At present, average producing water percentage of the oilfield during mid-later period is more than 80% in our country. Therefore it is very important to estimate production layer and determine planar distributions of reservoir dynamic permeability and press and residual oil. Based on the radial flow equation analyses, the relation between reservoir permeability and produced liquid rate/water absorption, and bottom hole flowing pressure alteration are studied, a method to estimate dynamic permeability of each production layer by production logging data of the oilfield is proposed. This method doesnot need to close wells, and can reduce cost. The result can reflect well the characteristics of produced fluid of each production layer.