In the Junggar Basin, Tuha Basin, and Santanghu Basin of North Xinjiang, high oil production comes from the Middle Permian Lucaogou Formation (Figure 1). The oil-producing zone in the Lucaogou Formation in the Malang Sag of the Santanghu Basin is the hydrocarbon source rock, which has 1.38~11.90% TOC and 0.01–22.20m3/d oil production (Liang et al., 2012). The sediments that nor form the Middle Permian Lucaogou Formation of this area developed in extensive lacustrine systems. Permian is the early stage of the formation of Junggar Basin, which is the transitional period from geosyncline to platform. In the lacustrine environments affected by volcanic dusts in other Basins in North Xinjiang, there would be this typical source rock.

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