Abstract: The optimal allocation of oil production factor occupies a very important position in oil production, on the basis of studying oil resource and the production particularity, the difference between oil production and other industrial production is analyzed, and the features of oil production factors and importance of those factors are discussed in order from economic perspective, the author commends the functional simulation methods to set up the incidence relation of production factors and output after proceeding the qualitative investigation of oil output and production factors, and taking the incidence relation to be the oil production function is not only breaking the traditional production function mode but also building the petroleum production function adapting to its characteristic. Based on this production function, a maximum production model for petroleum is set up, dynamic programming is used to solve the mode and finally the optimal allocation of oil production factor obtained.

Key words: petroleum, production function, production factor, optimal model