The study area is characterized by complex faulted block reservoir, where the crude oil contains paraffin with wax appearance point ranging from 35 to 58 °C. Severe wax deposition in the wellbore has significantly impacted the normal production of oil wells due to frequent mechanical wax removal operations. To solve such production issues, Downhole Heat Tracing System (DHTS) technology was proposed and introduced, which maintains the oil temperature between the wax appearance temperature and abnormal temperature, ensuring the normal flow of crude oil during the lifting process. Since 2018, DHTS has been successfully applied to 32 oil wells, and several oil producers severely affected by wax deposition have been restored to normal production. Among them, the outlet liquid temperature of 17 ESP wells increased by 10 °C, significantly extending the mechanical dewaxing cycle or eliminating the need for mechanical dewaxing; the outlet liquid temperature of 15 PCP wells increased by 8 °C, preventing pump stuck caused by untimely hot washing. To date, the application of this technology has generated an economic benefit of 10.45 M US dollars, with a cost–benefit ratio of 1:2.06. Moreover, DHTS also has several advantages, including lowering the operational risks during the rainy season, and eliminating environmental pollution. It holds great application prospects in similar projects both at home and abroad.