In order to economize the energy and reduce the loss of the oil field power network, based on the characteristics of oil field power distribution network，the power loss value was calculated. By adding compensation capacitor and adjusting tap position of on load tap changer, mathematical models for reactive power optimization were given,and by the method of dispersed compensation and centralized compensation, the optical position, capacity of compensation and the tap position of on load tap changer were studied.The reactive power optimization software of oil field power distribution network was programmed. Calculation examples of TAHE oil field power distribution network showed that the genetic algorithm can be used to determine the tap position and is more suitable to the compensation capacity and the energy loss than the dispersed compensation method.The dispersed compensation method can be used to calculate the compensation capacitor position.
