As to Chang 4+5 formation of special low-permeability Baiyushan reservoir in Ordos Basin reservoir, the hydraulic fracture distribution is not regular and difficult to predict. The method of traditional engineering geology and special logging, conventional well logging, micro facies research were combined. Through the stablishment of three-dimensional rock mass mechanics model of reservoir, the full length fracturing numerical simulation was carried out with the change of stress field. More accurate geometry parameters of fractures were got, stress interlayer insulation could be regarded as a kind of new development of geological property which would play an important role in fracture extension, then the development adjustment measures are put forward. The conclusion would provide an important scientific basis on decision-making efficiency in low permeability reservoir development and improve the residual oil recovery degree.