The most decisive constituent of operating expenditures in sucker-rod pumping operations is related to the system's electric power use as most installations are driven by electric motors. Consequently, the reduction of operating costs can be translated to the reduction of energy losses both downhole and on the surface. Therefore, the energy efficiency of the surface and downhole components of the pumping system as well as the overall system efficiency play a big role in maximizing profits. The paper presents a critical analysis of the energy efficiency of the individual components of the sucker-rod pumping system and introduces novel models to find the system's total efficiency. The typical energy losses in the sucker-rod pumping system's main components (the downhole pump, the sucker-rod string, the surface pumping unit, the gearbox, the V-belt drive, and the prime mover) are discussed in detail. It is demonstrated that the level of the pumping unit's counterbalancing as well as any inertial effects do not impact on the net gearbox torques and on the required average mechanical output power of the motor. The energy consumption of the electric motor, however, is affected by the pumping unit's counterbalancing and the inertial effects because of the changes in motor efficiency due its variable loading within the pumping cycle. The system's useful output power is performed by the downhole pump when it lifts the produced liquid to the surface. The paper demonstrates that the so-called hydraulic power, calculated from the increase of the produced liquid's potential energy, is a reliable indicator of the system's useful power. Using the hydraulic power together with the electric power taken from the power supply permits an easy way to assess the over-all energy efficiency of the pumping system. The paper proposes several other variants of system efficiency calculations; they are based on the fact that all components of the pumping system are connected in series to each other. Sizing of electric motors for sucker-rod pumping installations is normally done with the use of a cyclic load factor (CLF) that accounts for the fluctuations in motor load during the pumping cycle. Originally, CLFs were found from the variation of motor current, but mechanical CLFs based on net gearbox torques are much more practical to use. This practice is fully justified in the paper by proving that the correlation between the motor's real current and its net torque loading is nearly linear. It is further shown that the safety of sucker-rod pumping installation design is improved if the electric motor is sized with the use of a mechanical CLF because that case gives the highest required nameplate motor power. • A critical analysis of the energy efficiency of the individual components of the sucker-rod pumping system is presented. • Novel models to calculate the over-all system efficiency of sucker-rod pumping systems are introduced and demonstrated. • The effects of counterbalancing on net gearbox torques and on the motor's mechanical power are evaluated. • Hydraulic power, representing the increase of the produced liquid's potential energy, is a reliable indicator of the system's useful power. • The use of mechanical instead of electrical CLFs to size electric motors is fully justified.