The new technique of down-hole oil-water separation and injection in oilproduction is gaining wide popularity around the world, which can used to solvethe problems with high fluid production and thus large amount of separatingwork in development of high watercut field. It can also used to reduce theheavy investments and energy losses due to water injection. Therefor it is agood prospective technique. This technique was proposed and owned by ProductionTechnique Institute of Shengli Petroleum Administration Bureau. Since 1997, thestudying and manufacture of down-hole separation equipment have been finishedsuch as separate pumping pump and rod pumping production string of down-holeoil-water separation and injection etc. The factors influencing the effect ofthe oil-water separation and its efficiency have been found preliminarilythrough laboratory experiments. The field tests show that the technique willreduce the water production rate and expense, and increase oil productionapparently under appropriate conditions. Although there is obscure points ofthis technique, it is worth being researched and developed further.

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