In the design of conventional gas-lift installations, the size and setting of the operating valve are determined according to theoretical performance at nominal well conditions. Unfortunately, gas-lift valves are subjected to the effects of a dynamic and often transient environment that can significantly compromise operating efficiency. To manage these environmental effects better, a new electric gas-lift valve (EGLV) system in which the size of the downhole gas injection orifice can be remotely adjusted from a surface control unit has been proto-typed and field tested. The EGLV system consists of an electrically operated, surface-controlled downhole valve, a downhole pressure transducer, tubing mandrel, electric cable system, and surface controller. By combining known well parameters with real-time tubing pressure and valve-position data relayed from downhole, the control unit can adjust the valve to current well conditions. This capability allows the operator to produce the well with maximum effectiveness for whatever production priorities have been chosen. Controlling valve response in this manner can be especially desirable for such applications as limited lift-gas availability, limited compressor capabilities, drawdown within designated limits, control of short-term production upsets, and areas where reservoir management objectives are specific to the application. Enhanced efficiency of gas-lift operation and optimized production were the goals of this developmental program, and testing results obtained to date have shown enough promise to initiate the next stage of the program-an advanced wireline-retrievable version of the system.