Q. About 40% of our oil production pumps are closed loop hydraulic reciprocating pumps and we are looking into replacing them with the rod beam pumping systems. We have some estimates from our vendor but I wanted to hear it from an independent expert on converting from KOBE to Rod Beam pumps. Will we save any operating and maintenance costs? A. As you may know from your vendor that the KOBE system uses production fluid to transfer as the medium to transfer fluid rather than a steel rod. While accomplishing pumping using some of the production fluid back in the well, KOBE creates inefficiencies. KOBE systems require larger amount of electrical power as compared to rod beam pumps due to the inefficiencies of the fluid piping system. Since there is so much pumping and recirculation of the fluid with KOBE systems that creates a high level of equipment maintenance, rod beam pumps can reduce these repair and maintenance costs by as much as 50%. Typically, production is also increased with rod beam pumps due to the reduction in maintenance downtime. Simple payback time for KOBE to rod beam conversion should be less than 3 years.