Abstract: The continuous exploitation of Liaohe Delta oil field leads to serious surface subsidence, which affects oil recovery ratio and oil production operation, and poses a threat to surface infrastructure and even ecological environment. In order to ensure oil and other underground fluid resources safety production, to protect the regional ecological environment. In this paper, we have improved the conventional SBAS-InSAR (small baseline subsets interferometric synthetic aperture radar) methodology by introducing phase coherence of the interferograms into the inverse problem. The surface deformation of Liaohe River Delta from 2017 to 2020 was obtained by processing Sentinel-1 images. Then we extracted the vertical and horizontal E-W deformation of Shuguang oilfield by decomposing and the fusion of Ascending and Descending data results. Finally, we carried out a model of reservoir compaction and deformation for ground subsidence inversion in Shuguang oilfield. The results show that:(1) There are ground deformation in Liaohe river delta region, and the subsidence is most obvious in Shuguang oilfield and Huanxiling oilfield. The average subsidence rate of line of sight (LOS) has reached 158 mm/y and 73 mm/y, respectively.(2) There are significant horizontal movement with the same value in E-W direction of Shuguang oilfield, which toward the center of subsidence area, the maximum horizontal movement rate has reached -62 mm/y (westward movement).(3) The reservoir compaction and subsidence model constructed based on reservoir parameters of Shuguang Oilfield can better invert the location of the maximum subsidence of the oilfield, the range and magnitude of subsidence are consistent with the InSAR observation results.