Abstract: The electric submersible pump (ESP) is a crucial apparatus utilized for lifting in the oil extraction process. Its lifting capacity is enhanced by the multi-stage tandem structure, but variations in energy characteristics and internal flow across stages are also introduced. In this study, the inter-stage variability of energy characteristics in ESP hydraulic systems is investigated through entropy production (EP) analysis, which incorporates numerical simulations and experimental validation. The EP theory facilitates the quantification of energy loss in each computational subdomain at all ESP stages, establishing a correlation between microscopic flow structure and energy dissipation within the system. Furthermore, the underlying causes of inter-stage variability in ESP hydraulic systems are examined, and the advantages and disadvantages of applying the EP theory in this context are evaluated. Consistent energy characteristics within the ESP, aligned with the distribution of internal flow structure, are provided by the EP theory, as demonstrated by our results. The EP theory also enables the quantitative analysis of internal flow losses and complements existing performance analysis methods to map the internal flow structure to hydraulic losses. Nonetheless, an inconsistency between the energy characterization based on EP theory and the traditional efficiency index when reflecting inter-stage differences is identified. This inconsistency arises from the exclusive focus of the EP theory on flow losses within the flow field, disregarding the quantification of external energy input to the flow field. This study provides a reference for the optimization of EP theory in rotating machinery while deeply investigating the energy dissipation characteristics of multistage hydraulic system, which has certain theoretical and practical significance.