Starting from the occupation training demand of Xinjiang oil field to the type of work in oil extraction, the design and implementation of oil extraction simulation training system were researched, with the thought of combining train and identification for the occupation skills. The overall structure design of simulation training system for oil extraction was analyzed. The water flooding and oil gathering simulation training system, the dynamic management simulation training system for oil filed production, the monitor and management system, and the functions of oil extraction automation simulation training system were discussed in detail. Software system implementation of the simulation training was introduced. This multimedia courseware for the simulation training system, and use of automated production simulation software for operational skills training, meet the needs of modern training in the oil field.