To address the industry’s demand for sustainable oilfield development and safe production, it is crucial to enhance the scientific rigor and accuracy of monitoring ground stability and reservoir parameter inversion. For the above purposes, this paper proposes a technical solution that employs two-dimensional time-series ground deformation monitoring based on ascending and descending Interferometric Synthetic Aperture Radar (InSAR) technique first, and the composite dislocation model (CDM) is utilized to achieve high-precision reservoir parameter inversion. To validate the feasibility of this method, the Liaohe Oilfield is selected as a typical study area, and the Sentinel-1 ascending and descending Synthetic Aperture Radar (SAR) images obtained from January 2020 to December 2023 are utilized to acquire the ground deformation in various line of sight (LOS) directions based on Multitemporal Interferometric Synthetic Aperture Radar (MT-InSAR). Subsequently, by integrating the ascending and descending MT-InSAR observations, we solved for two-dimensional ground deformation, deriving a time series of vertical and east-west deformations. Furthermore, reservoir parameter inversion and modeling in the subsidence trough area were conducted using the CDM and nonlinear Bayesian inversion method. The experimental results indicate the presence of uneven subsidence troughs in the Shuguang and Huanxiling oilfields within the study area, with a continuous subsidence trend observed in recent years. Among them, the subsidence of the Shuguang oilfield is more significant and shows prominent characteristics of single-source center subsidence accompanied by centripetal horizontal displacement, the maximum vertical subsidence rate reaches 221 mm/yr, and the maximum eastward and westward deformation is more than 90 mm/yr. Supported by the two-dimensional deformation field, we conducted a comparative analysis between the Mogi, Ellipsoidal, and Okada models in terms of reservoir parameter inversion, model fitting efficacy, and residual distribution. The results confirmed that the CDM offers the best adaptability and highest accuracy in reservoir parameter inversion. The proposed technical methods and experimental results can provide valuable references for scientific planning and production safety assurance in related oilfields.