of the jet pump parameters were achieved by searching available literature and the use of in-house software. The use of in-house software and the lack of field data presented made it difficult to compare field results with theoretical performances. In all case studies the jet pump increased production. * The jet pump proved to be very reliable * Low installation and operation costs and * Can be placed in highly deviated wells The above reasons can to some extent justify the low efficiency of the jet pump. The jet pump performed with efficiencies lower than expected at the different fields. If we assume that the jet pump design is optimal and the assumptions and theoretical formulas are valid the theoretical and experimental efficiencies should be the same. To determine if this statement is correct an experimental study of the jet pump was conducted. An experimental test lop was designed and constructed to conduct the experimental study.The jet pump was constructed based on one-dimensional formulation. Water was used forboth the primary and secondary flow. The water jet pump performance was then investigated.The highest efficiency achieved was 10%, which was 5-7% below theoretical efficiency.The experimental results show that the performance of the water jet pump can be adequately described using one-dimensional formulation.