Monitoring and automatic control of operating parameters for a downhole oil/water separation system

A method for operating a downhole oil water separator and electric submersible pump includes measuring fluid pressure proximate one of the pump intake, separator intake and a bottom of a wellbore. At least one of flow rate and pressure is measured at the separator water outlet. Pump and a water outlet restriction are controlled to maintain an optimum fluid pumping rate and an optimum injection rate of separated water. A flow control system includes a controllable valve disposed in a water outlet of the separator. At least one of a pressure sensor and a flowmeter is operatively coupled to the water outlet. A controller is in signal communication with the at least one of a pressure sensor and flowmeter and in operative communication with the valve. The controller operates the valve to maintain at a selected pressure and/or a selected flow rate through the water outlet.