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The oilfield distribution network is decomposed into a series of "loops" according to its characteristic. Then the genetic algorithm based on loops is put forward, and it can improve the speed of convergence and avoid dimension disaster. The switch state of loop (0 or 1) is used as control parameter, and only the points besides the source points and T nodes are involved when chromosome is encoded, which makes the length of chromosome short. During the species formation, crossover and mutation, the method of lone-island and closed loop elimination are adopted to make the numbers of normal loop equal to that of distribution network Then the feasible solution of species can be obtained, and the hunting space is decreased also, all of that is propitious to improve the speed of calculation. Finally, the algorithm is used to reconfigure oilfield distribution network, the result shows that it is feasible and effective.