In response to the prevalent high water cut challenge in horizontal wells of the Bohai A Oilfield, this study introduces an innovative approach for pinpointing water production points in horizontal wells. The methodology leverages a comprehensive evaluation that integrates techniques such as curve identification, dynamic analysis, numerical simulation, and seepage model calculations. In conjunction, a novel hydraulic control-based balanced oil production process has been developed. This process utilizes a specialized water plugging string to effectively seal water production points in horizontal wells. Additionally, a hydraulic control system for horizontal well oil production has been implemented, facilitating staged extraction and thus achieving balance in oil production. Field application, particularly in Well X1, demonstrates a marked improvement post-implementation: the comprehensive water cut in Well X1 decreased from an initial 98.1% to 87.3%, and the production pressure differential escalated from 0.55 MPa to 2.01 MPa. This substantial enhancement in reservoir utilization indicates a notable reduction in water cut within the crude oil. The application of this balanced production technology in horizontal wells has led to a decrease in water cut and liquid production, significantly alleviating surface processing pressures. Consequently, there has been an improvement in well productivity and the overall development effectiveness of the oilfield. These findings suggest that the balanced oil production technique offers a promising solution for enhancing oil recovery in horizontal wells, particularly in fields grappling with high water cuts.