A method for allocating actual production loss of a wellsite. The method includes defining a data collection procedure and capturing production data according to the data collection procedure, the production data including actual production data and a maximum production potential of the wellsite. The method further includes selectively allocating a portion of the actual production data to the wellsite based on allocation rules to obtain derived production data, comparing the derived production data to the maximum production potential to determine the actual production loss for the wellsite, allocating the actual production loss to at least one of the production events, and determining a cause of the actual production loss based on an engineering analysis of the production events.