Climate change centering on carbon dioxide（CO

2

） emissions and energy security centering on the shortage of oil resources are two major problems restricting the sustainable development of China's social economy. In order to solve the bottleneck of both the CO

2

capture and the great improvement of recovery factor of low permeability reservoir

the related technology researches have been carried out in Shengli Oilfield

forming the supporting technologies such as CO

2

capture

safe long-distance transmission

reservoir engineering optimization design

the injection-production process design

design of surface gathering and oil displacement and env

ironmental monitoring

and building an industrial-scale demonstration project for flue gas CO

2

capture

oil displacement and underground storage of coal-fired power plants. The industrial tests show that the cost of the new MSA technology is 35 % lower than that of the traditional MEA technology. Over 31×10

4

t of CO

2

have successfully been injected into the reservoir

with the cumulative oil increment of 8.6×10

4

t

and 28×10

4

t of CO

2

storaged in G89-1 block. The central well area has increased the recovery rate by 9.5 %

and the recovery rate is expected to reach 17.2 %.