Through the analysis of stress sensitivity data of low permeability rock samples in the periphery of Daqing, it is found that the stress sensitivity of low permeability oil layer is greatly affected by permeability and effective stress, and the power relation can be used to better fit the relationship between permeability and effective pressure. According to the experimental analysis, the relationship between permeability and bottomhole pressure, oil well production and bottomhole pressure under the influence of stress sensitivity is derived, and the corresponding stress sensitivity map of low permeability reservoir in Daqing is drawn. Through numerical simulation, the effect of advanced water injection technology on the development of low permeability reservoirs was studied and relevant technical indicators were optimized.