Based on an integrated analysis of such geological conditions as tectonic fracture characteristics, hydrocarbon source rocks, sedimentary reservoir strata and source-reservoir-cap rock in Yingdong area of Qaidam Basin, the authors have reached the conclusion that Yousha Hill and Yingdong No.1 structure in the shallow traps of Yingdong area have adequate oil sources and possess ideal source-reservoir-cap rock assemblage. Test drilling of Sha-33 and Sha-34 wells has access to oil and gas flow, suggesting eastward expansion tendency of the oil and gas reservoir.