The comprehensive analyses of organic matter abundance, type and maturity of the hydrocarbon source rock in the Huhe Lake sag show that all the three kinds of source rocks have reached medium-good levels. By means of chemical kinetics method, the hydrocarbon-generating kinetics model of the parallel first-degree reaction is established, and then, the hydrocarbon-generating simulating experiments on dark mudstone and coal samples are separately carried out in study area. The results show that the well-developed source rocks in Huhe Lake Sag possess much better petroleum exploration potentials.