Dynamic relationship among factors have not been taken into consideration in the application of oilfield output prediction method. Time series transfer function method is firstly applied to build a multiple factor oilfield output prediction model considering dynamic relationship. Taking new wells output of one oilfield in Shengli Region for example, data preparation, model recognition, parameter estimation, diagnosis and checking and prediction process of transfer function model are illustrated according to its modeling work flow. The study result shows that this prediction model can remove irrelevant elements from multifarious factors and identify the main controlling factors on oilfield output prediction, and it can also observe the dynamic relationship of factors with non-synchronization and hysteresis. The precision is high and up to 98.4%.