Abstract: Low-grade petroleum reserves has a large proportion in the total petroleum resources in China. This paper systematically analyses the size and characteristics of the low-grade petroleum reserves in China and further discusses the three development organization modes of petroleum enterprises, i.e., the development mode of oil companies, the development mode of joint stock system (Dongsheng Mode), and the coexistence of multiple petroleum development modes (Northern Shaanxi Mode). It proves that Dongsheng Mode chiefly based on joint stock system is successful and good effect has been obtained. Then this paper conducts research on the policies and laws relevant to the development and production of low-grade petroleum reserves in China, including approval and management systems, enterprise operational mechanism, tax systems, science and technology policies, and regional coordination conditions between environment and production

Key words: petroleum reserves, low-grade, enterprise organization, policy