Abstract: Guandao oil layer carried out four vertical wells combined with horizontal wells steam assisted gravity drainage (SAGD) Pilot trial in Shuyi district Du 84 block of Liaohe oilfield in 2005. To ensure the SAGD production effects,four horizontal wells in Group 60 X 38 X 38=86 640 grid nodes has been built by Petrel indoor, combined with CMG's Stars thermal recovery simulation software, which can make timely follow-up analysis of SAGD and dynamic optimization and adjustment,and provided a favorable technical support to the success of the SAGD pilot test, meanwhile also provided valuable experience to a large scale SAGD in Liaohe oilfield .