Experiments of phase inversion characteristics for horizontal oil-water two-phase flow in a stainless steel pipe loop (25.7 mm inner diameter,52 m long) are conducted. A new viewpoint is brought forward about the process of phase inversion in oil-water two-phase pipe flow. Using the relations between the total free energies of the pre-inversion and post-inversion dispersions, a model for predicting phase inversion in oil-water two-phase pipe flow has been developed that considers the characteristics of pipe flow. This model is compared against other models with relevant data of phase inversion in oil-water two-phase pipe flow. Results indicate that this model is better than other models in terms of calculation precision and applicability. The model is useful for guiding the design for optimal performance and safety in the operation of oil-water two-phase pipe flow in oil fields.