The effect of oxygen for the HF chemical laser performance has been theoretically investigated. Due to the inhibition mechanism of $O_2$ in $H_2$/$F_2$ chain reaction, the rate for the formation of HF is reduced by the addition of $O_2$. As the concentration of $O_2$ in the reaction mixture increases, the pulse power and temperature of the system becomes lower, while total output energy does not change significantly. But addition of $O_2$ makes the system easy to be controlled and the composition of $H_2$+$F_2$ can be high at constant total pressure. With this system, it is possible to obtain higher output energy than oxygen free environment.