Abstract: Oil production chain" is a kind of objective reality that exists in petroleum industry, which is immense system engineering. This objective reality highlights the objective principle that every links and departments in correlation with production process must take a proper proportion, coordinate with each other and keep balance in socialized large - scale production. This paper analyzes the connotation, structure and characteristics of "oil production chain" and establishes an information processing model of petroleum industry by taking this chain as the center.