In the production of gas cap edge water reservoirs, a phenomenon of mutual invasion by oil, gas, and water is observed, which leads to rapid production decline and increased development difficulty. In order to prevent the premature shutdown of production wells, it is necessary to clarify the characteristics of fluid interface migration and formulate a production system for the concurrent production of oil and gas. In this paper, the actual model and mechanism model of the gas cap edge water reservoir in Yue Dong Oilfield were established using reservoir numerical simulation methods. According to the energy intensity of gas cap and edge water, the oil and gas concurrent production area was divided into three types: edge water control area, gas cap control area and gas cap edge water joint control area. The risk of gas channeling, water flooding and oil invasion was comprehensively evaluated, and the migration characteristics of oil-gas and oil-water interface was defined and the migration velocity chart was formed. The results show that with the production, the gas cap expansion causes the oil-gas interface to migrate from the top of the reservoir to the oil well, while the edge water intrusion causes the oil-water interface to migrate from the bottom of the reservoir to the oil well and gas well. The oil well has the risk of gas channeling and water flooding, and the gas well has the risk of water flooding and oil invasion. The remaining oil is mainly distributed in the lower part of the gas cap and the high part between the wells. It is determined that the reasonable gas production rate in the gas cap and edge water reservoir of Yue Dong Oilfield is 6% ~ 8%. Based on the results of practical and theoretical research, this paper provides theoretical guidance for the concurrent and efficient production of oil and gas in gas cap edge water reservoir.