Based on observation of core and analyses of logging data, fracture occurrence, height, position are analyzed in Chang8 section, Heshui area. The fracture planar distribution was summarized. According to the fracture linear density, Heshui area is divided into strong fractured zone, fracture developed zone, weak fractured zone and non-fractured zone. Fracture in Chang8 section is mainly distributed in the siltstone, followed by fine sandstone and mudstone. The better the porosity and permeability of reservoir are, the less the fracture develops. For layers of the same lithology, the greater the thickness of layer is, the less the fracture develops. In the strong fractured zone and the fracture developed zone, the porosity and permeability are poor and the layer thickness is small. So oil production is not high in the two zones, and high yield wells are always in the weak fractured zone. This shows that it is difficult to obtain industrial oil flow even if the reservoir is fractured when its porosity and permeability and oil bearing are poor. Fracture existed in the formation nearby reservoir has little effect on fracturing and the yield of oil-bearing reservoir. Controlling factors of oil production are lithology,thickness, physical properties, oil bearing of reservoir.