Abstract: Because of natural energy disequilibrium and water flooding level difference in Tuo 7 block thin heavy oil reservoir, policy of development is adjusted by using the methods of reservoir engineering,numerical simulation,etc.on the basis of Potential analysis.The results show there are two series of strata development:steam stimulation in upper series and natural energy exploitation in below series.Fluids lifting in oil layer with edge- bottom water,utilizing horizontal wells to improve the development effects in thin oil layers,the recovery percent will be effectively improved, which provides an effective way for the development of other similar reservoirs.