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In order to overcome the shortcoming of traditional methods of monitoring oil wells, a design of remote monitoring system based on ARM and GPRS was presented. And then the hardware and software design methods of RTU, system networking method and the design method of background monitoring center were detailed. Using GPRS module and relying on GPRS wireless network and Internet, RTU distributed in different geographic locations can communicate with the background monitoring center. This system broke through the geographical restrictions of oil wells, provided some functions such as oil wells' data collection, remote data transmission, real-time monitor and oil wells' information release, and improved the level of automation in oil production management. The experiment showed that the system could achieve the goal of real-time monitoring of oil wells by the existing mobile communication network.