Based on the characteristics of large quantity, variety and wide distribution of equipment in shengli oil production plant, this paper introduces the experience of equipment condition monitoring and diagnosis technology in equipment management. According to different types of equipment, implement the different monitoring projects, make full use of existing monitoring instrument, in the rotating machinery fault diagnosis, large water injection machine condition monitoring and fault diagnosis, equipment lubricating oil quality, and the quantitative qualitative analysis, injection pump pump efficiency test, balanced pumping unit rate and the pumping station equipment point check and so on; Application of a variety of monitoring technology instead of the original by the ear, see, touch human senses, take regular monitoring and a combination of encryption tracking monitoring, surveillance equipment running status, prediction and diagnosis of equipment failure and eliminating failure for the purpose, provide the basis for predictive maintenance, ensure the equipment safety, efficient and economic operation, obvious effect is obtained.