Abstract: System efficiency is an important parameter for evaluating the energy consumption of pumping well system. In order to evaluate the gap between the limiting system efficiency of oil well and current level, to explore the potential system efficiency and to improve pumping well system efficiency, this paper puts forward the application mode that combines potential evaluation of system efficiency and simulation optimization design technology based on parameter sensitivity to pick out potential wells and develop optimized well design scheme before putting it into field application through comprehensive consideration about the produced fluid property, fluid supply capacity, system equipment and parameter combination. This technology has been applied in 2 616 wells in Huabei oil field, where the optimization object is identified by analyzing system efficiency potential of wells and the optimization direction is determined on basis of parameter sensitivity analysis, achieving ideal measure effect proved by field application of optimization design.