International crude oil prices continued to fall and stimulate domestic refined oil prices continue to decline, China's oil refining enterprises are facing unprecedented pressure so that a suitable development strategy is essential for refiners. Selecting market, production, capital, performance strategy variables on the basis of the characteristics and status quo of China’s oil refining industry. By applying Clementine software, the state-owned oil refining enterprises can be divided into three strategic groups: ultimate, potential and pre-optimized oil refining enterprise based on K-means method. There are problems in the development of state-owned oil refining enterprise by analysis of features of different strategic groups. Some development strategies have been given for state-owned oil refining enterprise from the national level and enterprise level.