Abstract: The great difficulty with managing the wastes efficiently was one of the critical factors to restrict the wide application of the oil based drilling fluids. In view of the technical difficulties with the oil-based drilling fluids technology, a highly efficient degreasing agent for cuttings and demulsifier formulations for waste oil was developed. As a wetting agent, degreasing agent could remove the oil by changing the surface wettability. The experimental results showed that the oil removal rate could reach 98.27% to prove that the promising degreasing effect. The type of the demulsifiers and compound proportion were determined through demulsification experiments to achieve the optimum oil recovery, as well as the optimum reaction temperature, reaction time, centrifugation speed and centrifugation time of the demulsifier formulations. Based on the results of this study, a preliminary field test was carried out in Yunyeping 1 well. Field test showed that the effects of degreasing agent CYJ-1 and demulsifier formulations were satisfactory. They had high processing efficiency, realized the based oil recycling, met the requirement of the solid phase emissions, and effectively reduced the drilling cost and environment pollution.