Abstract: Fractures are well developed in Baolang low permeability reservoir as a result of structural and diagenetic factors. However, fracture distribution is uneven with most fractures distributed along structural axis and near the large faults in the southeast and northeast The producing characteristics of development wells in areas with well developed fractures are different with that in areas with poorly developed fractures: water absorption capability of water injection wells is strong; production capacity of producers is high; and water channeling is serious and has obvious directivity in oil wells. The positive effects of fractures on waterflooding in Baolang oilfield are enhancement of reservoir permeability while adverse effects are water channeling.