Abstract：Oil shale of the Luozigou basin is hosted in the 2nd Member of the Lower Cretaceous Dalazi Formation. It is buried at shallow depth with a gentle dip of strata and contains 3.51 to 14.37wt% of oil equivalent. Oil shale formed in a typical inland lake environments and contains many animal and plant fossils. Its genetic types are sapropel type(Ⅰmodel) and saprolite-sapropel type(Ⅱ1 model). The Dalazi Formation is a complete third-order sequence and the main oil shale beds, which have a high oil content and are persistent, formed in a transgressive systems tract (TST) and a highstand systems tract (HST). In a plan view, high-grade oil shale is located near the CK26, CK30, CK35 and CK40 holes and distributed in an E-W-trending strip. Vertically, a total of 29 oil shale beds are found, of which seven beds are extractable. Oil shale beds 2 and 3 occur as continuous and persistent beds with a high oil content. They have great economic value.