Severely deformed Permian oil shale is developed in the piedmont arc-shaped thrust fold zone in the northern slope of Bogda Mountain,with the occurring horizon in Lucaogou Formation in Mid-Permian. Vertically,the oil shale is more developed in upper Lucaogou Formation than in lower Lucaogou Formation, but the quality of the lower reservoir is better than the upper one.Laterally,the oil shale is most developed in Sangonghe area in Fukang County, with high oil content. Oil shale formations decrease gradually eastward and southward with reducing quality. Oil shale of Lucaogou Formation was formed in the semi-deep to deep epicontinental inshore lacustrine environment with high salinity, and is identified as excellent mid-matured to matured oil shale. The occurrences of oil shale are dominated by paper shale, laminar shale and sandy shale, with the paper shale having the best quality. By using volumetric method, it is estimated that the oil shale resources of Lucaogou Formation in the northern slope of Bogda Mountain is 652.39×108 t, with the technically recoverable resources of 226.5 × l08 t; the resources of shale oil of 54×108 t,with the technically recoverable resources of 18.8×lO8 t and recycled shale oil resource of 14. 1 × l08t. The oil shale in Sangonghe area is characterized by good quality, great thickness, shallow burial and rich potential resources of shale oil, therefore Sangonghe area is the preferred area for further exploration and development.
