The extraction and collection of crude oil will result in the formation of numerous complex emulsions, which will not only decrease crude oil production, raise the cost of extraction and storage, and worsen pipeline equipment loss, but also seriously pollute the environment because the oil in the emulsion can fill soil pores, lower the soil’s permeability to air and water, and create an oil film on the water’s surface to prevent air–water contact. At present, a variety of demulsification technologies have been developed, such as physical, chemical, biological and other new emulsion breaking techniques, but due to the large content of colloid and asphaltene in many crude oils, resulting in the increased stability of their emulsions and oil–water interfacial tension, interfacial film, interfacial charge, crude oil viscosity, dispersion, and natural surfactants have an impact on the stability of crude oil emulsions. Therefore, the development of efficient, widely applicable, and environmentally friendly demulsification technologies for crude oil emulsions remains an important research direction in the field of crude oil development and application. This paper will start from the formation, classification and hazards of crude oil emulsion, and comprehensively summarize the development and application of demulsification technologies of crude oil emulsion. The demulsification mechanism of crude oil emulsion is further analyzed, and the problems of crude oil demulsification are pointed out, so as to provide a theoretical basis and technical support for the development and application of crude oil demulsification technology in the future.